Nigeria: CBN Sets March 1, 2024 Deadline for BVN-NIN Linkage, Imposes Restrictions on Non-Compliant Accounts

The Central Bank of Nigeria (CBN) has issued a directive stating that as of March 1, 2024, all accounts lacking both the Bank Verification Number (BVN) and the National Identity Number (NIN) will face restrictions on transactions. Additionally, the possession of BVN and NIN has been made mandatory for the opening of any new bank accounts.

The circular, jointly signed by Chibuzo Efobi, Director of Payment System Management Department, and Haruna Mustafa, Financial Policy and Regulation Department, cites the CBN’s commitment to strengthening Know Your Customer (KYC) procedures for financial system stability.

Effective immediately, no new Tier 1 accounts or wallets will be permitted without a BVN or NIN. For existing Tier 1 accounts and wallets lacking BVN or NIN, unfunded accounts or wallets will be placed on “Post No Debit or Credit” until compliance is met.

Starting March 1, 2024, funded accounts or wallets without BVN or NIN will also be placed on “Post No Debit or Credit,” with no further transactions allowed. The circular emphasizes that BVN or NIN attached to accounts must be electronically revalidated by January 31, 2024.

The CBN specifies that BVN and/or NIN are mandatory for all Tier-1 bank accounts and wallets for individuals, and for Tiers 2 and 3 accounts and wallets for individual accounts. The process for account opening will involve electronically retrieving BVN and NIN-related information from the NIBSS or NIMC databases, becoming the primary information for onboarding new customers.

All existing customer accounts and wallets for individuals with validated BVN will be profiled by the NIBSS ICAD within 24 hours of opening accounts and wallets. The circular includes Guidance Notes for compliance, highlighting that a comprehensive BVN and NIN audit will be conducted, and appropriate sanctions will be applied for identified breaches.

Financial institutions regulated by the CBN are urged to strictly comply with restrictions on Tier 1 accounts and wallets, including transaction value limits and cumulative balances.