20/07/2026
Should Nigeria Introduce Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts?
As a Chartered Banker, I believe it is time for Nigeria to begin a serious conversation on modernizing estate administration through the introduction of Payable-on-Death (POD) and Transfer-on-Death (TOD) account structures.
In several developed jurisdictions, account holders can designate beneficiaries who automatically receive funds or investment assets upon the owner's death, without the lengthy probate process. This provides certainty, speed, and financial relief for grieving families.
In Nigeria, however, POD and TOD are not currently standard features of bank accounts. Upon the death of an account holder, financial institutions generally require Probate, Letters of Administration, or other legal authorizations before releasing funds, regardless of who is listed as the next of kin. It is important to note that a next of kin is not automatically a beneficiary of a deceased person's bank account.
A carefully designed and well-regulated POD/TOD framework could deliver significant benefits by:
• Reducing delays in accessing legitimate funds after death.
• Lowering the cost and complexity of estate administration.
• Reducing the volume of dormant and unclaimed funds.
• Providing financial stability for surviving spouses, children, and dependants during difficult periods.
• Enhancing public confidence in the financial system through more efficient succession planning.
Such a framework would require strong legal backing, robust customer verification, fraud prevention measures, and clear regulatory oversight by the relevant authorities. However, these challenges are not insurmountable and should not prevent Nigeria from exploring a system that has delivered positive outcomes elsewhere.
As our financial system continues to evolve, innovations should not be limited to digital payments and financial inclusion alone. They should also address how wealth is preserved and transferred across generations with dignity, efficiency, and legal certainty.
Perhaps the time has come for policymakers, regulators, financial institutions, legal practitioners, and estate planning professionals to begin a national conversation on whether a Nigerian version of POD and TOD accounts should become part of our banking landscape.
What are your thoughts? Should Nigeria adopt a regulated POD/TOD framework to improve estate administration?
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Richard Chukwunagorom (Chartered Banker, Certified Agency Banker, Financial Inclusion Strategist, Certified Financial Literacy Trainer and Researcher in Development Finance)
