Next of Kin, POD: Badagry-Born Financial Expert, Nunoni Balogun Wades In, Clarifies Misconceptions on Deceased Funds Beneficiaries in Banks

By Peter Dansu  In recent days, a heated debate has emerged on social media concerning the true rights of a “next of kin” in accessing fund...

By Peter Dansu 

In recent days, a heated debate has emerged on social media concerning the true rights of a “next of kin” in accessing funds left behind in a deceased person’s bank account. The conversation gained traction after a viral post by a social commentator, Mr. Ofade Mawutin, suggested that Nigerians should insist on filling a "Payable on Death" (POD) form with their banks instead of merely designating a next of kin.

Mr. Mawutin, in his post dated August 16, 2025, argued that naming a next of kin is “useless” in Nigerian banking practice since the person so named cannot automatically access funds after the account holder’s demise. He claimed that banks only recognize a POD form, which allows designated beneficiaries to access funds upon presentation of a death certificate—thereby bypassing lengthy probate procedures.

However, this position has now been corrected by financial experts, including Mr. Nunoni Monday Balogun, a Badagry-born financial specialist and Business Manager with First Bank Nigeria Limited. Responding to the viral post on Facebook, Mr. Balogun categorically stated that there is no such thing as a POD form in Nigeria’s banking system.

“I quite agree that the next of kin does not automatically grant access to the funds in a deceased person’s account. However, there is nothing like a POD form in Nigerian banking practice. The only legally recognized document that can give you access to such funds is a Letter of Administration, obtainable from a court of law,” he explained.

Expanding on his clarification via a follow-up post on his timeline, Balogun emphasized that while the next of kin remains a point of contact, they are not the legal heir to a deceased’s estate unless otherwise determined by law.

What Is a Letter of Administration?

A Letter of Administration is a legal document issued by a probate court, granting an individual authority to manage and distribute the estate of someone who dies intestate (without leaving a will). The document empowers the administrator to:

• Collect and safeguard the deceased’s assets.

• Pay outstanding debts and liabilities.

• Distribute the remaining assets to legitimate beneficiaries in accordance with Nigerian inheritance laws.

This legal framework is necessary because, without a valid will, no individual—including a next of kin—can automatically claim ownership of the deceased’s funds or property. Instead, the court ensures a lawful and orderly distribution of assets.

Key Distinctions

• Next of Kin: Serves as a contact person, but does not automatically inherit or gain access to bank accounts.

• Probate: Applies when the deceased leaves a valid will, with the court validating and enforcing its provisions.

• Letter of Administration: Applies when there is no will, ensuring that assets are distributed lawfully among surviving family members.

Why the Clarification Matters

The viral misconception underscores a larger issue of financial literacy in Nigeria, where many citizens mistakenly believe that simply naming a next of kin guarantees inheritance. By clarifying this, Mr. Balogun not only corrected a misleading financial claim but also urged Nigerians to seek proper legal guidance in matters of estate planning.

Experts further advise that Nigerians should consider preparing valid wills to ease the burden on their families, reduce legal costs, and ensure smooth transfer of assets after death.

In the words of Balogun: “There is nothing like Payable on Death in Nigerian banking. If your loved one passes away, the only legal route to access their funds is through the court-issued Letter of Administration.”