By Sodiq Adelakun
As the deadline approaches for all bank accounts and wallets in Nigeria to have a Bank Verification Number (BVN) or National Identity Number (NIN), there is a risk that millions of accounts could be blocked.
The Central Bank of Nigeria (CBN) issued a circular on December 1, 2023, directing all financial institutions and mobile money operators to electronically revalidate the BVN or NIN attached to accounts by January 31, 2024.
Nigeria’s Central Bank has issued a circular stating that from March 1, 2024, any funded accounts or wallets without a Bank Verification Number (BVN) or National Identification Number (NIN) will be placed on ‘Post No Debit or Credit’ status, meaning no further transactions will be allowed. The move aims to ensure proper identification and verification of account holders.
As of 2023, 52 percent of unbanked adults in Nigeria have an NIN, while 5 percent of banked adults do not have a BVN or NIN.
There were a total of 191.4 million bank accounts in the country as of 2021, with 133.5 million actively in use.
The most recent data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that as of December 18, 2023, there were 59.96 million BVNs registered in the banking industry.
The use of a combination of bank, non-bank, and informal financial mechanisms has also increased, with 20 percent of Nigerians utilizing these methods in 2023, compared to 10 percent in 2020, according to Enhancing Financial Innovation and Access (EFInA).