Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has highlighted the vulnerability of dormant bank accounts to fraud. This warning came during the 296th meeting of the Monetary Policy Committee (MPC) in Abuja, where he also announced an increase in the benchmark interest rate to 26.75 percent.
Recently, the CBN instructed financial institutions to transfer funds from dormant accounts, unclaimed balances, and other financial assets to its custody for safekeeping. The aim is to reunite these funds with their rightful owners, standardize the management of dormant accounts, and establish procedures for reclaiming these funds.
Cardoso stated, “Dormant accounts in banks are often targets for fraudsters who attempt to steal identities and access these funds. This policy ensures these funds are kept safe at the central bank and returned to the rightful owners along with any accrued income.”
During the MPC meeting, Cardoso also addressed the recently announced duty waiver for food imports. He emphasized the necessity of a clear exit strategy to prevent undermining domestic food production gains. The 150-day duty-free import window for food commodities aims to moderate domestic food prices without causing further inflation.
Additionally, Cardoso discussed Nigeria’s economic outlook, noting a 2.98 percent GDP growth in the first quarter of 2024 and a projected 3.38 percent growth for the year, while the IMF projects a 3.1 percent growth. As of July 18, 2024, Nigeria’s external reserves stood at $37.05 billion, providing 11 months of import cover.
However, analysts at Afrinvest expressed skepticism about the CBN’s optimism regarding the duty-free import window’s impact on food prices. They noted that without addressing high logistics costs driven by energy prices and insecurity, the policy’s effects might be short-lived. They also highlighted the absence of a formal monitoring model to ensure fair pricing of imported food items across the country.
