News
NIN headache: Banks may scrap 70m bank accounts
Over 70 million bank customers are at risk of losing access to their accounts when the Central Bank of Nigeria’s directive on restricting accounts without Bank Verification Numbers and National Identification Numbers goes into effect.
The CBN had on December 1, 2023, in a circular directed that a ‘Post no Debit’ restriction be placed on all bank accounts without the BVN and NIN from Friday, March 1, 2024.
‘Post No Debit’ is a term used to describe a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other debits from such accounts. This measure effectively freezes the funds in the account, rendering them inaccessible for the duration of the restriction.
The circular, jointly signed by the Director, Payments System Management Department, Chibuzo Efobi; and Director, Financial Policy and Regulation Department, Haruna Mustapha, read, “It is mandatory for all Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN. It remains mandatory for Tiers 2 & 3 accounts and wallets for individual accounts to have BVN and NIN.
“For all existing Tier-1 accounts/wallets without BVN or NIN: Effective immediately, any unfunded account/wallet shall be placed on ‘Post No Debit or Credit’ until the new process is satisfied. Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted. The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.”
The circular went on to warn banks in the country that a “comprehensive BVN and NIN audit shall be conducted shortly and where breaches are identified, appropriate sanctions shall be applied.”
As the deadline approached, some banks sent out messages to their customers to regularise their accounts in line with the new CBN directive. While some asked customers to visit their physical branches, others made provisions for customers to update their accounts online.
FirstBank Nigeria in an email to customers said, “Please ensure that your Bank Verification Number and National Identification Number are linked to your account number on or before February 29, 2024.
“You can seamlessly update your account information with your BVN and NIN by visiting any FirstBank branch close to you. Please note that the Central Bank of Nigeria through its circular: PSM/DIR/PUB/CIR/001/053 dated December 1, 2023, has directed that effective March 1, 2024, all funded accounts without BVN shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted.”
Ecobank Nigeria wrote, “Please be informed that the Central Bank of Nigeria through its circular dated December 1, 2023, has announced that all accounts without Bank Verification Number and/or the National Identity Number would not be able to carry out transactions from March 1, 2024.
“Consequently, you will be required to update your account information with your National Identification Number and Bank Verification Number if you have not done so already.” It, however, offered an online solution.
Fintech firm, OPay, also called on its customers to complete the regularisation of their accounts by linking their BVN or their NIN as mandated by the apex bank, offering them both online and offline options.
A Tier-1 account refers to a bank account that can be opened with minimal or no form of documentation. Such an account can be opened with a passport photograph and has a limit of N50,000 deposit and an operating balance of N200,000 and is mostly not linked to the BVN and is targeted at the unbanked population.
This space is dominated by fintech firms and there are concerns that the lax Know Your Customer requirements are loopholes that are being used to perpetuate fraud.
The National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafadeen Fasasi, who called for an extension of the deadline, said while the policy was a good move to improve banks’ KYC requirements, its implementation was worrisome.
He said, “We are all aware that it is a good policy for the system for us to have good KYC, but unfortunately, what we have a challenge with is the implementation. This is another wrong implementation. Before you give a deadline, you must have provided the access points. As of today, we have about 104 million NINs out of 200 million people expected to have NINs. So, there is a gap of about 100 million.
“It is the same thing with the BVN, which as of the last report was about 59.9 million out of 134 million expected bank accounts. That means we have over 70 million accounts, which will be affected.”
According to data from Statista, as of 2021, the number of active bank accounts in the country was around 133.5 million, with savings accounts making up about 120 million.
Fasasi claimed that the National Identity Management Commission lacked the capacity to deliver 100 million NINs within the required timeframe.
He said, “The question is, can the NIMC deliver the gap of about 100 million NINs within the deadline? The answer is no, so why should this drive Nigerians into another problem? For BVNs, we have a huge gap to deliver and only bank branches can enrol BVN as of today.
“Based on our research, about 300 local government areas out of the 774 LGAs in Nigeria have no bank branches; so, who are those who are going to provide BVN enrolment at those LGAs? It means that people are going to run into trouble.
“Also, the highest that the banks have done is 500,000 enrolment per month. We are not ready for this. Why the rush? Why not plan that every month, this is what we want to achieve based on our capacity and access points?”
He lamented that this was coming at the same time as the National Communications Commission had directed telecom companies to bar mobile lines without the NIN.
“Who is pursuing us in Nigeria in this critical period where everyone is groaning under adverse economic conditions? They want to add extra trauma; I think we need to reconsider this,” he concluded.
The Chairman, Consumer Rights Awareness, Advancement and Advocacy Initiative, Moses Igbrude, said the apex bank ought to assess the level of compliance before wielding the big stick.
He said, “You must check the challenges and the parties who are responsible for the NIN and BVN. What of Nigerians in the Diaspora? They should give more time for this linkage so that they will not disrupt the banking system.
“It is a multifaceted issue involving many players. What is the infrastructure required for them to work? Otherwise, they will use a legal way to disenfranchise a lot of people.”
The President, Bank Customers Association of Nigeria, Dr Uju Ogubunka, called for an extension of the deadline to enable more bank customers regularise their accounts in line with the CBN directive.
Ogubunka told the pres “We know that some of our members have linked their accounts with the BVN/NIN as directed by the CBN. At this point, I think it will be wise to give an extension, because the telecom network has been a bit inclement and, then of course, you talk about power; some of us were unable to charge our phones for some time because there was no power. And these things are happening almost everywhere.
“People are willing to do what they’re supposed to do, but conditions within the environment are a bit difficult. So, I will personally suggest that we consider what is happening and give some extension.”
He went on to suggest that a test run where restrictions would be placed on some affected accounts might be of help in sensitising people to the importance of the directive.
“Another thing that they can do is maybe do a test run so that people will know that it is something that can be done. Some people may not even believe that it is possible to restrict transactions. So, if you do a test run for one day or even a few hours, you announce that those who have not linked up will be unable to access their accounts temporarily, maybe for 24 hours or 12 hours, then give an extension. That should help,” Ogubunka added.
He stated that there had been no reports that banks had started to restrict bank accounts without the BVN and NIN.
“No one has reported that to us yet. But then, they may not know until they want to make use of the accounts. It is not as if they are using the bank accounts every minute of the day. It is only when they want to make use of it and then see that they can’t get through, that is when they have an issue. So far, we don’t have any report on that,” he said.
Multiple bankers, who spoke with journalists on condition of anonymity, said the banks had not yet started to restrict accounts without the BVN and NIN.
They said directives had been issued from their headquarters to create a seamless linking process to avoid account deactivation.
A bank official said, “No one is deactivating accounts yet. They have been sending emails to customers to calm down so that a more seamless linking process will be communicated to customers. They will be reached via text and email. Some people used the NIN to open or update their accounts already so they won’t need to do it again.”
On the number of possible affected customers, the official stated, “We haven’t got the affected number yet. It has to be spooled by our IT team from the backend.”
Another official confirmed the directive to assist more customers via email.
“The deadline still stands; however, not all accounts are blocked because some opened theirs with the national ID from the inception. But we will be reaching out via email and text,” the official wrote to one of our correspondents.
A News Agency of Nigeria report on Friday revealed that customers continued to besiege various bank branches in Lagos to meet the CBN deadline for linking BVN and NIN to their accounts.
The customers also asked the CBN to extend the deadline for them to link their BVNs and NIN with their accounts.
With the implementation of the directive, there was a significant gathering of customers at various banks as early as 8am on Friday to link their NINs with their bank accounts.
A security officer at a Guaranty Trust Bank branch in the Abule Egba area, while addressing customers who were eager to gain entry into the banking hall, said the message sent out by the bank to its customers concerning the directive was a random one.
He said not all customers that got the message were affected by the directive. This got the customers infuriated, as they said the bank should have sent out messages to only those affected. At another GTB branch in Egbeda, the bank advised customers to register online using specified codes displayed on the walls outside the banking hall.
However, at Polaris Bank, the crowd was not allowed to converge, and those who went into the banking hall were told by the customer service desk to produce their NIN slips.
Those without the slips were turned back. Customers who explained their mission to the bank’s security officers before entering the banking hall were told to get the slips.
Two bank employees used mini computers to do the first registration at the entrance before the security guards allowed the customers into the banking hall.
At Providus Bank on Nnamdi Azikiwe Road, customers were given forms and were assisted with registration simultaneously. The situation was similar at Wema Bank on Broad Street and other banks visited on Lagos Island.
Meanwhile, calls and text messages sent to the CBN spokesperson, Hakama Sidi, yielded no response as of the time of filing this report.
The Comrade Julius Abure-led National Executive Committee (NEC) of the Labour Party (LP), has threatened to sanction the Abia State Governor, Alex Oti, should he go ahead with the planned “illegal” stakeholders meeting, scheduled to hold on Wednesday, April 9th, 2025.
It also warned the party’s Presidential candidate in the 2023 election, Mr. Peter Obi, against any conduct or utterance which promotes disunity within the party.
The party leadership said it would no longer take kindly to anti-party activities from any member “no matter how highly placed.”
In the same vein, the LP NEC also announced the sack of Hon. Afam Ogene from his position as leader of the party’s caucus in the House of Representatives. In his place, NEC appointed Barr. Ben Eternabene as the new leader.
These derisions were contained in a Communique read by the Party’s National Secretary, Alhaji Umar Farouk, at the end of a NEC meeting held at the party’s National Secretariat, In Abuja, on Monday.
Farouk said, “NEC in session in the exercise of its duties, hereby caution the former presidential candidate of our great party not to participate in any action capable of undermining the peace unity, and integrity of the party as the NEC will not hesitate to issue a stiffer penalty if found culpable.”
The party’s NEC also expressed satisfaction with the resent ruling of the Supreme Court affirming the Supremacy of the party in determining its leadership.
It further stressed that at no point within the Supreme Court judgement did it sack Julius Abure as National Chairman.
Farouk further said, “Accordingly, NEC in session reaffirmed the Nnewi National Convention held on the 27th of March 2024 that produced the current National Working Committee (NWC) members under the chairmanship of Barrister Julius Abure.
“NEC in session condemn in strong terms the activities of the Caretaker Committee illegally established by Alex Otti and Peter Obi in a so-called Stakeholders meeting held on the 4th of September 2024 in Umuahia.
“The Supreme Court admonished party leaders and members of the party to always abide by the constitution of the party.
“NEC noted that Article 14 (4) (B) gives the power to call meetings only to the National Secretary with the approval of the National Chairman.
Accordingly, NEC warned all members to abide by the constitution of the party.”
Speaking specifically about the Abia State Governor, the communique said, “NEC in session notes the various anti-party activities of Gov. Alex Otti, including calling of unauthorized Stakeholders meeting and usurping the powers of NEC.
“He also conducted the LGA Election using another Political Party. The Governor has also intensified his effort to factionalize the party leadership by calling an illegal NEC scheduled to hold on Wednesday.
“The leadership of the Labour Party is also aware of Governor’s plot to cripple our party before moving to another political party where he hopes to contest the 2027 Governorship Election.
“His anti-party activities is unbecoming of a highly respected personality and can no longer be acceptable, NEC stated that it will not hesitate to discipline him in line with Article 19 of the Party’s Constitution.
“NEC in session noted that would not hesitate to discipline any other erring member who violates the party constitution regardless of how big or powerful such individuals may be.
ogene’s removal as LP Caucus leader: “NEC in session reviewed the activities of the House of Representatives Caucus leader, Honourable Victor Adam Ogene and wishes to note as follows:
“That the voice of the current leadership of the party is not being heard in the hallowed lower chambers; that there is a lack of cohesion amongst our members in the House; that the leadership appears to be compromised; and that the ideology and programs of the party are not well represented.
“NEC in session, as a result of the aforementioned decided to relieve Honourable Ogene of that leadership role for dereliction of duty. Consequently, Hon. Barrister Ben Etanabene has been appointed by the NEC in session as the Labour Party’s Caucus Leader in the House of Representatives.”
The NEC subsequently mandated the NWC to communicate the decision to relevant authorities.
It also demanded they Ogene hand over all the party’s properties in his possession, particularly all the financial contributions made so far by other Labour Party lawmakers which are in his possession to the party, and render proper account to the party with immediate effect.
The party vows to go to any length to retrieve all its belongings, including monies that belong to it which Hon. Ogene is holding tight to.
Earlier, in his address of welcome, Abure who chaired the NEC meeting said, “Recent developments within our party, particularly in the aftermath of the Supreme Court’s pronouncement on the leadership matter, have necessitated this gathering.
“ Let me begin by extending our profound appreciation to the Supreme Court of Nigeria for its courageous and principled stance in affirming the supremacy of political parties in managing their internal affairs.
“In its judgement concerning the Labour Party, the apex court unequivocally reasserted that leadership disputes arising within a political party remain within the exclusive purview of the party’s constitution and governance structures.
“ Accordingly, the Court declined jurisdiction in the appeal brought by Senator Nenadi Usman, thereby reinforcing the foundational principle of party autonomy.
“It is, however, regrettable that certain actors, most notably Senators Nenadi Usman and Darlington Nwokocha, have chosen to misrepresent the ruling, deliberately misleading the public and attempting to manufacture confusion through a purported “Caretaker Committee.”
“Let it be stated categorically: this so-called committee is both unconstitutional and illegitimate.
“Those who convened the meeting in Umuahia lacked the legal authority to do so. Neither holds the office of National Chairman nor National Secretary as required by our party’s constitution.
“The Labour Party held a valid National Convention in 2019, whose tenure was constitutionally due to end in June 2023.
“In response to the extraordinary demands of the 2023 general elections, our NEC, meeting in Asaba in April of that year, authorized a one-year extension, pushing the end of tenure to June 9, 2024.
“In line with this resolution and the constitution of our party, a fresh National Convention was duly convened and held on March 27, 2024, in Nnewi, Anambra State.
“All procedures relating to that Convention were properly executed, and multiple court rulings have validated the legitimacy of the convention.
“Furthermore, our Constitution, specifically Articles 12 and 14 of the amended 2024 edition, clearly outlines the structure and authority of the party’s organs.
“Article 14 vests the power to issue notices for meetings of the National Convention, the NEC, and the National Working Committee (NWC) in the National Secretary, but only with the consultation and approval of the National Chairman.
“All proper procedures were followed in the convening of the March 2024 Convention, and the actions taken were both constitutional and widely endorsed.
“Let it be known across the federation and beyond: there is no vacuum in the leadership of the Labour Party.
“The National Working Committee, under my chairmanship, remains the recognized and legitimate leadership body of our party.
“We shall not cede ground to illegitimate actors or unconstitutional contraptions posing as transition committees.”
The pan-Yoruba socio-political organisation, Afenifere, has reemphasised that restructuring is the most potent instrument to tackle the socio-political and economic challenges that have long bedevilled the country.
The foremost Yoruba group, which also expressed concern about the resurgence of kidnapping and banditry, particularly in Yorubaland, has called for immediate action, stressing that the issue of state police must be prioritised.
Afenifere made this declaration at the conclusion of its caucus meeting held at the residence of its national leader, Pa Reuben Fasoranti, in Akure, the Ondo State capital.
According to the group, in a communiqué signed by its National Publicity Secretary, Jare Ajayi, governors should make every effort to cooperate with the federal government so that the allocations to local governments can be implemented without delay.
“Given the prime position that security occupies in the life of any society, Afenifere once again called on the Federal Government and security agencies to redesign the security architecture in such a way that those responsible for security can thoroughly investigate its causes and address them decisively.
“In this regard, we are calling on the National Security Adviser (NSA), Mallam Nuhu Ribadu, to, in collaboration with state governors, urgently devise strategies to confront these challenges and bring them under control.
“While these efforts are ongoing, state governors, particularly in Yorubaland, should further strengthen the security network in the region due to the increasing threat of terrorism. For example, the personnel of Amotekun should be increased, properly trained, motivated, and well-equipped. Furthermore, modern technologies such as drones and other advanced tools to combat insecurity should be deployed,” the communique read partly.
A road project recently facilitated by the federal lawmaker representing Esan North-East/Esan South-East Federal Constituency in Edo State, Prince Henry Odianosen Okojie, has reportedly been washed away less than a week after completion.
The development was made public on Monday by MonITNG, a non-governmental organisation, through a post on its official X handle.
The organisation revealed that a section of the road collapsed following a single heavy rainfall, raising questions about the quality of materials and workmanship used in the construction.
MonitNG explained that millions of naira were spent on this project “yet it couldn’t withstand even one rainfall. This is unacceptable,” the organisation stated.
However, they called on the Edo State Governor, his deputy, as well as anti-graft agencies — the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) — to urgently launch an investigation into the road project.
The group stressed the need for accountability and transparency in the execution of public infrastructure, warning that continued tolerance of substandard projects would only worsen infrastructural decay in the country.
The statement read, “Our team visited the newly completed General Hospital Road in Uromi, Edo State, facilitated by Hon. Prince Odi Okojie.
“Shockingly, less than a week after completion, parts of the road have already washed away after a single heavy rainfall despite the millions of naira spent on the project.
“This is a clear case of substandard materials and poor supervision. The road was meant to serve the community for years not days,” they stated.
MonITGN said that taxpayers deserve durable infrastructure, not quick-fix projects that crumble at the first sign of weather stress.
“Quality materials and proper engineering aren’t luxuries they are necessities. Roads are lifelines for economic activity, emergency access, and daily life. Cutting corners in construction not only wastes resources but endangers lives.
“We call on @m_akpakomiza, @IdahosaDennis, @icpcnigeria & @officialEFCC to urgently investigate this project.
“Accountability must be enforced. Edo people deserve better,” they added.
-
News18 hours agoAPC opens up over alleged rift between Tinubu and his deputy, Shettima
-
News12 hours agoJust in: Presidency Insists INEC Chairman, Yakubu Not Sacked
-
News17 hours agoVeteran comedian opens can of worms, says I ‘ve caught many of my friends wives flirting with big men, govs
-
News13 hours agoJUST IN: Police Nab leaders of April 7 nationwide protest
-
News17 hours agoIn Burkina Faso we’re not in a democracy, but in a revolution, No Country develops in democracy” ~ Captain Ibrahim Traore.
-
News24 hours agoPolice warn against planned nationwide protest
-
Economy17 hours agoSEE Black Market Dollar To Naira Exchange Rate In Lagos, FCT, April 7th 2025
-
News12 hours agoJust in: Saudi Arabia Suspends Visa Issuance to Nigeria, 13 Other Countries