Registration for the Bank Verification Number (BVN) increased to 60.2 million as of January 10, 2024.
This was revealed in the latest BVN registration data released by the Nigeria Inter-Bank Settlement System (NIBSS). Nairametrics had earlier reported that as of December 18, 2023, the BVN database stood at 59.9 million.
This shows that about 300,000 new registrations for BVN were recorded between late December and early January this year. While registration for the number had been slow throughout 2023, the recent announcement by the Central Bank of Nigeria (CBN) that all bank accounts without BVN would be frozen from April 2024, might have contributed to the increase in registrations.
In December last year, the Apex bank also directed commercial, merchant, non-interest, payment service banks, other financial institutions, and mobile money operators, through a circular that the BVN or National Identification Number, NIN, attached to all accounts/wallets must be electronically revalidated by January 31, 2024.
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Source: NIBSS
Gap between BVN and account numbers
The BVN database has been growing but slowly. At the end of 2022, the BVN database stood at 56.5 million after a total of 4.8 million new registrations were recorded in the year. However, data released towards the end of last year showed that the database only increased by about 3.4 million in the year.
- According to NIBSS, active bank accounts in the country stood at 133.5 million as of December 2021. While data for 2022 and 2023 has yet to be released, the figures are expected to be higher than that of 2021, which showed that there is still a wide gap between the registered BVN and the number of bank accounts.
- However, industry analysts believe that the difference may not be much because multiple accounts can be linked to a single BVN.
According to Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report, 5% (3 million) of banked adults do not have a BVN or NIN.
CBN’s April 2024 deadline
The CBN in December last year announced that it would freeze accounts without a BVN and National Identification Number (NIN) from April 2024.
In a circular by the apex bank, it instructed banks to place a “Post no Debit” restriction – which prevents customers from making withdrawals, transfers, or any other debits “for all existing Tier-1 accounts/wallets without BVN or NIN”.
- “Effective immediately, any unfunded account/wallet shall be placed on ‘Post No Debit or Credit’ until the new process is satisfied. Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted,” the circular by the CBN Director of Payments System Management Department Chibuzo Efobi, and the Director of Financial Policy and Regulation Department Haruna Mustapha read in part. (Nairametrics)
