Home Business Nigeria MPs hold public hearing on management of inactive accounts

Nigeria MPs hold public hearing on management of inactive accounts

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Economic and financial experts have given their nod to a proposed constitutional amendment seeking to establish a deposit fund for the management of dormant accounts.

At a public hearing organised by the House of Reps Committee on Banking and Currency, the Central Bank of Nigeria and the NDIC battled for the control of the proposed fund.

National Assembly Correspondent, Joke Adisa reports that what constitutes a dormant account and what happens to it after many years of inactivity? Who should be in custody of all dormant accounts in Nigeria are some of the questions the Committee on Banking and Currency seek to find answers to as it engages stakeholders on the proposed establishment of a deposit fund for the management of dormant accounts in the country.

The Central Bank of Nigeria, CBN, and the Nigeria Deposit Insurance Corporation, NDIC, are in support of the planned amendment to the law establishing the Banks and Other Financial Institutions, BOFIA, on dormant
accounts.

But they object to specified areas in the proposed amendment.

With inputs from the critical stakeholders, the Committee formally repealed the Act establishing the defunct Peoples Bank of Nigeria.

And after listening to all submissions, the legislators carpeted Nigerian banks including the CBN for capitalising on the loopholes in the BOFIA to shortchange the system.

The legislators assured all seated that the BOFIA Act will be amended in the next few months.

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