Banks Witness Surge: Over 291,000 New BVN Registrations in Just 2 Weeks
As of January 26, 2024, Nigeria’s Bank Verification Number (BVN) landscape has experienced an extraordinary surge, reaching a staggering 60.49 million registrations. This surge is underpinned by the issuance of 291,232 new BVNs within the preceding two weeks, as the Nigeria Inter-Bank Settlement System (NIBSS) meticulously reported. This notable uptick in registrations comes in response to the Central Bank of Nigeria’s (CBN) recent directive, announcing the freezing of accounts without BVN starting April 2024.
BVN Growth and Current Status:
Comparatively, the BVN database stood at 60.2 million as of January 10, 2024, reflecting a rapid increase within a short time frame. A retrospective analysis reveals that by the end of 2022, the BVN database totaled 56.5 million, witnessing a moderate uptick of 4.8 million registrations throughout that year. However, data from the latter part of 2023 paints a more nuanced picture, indicating a somewhat conservative growth with an addition of approximately 3.4 million registrations.
CBN’s Mandate and Deadline:
In a proactive measure aimed at fortifying financial security and regulatory compliance, the CBN issued a comprehensive directive in December of the previous year. According to the circular, accounts without BVN or National Identification Number (NIN) will face freezing from April 2024. The directive extends to placing a “Post no Debit” restriction on existing Tier-1 accounts/wallets lacking BVN or NIN. Unfunded accounts will be subject to this restriction immediately, while funded accounts will face the same from March 1, 2024.
Revalidation Requirement:
To further ensure the accuracy and completeness of customer data, the CBN mandated various financial institutions, including commercial, merchant, non-interest, payment service banks, and mobile money operators, to conduct electronic revalidation of BVN or NIN attached to all accounts and wallets. This comprehensive revalidation process is required to be completed by January 31, 2024.
Discrepancy and Analyst Insights:
Even with the surge in BVN registrations, industry analysts posit that the disparity between registered BVNs and the number of active bank accounts may be less significant than anticipated. This speculation arises from the likelihood of multiple accounts being linked to a single BVN, warranting a closer examination of the data. The Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report sheds light on the fact that 5% (3 million) of banked adults in Nigeria still do not possess a BVN or NIN, highlighting the ongoing challenges in achieving universal compliance.
Conclusion
Against the backdrop of the looming April 2024 deadline set by the CBN, the rush for BVN registrations continues unabated, underscoring the urgency for widespread compliance and revalidation among Nigerian account holders. This intersection of regulatory mandates and the evolving financial landscape emphasizes the indispensable role of BVN in ensuring a secure, transparent, and compliant banking environment in Nigeria. As stakeholders navigate these regulatory changes, the financial ecosystem is poised for a transformative shift, emphasizing the imperative of adapting to these evolving standards for a resilient and secure banking sector.
