Nigeria CBN to Freeze Accounts Without BVN or NIN from April 2024, Sparks Nationwide Concerns

The Central Bank of Nigeria (CBN) has issued a circular outlining its plans to freeze accounts lacking a Bank Verification Number (BVN) or National Identification Number (NIN) starting April 2024. The announcement, detailed in a Friday circular, revealed that a BVN or NIN verification process will be conducted shortly as part of the CBN's broader efforts to ensure financial system stability and strengthen Know Your Customer (KYC) procedures within its regulatory purview.

The circular, signed by CBN's Director of Payments System Management Department, Chibuzo Efobi, and the Director of Financial Policy and Regulation Department, Haruna Mustapha, emphasizes that all BVNs or NINs attached to accounts and wallets must undergo electronic revalidation by January 31, 2024. This deadline adds a sense of urgency for account holders to comply with the verification process.

The move underscores the CBN's commitment to enhancing the integrity of the nation's financial system by curbing fraudulent activities and promoting responsible financial practices. The requirement for electronic revalidation by the specified deadline aims to expedite the verification process and ensure that account holders are aware of and adhere to the impending changes.

Financial institutions under the CBN's purview will play a crucial role in implementing these measures, and customers are encouraged to proactively engage with their banks to complete the necessary revalidation procedures. The CBN's circular signals a proactive stance in fortifying the Know Your Customer procedures, emphasizing the importance of accurate customer information to maintain financial stability.

However, the impending freeze has sparked nationwide concerns, with individuals and businesses expressing worries about the potential disruption to their financial activities. Critics argue that the tight deadline for electronic revalidation may pose challenges for account holders, especially those in remote areas or with limited access to digital services.

As the April 2024 deadline approaches, the nation awaits further details on the BVN and NIN verification process, seeking clarity on the steps required for compliance