BVN Database Reaches 58.7 Million as registrations slow down
As of September 12, 2023, the Bank Verification Number (BVN) database in Nigeria has reached a substantial 58.7 million entries, according to the latest data released by the Nigeria Inter-Bank Settlement System (NIBSS).
However, despite efforts by the Central Bank of Nigeria to enforce BVN linkage for all bank accounts, the data reveals a slowdown in BVN registrations since the beginning of this year.
Comparing the figures, the BVN database stood at 56.5 million by the end of 2022, indicating an increase of only 2.2 million registrations in the past eight months, including September.
This rate falls significantly below the 2022 monthly average of 400,000 registrations.It’s noteworthy that as of December 2021, Nigeria had 133.5 million active bank accounts. While 2022 data is pending, this underscores the considerable gap between BVN registrations and the total number of bank accounts.
Analysts suggest that the variance might not be substantial, as a single BVN can be linked to multiple bank accounts.
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A Bank Verification Number is a unique identifier that facilitates account verification across Nigeria’s banking industry. Every bank customer is assigned this unique ID upon enrollment, linking it to all accounts held across Nigerian banks.
NIBSS emphasizes that BVN enhances identity verification and protects customers’ accounts from unauthorized access.Former CBN Governor Godwin Emefiele had announced plans to close unlinked bank accounts across several Deposit Money Banks (DMBs) to combat fraud.
The Risk Management Department’s Director and Chief Risk Officer, Blaise Ijabor, explained this move’s objective to clean up the financial sector and reduce fraud incidents.Ijabor noted the collaboration between the apex bank and NIBSS to address the growing fraud issue in the sector.
Many bank accounts were observed to lack BVN linkage, complicating fraud tracking.
Although the CBN’s directive aimed to encourage customers to update their records and link their bank accounts to BVNs, the declining registration rate suggests that its impact has yet to be fully realized.
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