The registration for Bank Verification Number (BVN) soared to 60.49 million as of January 26, 2024, with banks issuing a total of 291,232 new BVNs in the last two weeks.
This spike, revealed in the latest data from the Nigeria Inter-Bank Settlement System (NIBSS), comes amidst the looming deadline set by the Central Bank of Nigeria (CBN) to freeze accounts without BVN.
Following the CBN’s directive that all bank accounts without BVN would be frozen from April 2024, Nigerians are rushing to obtain the BVN.
The apex bank also mandated the revalidation of BVN or National Identification Number (NIN) attached to all accounts/wallets by January 31, 2024, emphasizing the importance of compliance.
Despite the steady growth of the BVN database, which stood at 56.5 million at the end of 2022, industry analysts note the significant gap between registered BVNs and active bank accounts, which stood at 133.5 million as of December 2021. This gap suggests that there are still numerous accounts without BVNs, prompting concerns about compliance with the CBN’s directive.
Furthermore, the impending deadline has spurred action, with the CBN announcing plans to freeze accounts without BVN and NIN.
A circular issued by the apex bank instructed banks to restrict transactions for existing Tier-1 accounts/wallets without BVN or NIN, with unfunded accounts/wallets immediately placed on a “Post No Debit” restriction.
As the deadline approaches, the surge in BVN registrations underscores the urgency for account holders to ensure compliance with regulatory requirements, highlighting the importance of financial inclusion and robust identity verification processes in the Nigerian banking sector.
