Despite the Central Bank of Nigeria’s (CBN) effort to promote financial inclusion, Nigerian banks lost over two million customers between 2016 and 2017, with several customers abandoning their accounts due to the introduction of the Bank Verification Number (BVN) which would have linked them to illicit funds flows/transfers tied to corruption.

According to statistics from the Nigeria Inter-Bank Settlement System (NIBSS), the number of active bank accounts also reduced by 1.5 million, dropping from 65 million to 63.5 million.

The statistics obtained by the News Agency of Nigeria (NAN) from the NIBSS website yesterday, showed that the total number of bank customers dropped from 61 million in 2016 to 59 million in 2017.


According to NIBSS, the banking sector, however, made great strides in linking customers’ account using the BVN.

The report showed that linked BVN accounts grew from 26 million in 2016, to 41.3 million in 2017.

According to a banking industry source, the reduction in banking customers was not unconnected to the federal government’s fight against corruption.

“When Buhari assumed office, many people abandoned their accounts, especially civil servants because of fear of investigation.

“While some totally closed down their accounts, others opted for gradual withdrawal so as not to raise alarm,’’ the source said.

The source, who works at one of the top five banks in the country, blamed the BVN for the low patronage of banking products, especially in the rural areas, where awareness was already very low.

A bank customer, Mr. Olaitan Alagbe, said she closed some of her accounts due to unnecessary and illegal charges by banks.

“First of all, the interest rate is next to nothing, so there is little reason to keep your money at the bank when you can turn it over doing other businesses,” she said.

Another customer, who preferred to remain anonymous, said he opened several accounts during the Ponzi scheme boom in the country, but was forced to abandon them after the schemes crashed in late 2016 and early 2017.

However, a source at the CBN said that the reduction in the number of banking customers was caused mainly by the introduction of BVN.

“The reduction may not necessarily be a bad thing. For example, many people opened accounts using different variations of their names.

“A person bearing Musa Salisu Mohammed, may have other accounts as Salisu Mohammed or Musa Salisu.

“So with the introduction of BVN, such customers were forced to regularise their names, however, some opted to close down their accounts, which resulted in the reduction of active bank accounts and customers,’’ the source said.

The CBN source was, however, optimistic that the financial inclusion strategy of the bank would succeed in bringing in more people into the formal banking system.

The financial inclusion strategy aims to ensure that major bulk of the money in the economy remains within the banking sector.

A major challenge in the financial inclusion process is how to ensure that the poor rural dwellers are carried along considering the lack of financial sophistication among this segment.

The CBN, money deposit banks, micro-finance banks and other stakeholders are currently implementing different policies designed to enhance financial inclusion in the country.

http://www.akelicious.net/2018/03/nibss-nigerian-lenders-lost-2-million.html

OK

Corrupt souls everywhere.
The guilty are afraid!

Vvgg

They must be politicians

Naija and the scaring news. Na wa ooooooooo

A very unfortunate event

Okay, But since the invention of BVN, how many politicians account has been caught related to multiple accounts. This BVN was brought in to frustrate ordinary citizen.

I stopped using Access bank wen they threatened to block my account because the name on my Bvn is not arranged as my name in my account, I brought voters ID card they told me that there is an additional name,so they can't accept, I asked them if the picture and finger print in the system not the person standing in front of them? I kukuma comot my money before the criminals take my money.

Do you think a busy man has time for this nonesense

Hmm!

When a country is in stand still motion.

The problem is that our leaders believe that everything is alright.

I disagree with the assertion, I think the BVN and other policies have reduces the creation of phony and fraudulent accounts which is prevalent in banks.

Effect of collapse of MMM + bad government!

nawaooo

sure 4 to 8 odds everyday inbox me

If U lost customers dat means d ones U had left which is exactly d case.. Dis whole excuse of fraudulent account owners is becoming stale... Banks and their staffs are/were d main culprits in illicit financial transactions.

hubtiva:
They must be politicians

Corruption is represented everywhere in Nigeria not only politicians, from local government to federal civil servants, even the private sector is not speared.

Haters won't like this

How na

All hands most be desk to tackle problem of this country both the leader and led

What did you expect when they don't have money to eat let alone to save
Buhari hmmm

DarkMagic:
This era of banking tech when they get your BVN...they af gotten ur complete account

Who told you so ?

You can own millions of naira not tied to your name, account and BVN - They've got people whose job is to take care of your money while accessing a particular percentage for themselves.

post=65959019:
Corrupt souls everywhere. The guilty are afraid!

Exactly.

Buhari is working

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For more info.
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noted. Keeping money the the house is considered safe in present

able20:

Corruption is represented everywhere in Nigeria not only politicians, from local government to federal civil servants, even the private sector is not speared.

spared.

As much as I support th Bvn tech inspite of its vulnerability, exposing customers account, the fact remains that the banking sector has failed us as customers. Hence, putting our money where it can generate apreciable returns thereby supporting the economy.
All accounts abandoned, what's happening to them......obviously is enriching someone else...CORRUPTION still.......
God save Nigeria

don't let emotions override your reasoning.
the masses are experiencing cash squeezes and cannot maintain these accounts.
do you expect someone who lost his job to operate an account?
what about businesses that have shut down?

post=65959019:
Corrupt souls everywhere.
The guilty are afraid!

Realdeals:
I disagree with the assertion, I think the BVN and other policies have reduces the creation of phony and fraudulent accounts which is prevalent in banks.

Not only that o. Some people in diaspora could not link their accounts. For many silly reasons. Like only one middle name appears on account opened 20 years ago. But two middle names in BVN registration. First name, surname and everything else match.

Only to be sent from pillar to post demanding Affidavit and other silly documents. So some just kuku bone the accounts.
Nigeria just know how to make things hard for honest normal people. Looters know how to send their money to tax havens abroad. BVN or no BVN.

Story. My first bank corporate account has been dormant for 3 years now due to unnecessary debits I get on it when I do transfers and also due to the fact that I could not cope with the network issues they were always having. I simply focused on the account with a new generation bank and for years now,I hardly enter into the bank to carry out financial transactions. Does that also mean I abandoned it because I was using it for laundering money or because I am corrupt? These people just look for anything to attribute to Buhari as an achievement and this is simply because he has no visible achievement anywhere.