The rise in dormant accounts in Nigeria’s banking sector is notable, especially with over 19.69 million accounts remaining inactive by the end of 2024. The trend shows a steady increase throughout the year, peaking at 20.57 million in May and June before slightly declining in the second half of the year. This surge likely reflects a variety of factors, such as limited access to banking services, reduced use of certain accounts, or a lack of awareness about account activity requirements.
The Central Bank of Nigeria’s (CBN) directive for banks to disclose dormant accounts and unclaimed balances appears to be part of a broader effort to address financial transparency and accountability. By requiring banks to report on these dormant accounts, the CBN may be aiming to reduce financial stagnation and improve the flow of resources within the economy.
It will be interesting to see how this policy impacts the sector in the long term. There might also be potential for banks to actively engage with customers with dormant accounts, offering ways to reactivate or consolidate accounts to boost financial inclusion. What are your thoughts on the CBN’s renewed approach?
