Over 70 million bank customers are facing the risk of losing access to their accounts as the Central Bank of Nigeria’s directive on restricting accounts without Bank Verification Numbers (BVN) and National Identification Numbers (NIN) is set to take effect.
The CBN, through a circular issued on December 1, 2023, mandated a ‘Post No Debit’ restriction on all bank accounts without BVN and NIN starting from Friday, March 1, 2024. ‘Post No Debit’ entails a freeze on accounts, preventing customers from making withdrawals, transfers, or any debits, rendering the funds inaccessible during the restriction period.
The circular, jointly signed by Chibuzo Efobi, Director of Payments System Management Department, and Haruna Mustapha, Director of Financial Policy and Regulation Department, emphasized the necessity for BVN and/or NIN on all Tier-1 bank accounts and wallets, with the requirement also extended to Tiers 2 & 3 accounts and wallets for individuals.
Existing Tier-1 accounts/wallets without BVN or NIN would immediately face the ‘Post No Debit or Credit’ restriction on unfunded accounts/wallets until compliance is met.
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From March 1, 2024, funded accounts or wallets without BVN or NIN would also face the same restriction, with no further transactions allowed until the revalidation process is satisfied by January 31, 2024.
The circular also warned banks of an impending comprehensive BVN and NIN audit, with appropriate sanctions for breaches identified.
As the deadline approached, banks began notifying customers to update their accounts in line with the CBN directive.
Some banks facilitated physical branch visits, while others provided online options for account updates.
Various stakeholders expressed concerns regarding the implementation of the policy. Sarafadeen Fasasi, the National President of the Association of Mobile Money and Bank Agents in Nigeria, called for an extension of the deadline, citing challenges in compliance due to gaps in NIN and BVN issuance.
Moses Igbrude, Chairman of Consumer Rights Awareness, Advancement, and Advocacy Initiative, emphasized the need for CBN to assess compliance levels before enforcing restrictions, considering infrastructural limitations and challenges faced by Nigerians, including those in the diaspora.
Dr. Uju Ogubunka, President of Bank Customers Association of Nigeria, also advocated for an extension, suggesting a test run of restrictions to sensitize customers before full implementation.
Despite the looming deadline, banks are yet to restrict accounts without BVN and NIN, with directives issued to create a seamless linking process for customers.
As customers thronged bank branches to meet the deadline, there were varied experiences, with some facing challenges while others were assisted with registration forms and online options provided by banks.
Efforts to reach the CBN spokesperson for comments on the situation proved unsuccessful at the time of this report.
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