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The short answer
When the owner of a Nigerian fixed deposit dies, the bank freezes it once notified and releases the money only to the people the court authorises: executors named in a proved will (through probate), or administrators appointed through letters of administration if there is no will. Being named next of kin on the account does not by itself entitle anyone to the funds.
A fixed deposit is often a family's largest liquid asset, and it is also one of the first things relatives try to reach after a death. Many are surprised to find the bank will not pay the next of kin. This article explains why, what the legal route looks like, what the bank will ask for, and what the depositor can do while alive to make it easier.
Next of kin is not an heir
Banks collect a next-of-kin name at account opening as a contact, not as a beneficiary. A Daily Trust explainer (10 December 2023) puts it plainly: the next of kin is not automatically entitled to inherit, and a tier-one banker it quoted said no Nigerian framework recognises a payable-on-death instruction on bank accounts. The estate first needs either probate, where there is a will, or letters of administration, where there is none, before funds are released.
- Next of kin
- A contact person the bank may call; no automatic right to the money.
- Executor
- Person named in a will to administer the estate; acts after probate is granted.
- Administrator
- Person appointed by the probate registry when there is no will; acts under letters of administration.
- Beneficiary
- Person entitled to a share of the estate under the will or the rules of intestacy.
What happens to the deposit itself
Once the bank is told of the death, usually with a death certificate, it typically places a restriction on the deceased's accounts so that nothing leaves them. What happens to a fixed deposit that reaches maturity during that period depends on the instructions on the deal: if it was set to roll over, it may roll over; if it was set to pay out, the proceeds usually move into the deceased's restricted account. Interest earned is part of the estate. Ask the bank in writing how it is treating the deposit and request a balance confirmation, because the administrators will need it.
The letters of administration route
Procedure differs by state, and Lagos is among the best documented. A practical guide by Tope Adebayo LP on Mondaq (29 May 2024) describes the Lagos process roughly as follows:
- Complete the online application, print and sign it, and file it with a letter, the death certificate and the applicable fees.
- List the estate: bank accounts, shares and property. Each bank holding money for the deceased endorses a certificate confirming the balance.
- At least two administrators are proposed, supported by two sureties who swear an affidavit of means.
- The applicants attend an interview at the probate registry.
- The application is published in a newspaper for 21 days so that anyone with an objection can enter a caveat.
- After review by the registrar and judge, the letters are issued.
The same guide says estate fees are charged as a percentage of the estate's value but does not give the percentage, and it gives no overall timeline. Apart from the fixed 21-day publication period, how long it takes depends on the registry's workload, whether documents are complete and whether anyone objects. Families should plan for months rather than weeks and confirm current fees with the registry or a lawyer.
Who can apply
The Mondaq guide lists an order of priority for administrators: surviving spouse, children, parents, full siblings, half siblings, grandparents, uncles and aunts, then the Administrator-General and creditors. Being first in that order makes you eligible to apply, not entitled to keep the money; administrators hold it for the beneficiaries.
When there is a will
If the deceased left a valid will, the named executors apply for a grant of probate instead. The bank still needs to see the grant before it releases the deposit to the executors, who then distribute it according to the will. A will does not skip the court step, but it usually removes disputes about who should act.
What a depositor can do now
- Write a will that names executors and says who gets what, and tell the executors where it is kept.
- Keep a list of every bank, account and fixed deposit, with the deal slip or certificate. See what a fixed deposit certificate is.
- Set maturity instructions you would be comfortable with if no one can act for months.
- Ask your bank how it treats joint deposits on death before you open one; see joint fixed deposits, because survivorship is not something we could confirm in any Nigerian rule.
- Keep balances within NDIC cover where you can; the NDIC's FAQ gives ₦5,000,000 per depositor at deposit money banks and ₦2,000,000 at microfinance banks.
Where Pryme fits
The same principle applies to money in a Pryme Box: naira deposits are held by Solid Allianze Microfinance Bank, and an estate would follow the same legal process. What helps families is a clear record. Any Pryme customer can generate a verifiable statement through VerifyDoc.ai that anyone can check is genuine and unaltered, which is useful when listing assets for the registry. See receipts and statements and Savings Boxes.
Questions people ask
Can next of kin withdraw money from a dead person's account in Nigeria?
Not on that basis alone. Next of kin is a contact, not an heir. The bank releases funds to executors with probate or administrators with letters of administration.
How long does it take to get letters of administration in Lagos?
There is no official overall timeline. The process includes a 21-day newspaper publication period for objections, plus filing, an interview and review, so families should expect months.
What happens to a fixed deposit that matures after the owner dies?
It follows the maturity instruction on the deal, rolling over or paying into the deceased's account, which stays restricted. Interest earned belongs to the estate.
Does a will mean the bank pays out faster?
A will still needs a grant of probate before the bank pays the executors, but it usually reduces disputes about who should act and who benefits.
Sources
- Daily Trust: Explainer, why next of kin cannot access a deceased's inheritance (10 Dec 2023) · accessed Oct 2026
- Mondaq (Tope Adebayo LP): Issuance of letters of administration in Nigeria, a practical approach (29 May 2024) · accessed Oct 2026
- NDIC: Frequently asked questions · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.