CBN to freeze accounts without BVN from April 2024

In a recent circular released on a Friday, the Central Bank of Nigeria (CBN) has announced its intention to freeze accounts without a Bank Verification Number (BVN) or National Identification Number (NIN) starting April 2024.

The circular instructed banks to enforce a ‘Post No Debit’ restriction on existing Tier-1 accounts/wallets without BVN or NIN. This restriction will prevent customers from making withdrawals, transfers, or any debits. Initially, unfunded accounts/wallets will be affected, and by March 1, 2024, funded accounts/wallets will also face these restrictions.

CBN officials, Chibuzo Efobi and Haruna Mustapha, highlighted that BVN or NIN verification will soon be conducted. This step aims to enhance the financial system’s stability and strengthen Know Your Customer (KYC) procedures in financial institutions.

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Furthermore, the CBN plans to conduct a comprehensive audit of BVN and NIN data, applying appropriate sanctions for identified breaches.

To streamline account opening processes, the CBN will retrieve BVN or NIN-related data electronically from NIBSS’ BVN or NIMC’s NIN databases. This data will become primary information for new customer onboarding and profile existing customer accounts/wallets linked to validated BVNs in NIBSS’ ICAD within 24 hours of opening.

For individuals lacking a BVN or NIN, regulated financial institutions are advised by the CBN to start the enrollment process onto the BVN database, following protocols issued by NIBSS.