The latest data released by the Nigeria Inter-Bank Settlement System (NIBSS), has revealed that the number of active bank accounts in Nigeria rose to 311.6 million in December 2024.
At the end of 2023, NIBSS data showed that total active bank accounts in the country stood at 202.6 million.
This indicates that a total of 106 million new accounts were opened or reactivated between January and December last year.
According to the World Bank, access to a transaction account is the first step toward broader financial inclusion since it allows people to store, send, and receive money.
While the NIBSS data is based on reports from banks, millions of Nigerians are financially included through fintech accounts.
Dormant and closed accounts
According to NIBSS, the number of inactive or dormant bank accounts in the country stood at 19.5 million. This shows a 7.9% increase in the number of abandoned accounts year-on-year as the figure stood at 18.06 million at the end of 2023.
- An inactive or dormant account is a bank account that has had no activity on it for 12 months. Banks convert accounts with no activity for a long period into inoperative or dormant accounts to curtail the risk of fraud.
- By segregating the accounts, banks bring to their workers’ attention the risk involved in these accounts and call for their due diligence.
- Similarly, the NIBSS data shows that the number of bank accounts that have been closed stood at 25.5 million.
- This shows that about 4.3 million bank accounts were closed in the year as the number of closed bank accounts was 21.2 million as of December 2023.
Bank accounts vs BVN
Meanwhile, the number of active bank accounts in the country as of December 2024 shows that there is still a very wide gap between the number of accounts and the number of Bank Verification Numbers (BVN), which is now a compulsory requirement for opening an account.
- The NIBSS database shows that total registered BVNs by account owners stood at 64.8 million as of January 2025.
- However, industry analysts believe that the difference may not be much given that 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.
- Recall that the Central Bank of Nigeria (CBN) in December 2023 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”.
(Nairametrics)
