Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled Latest CBN News and Update on Naira Notes Today 17th April 2023.
According to newly released data from the Nigeria Inter-Bank Settlement System (NIBSS), the number of individuals with Bank Verification Numbers (BVN) in Nigeria has reached 57 million as of April 9, 2023.
However, despite the Central Bank of Nigeria’s (CBN) announcement that it would shut down bank accounts not linked with BVN, registration for new BVN has slowed down since the beginning of 2023. In the last three months of 2023, banks in Nigeria only recorded 500,000 new BVN enrolments, which is significantly lower than the average of 400,000 monthly registrations in 2022.
As of December 2022, the BVN record stood at 56.5 million. NIBSS has stated that as of December 2021, active bank accounts in Nigeria were 133.5 million, with data for 2022 yet to be released.
The BVN is a unique identifier that links a person to bank accounts across financial institutions in Nigeria and is issued or required at the point of bank account opening. It gives account owners a verifiable identity across the Nigerian banking system and protects their accounts from unauthorized access.
In recent news from Nigeria, the Central Bank of Nigeria (CBN) has announced plans to close bank accounts not linked to Bank Verification Numbers (BVN) across deposit money banks. This has led to an uptick in new registrations, with banks reporting a massive rush by customers. The move is aimed at cleaning up the sector and reducing financial fraud. The CBN has been working with the Nigeria Inter-Bank Settlement System (NIBSS) to address the increasing fraud incidences in the financial sector.
The BVN is a unique identifier that links a person to bank accounts across financial institutions in Nigeria and is issued or required at the point of bank account opening. BVN gives account owners a verifiable identity across the Nigerian banking system and protects their accounts from unauthorized access. The recent policy pronouncements by the apex bank have sparked an increase in new registrations, as customers rush to comply with the new guidelines.
In addition to the new BVN regulations, the CBN has also issued new guidelines to commercial banks on dormant accounts. The guidelines state that accounts that have received no deposit or withdrawal for upwards of one year will be considered dormant. The CBN will open a pool account to hold all funds left in such dormant accounts. This move is aimed at encouraging customers to update their bank records and ensure that their accounts remain active.
The CBN’s Director of the Risk Management Department and Chief Risk Officer, Blaise Ijabor, has stated that the bank’s aim is to clean up the sector and reduce the incidence of financial fraud. The move is expected to drive new BVN registrations by people whose accounts are not linked to BVN and encourage them to update their bank records. The CBN’s efforts are commendable and are likely to improve the integrity of the financial sector in Nigeria.
The Nigerian National Orientation Agency (NOA), in collaboration with the Central Bank of Nigeria (CBN), is embarking on a campaign to sensitize the public on the redesign of the Naira currency notes. To this end, a one-day sensitization workshop was organized at the NOA headquarters on January 9th, 2023. The workshop was aimed at building the capacity of NOA Directors to effectively communicate and disseminate information on CBN’s policies, programs, and contents related to Naira redesign.
With the current series of N200, N500, and N1,000 notes set to be phased out by January 31, 2023, the partnership between NOA and CBN is indeed timely. The objective of the collaboration is to build the capacity of NOA staff and to carry out advocacy, sensitization, and enlightenment campaigns on the Naira redesign across the country.
The workshop was attended by NOA Directors from the headquarters, 36 states, and FCT, as well as four Directors of the CBN. Participants had the option of either physical or virtual attendance for the training.
During the workshop, the Director of Currency Operation, Mr. Umar Bello, facilitated the presentation session, which aimed to create awareness and deepen the understanding of the concept of Naira redesign amongst the participants. It is expected that the training would enable the participants to effectively disseminate information about the new currency notes to the public.
The redesign of the Naira notes is expected to improve the security features of the currency notes and enhance the durability and lifespan of the notes. The new notes would also incorporate Nigerian cultural heritage, as well as the images of Nigerian heroes and heroines, thereby boosting national pride and identity.
The sensitization campaign is expected to reach every nook and cranny of the country to ensure that Nigerians are aware of the new currency notes and the phasing out of the old notes. The NOA and CBN partnership is indeed a welcome development, as it would ensure that the public is adequately informed and prepared for the new currency notes.