Banking halls witnessed massive crowds on Monday as customers hurried to link their Bank Verification Numbers (BVN) and National Identity Numbers (NIN) to their bank accounts. The surge followed a recent directive from the banking regulator instructing banks to restrict access to accounts for customers who had not linked their BVN and NIN. The Central Bank of Nigeria (CBN) emphasized the need for proper profiling of existing customers and the tagging of valid BVN and/or NIN.
The directive stated that unfunded accounts or wallets would be placed on ‘Post no debit or credit’ until the new process was satisfied, effective immediately. Furthermore, from March 1, 2024, funded accounts or wallets would also face the same restriction. “Post no debit” indicates a limitation imposed by banks, preventing customers from making withdrawals, transfers, or debits from their accounts.
Large queues were observed at various banks, including Zenith Bank, Guaranty Trust Bank, and First Bank. The rush was particularly noticeable at the Ojodu/Berger branches. Some bank officials reported an increase in the number of customers attending to BVN-related matters. The scarcity of cash in banks has persisted despite the CBN’s directive to continue accepting old and redesigned naira banknotes. The shortage has led to rationing of naira notes and limited cash dispensation at ATMs.
Data from the Nigeria Inter-Bank Settlement System revealed that over 75 million bank accounts could be affected by the directive, as only 59 million BVN registrations were recorded as of October 9, 2023. The cash shortage is attributed to concerns that the CBN may ban some old denominations by the year-end. However, the CBN has assured that all versions of N200, N500, and N1,000 banknotes, both old and redesigned, will continue to be legal tender.
Despite ongoing cash scarcity, there has been no new directive limiting cash transactions, according to some bank spokespersons. The situation is being attributed to possible hoarding of cash that has not been reintroduced into the economy.
