The number of closed bank accounts in Nigeria experienced a slight increase, with a 0.56 percent rise in July compared to June 2024. Specifically, the number of closed accounts reached 23.3 million in July, up from 23.17 million the previous month, according to data from the Nigerian Interbank Settlement System (NIBSS).
Despite this month-on-month (MoM) rise, a broader analysis of account closure trends from January to July 2024 reveals a 5.6 percent decline in the number of closed accounts. In January, 24.7 million accounts had been closed, but by July, this figure had dropped to 23.3 million.
Additionally, the data highlighted an upward trend in the number of active bank accounts. Between June and July 2024, active accounts grew by 2.4 percent, increasing from 225.53 million to 231.1 million. This rise in active accounts contrasts with the decline in dormant accounts.
The number of dormant bank accounts fell significantly in July, with a 7.6 percent drop from 20.57 million in June to 18.97 million in July. This reduction suggests increased account activity or the closure of previously dormant accounts.
It is important to recall that the Central Bank of Nigeria (CBN) had previously issued regulatory guidelines concerning the management of dormant accounts and unclaimed balances.
These guidelines, titled Guidelines on Management of Dormant Account, Accounts, Unclaimed Balances and Other Financial Assets In Banks And Other Financial Institutions in Nigeria, were designed to ensure that banks and financial institutions transfer unclaimed balances and funds in dormant accounts to the CBN.
Moreover, the CBN’s guidelines provided account owners and beneficiaries with a pathway to recover funds from dormant accounts, with a stipulated time frame of up to 10 years for recovery.
To facilitate this process, the CBN announced its intention to establish a dedicated office that will specifically manage dormant accounts and oversee unclaimed balances.
This initiative aims to streamline the recovery process and ensure proper management of dormant financial assets within the banking system.
These regulatory efforts are part of a broader strategy by the apex bank to enhance the transparency and efficiency of the financial sector, particularly in the handling of dormant funds and unclaimed balances.
With a growing number of active accounts and a declining number of dormant ones, the banking landscape in Nigeria is undergoing significant changes. The CBN’s proactive measures in managing dormant accounts are expected to further contribute to the stability and growth of the country’s banking sector.
