More than 70 million bank customers in Nigeria are facing the risk of losing access to their accounts as the Central Bank’s directive takes effect. The directive, issued on December 1, 2023, requires a ‘Post No Debit’ restriction on all bank accounts without Bank Verification Numbers (BVN) and National Identification Numbers (NIN) from March 1, 2024. This restriction prevents customers from making withdrawals, transfers, or any other debits, effectively freezing the funds in their accounts.
The circular, jointly signed by the Directors of Payments System Management and Financial Policy and Regulation Departments, emphasized the mandatory requirement for Tier-1 bank accounts and wallets to have BVN and/or NIN. For existing Tier-1 accounts without BVN or NIN, any unfunded accounts are immediately placed on ‘Post No Debit or Credit,’ and from March 1, 2024, funded accounts will face the same restriction. The directive also stipulates that the BVN or NIN attached to accounts must be electronically revalidated by January 31, 2024.
Banks have been communicating with their customers to regularize their accounts in compliance with the directive. Some banks are facilitating updates through physical branches, while others provide online solutions. Fintech firm OPay is offering both online and offline options for customers to link their BVN or NIN.
The deadline has raised concerns, with stakeholders pointing out challenges such as the large number of unregistered NINs and the capacity of the National Identity Management Commission (NIMC) to deliver within the required timeframe. The President of the Association of Mobile Money and Bank Agents in Nigeria called for an extension, citing inadequate access points for registration in some areas.
The Chairman of Consumer Rights Awareness, Advancement, and Advocacy Initiative suggested that the CBN should assess compliance levels before enforcing the restriction to avoid disrupting the banking system. The President of the Bank Customers Association of Nigeria also called for an extension, considering challenges like telecom network issues and power outages.
As the deadline approached, customers flocked to various bank branches, seeking to link their BVNs and NINs. Some bank officials clarified that accounts were not yet being deactivated, and efforts were being made to create a seamless linking process.
Despite the concerns and calls for an extension, the CBN has not officially responded, and the situation continues to evolve as the March 1 deadline looms.
