The Central Bank of Nigeria has instructed commercial banks to impose a “post no debit” restriction on accounts without Bank Verification Numbers (BVN) and National Identity Numbers (NIN) from March 2024. This directive is anticipated to prompt a surge of customers seeking to regularize their accounts, leading to potential challenges for banks and National Identity Management Commission offices. While some view the directive as a means to sanitize the industry, concerns are raised about the strain on banks and potential naira scarcity.
According to a senior official from a Tier-1 bank, customers are expected to rush to link their BVN to avoid frozen accounts, placing additional pressure on banks already coping with staff shortages. The possibility of extending working hours, including weekends, is considered to handle the expected rush. However, this could exacerbate the strain on employees and potentially contribute to a scarcity of naira.
Despite the challenges, a corporate communications manager from an old-generation bank expresses readiness, citing technological advancements that ease banking operations. The “Post No Debit” restriction freezes account funds, making them inaccessible during the restriction period.
The CBN’s directive aims to enhance financial system stability and strengthen Know Your Customer procedures. It mandates the registration of Tier-1, 2, and 3 bank accounts and wallets with BVN or NIN. The process for account opening involves electronically retrieving BVN or NIN information, becoming the primary data for new customer onboarding. Existing customer accounts without validated BVN will be placed on “Post No Debit or Credit” until satisfied, and all BVN and NIN must be electronically revalidated by January 31, 2024. New Tier-1 accounts without BVN or NIN will not be permitted, and as of March 1, 2024, funded accounts without BVN or NIN will be restricted. Compliance officers are instructed to ensure full adherence to the attached guidance notes.
