Nigeria CBN to Invest Unclaimed Funds in Treasury Bills and Government Securities

The Central Bank of Nigeria (CBN) will invest unclaimed balances in Treasury Bills and government securities. The newly released guidelines mandate timely refunds to beneficiaries and define eligible accounts. The CBN will maintain a dedicated trust fund and publish lists of unclaimed balances to ensure transparency and compliance

The Central Bank of Nigeria (CBN) has announced its intention to utilize funds from unclaimed balances by investing them in Nigerian Treasury Bills (NTBs) and other government securities.

This plan is outlined in the newly issued “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria.”
According to these guidelines, the CBN will establish and oversee the “Unclaimed Balances Trust Fund (UBTF) Pool Account” to hold these unclaimed balances.

The guidelines specify that both the principal and any accrued interest from these investments must be returned to the rightful owners within ten working days of a request.

The CBN's responsibilities under these guidelines include opening and maintaining the UBTF Pool Account, keeping records of the beneficiaries, investing the funds in NTBs and other approved securities, and ensuring timely refunds to the beneficiaries.

In cases where an extension of the refund timeline is necessary, the requesting financial institution must be notified with reasons for the delay.

The guidelines aim to identify dormant accounts and unclaimed balances, reunite them with their owners, and manage these funds in trust.

Eligible accounts are those that have been inactive for ten years or more and include various account types such as current, savings, term deposits, domiciliary, and prepaid card accounts. Financial assets eligible for these guidelines also include proceeds from unclaimed financial instruments, salaries, wages, and bonuses. However, accounts under litigation, investigation, or those encumbered by liens or used as collateral are exempt.

The CBN will also be responsible for publishing lists of unclaimed balance owners and the procedures for reclaiming these funds on its website and through annual notices in three national newspapers.

Financial institutions must monitor inactive accounts, notify customers, protect these accounts from unauthorized use, and transfer eligible unclaimed balances to the UBTF Pool Account quarterly.

In the event of a financial institution's liquidation, the Nigeria Deposit Insurance Corporation (NDIC) will manage unclaimed balances in accordance with the guidelines, ensuring the protection of account owners' interests and compliance with regulatory standards.

Account owners must inform financial institutions of any personal information changes and provide proof of ownership when reclaiming their funds.