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The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has expressed concern that funds in dormant accounts in banks are vulnerable to fraud.
He made this statement during the 296th meeting of the Monetary Policy Committee in Abuja where he also announced an increase in the benchmark interest rate to 26.75 per cent.
The CBN has instructed financial institutions under its supervision to transfer funds from dormant accounts, unclaimed balances, and other financial assets to the apex bank for safekeeping.
This move aims to identify dormant accounts and unclaimed balances, hold the funds in trust for the rightful owners, standardise the management of such accounts, and establish a procedure for reclaiming the funds.
During the MPC meeting, Cardoso highlighted the risk of leaving accounts dormant in banks, stating that they are often more susceptible to fraud.
He said the policy and directive were designed to ensure that the funds are safely held by the central bank at no cost to the beneficiaries.
Cardoso said the CBN would manage the funds and return them with any accrued income when the rightful owner claims them.
Additionally, the MPC members emphasized the need for a clear exit strategy regarding the recent duty waiver for food imports.
