Nigeria’s banking sector experiences a notable uptick in active bank accounts, reaching a total of 219.6 million in March 2024, as reported by the Nigeria Inter-Bank Settlement System (NIBSS). This article delves into the significant increase from previous figures, highlighting the growth trajectory over the past 15 months. Additionally, it examines the decline in dormant accounts and the Central Bank of Nigeria’s measures to address accounts without Bank Verification Numbers (BVNs) and National Identification Numbers (NINs).
The latest data released by the Nigeria Inter-Bank Settlement System (NIBSS) reveals a remarkable surge in active bank accounts across Nigeria, with the figure reaching 219.6 million as of March 2024. This substantial increase is particularly noteworthy when compared to earlier data from 2022, which reported 151 million active accounts, indicating a surge of 68.6 million accounts over the past 15 months.
Moreover, the statistics portray a decline in dormant bank accounts, with NIBSS reporting a decrease from 72.8 million dormant accounts in 2022 to 19.8 million inactivity cases in the current period. Dormant accounts, categorized as those with no activity for 12 months, are closely monitored by banks to mitigate fraud risks.
In tandem with the rise in active accounts, NIBSS also notes that approximately 22.5 million bank accounts have been closed, reflecting changes in customer banking behavior or account maintenance strategies.
However, despite the surge in active bank accounts, a significant gap persists between the number of accounts and registered Bank Verification Numbers (BVNs) – a mandatory requirement for account opening. The total BVNs registered by account holders stands at 61.5 million as of April 2024, according to NIBSS data. Notably, industry analysts suggest that while multiple accounts may be linked to a single BVN, the variance between account and BVN figures remains noteworthy.
This development aligns with efforts by regulatory bodies to enhance financial security and regulatory compliance within the banking sector. The Central Bank of Nigeria (CBN), in a directive issued in December the previous year, announced plans to freeze accounts lacking BVNs and National Identification Numbers (NINs) starting from April 2024. The directive mandates banks to impose a “Post no Debit” restriction on existing Tier-1 accounts or wallets without BVNs or NINs, effectively preventing withdrawals, transfers, or any debits.
As Nigeria’s banking landscape evolves, stakeholders navigate regulatory changes and strive to foster financial inclusion while bolstering security measures within the sector.
