In response to a recent directive from the Central Bank of Nigeria (CBN), customers flooded banking halls on Monday to link their Bank Verification Numbers (BVN) and National Identity Numbers (NIN) to their bank accounts.
The CBN’s directive, issued on Friday, instructed banks to restrict access for customers who hadn’t linked their BVN and NIN to their accounts.
The directive emphasized the need for existing customers to ensure their accounts are fully profiled with valid BVN and/or NIN.
Immediate restrictions were placed on unfunded accounts, labeled as ‘Post no debit or credit,’ and effective March 1, 2024, funded accounts would face similar restrictions.
Notably, large crowds were observed at branches of Zenith Bank, Guaranty Trust Bank, and First Bank, with queues at GTBank remaining substantial throughout the day.
An anonymous official from First Bank in Akure, Ondo State, remarked on the increased crowd, stating, “There are more people in the bank today, especially for the connection of their Bank Verification Number.”
Expressing concerns, a senior official of a Tier-1 bank in Lagos highlighted potential difficulties coping with the anticipated rush, citing staff shortages and prior rationalization efforts.
Data from the Nigeria Inter-Bank Settlement System revealed that over 75 million bank accounts could face restrictions, considering only 59 million BVNs were registered as of October 9, 2023.
In addition to the rush for BVN/NIN revalidation, banks are grappling with a cash shortage.
Despite the CBN’s directive for banks to continue accepting old and redesigned naira banknotes, scarcity persists. Customers reported banks rationing naira notes, and ATMs dispensing limited cash, attributing the scarcity to fears that the banking regulator may ban certain old denominations by year-end.
To address concerns, the CBN, through its acting Director of Corporate Communications, Mrs. Sidi Hakama, clarified that the Supreme Court had ordered the continued acceptance of all denominations of Nigerian banknotes, old and redesigned. This includes the old versions of N200, N500, and N1,000 banknotes, which shall remain legal tender.
Spokespersons for banks denied any new directive from the CBN limiting cash transactions, suggesting that the scarcity could be due to hoarded cash not yet returned to the economy.
As the rush continues, some banks are considering extending working hours and even weekend operations to manage the surge in BVN/NIN revalidation requests.
