The Central Bank of Nigeria’s (CBN) directive to restrict accounts without Bank Verification Numbers (BVN) and National Identification Numbers (NIN) poses a significant threat to over 70 million bank customers who risk losing access to their accounts.
The directive, issued on December 1, 2023, mandates a ‘Post No Debit’ restriction on all accounts without BVN and NIN starting from March 1, 2024.
‘Post No Debit’ is a measure freezing accounts, preventing withdrawals, transfers, or any debits, rendering funds inaccessible. The circular, jointly signed by Chibuzo Efobi and Haruna Mustapha, directors at CBN, mandates individuals with Tier-1 bank accounts to have BVN and/or NIN, with a revalidation deadline of January 31, 2024.
Banks have issued warnings, urging customers to update their account information. FirstBank, Ecobank, and Fintech firm OPay have communicated the urgency, offering both physical and online solutions for compliance.
A Tier-1 account, with minimal documentation requirements, has a deposit limit of N50,000 and an operating balance of N200,000. Fintech dominance in this sector raises concerns about lax Know Your Customer (KYC) requirements and potential fraud.
The National President of the Association of Mobile Money and Bank Agents, Sarafadeen Fasasi, called for an extension, citing challenges in NIN availability and BVN enrollment capacity. He expressed concerns about the rush and its impact on over 70 million affected accounts.
Despite the looming deadline, some bankers suggest that banks have not yet started restricting accounts without BVN and NIN. Directives from headquarters aim for a seamless linking process to avoid account deactivation. Banks are reaching out to customers via email and text for compliance.
Consumer advocacy groups, including the Bank Customers Association of Nigeria, have called for an extension, considering challenges such as power outages and telecom network issues affecting the linkage process. Suggestions include a test run of temporary restrictions to sensitize customers.
As the deadline approaches, customers have besieged bank branches, seeking compliance with the CBN directive. Calls for an extension and concerns about infrastructure readiness highlight the need for a measured approach to avoid disrupting the banking system and disenfranchising customers.
