The summary: “The Central Bank of Nigeria (CBN) has announced its plan to harvest funds from unclaimed balances, dividends and dormant accounts, potentially putting them in Nigerian Treasury Bills (NTBs) and other government securities. This announcement comes as part of the newly released “Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,” which aims to standardize the handling of dormant accounts and unclaimed financial assets.”
Good People, this is a good policy. Nigerians should support the apex bank even though some people are distorting this policy, positing that the government wants to hijack people’s money. That is not true.
(The government noted that it would return the funds if later the owner comes up. Sure, I get the concern on the capacity of the Nigerian government to make the owner whole. Yet, that is not the real issue here as the risk there cannot be compared to the huge benefit of this policy. In other words, the benefits are clear and outweigh the risks.)
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First, a dormant account of ten years is not being hijacked. Banks are smart, they will do everything possible to check on with the customer before the 10-year deadline, because no bank would like to lose deposits for the government. In other words, this policy will make banks check on with their customers at least from the 9th year!
But where the bank is unable to get in contact with the customer in all forms, would you prefer the bank to keep that money or the government? Today, banks keep the funds, and most are stolen and illegally converted by bad actors in banks. In all developed economies, such funds are warehoused with the national treasury if the bank cannot establish contacts with the customer or next of kin or any beneficiary via the national ID.
In Nigeria, many people die and their spouses do not even know they have bank accounts. This will force banks to disclose owners of the accounts as they are being transferred to the federal government. The next level of advocacy is for the government to make that data public with original addresses/contacts used.
That man called “Eze-ego” (king of money) has died and within years, his family is begging for food, because Eze-ego opened bank accounts no one knew about, and when he died, the banks did not reach the family on the pretense of “privacy” and wishes of our clients. Nonsense. With this policy, if the bank does not want the balance sent to the government, it must reach the family so that the account does not go dormant.
I have been pushing for this policy and today, I commend Yemi Cardoso, the CBN Governor, for this policy. This is an A+ policy making. It must be put in the books in the National Assembly, not just a circular so that one crazy future Governor does not change it.
Remember #1 Rule for informally structured traders and business owners: keep records of bank accounts, share certificates, etc and make sure spouses and kids know what you are doing since there is hardly any formal business structure!
On this being a hijacking: Imagine if you support your thesis with a reason. Someone is a thief here – either the bank or the government. The victim is that dead man who left N10m and the wife is begging for N100k to support the kids. Tell me why this is a theft when the government noted that it would return the funds in 10 days or so if the owner resurfaces. Dropping political correctness is nonsense because you are not bolder than Ndubuisi, but one thing is clear – I have no agenda, I make my calls irrespective of how anyone feels. Tell me why this is a “theft”
On lack of disclosure: At least under the whistleblower policy, someone is open to jail time. Be the head responsible and hide it, some good persons can disclose and that is it. Making it a law means someone thinks before playing with the bank lords. That is the issue here – you do not beg them!
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Any money no one comes forward to claim belongs to the government. It is that simple. The only thing we expect from government officials is not to become the final thief, else it would amount to stealing from a potential thief.
Banks cannot maintain dormant funds forever, that is also stealing. Since the government is the only entity that can legitimately use force, it’s only logical that any money without an owner becomes government money, until a legitimate beneficiary emerges.
Everything belongs to the government until someone lays claim, that is why there is government to begin with. Government is the ultimate trustee for the people, if you don’t like the faces of those representing government, change them, anything else is cynicism.