Banks threaten to close accounts without BVN

With about 34.728m accounts yet to be linked to the Bank Verification Number (BVN) since its introduction in 2014, commercial banks and other financial institutions have decided to go tough on any accounts yet to be linked to the BVN.

The BVN is seen as a significant tool to fight corruption or fraudulent acts by account holders, as every individual can be traced or identified through their details with the bank.

Data released by the Nigerian Inter-Bank Settlement Systems (NIBSS) on June 23rd of June, disclosed that only seven hundred and fifty-eight thousand (758,000) bank accounts were linked within the last two months. This brings the total number of linked accounts to 38,198,207, up from 38,026,393.

National Daily gathered the total number of bank accounts in Nigeria as at May 2019 is pegged at 122.071 million. This indicates an increase from the 121.63 million bank accounts that were recorded in April 2019.

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Also, the total number of active bank accounts as at May 2019 stood at 72.936 million, marking a decline by forty-one thousand from the (72.977 million) obtained in April 2019.

The data analysis from the NIBSS indicates that the registration of biometric verification numbers has been on the low compared to the rate at which bank accounts are being opened across the country.

In other to ensure total compliance, Deposit Money Banks (DMBs) in Nigeria have begun to either close down or restrict bank accounts with incomplete BVN details.

The banks have also announced plans to begin the freezing of corporate accounts that do not have the requisite BVN details of all the signatories, Directors and or beneficial owners of the accounts.

Industry analysts are of the opinion that the large figure of BVN not yet linked to bank accounts may not likely decline as most banks allow account openings without BVN on their sites.

This has also contributed to the increasing number. However, it has led to an increasing number of inactive bank accounts, and unclaimed funds in banks.

They advised that the Central Bank should collaborate more with Deposit Money Banks and other necessary stakeholders in the industry to enforce the registration and linking of BVN numbers to bank accounts as well as the images.