EXPLAINER: How CBN’s New Policy on Dormant Accounts Affects Nigerians

By Lawal Dahiru Mamman,

Some persons have received phone calls or text messages about bank accounts they have not operated in a while, leading them to provide sensitive information that has compromised their finances. Many fall into this trap because of the stress associated with visiting banks.

For decades, our banking system has been notorious for its strenuous bureaucratic hurdles and one of the most frustrating of these was the requirement that customers present a sworn affidavit before reactivating dormant accounts.

It was a rule that seemed designed more to restrict access than to safeguard funds. With the Central Bank of Nigeria’s (CBN) recent decision to abolish the affidavit requirement, Nigerians may be witnessing a genuine moment of regulatory reform that directly benefits ordinary citizens, unlike things in the circle of complex forex reforms that many have struggled to understand.

Without doubt, reactivating dormant accounts have been a thorn in the side of customers. Many Nigerians, especially those in rural areas or those who migrated abroad, found themselves locked out of their own money simply because they had not operated their accounts for a period of time.

The affidavit requirement added salt to injury as customers had to ‘travel’ to a court, pay fees, and endure delays and bureaucratic red tape. Little wonder that dormant accounts in Nigeria rose to over 19.69 million in February, 2025 according to the CBN.

For pensioners, low income earners, or those living far from urban centers, this was a huge inconvenience, barrier to financial inclusion. In practice, it meant that countless Nigerians left their money inaccessible, while banks quietly benefited from holding idle funds.

This new directive means access has been simplified. Customers can now reactivate dormant accounts with standard verification processes, sparing them the ordeal of legal paperwork. Also, no more affidavit fees, which disproportionately burdened the less privilege.

Nigerians often view banks as hostile gatekeepers, this reform could just be a shift toward customer-centric regulation, and the requirement for banks to publish dormant account details annually ensures accountability and compliance with data protection laws.

It is worth noting that safeguards remain in place. Enhanced due diligence will still be applied, and accounts already transferred to the Unclaimed Balances Trust Fund (UBTF) will continue to require affidavits. This balance between accessibility and security is crucial.

Broader implication is that this move signals a deliberate push by the CBN to modernise the financial system by cutting unnecessary red tape and promoting financial inclusion, particularly for marginalised groups. This aligns with global practices that prioritise customer verification over legalistic hurdles, while also strengthening consumer confidence which is an essential ingredient for a banking system often plagued by mistrust.

Affidavit requirement was a relic of a bygone era, an era when bureaucracy was mistaken for security. Its removal is a victory for ordinary Nigerians who simply want access to their own money without unnecessary obstacles.

The CBN’s decision is not yet perfect. Questions remain about how banks will handle disclosures and whether enhanced due diligence will be applied fairly but the scales have tipped in favour of customer. And in a country where financial institutions often seem indifferent to the struggles of everyday customers, that decision is no small achievement.