Panic As Banks Close Over 2 Million Customers’ Accounts

Bank customers panic as banks have continued to implement the directive aimed at clamping down on illegal accounts by closing bank accounts that failed to meet the requirements.

In the first quarter of 2024, Nigerian commercial banks closed 2.021 million bank accounts as part of efforts to cleanse their records of dubious accounts and adhere to regulatory directives mandating the linkage of bank accounts to the National Identity Number (NIN).

This data was disclosed in a report by the Nigerian Interbank Settlement System (NIBSS).

The report further revealed a month-on-month increase in inactive bank accounts, rising by four million or 2.0 percent to 19.7 million in March 2024 compared to 19.3 million in February. Bank accounts are classified as inactive if they have had no transactions, including deposits, withdrawals, transfers, or point-of-sale transactions, for six consecutive months.

However, amidst the closure of accounts, the number of active bank accounts experienced growth, surging by 6.62 million or 3.0 percent to reach 219.64 million from 213.02 million in February. This increase in active accounts coincides with efforts by the Central Bank of Nigeria (CBN), which, in December 2023, directed commercial banks to deactivate tier-1 accounts lacking proper Biometric Verification Numbers (BVN) and National Identity Numbers (NIN) that were not linked by March 1st, 2024.

As per NIBSS data on BVN enrollment count, as of April 2024, 61.6 million Nigerians have BVNs, reflecting ongoing efforts to ensure compliance with regulatory requirements.