Over 70 million bank customers are at risk of losing access to their accounts when the Central Bank of Nigeria’s directive on restricting accounts without Bank Verification Numbers and National Identification Numbers goes into effect.

The CBN had on December 1, 2023, in a circular directed that a ‘Post no Debit’ restriction be placed on all bank accounts without the BVN and NIN from Friday, March 1, 2024.

‘Post No Debit’ is a term used to describe a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other debits from such accounts. This measure effectively freezes the funds in the account, rendering them inaccessible for the duration of the restriction.

The circular, jointly signed by the Director, Payments System Management Department, Chibuzo Efobi; and Director, Financial Policy and Regulation Department, Haruna Mustapha, read, “It is mandatory for all Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN. It remains mandatory for Tiers 2 & 3 accounts and wallets for individual accounts to have BVN and NIN.

“For all existing Tier-1 accounts/wallets without BVN or NIN: Effective immediately, any unfunded account/wallet shall be placed on ‘Post No Debit or Credit’ until the new process is satisfied. Effective March 1, 2024, all funded accounts or wallets shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted. The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.”

The circular went on to warn banks in the country that a “comprehensive BVN and NIN audit shall be conducted shortly and where breaches are identified, appropriate sanctions shall be applied.”

As the deadline approached, some banks sent out messages to their customers to regularise their accounts in line with the new CBN directive. While some asked customers to visit their physical branches, others made provisions for customers to update their accounts online.

FirstBank Nigeria in an email to customers said, “Please ensure that your Bank Verification Number and National Identification Number are linked to your account number on or before February 29, 2024.

“You can seamlessly update your account information with your BVN and NIN by visiting any FirstBank branch close to you. Please note that the Central Bank of Nigeria through its circular: PSM/DIR/PUB/CIR/001/053 dated December 1, 2023, has directed that effective March 1, 2024, all funded accounts without BVN shall be placed on ‘Post No Debit or Credit’ and no further transactions permitted.”

Ecobank Nigeria wrote, “Please be informed that the Central Bank of Nigeria through its circular dated December 1, 2023, has announced that all accounts without Bank Verification Number and/or the National Identity Number would not be able to carry out transactions from March 1, 2024.

“Consequently, you will be required to update your account information with your National Identification Number and Bank Verification Number if you have not done so already.” It, however, offered an online solution.

Fintech firm, OPay, also called on its customers to complete the regularisation of their accounts by linking their BVN or their NIN as mandated by the apex bank, offering them both online and offline options.

A Tier-1 account refers to a bank account that can be opened with minimal or no form of documentation. Such an account can be opened with a passport photograph and has a limit of N50,000 deposit and an operating balance of N200,000 and is mostly not linked to the BVN and is targeted at the unbanked population.

This space is dominated by fintech firms and there are concerns that the lax Know Your Customer requirements are loopholes that are being used to perpetuate fraud.

The National President of the Association of Mobile Money and Bank Agents in Nigeria, Sarafadeen Fasasi, who called for an extension of the deadline, said while the policy was a good move to improve banks’ KYC requirements, its implementation was worrisome.

He said, “We are all aware that it is a good policy for the system for us to have good KYC, but unfortunately, what we have a challenge with is the implementation. This is another wrong implementation. Before you give a deadline, you must have provided the access points. As of today, we have about 104 million NINs out of 200 million people expected to have NINs. So, there is a gap of about 100 million.

“It is the same thing with the BVN, which as of the last report was about 59.9 million out of 134 million expected bank accounts. That means we have over 70 million accounts, which will be affected.”

According to data from Statista, as of 2021, the number of active bank accounts in the country was around 133.5 million, with savings accounts making up about 120 million.

Fasasi claimed that the National Identity Management Commission lacked the capacity to deliver 100 million NINs within the required timeframe.

He said, “The question is, can the NIMC deliver the gap of about 100 million NINs within the deadline? The answer is no, so why should this drive Nigerians into another problem? For BVNs, we have a huge gap to deliver and only bank branches can enrol BVN as of today.

“Based on our research, about 300 local government areas out of the 774 LGAs in Nigeria have no bank branches; so, who are those who are going to provide BVN enrolment at those LGAs? It means that people are going to run into trouble.

“Also, the highest that the banks have done is 500,000 enrolment per month. We are not ready for this. Why the rush? Why not plan that every month, this is what we want to achieve based on our capacity and access points?”

He lamented that this was coming at the same time as the National Communications Commission had directed telecom companies to bar mobile lines without the NIN.

“Who is pursuing us in Nigeria in this critical period where everyone is groaning under adverse economic conditions? They want to add extra trauma; I think we need to reconsider this,” he concluded.

The Chairman, Consumer Rights Awareness, Advancement and Advocacy Initiative, Moses Igbrude, said the apex bank ought to assess the level of compliance before wielding the big stick.

He said, “You must check the challenges and the parties who are responsible for the NIN and BVN. What of Nigerians in the Diaspora? They should give more time for this linkage so that they will not disrupt the banking system.

“It is a multifaceted issue involving many players. What is the infrastructure required for them to work? Otherwise, they will use a legal way to disenfranchise a lot of people.”

The President, Bank Customers Association of Nigeria, Dr Uju Ogubunka, called for an extension of the deadline to enable more bank customers regularise their accounts in line with the CBN directive.

Ogubunka told Saturday PUNCH, “We know that some of our members have linked their accounts with the BVN/NIN as directed by the CBN. At this point, I think it will be wise to give an extension, because the telecom network has been a bit inclement and, then of course, you talk about power; some of us were unable to charge our phones for some time because there was no power. And these things are happening almost everywhere.

“People are willing to do what they’re supposed to do, but conditions within the environment are a bit difficult. So, I will personally suggest that we consider what is happening and give some extension.”

He went on to suggest that a test run where restrictions would be placed on some affected accounts might be of help in sensitising people to the importance of the directive.

“Another thing that they can do is maybe do a test run so that people will know that it is something that can be done. Some people may not even believe that it is possible to restrict transactions. So, if you do a test run for one day or even a few hours, you announce that those who have not linked up will be unable to access their accounts temporarily, maybe for 24 hours or 12 hours, then give an extension. That should help,” Ogubunka added.

He stated that there had been no reports that banks had started to restrict bank accounts without the BVN and NIN.

“No one has reported that to us yet. But then, they may not know until they want to make use of the accounts. It is not as if they are using the bank accounts every minute of the day. It is only when they want to make use of it and then see that they can’t get through, that is when they have an issue. So far, we don’t have any report on that,” he said.

Multiple bankers, who spoke with Saturday PUNCH on condition of anonymity, said the banks had not yet started to restrict accounts without the BVN and NIN.

They said directives had been issued from their headquarters to create a seamless linking process to avoid account deactivation.

A bank official said, “No one is deactivating accounts yet. They have been sending emails to customers to calm down so that a more seamless linking process will be communicated to customers. They will be reached via text and email. Some people used the NIN to open or update their accounts already so they won’t need to do it again.”

On the number of possible affected customers, the official stated, “We haven’t got the affected number yet. It has to be spooled by our IT team from the backend.”

Another official confirmed the directive to assist more customers via email.

“The deadline still stands; however, not all accounts are blocked because some opened theirs with the national ID from the inception. But we will be reaching out via email and text,” the official wrote to one of our correspondents.

A News Agency of Nigeria report on Friday revealed that customers continued to besiege various bank branches in Lagos to meet the CBN deadline for linking BVN and NIN to their accounts.

The customers also asked the CBN to extend the deadline for them to link their BVNs and NIN with their accounts.

With the implementation of the directive, there was a significant gathering of customers at various banks as early as 8am on Friday to link their NINs with their bank accounts.

A security officer at a Guaranty Trust Bank branch in the Abule Egba area, while addressing customers who were eager to gain entry into the banking hall, said the message sent out by the bank to its customers concerning the directive was a random one.

He said not all customers that got the message were affected by the directive. This got the customers infuriated, as they said the bank should have sent out messages to only those affected. At another GTB branch in Egbeda, the bank advised customers to register online using specified codes displayed on the walls outside the banking hall.

However, at Polaris Bank, the crowd was not allowed to converge, and those who went into the banking hall were told by the customer service desk to produce their NIN slips.

Those without the slips were turned back. Customers who explained their mission to the bank’s security officers before entering the banking hall were told to get the slips.

Two bank employees used mini computers to do the first registration at the entrance before the security guards allowed the customers into the banking hall.

At Providus Bank on Nnamdi Azikiwe Road, customers were given forms and were assisted with registration simultaneously. The situation was similar at Wema Bank on Broad Street and other banks visited on Lagos Island.

Meanwhile, calls and text messages sent to the CBN spokesperson, Hakama Sidi, yielded no response as of the time of filing this report.

There is tension within the camp of the All Progressives Congress (APC) in Ondo state as governorship aspirants in the party traded words over political violence in the state ahead of the party primary slated for next month, April.

This is just as President Bola Tinubu’s visit to the state was turned into a theatre of violence, attacking each other supporters, destroying and billboards by some hoodlums suspected to be political thugs.

While speaking on behalf of the aspirants, a former Finance Commissioner in the state, Wale Akinterinwa, who described the attack as barbaric, alleged that the attacks on his supporters were sponsored by those in government.

In a statement issued by Akinterinwa’s spokesperson, Segun Ajiboye, in Akure, said that “The thugs, who brazenly fired gunshots into the air to cause confusion, went on a destruction spree as they attacked property, while billboards of other gubernatorial aspirants were defaced, pull down or out rightly destroyed.

“Party members perceived to be loyal to all gubernatorial aspirants save for Governor Lucky Ayedatiwa, sustained varied and diverse degree injuries resulting from the attacks unleashed on them. T-Shirts, faze caps and other insignia wore by members of the targeted aspirants were torn to shreds.

“The thugs who carried out the orchestrated attacks were armed with all sorts of dangerous weapons. It is sad to note that many of our supporters with deep cuts are in the hospitals receiving treatments at the moment.

”It is, however, surprising that no aspirant other than the governor was spared of the attacks. Let me state here that the need for this press statement is not borne out of fear or inability to protect our supporters.

“We have the capacity to give adequate protection to all our members who have remained peaceful in the face of this dastardly attack.

Ajiboye said that, “We are also not unaware of the overriding need to save our dear state from an ugly reenactment of the dark days by those who harbor vaulting and mechanical ambition.

“At this juncture as members of the Wale Akinterinwa Campaign Organisation, we would also love to state that as responsible leaders and members of our party with genuine intentions to serve our dear people, we are unable and will not accept the imposition on the party members a regime of panic and fear in other to supplant popular participation in a democratic process aimed at emplacing accountable and responsive leadership.

“We, therefore, call on Mr President and the national chairman of the APC to prevail on Mr Governor to halt the use of thugs to advance his political interest. The field is wide enough for everyone to operate.

“Also, we urge all security agencies to not only to be on red alert against future occurrence but also ensure that those who carried out these dastardly attacks are apprehended and brought to books to serve as deterrent to others who may be emboldened by this barbaric act.

However, following the allegations of attacks and violence, the Chief Press Secretary to the governor, Prince Ebenezer Adeniyan, disclosed that Governor Lucky Ayedatiwa has ordered investigation and arrest of those behind the attacks.

According to Adeniyan, the governor who frowned over the destruction of campaign billboards by the hoodlums said his administration will not tolerate any form of violence that is capable of threatening the peace in the state.

The governor however, ordered law enforcement agencies in the state to fish out, arrest and prosecute those behind the destruction of billboard and engaged in violent activities

Condemning the destruction of the billboards and the attacks on political rivals during Tinubu’s visit to the state, the CPS in the statement said: “The attention of Ondo State Governor, Hon. Lucky Orimisan Aiyedatiwa, has been drawn to reports of alleged attacks on some persons and destruction of campaign materials in the wake of the visit of President Bola Ahmed Tinubu to the State on Wednesday.

“The Governor says his administration will not tolerate any form of violence that is capable of threatening the peace and tranquility of the state.

“As the Governor has said repeatedly, any political campaign that disturbs the peace in the State is unacceptable and must be met with the decisive actions of law enforcement agencies.

“It is pertinent to make it clear that nobody associated with the Governor or the government of Ondo State was involved in any of the reported activities ascribed to “political thugs” during the President’s visit to Owo and Akure.”

He added, “The Governor has therefore asked law enforcement agencies in the State to arrest and prosecute anyone found to be engaged in such violent activities.

“The Governor urges politicians and their followers to ensure that their campaigns are issue based, devoid of blackmail, spreading falsehood, inciting the public and intimidating opponents.”

But the aspirants maintained that the alleged attacks were orchestrated and carried out by some hired political thugs as well as members of the NURTW.

They noted that property, especially campaign billboards were allegedly pulled down and destroyed, while party members perceived to be loyal to the aspiration of other aspirants were attacked and sustained various degrees of injury.