Thelma Osatohanmwen
The Central Bank of Nigeria (CBN) has declared that starting from April 2024, accounts without a Bank Verification Number (BVN) or National Identification Number (NIN) will face stringent restrictions.
In a circular released on Friday, December 1, the apex bank directed banks to impose a “Post no Debit” restriction on existing Tier-1 accounts/wallets lacking BVN or NIN, preventing withdrawals, transfers, or any other debits.
Effective immediately, unfunded accounts/wallets will be placed on ‘Post No Debit or Credit’ until compliance with the new process. From March 1, 2024, funded accounts or wallets without BVN or NIN will also face the same restrictions.
The circular, signed by CBN Directors Chibuzo Efobi and Haruna Mustapha, emphasized that all BVN or NIN attached to accounts/wallets must be electronically revalidated by January 31, 2024.
“As part of its efforts to enhance financial system stability and strengthen Know Your Customer (KYC) procedures, the CBN will conduct BVN and NIN verification shortly. A comprehensive audit will follow, and appropriate sanctions will be applied for identified breaches.
“The account opening process will involve electronically retrieving BVN or NIN-related information from the NIBSS’ BVN or NIMC’s NIN databases.
“For individuals with validated BVN, their accounts/wallets will be profiled in the NIBSS’ ICAD within 24 hours of opening. In cases where a potential customer lacks a BVN or NIN, the CBN advised regulated financial institutions to initiate the enrollment process onto the BVN database, following protocols issued by NIBSS.
“This move underscores the CBN’s commitment to promoting financial system stability, reinforcing KYC measures, and ensuring compliance with identification standards.”
