By Frank Ulom
ABUJA (CONVERSEER) – The Central Bank of Nigeria (CBN) has revised its regulatory framework on dormant bank accounts, removing the requirement for affidavits in account reactivation, while introducing stricter controls across digital banking and identity verification systems.
The changes were contained in a series of circulars dated March 12, 2026, and issued to banks, financial institutions and payment service providers nationwide.
Affidavit Requirement Removed
In a key amendment, the apex bank announced the removal of the mandatory affidavit previously required for customers seeking to reactivate dormant accounts.
According to the CBN, the decision followed engagements with stakeholders and is aimed at simplifying access to funds while maintaining safeguards within the financial system.
The circular stated that the bank had “rescinded the requirement under Section 8.0(ii) for the mandatory use of affidavits in the reactivation of dormant accounts.”
However, the regulator emphasised that financial institutions must continue to carry out enhanced due diligence.
“Notwithstanding this rescission, banks and other financial institutions shall continue to apply enhanced due diligence by implementing robust safeguards to verify the accuracy and authenticity of customer information during dormant account reactivation,” the CBN said.
The bank clarified that the new rule applies only to dormant accounts that have not been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account.
“For the avoidance of doubt, affidavits are no longer required for reactivating dormant accounts that have not been transferred to the UBTF Pool Account,” the circular added.
It noted that customers seeking to reclaim funds already transferred to the UBTF must still provide affidavits.
“This rescission does not extend to the reclaiming of funds already transferred to the UBTF Pool Account, where affidavits remain mandatory,” it stated.
Mandatory Disclosure of Dormant Accounts
Under the revised framework, financial institutions are now required to publicly disclose details of dormant accounts and unclaimed balances.
The CBN directed that specific information be published on banks’ official websites, including names of authorised account holders, account types, financial institution names, and branch locations.
“All banks and other financial institutions shall only publish the following information concerning dormant accounts not yet transferred to the UBTF Pool Account and unclaimed balances already transferred to the UBTF Pool Account on their operational websites,” the circular stated.
Institutions without active websites are to publish such details on the platforms of their respective industry associations.
Additionally, banks must publish the information annually in at least two national daily newspapers. Where listings exceed two pages, a summary notice directing customers to a dedicated webpage is permitted.
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State and unit microfinance banks are exempted from newspaper publication but must display the information at their business premises.
The apex bank maintained that the disclosure directive complies with the Nigeria Data Protection Act and is backed by provisions of the Banks and Other Financial Institutions Act.
New Controls for Instant Payments
In a separate directive, the CBN introduced new operational standards for instant payment services aimed at reducing fraud and enhancing customer protection.
Under the rules, customers can now opt out of instant transfer services for a specified period. Once activated, the restriction prevents electronic transfers, although transactions can still be conducted at bank branches.
The CBN stated that the opt-in and opt-out processes must be secured באמצעות multi-factor authentication.
Customers will also be allowed to set personalised transaction limits below the regulatory caps of N25 million for individuals and N250 million for corporate accounts.
Financial institutions are required to subject any changes to transaction limits to enhanced verification and risk assessment procedures.
The regulator further mandated the deployment of real-time fraud monitoring systems capable of tracking both incoming and outgoing transactions.
Stronger Digital and Mobile Banking Security
The new framework introduces stricter identity verification measures for online banking services.
The CBN directed that all accounts opened digitally must undergo “liveliness checks” and real-time validation against national identity and Bank Verification Number (BVN) databases.
Banks are also required to implement additional authentication tools such as biometric verification and token-based security before reactivating accounts online.
In a significant change, mobile banking applications will now be restricted to one device per user at a time. Any switch to a new device must undergo fresh authentication and reactivation.
The apex bank also imposed temporary transaction limits on newly activated mobile banking applications, capping transfers at N20,000 within the first 24 hours.
Additional authentication checks will also be required for first-time logins on new devices via internet banking platforms.
The new instant payment rules are scheduled to take effect from July 1, 2026.
BVN Framework Revised
The CBN also announced amendments to the BVN regulatory framework to strengthen fraud detection and identity management.
Under the new rules, financial institutions are authorised to place a BVN on a temporary watchlist for up to 24 hours if it is suspected to be linked to fraudulent activity.
During this period, the account holder will be contacted to provide clarification.
The regulator introduced a minimum age requirement of 18 years for BVN enrolment and restricted customers to a one-time change of phone number linked to their BVN.
Access to the BVN database will now be limited strictly to CBN-licensed financial institutions, with exceptions granted only under legally defined circumstances.
The revised BVN guidelines will take effect from May 1, 2026.
Implementation
The CBN stated that the new directives supersede its earlier circular issued on February 17, 2025, and take immediate effect where applicable.
