Data from the Nigeria Inter-Bank Settlement System Plc, NIBSS, has revealed that the total number of issued Bank Verification Numbers, BVN, rose to 57.96 million as of July 3, 2023, while the Central Bank of Nigeria, CBN threatens to close bank accounts without BVN.
The NIBSS further disclosed that the demand for greater security for access to sensitive or personal information in the banking system is due to increasing incidents of compromise on conventional security systems (password and PIN).
This is the same reason biometric technologies have been used to analyse human characteristics as an enhanced form of authentication for real-time security processes in recent times.
It further stated that BVN gave a unique identity that could be verified across the Nigerian banking industry (not peculiar to one bank), and ensured that customers’ bank accounts were protected from unauthorised access.
It said, “It will address issues of identity theft, thus reducing exposure to fraud. The BVN will enhance the banking industry’s chances of being able to fish out blacklisted customers.”
It noted that the BVN is an acceptable means of identification across all Nigerian Banks. Since launching in 2014, 57.96 million Nigerians have now got BVNs. Data from NIBSS indicated that there were 133.5 million as of December 2021.
According to the apex bank, BVN is part of its overall strategy of ensuring the effectiveness of the Know Your Customer principles, and the promotion of a safe, reliable, and efficient payments system.
Recently, the CBN said that it had placed 6,047 BVNs of bank customers under a watch list for fraudulent transactions. It stated that the number of BVN-linked accounts was 130.57 million out of 148.46 million active accounts.
It disclosed this in the CBN Financial Stability June 2022 report published in December 2022. It said, “The number of accounts linked with BVNs was 130,569,656 out of 148,462,947 active customer accounts, while the number of watch-listed BVNs associated with fraud and deceased persons stood at 6,047 and 11,871, respectively.”
