In the first quarter of 2024, Nigerian commercial banks closed 2.021 million accounts to comply with regulatory directives regarding the linkage of bank accounts to the National Identity Number (NIN).
This move aimed to clean up questionable accounts and ensure adherence to regulations.
The directive was issued by the Central Bank of Nigeria (CBN) in December 2023, instructing banks to restrict tier-1 accounts lacking proper Biometric Verification Number (BVN) and NIN linkage by March 1st, 2024.
According to a report by the Nigerian Interbank Settlement System (NIBSS), the number of inactive bank accounts increased by 2.0% month-on-month to 19.7 million in March 2024, indicating accounts with zero transactions for six months.
However, the report also noted a 3.0% growth in active bank accounts to 219.64 million compared to the previous month.
Additionally, data from NIBSS on BVN enrollment revealed that as of April 2024, 61.6 million Nigerians had been enrolled in the BVN system.
This underscores the importance of BVN in the Nigerian banking system as a means of identifying customers and enhancing financial inclusion.