The CBN had in a circular on December 1st 2023, directed that banks should place restrictions on all Tier 1 bank accounts without BVN.

Tier 1 accounts are accounts that can be opened with a valid identity or proof of address.

The maximum daily transaction limit for a Tier account is N50,000 while the maximum account balance is N300,000.
According to the circular, titled, ‘TIER-1 WALLETS AND ACCOUNTS: MANDATORY USE OF BANK VERIFICATION NUMBER (BVN) OR NATIONAL IDENTIFICATION NUMBER (NIN), the CBN said: “As part of its effort in promoting financial system stability, it becomes necessary to strengthen the Know Your Customer (KYC) procedures in financial institutions under the purview of the Central Bank of Nigeria (CBN).

“Accordingly, the CBN hereby issues an amendment to Section 1.5.3 of the Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry (The Guidelines).

In this regard: It is mandatory for ALL Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN
“It remains mandatory for Tiers 2 & 3 accounts and wallets for Individual accounts to have BVN and NIN;
“The process for account opening shall commence by electronically retrieving BVN or NIN related information from the NIBSS’ BVN or NIMC’s NIN databases and for same to become the primary information for onboarding of new customers, and all existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS’’ ICAD immediately and within 24hrs of opening accounts/wallets.

“Effective immediately, no new Tier 1 accounts and wallets should be opened without BVN or NIN,
“For ALL existing Tier 1 accounts/wallets without BVN or NIN:

“Effective immediately, any unfunded account/wallet shall be placed on “Post No Debit or Credit” until the new process is satisfied.

“Effective March 1, 2024, all funded accounts or wallets shall be placed on “Post No Debit or Credit” and no further transactions permitted.

“The BVN or NIN attached to and/or associated with ALL accounts/wallets must be electronically revalidated by January 31, 2024.”

Vanguard checks revealed that customers of a Tier 1 bank who have not linked their NIN to their account were not allowed access to the account.

A staff of the bank, who spoke on condition of anonymity confirmed to Vanguard, that the bank had started implementing the directive of the CBN that all bank accounts must be linked to NIN and BVN before February 29.

‘It is true that we have started implementing the directive. We have begun to place restrictions on accounts not linked to NIN. Today a customer called for my intervention because he could not access his account via internet banking.

A customer of the bank who also spoke anonymously shared his experience at the Berger Branch of the bank in Apapa. He said: “The bank staff told me I cannot access it because it has not been linked to my NIN. I had to show them a copy of my NIN slip before I was allowed to access the account.”

Our checks however reveal a different story in most of the banks. Besides sending email and SMS messages to their customers, most of the banks have yet to place restrictions on accounts not linked to NIN.