Over 70 million Nigerian bank customers face potential account restrictions as the Central Bank’s directive takes effect, necessitating Bank Verification Numbers (BVN) and National Identification Numbers (NIN).
Issued on December 1, 2023, the circular mandates a ‘Post No Debit’ restriction from March 1, 2024, freezing transactions for accounts without BVN or NIN. Tier-1 accounts, often opened with minimal documentation, come under scrutiny, with concerns about fraud risks and lax Know Your Customer (KYC) standards.
Stakeholders, including Fintech firms and banking associations, call for a deadline extension, citing challenges in obtaining NINs and BVNs. As the deadline looms, banks assure customers of a seamless linking process, while reports indicate a surge of customers at branches seeking compliance.
The ongoing situation prompts calls for a test run before imposing restrictions, ensuring a smoother transition and heightened awareness of the directive’s significance. Despite the impending deadline, there are reports that banks have yet to initiate account restrictions, emphasizing efforts to communicate and assist customers in the linking process.
A call for an extension echoes from various quarters, considering challenges such as power outages and inclement telecom networks affecting compliance. Amid customer frustrations and varying approaches by banks, the implementation of the directive continues to be a focal point, with stakeholders emphasizing the need for a balanced and well-communicated strategy.
