Data from the Nigeria Interbank Settlement System (NIBSS) has shown that bank accounts not linked to Bank Verification Number (BVN) have hit 73.8 million.
According to NIBSS data, 54.52 million bank accounts out of the 128.4 million accounts in the country were linked to BVN as of May 1, 2022.
This was an improvement from 47.54 million BVN-linked accounts position as of April 11, 2021
However, the NIBSS data fell short of the 100 million BVN-linked account target set by the Central Bank of Nigeria (CBN) for deposit money banks by year-end 2025.
According to NIBSS, BVN is a unique identity number issued to every bank customer at enrollment and linked to every account that the customer has in banks.
Bank customers are required to enroll within a fixed period after which they shall no longer be able to operate their bank accounts, and entails capturing all 10 fingers and facial image.
NIBSS added: “For authentication, individuals performing banking transactions (e.g applying for loans) shall be required to identify themselves using their biometric features which will be matched against information in the central database.”
READ ALSO: Banks’ MDs speak on eNaira, payment options
It noted that with BVN, customers’ bank accounts are protected from unauthorised access, will address issues of identity theft, thus reducing exposure to fraud, standardise efficiency of banking operations and enhance the banking industry chances of being able to fish out blacklisted customers.
The CBN, in collaboration with the Bankers’ Committee, NIBSS, and a German firm, Dermalog, launched the $50 million BVN project on February 14, 2014, to capture biometrics of bank customers and give them a unique identity that can be verified across the industry.
The apex bank said increase in BVN enrollment would address the constraint that poor identification has on the availability of credit to prospective banking customers, particularly, those in the informal sector.
The Bankers’ Committee also unveiled a plan that required classification of BVN into two – BVN Premium and BVN Lite.
The CBN Governor, Godwin Emefiele, said BVN Premium will cover customers that can provide the 18 basic requirements for a complete BVN enrollment, while the BVN Lite will require minimal documentation like name and phone number for bank customers, especially those in the rural areas that do not meet the full requirements.
Emefiele said the move would enable grassroots customers, mainly the poor, conduct minimal financial services and reduce financial exclusion rate.
- Guardiola suffers 5th straight defeat for first time as Spurs thrash Man City 4-0 - November 23, 2024
- Police recover explosives, foil bomb explosion in Borno - November 23, 2024
- Tinubu departs Brazil after G20 summit - November 23, 2024
