AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
In Nigeria, the next of kin on a bank account is a contact person, not an heir: a bank will not pay the balance to them just because their name is on the form. The money goes to whoever the will names, through executors who obtain probate, or, where there is no will, through administrators who obtain letters of administration; the bank releases funds to those legal representatives.
Many families find this out at a painful time. A spouse or child who is listed as next of kin goes to the branch with a death certificate, expecting the balance, and is told to come back with probate or letters of administration. That is the normal position, and it is not the bank being difficult.
Next of kin, beneficiary and heir are different things
| Term | What it means | Does it give a right to the money? |
|---|---|---|
| Next of kin (on the bank form) | A person the bank can contact in an emergency or on the customer's death | No |
| Beneficiary (in a will) | A person the will says should receive property | Yes, through the executor once probate is granted |
| 'Beneficiary' (in a banking app) | A saved recipient for transfers | No; it is only a payee list |
| Executor | A person named in a will to carry it out | Collects the money for the estate after probate |
| Administrator | A person appointed by the court where there is no will | Collects the money for the estate after letters of administration |
A Daily Trust explainer (10 December 2023) put it plainly: a next of kin is not automatically entitled to inherit, and a tier-one banker it quoted said no Nigerian framework recognises 'payable on death' instructions on accounts. The estate needs probate (where there is a will) or letters of administration (where there is none) before funds are released.
What the bank does when a customer dies
Once the bank learns of the death, it stops withdrawals. The law firm Templars, reviewing Court of Appeal decisions in November 2025, notes that the customer's death is one of the few cases where a bank may restrict an account without a court order, and that only duly appointed legal representatives may operate it afterwards (Diamond Bank v Unaka, 2019). That protects the estate from relatives, or strangers, who know the PIN.
How the money reaches the right people
If there is a will
The executors named in the will apply to the probate registry for a grant of probate. With it, they present themselves to the bank, which releases the funds to the estate. The executors then pay the beneficiaries the will names.
If there is no will
Family members apply for letters of administration. A Mondaq practical guide to the Lagos process (29 May 2024) lists the steps:
- Complete the online application and print and sign it, with an application letter and the fees.
- Provide the death certificate and details of the deceased's assets, including bank accounts.
- Obtain a certificate from each bank, endorsed by that bank, showing the account.
- Name at least two administrators, with two sureties who swear an affidavit of means.
- Attend an interview at the registry.
- Wait through a 21-day newspaper publication period for objections (caveats).
- Receive the grant after the registrar's and judge's review.
The same guide gives the order of priority for who may apply: spouse, children, parents, full siblings, half siblings, grandparents, uncles and aunts, then the Administrator-General and creditors. Being first in line to apply is not the same as being entitled to all the money; how the estate is shared depends on the law that applies to the deceased, which a lawyer will confirm. Estate fees are charged as a percentage of the estate's value; the guide does not give the rate, so ask the registry.
Common questions families face
- Small balances. Our sources do not describe any official small-estate exemption. Ask the bank whether it has an internal procedure.
- Joint accounts. The Daily Trust explainer notes its point does not cover joint accounts, and we found no CBN or statutory rule on survivorship. Ask the bank how the mandate was set up; joint or separate accounts covers the trade-offs for couples.
- Several banks. Each bank gives its own certificate, and each must see the grant.
- Dormant accounts. A dead customer's account may go dormant; the grant is still the key document.
Planning so your family is not stuck
Because the next-of-kin field does not pass money on, the practical protection is a will that names executors, kept somewhere your family can find it, and a simple list of every bank, fintech and savings product you hold. Without that list, executors or administrators may not know which institutions to ask for an endorsed certificate. Review the list when you open or close an account.
What to check first
- Is there a will, and who are the executors?
- Which banks and fintechs did the deceased use? Look at phone alerts, emails and papers.
- Do you have the death certificate and the deceased's ID?
- Have you told each bank in writing, so the account is protected?
For the step-by-step claim, see claiming a dead relative's bank account and a deceased account with no will. For how restrictions work in general, hold, PND or freeze explains the terms.
Questions people ask
Does next of kin inherit bank money in Nigeria?
No. A next of kin is a contact. The money passes under a will through executors with probate, or without a will through administrators with letters of administration.
Can a bank pay a deceased's money to the next of kin?
Banks generally release funds only to legal representatives holding a grant. Templars notes only duly appointed representatives may operate the account after death.
How do I get letters of administration in Lagos?
Apply online, provide the death certificate and asset details, get each bank's endorsed certificate, name two administrators and two sureties, attend an interview and wait 21 days for caveats.
Is 'beneficiary' in my banking app the same as an heir?
No. In an app, a beneficiary is a saved transfer recipient. It gives no right to the account when you die.
Sources
- Daily Trust: Why next of kin cannot access a deceased's inheritance (10 Dec 2023) · accessed Oct 2026
- Mondaq: Issuance of letters of administration in Nigeria – a practical approach (29 May 2024) · accessed Oct 2026
- Templars: Freezing Bank Accounts in Nigeria – Emerging Judicial Trends (19 Nov 2025) · 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.