CBN Introduces Regulations for Dormant Accounts in Nigeria

The Central Bank of Nigeria (CBN) has established a regulatory framework to manage dormant accounts and unclaimed dividends, set to be implemented in 2024. This initiative aims to protect depositor interests and ensure that unclaimed balances are transferred to a trust fund managed by the CBN after a prolonged period of inactivity.

The guidelines specify that ownership rights of beneficiaries are retained, allowing them to reclaim eligible funds. The Securities and Exchange Commission (SEC) is also involved in strengthening investor protection measures, including a process for shareholders to search for outstanding dividends and submit relevant documentation.

Investors are encouraged to keep their investment records current and promptly update any changes in their contact or bank account details. The introduction of electronic dividend registration is expected to significantly reduce the risks associated with lost dividends and streamline the payment process directly to nominated bank accounts.