Commercial banks have shutdown over 2million bank accounts in the first quarter of 2024 to ensure compliance with regulatory directives regarding the linkage of bank accounts to the National Identity Number (NIN).
This move aimed to cleanse their records of questionable accounts and enhance regulatory compliance.
According to a report by the Nigerian Interbank Settlement System (NIBSS), the number of inactive bank accounts surged by four million or 2.0 percent month-on-month (MoM) to reach 19.7 million in March 2024 from 19.3 million in February.
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Conversely, the report highlighted a positive trend in active bank accounts, with their numbers growing by 6.62 million or 3.0 percent to reach 219.64 million in March, compared to 213.02 million in February.
This proactive measure by commercial banks aligns with a directive issued by the Central Bank of Nigeria (CBN) in December 2023.
The directive mandated banks to restrict tier-1 accounts lacking proper linkage to both the Biometric Verification Number (BVN) and the National Identity Number (NIN), if not linked by March 1st, 2024.
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Data from NIBSS on BVN enrollment count revealed that as of April 2024, 61.6 million Nigerians have obtained BVN, indicating significant progress in the adoption of this biometric identification system across the country.
However, account is deemed inactive when it records zero transactions, including deposits, withdrawals, transfers, or point-of-sale transactions for six consecutive months.