Enrollments for the Bank Verification Number (BVN) by bank account owners in Nigeria have surged to 62.7 million this July. This update was disclosed by the Nigeria Inter-Bank Settlement System (NIBSS) in its recently released BVN data. Previously, the enrollment database stood at 61.87 million in early May, highlighting a significant increase in registrations.
The new data indicates that a total of 854,267 account owners registered for the BVN in the last two months alone. As of December 2023, the total number of registered BVNs was 60 million. This reveals a growth of 2.7 million registrations so far this year, underscoring the accelerated pace of enrollments.
The Central Bank of Nigeria’s (CBN) directive issued in December 2023, mandating all banks to freeze any account not linked with BVN by April 2024, is a major factor driving the increase in registrations. The directive requires all commercial, merchant, non-interest, payment service banks, other financial institutions, and mobile money operators to mandate the BVN or National Identification Number (NIN) for all accounts and wallets.
Despite the rise in BVN enrollments, a significant gap remains between the number of active bank accounts and the number of registered BVNs. According to NIBSS data, there were 219.6 million active bank accounts in Nigeria as of March 2024, illustrating the disparity even though multiple accounts can be linked to a single BVN.
The Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report highlights that 5% (3 million) of banked adults do not have a BVN or NIN. This gap underscores the ongoing need for widespread BVN registration to ensure full compliance and security in the banking sector.
A BVN is a unique identifier that allows individual accounts to be verified across the Nigerian banking industry. Issued at enrollment, it is linked to every account the customer holds at any Nigerian bank. This unique ID ensures that customers’ bank accounts are protected from unauthorized access.
NIBSS emphasizes that the BVN provides bank account owners with a unique identity verifiable across the Nigerian banking industry. This security measure enhances the protection of bank accounts from unauthorized access, bolstering the overall integrity of the financial system.
According to the recent CBN directives, every financial account, including those managed by fintech companies, must now be linked with a BVN before it can be operational. This directive aims to further streamline financial operations and enhance security across all financial platforms in Nigeria.