Nigerian Banks Close 2 Million Accounts Due to Non-Compliance with BVN and NIN

According to a report by the Nigerian Interbank Settlement System (NIBSS), the number of inactive bank accounts grew by 4 million (2.0%) to 19.7 million in March 2024, up from 19.3 million in February

In an effort to maintain the integrity of the banking system, commercial banks in Nigeria have closed over 2 million bank accounts in the first quarter of 2024. This move was made to comply with regulatory orders and remove questionable accounts from their books.

According to a report by the Nigerian Interbank Settlement System (NIBSS), the number of inactive bank accounts grew by 4 million (2.0%) to 19.7 million in March 2024, up from 19.3 million in February. An account is considered inactive if it has no transactions, including deposits, withdrawals, transfers, or point-of-sale transactions, for six months.

On the other hand, the number of active bank accounts increased by 6.62 million (3.0%) to 219.64 million in February, according to the "Industry Bank Account Database" compiled by NIBSS.

The closure of accounts is a result of the Central Bank of Nigeria's (CBN) directive in December 2023, which required commercial banks to restrict tier-1 accounts without proper Biometric Verification Number (BVN) and National Identity Number (NIN) that are not linked by March 1, 2024. As of April 2024, 61.6 million Nigerians have enrolled for BVN, according to NIBSS data.

This move by the banks is aimed at ensuring that all accounts are linked to the National Identity Number (NIN) and Biometric Verification Number (BVN) to prevent fraudulent activities and maintain the integrity of the banking system.

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