CBN may shut down 3 million bank accounts in Access, Zenith, others over NIN/BVN, details emerge

About three million bank accounts may be blocked as the deadline for all bank accounts to have a Bank Verification Number (BVN) or National Identity Number (NIN) draws close.

The Central Bank of Nigeria (CBN), on December 1, 2023, issued a circular to all commercial, merchant, non-interest, payment service banks, financial institutions, and mobile money operators, asking that the BVN or NIN attached to and associated with all accounts and wallets be electronically revalidated by January 31, 2024.

CBN to block bank accounts without NIN/BVN

BusinessDay reports that the CBN directive said that from March 1, 2024, all funded accounts or wallets without BVN or NIN should be placed on ‘Post No Debit or Credit,’ and no further transactions would be carried out on those accounts.

A report by Enhancing Financial Innovation and Access says that 52% of unbanked adults have NINs, and five percent of banked adults are without BVN or NIN.

The National Bureau of Statistics (NBS) said that the total number of bank accounts in Nigeria as of 2021 was about 19.4 million, out of which 133.5 million were active.

The NBS data showed that the banking industry recorded a 59.96 million BVN count as of December 18, 2023.

A month after Apex Bank issued the circular, some customers said they had yet to link or revalidate their BVN or NIN as per the CBN order.

The CBN directive might set off another rush to the banks as customers make last-minute plans to update their bank accounts.

CBN's measure meant to sanitise financial system

According to Lois Franklin, a banker and economist, the banks are frantically preparing for the impending rush.

She urged customers to enter the banking halls early to revalidate their valid identities.

“Essentially, what the CBN is trying to do is not just to control money laundering but have some authentic database reliable enough to hinge future financial planning on.

It is not another exercise to cause panic or make people suffer unnecessarily. So, we advise people to come to the banks early to avoid the rush, which might lead to errors in some accounts,” she said.