New CBN Directive to Commercial Banks Leaves Nigerians Puzzled

In a recent development that has left many Nigerians perplexed, the Central Bank of Nigeria (CBN) has issued a directive to commercial banks mandating a new requirement for bank account holders. Starting March next year, all bank transactions must be linked to both the Bank Verification Numbers (BVNs) and National Identity Numbers (NINs) of account holders.

The directive, detailed in a circular issued by the CBN's Director of Payment System Management Department, Chibuzo Efomi, and the Director of Financial Policy and Regulation Department, marks a significant shift in banking operations in Nigeria. This new policy is part of a broader effort by the CBN to streamline banking processes and enhance security measures.

Under the new guidelines, the opening of new Tier 1 accounts or wallets will now require either a BVN or NIN, effective immediately. For existing accounts that lack these identifiers, the CBN has outlined a phased approach. Initially, accounts without a BVN or NIN that remain unfunded will be subjected to a 'Post No Debit or Credit' status, effectively freezing any transactional capabilities until the account holder complies with the new requirements.

From March next year, this restriction will extend to all funded accounts lacking a BVN and NIN, barring them from conducting any transactions. The reaction to this announcement has been mixed among Nigerians, especially on social media platforms.

Many have expressed confusion and concern, questioning how individuals can hold bank accounts without an already established BVN, given that BVNs have been a fundamental part of banking in Nigeria for several years.

This skepticism underscores the challenges and potential hurdles in the implementation of this directive, especially in a country where a significant portion of the population still grapples with obtaining their National Identity Numbers.

The CBN's move is seen as an effort to further secure the banking system and reduce the risk of fraudulent activities. However, it also highlights the need for a more inclusive approach to ensure that all Nigerians, particularly those in remote or underserved areas, can comply with these new banking requirements without undue hardship. As the deadline approaches, it remains to be seen how these new regulations will impact the everyday banking experience of millions of Nigerians.