By Florish Obanor
The United Bank for Africa (UBA) has issued a significant update to customers, addressing the status of dormant and inactive accounts, in compliance with recent directives from the Central Bank of Nigeria (CBN). This follows the apex bank’s concerns over the susceptibility of inactive accounts to fraud and unauthorized access.
The CBN governor, Olayemi Cardoso, recently emphasized the potential risks of dormant accounts, stating that “if you leave accounts dormant in banks, they are sometimes more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money.” He further assured that the CBN’s updated policies aim to safeguard customer funds, with dormant accounts managed by the central bank until claimed by rightful owners.
What Defines a Dormant or Inactive Account?
According to UBA, accounts that show no transactions for six months will be classified as inactive. If this inactivity persists for an additional six months, they will transition to dormant status. This clarification aligns with CBN’s broader guidelines to ensure the proper management of unclaimed funds across financial institutions.
To maintain an account’s active status, UBA advises customers to perform at least one transaction using the UBA Mobile Banking App, Internet Banking, Leo, *919#, or by visiting any branch. The bank reiterated that customer funds remain secure and accessible as long as a minimum level of activity is maintained.
CBN’s Directive on Managing Dormant Accounts
The CBN recently released updated guidelines mandating banks to transfer funds from dormant accounts unclaimed for 10 years to the apex bank for safekeeping. These funds, estimated at around ₦20 trillion nationwide, are to be securely held and returned to rightful claimants alongside accrued interest upon verification. The directive forms part of CBN’s broader strategy to enhance financial system transparency and safeguard customer assets.
The revised policy is underpinned by Section 72 of the Banks and Other Financial Institutions Act (BOFIA) 2020. A circular issued by the CBN’s Financial Policy and Regulation Department highlighted the necessity of this policy, particularly in light of heightened digital fraud threats targeting idle accounts.
Insight on UBA Recent Financial Performance
In addition to addressing dormant accounts, UBA also reported impressive financial growth for the first half of 2024. The bank achieved a 39.6% increase in gross earnings, climbing from ₦981.77 billion in 2023 to ₦1.37 trillion as of June 2024. This performance underscores UBA’s resilience amidst Nigeria’s challenging economic landscape.
Customers are encouraged to remain proactive in managing their accounts to ensure continued access to their funds while supporting the financial system’s integrity.
