Nigerian commercial banks have taken action in the first quarter of 2024, closing over 2 million bank accounts in order to cleanse their books of questionable accounts and enforce the linkage of bank accounts to the National Identity Number (NIN).
According to a report released by the Nigerian Interbank Settlement System (NIBSS), the number of inactive bank accounts surged to 19.7 million in March 2024, representing a month-on-month increase of 2.0 per cent, or approximately 4 million accounts.
An account is deemed inactive when it records zero transactions for six consecutive months, including deposits, withdrawals, transfers, or point-of-sale transactions.
However, amidst the closure of dormant accounts, there was a notable uptick in the number of active bank accounts. NIBSS data revealed a growth of 6.62 million active accounts, reaching a total of 219.64 million in March 2024, compared to 213.02 million in the preceding month of February.
The surge in account closures and inactive accounts can be attributed to the directive issued by the Central Bank of Nigeria (CBN) in December 2023. The directive mandated all commercial banks to restrict tier-1 accounts that lacked proper Biometric Verification Number (BVN) and National Identity Number (NIN) linkage by March 1st, 2024.
As of April 2024, data from NIBSS indicated that 61.6 million Nigerians have successfully enrolled for BVN, underscoring the progress made in enhancing the integrity of the banking system through biometric identification.
