The Central Bank of Nigeria (CBN) has announced plans to freeze accounts lacking a Bank Verification Number (BVN) or National Identification Number (NIN) from April 2024.
In a recent circular, the CBN instructed banks to impose a “Post no Debit” restriction on existing Tier-1 accounts without BVN or NIN.
Unfunded accounts will face immediate restrictions, while funded ones will be affected from March 1, 2024.
The CBN emphasizes the need for electronic revalidation of BVN or NIN by January 31, 2024, citing efforts to enhance financial system stability and Know Your Customer (KYC) procedures.
A comprehensive audit and potential sanctions are also part of the initiative. The CBN aims to streamline account opening procedures by retrieving BVN or NIN-related information electronically and making it the primary data for onboarding new customers and profiling existing ones.
In cases where customers lack BVN or NIN, financial institutions are advised to follow protocols issued by the National Identity Management Commission (NIMC) and Nigeria Inter-Bank Settlement System (NIBSS).
