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The total number of Bank Verification Numbers (BVNs) issued in Nigeria has reached 57.96 million as of July 3, 2023, according to data from the Nigeria Inter-Bank Settlement System Plc (NIBSS). Meanwhile, the Central Bank of Nigeria (CBN) has announced its intention to close bank accounts that are not linked to BVNs. The increasing instances of compromise on traditional security systems have highlighted the need for stronger security measures in accessing sensitive banking information.
Biometric technologies, such as BVNs, have emerged as an enhanced form of authentication to enhance real-time security processes. BVN provides a unique identity that can be verified across all banks in Nigeria, protecting customers’ bank accounts from unauthorized access. It plays a crucial role in addressing identity theft and reducing the risk of fraud, while also improving the banking industry’s ability to identify blacklisted customers.
BVN has become an accepted means of identification across all Nigerian banks. Since its launch in 2014, 57.96 million Nigerians have obtained BVNs, with 133.5 million BVNs recorded as of December 2021, according to NIBSS data. The CBN considers BVN an integral part of its Know Your Customer (KYC) principles, aiming to promote a safe, reliable, and efficient payments system.
In an effort to clean up the financial sector and combat the growing incidence of fraud, the CBN has taken steps to remove accounts that are not linked to BVNs from the financial system. Blaise Ijebor, Director of the Risk Management Department and Chief Risk Officer at the CBN, emphasized the importance of this action. A recent report by FITC revealed that bank customers in Nigeria lost N472 million to fraud in the first quarter of 2023, with a total of 12,553 fraud cases reported during that period.
The CBN has placed 6,047 BVNs of bank customers on a watch list for fraudulent transactions. Out of 148.46 million active accounts, 130.57 million accounts are linked to BVNs, as stated in the CBN Financial Stability June 2022 report published in December 2022. Additionally, 11,871 BVNs associated with deceased persons were also identified.
By enforcing the BVN requirement and watchlisting non-compliant accounts, the CBN aims to strengthen the integrity of the banking system and protect customers from fraudulent activities.
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