The Central Bank of Nigeria has raised an alarm towards the massive number of bank accounts that have failed to enroll for BVN
Despite the fact that the need for a Bank Verification Number (BVN) has become a “do or die” affair in most of the local bank to run an account successfully, the Apex bank of Nigeria just made a shocking announcement, informing that there are still as much as 25.7 million account owners who have not been enrolled for the BVN, however, there was no specific statement that confirms whether the accounts are dormant or not.
As of June 2018, the apex bank stated that 64 percent or 46.1 million from 71.8 million active bank customers’ accounts have been linked to the BVN, a biometric identification system implemented by the Central Bank of Nigeria to curb or reduce illegal banking transactions in Nigeria. It is a modern security measure in line with the Central Bank of Nigeria Act 1958 to reduce fraud in the banking system, and it has proven positive since it has been effected in the Nigeria banking system. In its economic report for the first half of 2018, CBN noted that fraud and forgery cases reported by banks hit 20,768 in the half-year of 2018 from 16,762 fraud and forgery cases reported in 2017.
The Apex bank attested to a N19.7 billion worth attempted and successful forgery which was believed to have been perpetrated by both staffs and non-staffs culprits of the local banks. “The cases involved armed robbery attacks, fraudulent ATM withdrawals, defalcation, illegal funds transfer, pilfering of cash, stealing, suppression, and conversion of customers’ deposits,” the report by CBN explained.
According to the report, it received 1,439 complaints from consumers of financial services in the first half of 2018, compared with the 1,141 in the corresponding period of 2017. “The complaints were, mainly, in respect of excess charges, frauds, dishonored guarantees and unauthorized deductions/ transfers, among others. A total of 2,451 complaints, including those outstanding from 2017, were resolved in the review period, compared with 1,270 complaints resolved in the corresponding period of 2017…Total claims in the review period in local and foreign currencies amounted to N20.5 billion, $163,479.00, £2,889.98 and €32.82, compared with N14.72 billion, US$2.42 million and €6,940.00, in the corresponding period of 2017.”
“The sum of N6.80 billion, $119,349, £2,889.98 and €32.82 were refunded by financial institutions to their customers, compared with the sum of N7.21 billion, $2.40 million and €6,940.00, refunded in the corresponding period of 2017,” the apex bank stated.
The report explained further that aggregate foreign exchange supply by the Bank to the inter-bank and Bureau De Exchange (BDC) segments amounted to $3.20 billion and $3.17 billion in the review period, respectively, compared with $4.01 billion and $1.20 billion, in the corresponding period of 2017. The half-year report stated: “This showed a decrease of 20.2 percent in total sales to the interbank, but an increase of 163.4 percent to the BDC segment, relative to the levels in the corresponding period of 2017. The significant increase in BDC sales reflected the Bank’s policy to increase the supply of foreign exchange to small end-users.”
While investigations are still ongoing, it is important to know that the Apex bank will not take it friendly with anyone found guilty of using an unenrolled account for illegal transactions.