As the deadline for all accounts and wallets to have a Bank Verification Number (BVN) or National Identity Number (NIN) draws near there are reports that
millions of bank accounts risk being blocked
Recall that on December 1, 2023, the Central Bank of Nigeria, CBN had issued a circular to all commercial, merchant, non-interest, payment service banks, other financial institutions, and mobile money operators, directing that the BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.
The circular said that effective March 1, 2024, all funded accounts or wallets without BVN or NIN shall be placed on ‘Post No Debit or Credit’ and no further transactions would be permitted.
According to a 2023 report by Enhancing Financial Innovation and Access (EFInA), 52 percent (28 million) of unbanked adults have an NIN, and 5 percent (3 million) of banked adults are without a BVN or NIN.
The total number of bank accounts in the country as of 2021 was 191.4 million, out of which 133.5 were actively in use, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).
The latest data from the NIBSS showed that the banking industry recorded a 59.96 million BVN count as of December 18, 2023.
The use of a combination of bank, non-bank, and informal mechanisms to manage financial needs has doubled to 20 percent in 2023 from 10 percent in 2020, according to EFInA.
A month after the circular was issued and published, BusinessDay visited some bank halls, spoke with some customers, and observed low compliance with the directive.
“There has been no rush by customers whose accounts have no BVN or NIN. I don’t think customers are informed. If they knew, there would have been a rush by now,” a bank branch manager who preferred to remain anonymous said.
A customer experience officer at Sterling Bank said the directive may not apply to many of their customers because most accounts had already been linked to a BVN.
“It is not a new injunction. Even before now, you can’t open an account without creating a BVN; the account will be blocked. If a customer opens an account online, they still need to come and create a BVN,” said the officer, who asked to be identified as Sophie.
A UBA bank officer said customers often visit bank branches located around markets to create BVNs for their existing accounts. “There has been an influx of customers, especially to market branches like Addo and Sangotedo, to link their accounts to a BVN.”
The CBN’s directive is part of its efforts to promote financial system stability by strengthening the Know Your Customer (KYC) procedures in financial institutions.
