BVN: No Further Extension After October 31st Deadline, CBN Warns

 

The Central Bank of Nigeria (CBN) has

made it clear that there would not be

further extension when the October 31,

2015 deadline for the bank verification

(BVN) elapses.

This, according to the banking sector

regulator means that customer

without the BVN-linked accounts

may risk being restricted from

normal operations of their accounts

or free access to their bank account

balances by the end of next month.

It revealed that statistical trend of

the BVN registration exercise showed

with about 52 million active bank

accounts in various banks, total

enrolment stood at about 20 million,

out of which about 14 million

accounts have been linked to the

BVN as at September, 2015.

It emphasised in a statement at the

weekend that BVN is now mandatory

requirement for opening new bank

accounts, adding that those to be

affected by the restrictions are

customers whose accounts were

opened prior to the commencement

of the BVN scheme.

The CBN, in collaboration with the

bankers’ committee, introduced the

BVN on February 14, 2014. This

initiative of the bankers’ committee

is aimed at ensuring unique identity

for all bank customers and other

users of financial services in the

country by the use of the customers’

biometrics as means of

identification.

Initially, it was estimated that all

bank customers would, within a

period of 18 months, complete

enrolment in the new system of

customer identification. The

enrolment for the scheme can be

done in banks across the country.

One of the most potent arguments

advanced by banks for not extending

enough credit to prospective credit

customers in Nigeria has been the

absence of credible identity system.

Thus, it was agreed that the scheme

would make access to credit easier

for people in the low income earners

in the society, which include

employees and entrepreneurs of

micro, small and medium enterprises

(MSMEs), students etc.

“At the expiration of the estimated

18 months after the launch,

empirical evidence showed that a

good number of bank customers

were reluctant and never took the

exercise seriously. Thus, few days to

the end of the mandatory 18 months,

which was June 30, 2015, there was

commotion and stampede in banking

halls across the country, as

customers were pushing, shoving

and climbing on each other in order

to beat the deadline for the BVN

registration.

“This confusion necessitated the call

for the extension of the registration

dateline by four months to October

31, 2015. What is required is for a

bank customer to visit any branch of

his bank and the desk officer would

capture his finger print and a

photograph of his face, his signature

and demand for a photocopy of

either of his driving license, national

identity card or international

passport of the customer.

“The question now is whether bank

customers have been taking

advantage of the extension to

complete their BVN registration, and

also ensure that their various bank

accounts have been linked to the

BVN,” it stated.

Another interesting trend, according

to the central bank showed that after

the initial rush between the end of

June and July 2015, there has been a

steady decline in new BVN

enrolment figures for August and

September, 2015.

“The emerging scenario therefore,

strongly suggests that many bank

account holders have continued to

show apathy instead of taking

advantage of the extension period.

“Given this development, there is the

apprehension that the commotion

and melee experienced at various

banking halls in the month of June

2015 would be repeated if customers

do not use the remaining one month

to ensure that they complete their

BVN registration, and also get their

various accounts linked to the BVN.

“The CBN has made it clear that there

would not be further extension after

October 31, 2015 deadline. This

means that customer without the

BVN-linked accounts may risk being

restricted from normal operations of

their accounts or free access to their

bank account balances,” it added.