Banks May Block 70M Accounts over NIN Linkage

Over 70 million bank customers in Nigeria are facing the looming risk of losing access to their accounts following the Central Bank’s directive to enforce the use of Bank Verification Numbers (BVN) and National Identification Numbers (NIN). Effective March 1, 2024, the Central Bank’s directive stipulates that accounts lacking these vital identifications will be subject to a ‘Post no Debit’ restriction. This measure, commonly employed by banks, freezes the funds in the account, preventing customers from making withdrawals, transfers, or any other debits.

The ‘Post no Debit’ restriction, outlined in a circular issued by the Central Bank on December 1, 2023, marks a significant step in enforcing compliance with BVN and NIN requirements. Jointly signed by Chibuzo Efobi, Director of the Payments System Management Department, and Haruna Mustapha, Director of the Financial Policy and Regulation Department, the circular underscores the mandatory nature of BVN and NIN for all Tier-1 bank accounts. Additionally, BVN and NIN remain compulsory for Tier 2 & 3 accounts, further emphasizing the broad scope of the directive across various account tiers.

This move by the Central Bank reflects a concerted effort to enhance financial transparency and security by aligning with stringent identification standards. By ensuring that all bank accounts are linked to verifiable identification records, authorities aim to mitigate risks associated with fraudulent activities and enhance the integrity of the banking system. However, the implementation of these measures raises concerns among customers regarding potential disruptions to their banking activities and underscores the urgency for affected individuals to expedite the process of linking their accounts to BVN and NIN.