Connect with us

Business

BVN: Firstbank, others risk losses as ultimatum expires

Published

on

Spread The News
Should the  Federal Government go ahead to implement the court order on funds forfeiture for about 46 million accounts yet to be linked to the Bank Verification Number (BVN) , First Bank and some other first generation banks are likely going to be at the receiving end, National Daily has gathered.
According to a source, these banks have the largest number of dormant accounts because of how long they have been in the business.
The source explained that some new generation banks also have large numbers of accounts, but majority of their customers are from the middle class. 
He said many of the customers joined the banks during or after the banking consolidation of 2005, in what is regarded in the banking industry as ‘’Flight to Safety’’.
“A lot of the members of the middle class tend to associate more with some new generation banks. So, even though the accounts are many, but they remain largely active,” the source sai
The banks with the largest impact are likely to lose deposits running into billions of naira, and that may affect their liquidity positions.

 

ALSO SEE: 46m bank accounts risk forfeiture as BVN ultimatum draws near

Recall that the Federal Government secured an interim forfeiture order from Federal High Court on October 21,  which would now allow it to freeze the accounts of bank customers in Nigeria who have no Bank Verification Numbers.
The order obtained before Justice Dimgba gave a 14-day ultimatum to account owners with no BVN to regularise their accounts or forfeit the funds. The ultimatum expired yesterday, November 3.
In the judgement, the court gave the Federal Government the nod to instruct the banks to disclose any investments made with these funds and to freeze any outward movement from these accounts.
The court order mandates the Central Bank of Nigeria (CBN) to appoint an examiner to look into the books of any commercial bank that fails to comply.
The banks are expected to provide the names of accounts without BVN, account numbers, outstanding balances, domiciliary accounts without BVN, branches/locations where these accounts are domiciled.

Trending