The Central Bank of Nigeria (CBN) has made it clear that there
would not be further extension when the October 31, 2015 deadline
for the bank verification (BVN) elapses.
This, according to the banking sector regulator means that customer
without the BVN-linked accounts may risk being restricted from normal
operations of their accounts or free access to their bank account balances
by the end of next month.
It revealed that statistical trend of the BVN registration exercise showed
with about 52 million active bank accounts in various banks, total
enrolment stood at about 20 million, out of which about 14 million
accounts have been linked to the BVN as at September, 2015.
It emphasised in a statement at the weekend that BVN is now mandatory
requirement for opening new bank accounts, adding that those to be
affected by the restrictions are customers whose accounts were opened
prior to the commencement of the BVN scheme.
The CBN, in collaboration with the bankers’ committee, introduced the
BVN on February 14, 2014. This initiative of the bankers’ committee is
aimed at ensuring unique identity for all bank customers and other users
of financial services in the country by the use of the customers’
biometrics as means of identification.
Initially, it was estimated that all bank customers would, within a period
of 18 months, complete enrolment in the new system of customer
identification. The enrolment for the scheme can be done in banks across
the country.
One of the most potent arguments advanced by banks for not extending
enough credit to prospective credit customers in Nigeria has been the
absence of credible identity system. Thus, it was agreed that the scheme
would make access to credit easier for people in the low income earners
in the society, which include employees and entrepreneurs of micro,
small and medium enterprises (MSMEs), students etc.
“At the expiration of the estimated 18 months after the launch, empirical
evidence showed that a good number of bank customers were reluctant
and never took the exercise seriously. Thus, few days to the end of the
mandatory 18 months, which was June 30, 2015, there was commotion
and stampede in banking halls across the country, as customers were
pushing, shoving and climbing on each other in order to beat the deadline
for the BVN registration.
“This confusion necessitated the call for the extension of the registration
dateline by four months to October 31, 2015. What is required is for a
bank customer to visit any branch of his bank and the desk officer would
capture his finger print and a photograph of his face, his signature and
demand for a photocopy of either of his driving license, national identity
card or international passport of the customer.
“The question now is whether bank customers have been taking
advantage of the extension to complete their BVN registration, and also
ensure that their various bank accounts have been linked to the BVN,” it
stated.
Another interesting trend, according to the central bank showed that after
the initial rush between the end of June and July 2015, there has been a
steady decline in new BVN enrolment figures for August and September,
2015.
“The emerging scenario therefore, strongly suggests that many bank
account holders have continued to show apathy instead of taking
advantage of the extension period.
“Given this development, there is the apprehension that the commotion
and melee experienced at various banking halls in the month of June
2015 would be repeated if customers do not use the remaining one month
to ensure that they complete their BVN registration, and also get their
various accounts linked to the BVN.
“The CBN has made it clear that there would not be further extension
after October 31, 2015 deadline. This means that customer without the
BVN-linked accounts may risk being restricted from normal operations
of their accounts or free access to their bank account balances,” it added.