The Nigeria Inter-Bank Settlement System (NIBSS) has disclosed data indicating a 1.75 million rise in Bank Verification Number (BVN) registrations for the last four months, plus a few days in May.
Based on NIBSS statistics, the BVN database increased from 61.16 million as of March 15, 2024, to 61.87 million by mid-May. There were 60.11 million records in the BVN database as of December 2023.
The Central Bank of Nigeria (CBN) recently announced that all bank accounts without BVN would be blocked starting in April 2024. This news may have contributed to the surge in registration for the number over the last two months, even if it was a lengthy process throughout 2023.
Through a circular issued in December 2023, the apex bank also instructed merchant, commercial, non-interest, payment service, other financial institutions, and mobile money operators to ensure that all accounts and wallets’ BVNs, or National Identification Numbers (NINs), were electronically revalidated by January 31, 2024.
BVN vs. Bank Accounts
Although BVN is now required to register an account, the number of active bank accounts in the nation indicates that there is still a significant discrepancy between the number of accounts and the number of BVNs.
As per the latest banking data made available by NIBSS, there were 219.6 million active bank accounts in Nigeria as of March 2024.
Based on the present count of BVNs, the difference between the number of accounts and the registered BVNs is around 157.8 million. Nevertheless, given that a single BVN might be associated with several accounts, industry analysts think that the difference might not be significant.
Five percent (3 million) of banked adults in Nigeria do not own a BVN or NIN, according to the Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report.
Things To Note
Within the Nigerian banking sector, each account can be validated using a BVN, which is a distinct number.
Every bank customer in Nigeria receives a unique ID number upon enrollment, which is connected to any account they have with a bank in the country. The BVN, according to NIBSS, guarantees that clients’ bank accounts are shielded from unwanted access while providing bank account owners with a distinct identity that can be validated throughout the Nigerian banking sector.
As per the latest regulations from the CBN, all financial accounts, including those of financial technology companies, need to be connected to BVN for them to function.
