Confusion as Banks Begin Implementation of CBN Directive on NIN/BVN Linking

Banks in Nigeria have begun implementing the Central Bank of Nigeria’s (CBN) directive to restrict access to Tier 1 bank accounts not linked to the National Identity Number (NIN) or Bank Verification Number (BVN).

The CBN issued the directive in a circular on December 1, 2023, mandating that all Tier 1 bank accounts for individuals must have BVN and/or NIN. The directive aims to strengthen Know Your Customer (KYC) procedures and promote financial system stability. Customers of some Tier 1 banks have reported restricted access if their NIN is not linked to their accounts, while others are yet to enforce the directive.

Vanguard checks revealed that one Tier 1 bank has started implementing the directive, restricting access to accounts not linked to NIN. A bank staff member confirmed the implementation, stating that restrictions had been placed on unfunded accounts without NIN or BVN. The CBN’s directive mandates electronic retrieval of BVN or NIN information for onboarding new customers, and existing customer accounts without validated BVN are to be profiled within 24 hours. Existing Tier 1 accounts without BVN or NIN will be placed on “Post No Debit or Credit,” with a revalidation deadline of January 31, 2024.

However, some banks are providing conflicting messages, with varying deadlines for compliance. While some banks mention February 29, 2024, as the deadline, others do not specify any deadline. Customers have reported receiving emails and SMS messages urging them to link both BVN and NIN to their accounts.