Nigeria: Banking Halls Overwhelmed as Customers Rush to Link BVN/NIN Amid Cash Shortage

A surge in customer traffic engulfed banking halls on Monday as individuals sought to link their Bank Verification Numbers (BVN) and National Identity Numbers (NIN) to their bank accounts. This uptick in activity followed a recent directive from the banking regulator instructing banks to restrict account access for customers who had not linked their BVN and NIN.

In its directive, the Central Bank of Nigeria (CBN) mandated existing customers to ensure the full profiling of accounts created through agents in the Nigeria Inter-Bank Settlement System ICAD. These accounts were required to be tagged with valid and correct BVN and/or NIN. Effective immediately, any unfunded account or wallet would be placed on ‘Post no debit or credit’ status until the necessary processes were completed. Furthermore, starting March 1, 2024, funded accounts or wallets would face the same restrictions.

“Post no debit” is a term indicating restrictions imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or debits from their accounts.

Substantial queues were observed at branches of Zenith Bank, Guaranty Trust Bank, and First Bank, where customers were lining up to link their NIN to their bank accounts. Notably, the queues at GTBank remained lengthy as customers patiently waited for their turn.

A senior official of a Tier-1 bank in Lagos expressed concerns about coping with the expected rush, citing challenges such as the loss of key employees and staff rationalization efforts by banks to minimize operating expenses.

Meanwhile, despite the CBN’s directives to banks to issue and accept both old and redesigned naira banknotes, a scarcity of local currency persists. Banks continued to ration naira notes to customers, and ATMs were programmed to dispense limited cash.

Several factors contributed to the cash scarcity, including concerns that the CBN might ban some old denominations by year-end. However, in a statement, the CBN clarified that following a Supreme Court order, old versions of N200, N500, and N1,000 banknotes would continue to be legal tender alongside the redesigned versions.

While the cash shortage and increased customer footfall pose challenges for banks, the urgency to comply with BVN and NIN requirements reflects the broader impact of regulatory measures on the financial landscape in Nigeria.