Cardoso’s Administrative Reform Unlocks Dormant Wealth
In a decisive administrative reform with far-reaching implications for financial inclusion and consumer convenience, Olayemi Cardoso has removed a long-standing procedural barrier that required Nigerians to obtain an affidavit before reactivating dormant bank accounts.
The policy shift by the Central Bank of Nigeria represents a pragmatic step toward modernising retail banking operations while restoring easier access to personal funds.
For years, customers seeking to reactivate inactive accounts faced the cumbersome requirement of securing a sworn affidavit, often from a court or legal office, to verify their identity and intent.
While originally designed as a safeguard against fraud, the process imposed unnecessary costs, delays, and administrative friction, particularly for low-income individuals and rural account holders.
Under the new directive, banks can now reactivate dormant accounts using standard verification procedures already embedded in Nigeria’s banking framework.
Customers simply confirm their identity through existing Know-Your-Customer (KYC) records and banking channels, eliminating the need for legal documentation. The result is a faster, more efficient pathway for individuals to regain access to their funds.
The reform reflects Cardoso’s broader institutional agenda, focusing on reducing operational inefficiencies in Nigeria’s financial system while strengthening public trust in banking institutions.
By removing a procedural hurdle that disproportionately affected ordinary depositors, the policy signals a shift toward customer-centric regulation within the Nigerian banking sector.
Economically, the implications extend beyond convenience. Nigeria’s banking system holds a significant volume of dormant accounts, often belonging to individuals who relocated, temporarily stopped using their accounts, or encountered bureaucratic obstacles when attempting to reactivate them. Simplifying the process could return billions of naira in idle balances back into active circulation, improving liquidity within the formal financial system.
For commercial banks, the change also reduces administrative overhead and legal verification costs tied to account reactivation. More importantly, it aligns operational practices with Nigeria’s ongoing push toward digital banking adoption and financial inclusion.
From a regulatory perspective, the move demonstrates a careful balancing act, intended to maintain robust anti-fraud safeguards while eliminating outdated processes that no longer reflect modern banking infrastructure.
In a financial environment increasingly driven by digital identity verification, the affidavit requirement had become an anachronism. Cardoso’s decision illustrates how targeted regulatory adjustments, often overlooked alongside large monetary policy shifts, can materially improve the everyday banking experience for millions of citizens.
In an economy where access, efficiency, and trust remain critical pillars of financial participation, this quiet reform may prove to be one of the most practical consumer-friendly measures introduced by the central bank in recent years. Treasury Bills Yield Climbs as Nigeria’s Inflation Slows
