CurrentReport Blog In a bid to cleanse their financial system and align with regulatory mandates, Nigeria has taken decisive action, closing a staggering 2.021 million bank accounts in the first quarter of 2024. This move, outlined in a report by the Nigerian Interbank Settlement System (NIBSS), aims to weed out questionable accounts while ensuring compliance with the directive to link bank accounts to the National Identity Number (NIN).
According to the NIBSS report, the number of inactive bank accounts witnessed a month-on-month increase, rising by four million or 2.0 percent to 19.7 million in March 2024 from 19.3 million in February. A bank account is deemed inactive when it shows zero transactions for a period of six months, encompassing deposits, withdrawals, transfers, or point-of-sale activities.
Despite the closure of inactive accounts, there’s a silver lining in the data. The report highlights a notable uptick in active bank accounts, which surged by 6.62 million or 3.0 percent to reach 219.64 million in March, compared to 213.02 million in February. This suggests a positive trend in banking engagement and usage among Nigerians.
This aggressive approach to account management follows the Central Bank of Nigeria’s (CBN) directive issued in December 2023. The directive mandated all commercial banks to enforce restrictions on tier-1 accounts lacking proper Biometric Verification Numbers (BVN) and National Identity Numbers (NIN) that weren’t linked by March 1st, 2024.
Notably, the NIBSS data underscores progress in BVN enrollment, with 61.6 million Nigerians now possessing BVNs as of April 2024. This indicates a significant stride towards enhancing financial inclusion and security within the country’s banking landscape.
