Apex bank orders electronic revalidation of BVN, NIN attached to accounts, wallets Jan 31

Account holders, others fear new round of hardship, naira scarcity

The Central Bank of Nigeria on Friday directed commercial banks to bar customers without Bank Verification Numbers and National Identity Numbers from having access to their accounts from March 2024 by putting a “post no debit” restriction on such accounts.

However, bankers told Saturday PUNCH that the directive would likely lead to a rush by desperate customers to regularise their accounts in the coming weeks and months, adding that this would put pressure on employees to register the customers for the BVN, while the National Identity Management Commission offices and centres would face a similar situation for the NIN registration.

A senior official of a Tier-1 bank in Lagos told one of our correspondents that the directive would sanitise the industry although it would exert considerable pressure on the banks.

The official said, “Many customers are careless by ignoring the directive to link their BVN to their accounts. With the directive of the CBN, they will now be rushing to get their BVN so that their accounts will not be frozen.

“The truth is that many banks will find it difficult to cope with the anticipated rush as we have lost several key employees to the Japa syndrome. Besides, the banks had embarked on staff rationalisation to keep the operating expenses low.”

A branch manager of a new generation bank, who also spoke on condition of anonymity, said if the rush of customers without BVN and NIN was much, the lender would have no choice but to extend the working hours for its employees and might consider working on Saturdays and Sundays to clear the backlog.

This, he noted, would put pressure on the already stressed employees, adding that it could also lead to naira scarcity.

However, a corporate communications manager of an old-generation bank, who pleaded not to be identified, said his institution was ready to deal with anything that the apex bank’s directive would throw up, adding that technology was making the work of bankers easier.

The ‘Post No Debit’ is a term used to describe a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or debits from their accounts.

This measure effectively freezes the funds in the account, rendering them inaccessible for the duration of the restriction.

The CBN directive was contained in a circular issued to all Deposit Money Banks on Friday.

The circular with reference PSM/DIR/PUB/CIR/001/053 was jointly signed by the Director, Payments System Management Department, Chibuzo Efobi, and Director, Financial Policy and Regulation Department, Haruna Mustapha.

The apex bank said the directive was part of efforts to promote financial system stability and strengthen the ‘Know Your Customer’ procedures in all financial institutions.

It also amended Section 1.5.3 of the Regulatory Framework for Bank Verification Number to ensure mandatory registration of all Tier-1, 2 and 3 bank accounts and wallets with BVN or NIN.

The circular read, “As part of its efforts in promoting financial system stability, it becomes necessary to strengthen the Know Your Customer procedures in financial institutions under the purview of the Central Bank of Nigeria.

“Accordingly, the CBN hereby issues an amendment to Section 1.5.3 of the Regulatory Framework for Bank Verification Number Operations and Watch List for the Nigerian Banking Industry.

“In this regard, it is mandatory for all Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN. It remains mandatory for Tiers 2 & 3 accounts and wallets for individual accounts to have BVN and NIN.

“The process for account opening shall commence by electronically retrieving the BVN or NIN-related information from the NIBSS BVN or the NIMC’s NIN databases and for the same to become the primary information for on-boarding of new customers.

“All existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS ICAD immediately and within 24 hours of opening accounts/wallets.”

As a result of the new guidelines, the bank said any unfunded account/wallet would be placed on ‘Post No Debit or Credit’ until the new process was satisfied.

The central bank also stated that all the BVN and NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.

“Effective immediately, no new Tier-1 accounts and wallets should be opened without the BVN or NIN.

“For all existing Tier-1 accounts/wallets without the BVN or NIN: i. 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 BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.”

The CBN further directed all executive compliance officers, chief compliance officers, or heads of the compliance functions to acquaint themselves with the attached guidance notes to ensure full and uniform compliance.

It added, “To ensure uniform and full compliance, the executive compliance officers, chief compliance officers, or heads of the compliance functions are advised to acquaint themselves with the attached guidance notes, which become applicable to all institutions regulated by the CBN.

“Also, a comprehensive BVN and NIN audit shall be conducted shortly and where breaches are identified, appropriate sanctions shall be applied.

“Finally, all financial institutions regulated by the CBN are required to apply strict compliance on restrictions on Tier-1 accounts/wallets as they relate to limits on transaction values and cumulative balances.”

Saturday PUNCH reports that the apex bank on April 6, 2023, indicated plans to remove accounts not linked to the BVN to clean up the sector and reduce the growing incidence of fraud.

At the Prembly Compliance Breakfast Dialogue, the bank listed three loopholes that cybercriminals were exploiting.

According to the bank, the Tier-1 account is top of the list of loopholes. A Tier-1 account refers to a bank account that can be opened with minimal or without any form of documents. This account can be opened with a passport photograph. The account has a limit of N50,000 deposits and an operating balance of N200,000 and N300,000.

Experts react

Speaking to Saturday PUNCH on the development, a professor of Economics at the University of Nigeria, Nsukka, Enugu State, Cletus Agu, stated that Nigerians do not want to obey rules and regulations and should be ready to face the consequences of their action.

He said, “It has been over two years that we have been asked to get our NIN and almost 10 years that the BVN has been introduced. Why are Nigerians not doing what they are supposed to do? Why must we wait until there’s a rush? Why must we wait until there’s a punishment coming? We have a civic duty to do. The government has done its part and people must also do theirs to have normalcy in the system.”

Agu noted that the deadline given by the CBN was not short and that if it was extended beyond that, some Nigerians would be found wanting.

“So, yes, this directive is right. When you are unable to withdraw your money, you will have no option but to go and do the needful,” he added.

Also commenting on the directive, a strategy and economics advisory associate at PricewaterhouseCoopers Nigeria, Olalekan Fadiya, noted that the citizens take many developments for granted.

He stated, “This directive is coming at an appropriate time. In this age, everything is digitised and the CBN needs to have adequate data on those that are banking in the country. We are in a country with ransoms being paid here and there; when the banks do not have the needed information, how will they be able to efficiently work to nab criminals?

“What about those who launder money? Nigerians should make good use of the time given and ensure that they are compliant with the directive.”

Human rights lawyer, Afam Osigwe, stated that the apex bank was in order, saying the directive would help to curb money laundering and other financial crimes.

He said, “Most countries are required to have laws that mandate banks and other financial institutions to know their customers, which simply means getting as much information as possible to have an idea of who operates bank accounts in Nigeria; this includes having a Bank Verification Number, National Identification Number, and others. This helps you to be able to fight money laundering, terrorism financing, and other financial and economic crimes.

“I think the CBN is in order because the notice has been given mandating everybody to get their BVN as far back as 2014 when this process started. It is expected that those who maintain bank accounts have had adequate time to obtain it.”

Human rights lawyer, Tolu Bableye, lauded the directive, saying it was in line with the constitution.

He, however, urged the CBN to give Nigerians who had not obtained their BVN to do so before the deadline.

He said, “In the world over now, this concept of knowing your customer is the norm. Some years ago, the Federal Government directed people to register for the BVN and link it to their accounts. The essence is to curb corruption, money laundering, and other financial crimes. So it is within the ambit of the law. It is commendable, but they should give Nigerians time to adjust and comply with the directive.”

The Executive Director, Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, said it was only fair that the CBN gives sufficient notice to allow the citizens to do their verification.

Rafsanjani noted that it was important for Nigerians to go through the verification process as it would help the data system of the nation.

He added that it would also help the security agencies fish out illegal businesses and those involved in illegitimate dealings.

https://punchng.com/Banks-fear-rush-as-CBN-bars-customers-without-BVN-NIN-April

So there are people still banking with thses commercial banks without BVN?

We were made to queue in the sun for long in 2015/2016 just to enrol for this BVN.

E no dey hard for Nigerians to panic.

They'll probably forget that it's not easy for the CBN to just tamper with people's money like that.

What of those Nigerians in diaspora?

Do you expect them to come back just to update their BVN?

I don't understand o,are we going to add NIN to the BVN again ni,pls can someone explain to me,,is it bvn plus NIN?

I surprised people still have accounts without BVN in Nigeria. Even our online banks can't work without BVN.

I am sure CBN will still grant an extension.

This shouldn't be an issue. The banks could create a website where customers can enter their VNIN to validate their account. I'm certain this is what apps like Kuda and Opay will do so it's definitely possible for commercial banks.

This will help reduce the stress.

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I'm very sure some of you didn't even read the full text but una just comment ni,,,,lazy Nigeria youths

Nawa. So we actually have some banks operating without a BVN?

Which ba

Bvn should be enough...

I feel it will be so unfair to deny people their hard earn money this festive period that the economy is hard.

They shld suspend this denier of ban till next year because we can't be restless when we are supposed to be at peace that our cash in the bank.

Wow

Are there still people without BVN?

Fire brigade approach

Nigeria! A country of conundrum.

I'm surprised there are still people operating accounts without linking their BVN. No wonder crime still persists. What was CBN doing all these while?

Hmmmmmm

Is it both BVN and NIN or any of the two ?

Wait o u mean all these while some people are still operating accounts without BVN? Now I know that Nigeria is a very disorganised country.

Only in Nigeria they will take your fingerprints, take your passport photograph, give you a unique BV-Number. When you want to Cash a cheque, or transfer some kind of heavy cash, they will verify your identity through BVN and still ask for your ID card.

Kenneth4u205:
Is it both BVN and NIN or any of the two ?

Both!
Nigeria is a disaster.....

Something that should have happened a long time ago..

I don't understand o,are we going to add NIN to the BVN again ni,pls can someone explain to me,,is it bvn plus NIN?
Yes! my banks added both, even without me requesting for it.
I appreciate them for saving me the stress.

Emma1Oj:
I feel it will be so unfair to deny people their hard earn money this festive period that the economy is hard.

They shld suspend this denier of ban till next year because we can't be restless when we are supposed to be at peace that our cash in the bank.

The ban,restriction of access to bank accounts will start from year 2024 not this year

adenigga:

Both!
Nigeria is a disaster.....

How is Nigeria a disaster?

Because government is taking steps to reduce financial crimes, terrorist funding and corruption by government officials?!

So they're still people using bank without BVN. I doubt it.

Is there any bank that requested for NIN details?

They should let it be in a way we can fill in the NIN details on the app or something jare or get it from NIMC directly.

Abalado:
I don't understand o,are we going to add NIN to the BVN again ni,pls can someone explain to me,,is it bvn plus NIN?

In the supreme court judgment between Labor party and the APC, the appex court ruled that, the use of "and" in the clause stating that , "a presidential candidate must win 25% in all the states and the FCT as not meaning, one can be disqualified if he won other states but lose the FCT, therefore, if you have BVN linked to your account, just ignore the "and" used in the CBN circular, it is immaterial.

Is it even possible to open account without BVN and NIN

My brother the thing shock me oooh

Damidave1124:
So there are people still banking with thses commercial banks without BVN?

We were made to queue in the sun for long in 2015/2016 just to enrol for this BVN.