CBN to Close Millions of Bank Accounts in Zenith, First Bank, Access, UBA, and Others

CBN to Close Millions of Bank Accounts. 

Info: There are over 24 commercial banks operating in Nigeria today, including First Bank, Eco Bank  Access, UBA, Zenith, and other financial institutions that require BVN. 

The Central Bank of Nigeria (CBN) has announced plans to close millions of bank accounts that are not associated with a Bank Verification Number. (BVN).

The plan was disclosed at the Prembly Compliance Breakfast Dialogue on April 6 by Blaise Ijebor, director of the CBN’s Risk Management Department and chief risk officer. He stated that the objective is to clean up the sector and reduce the rising incidence of fraud.

 

The BVN is a unique identifier that captures bank customers’ biometric data and is used to verify their identities and prevent fraudulent activities.

Ijebor added that the central bank has been collaborating with the Nigerian Inter-Bank Settlement System (NIBSS) to combat the sector’s rising incidence of fraud.

He added that the financial regulator was considering initiating the exercise soon, but did not indicate when the CBN would initiate the clean-up.

Why is CBN closing bank accounts without BVN

Based on an analysis of the NIBSS website as of April 2, 2023, there were only 57,01 million registered BVN numbers out of a total of 191,4 million active bank accounts in the country.

Ijebor elaborated on the significance of closing bank accounts without a BVN and highlighted three areas where cybercriminals exploit vulnerabilities.

The Tier-1 account allows customers to open an account with minimal documentation and is primarily geared towards the unbanked and rural populace.

He said:

This account is dominated by digital banks or fintech companies and frequently lacks a BVN link, making it an easy point of entry for hackers.
Hackers can exploit any vulnerability to gain access to bank accounts.

Ijebor stated that the apex bank was working on enhancing agency banking and allowing agents to register their BVN numbers, which will facilitate the transition of Tier-1 accounts to Tier-2.

 

As Naira hits record low against USD, CBN adjusts.

 

CBN makes adjustments as the Nigerian naira falls to an all-time low against the US dollar.

In a separate report, the CBN may have made minor adjustments to the official exchange rate of the Naira against the US dollar.

Pay Attention to Full List Of Nigeria Banks And Their USSD Code you need to know

 

Since the beginning of the second quarter of 2023, the Naira has been trading at an all-time low against the dollar, above N463.

On Wednesday, April 5, 2023, the Naira depreciated against the US dollar across all foreign exchange markets.

 

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