CBN: Bank Customers Lament As Regulator Freezes 2m Accounts

Over two million bank accounts have been closed by the federal government in the first quarter of 2024, as a result of failure by owners to link such accounts with their National Identity Number, NIN, according to the Nigerian Interbank Settlement System, NIBSS.

The closure was in compliance with the directive from the Central Bank of Nigeria, CBN last December.

The magazine reported that the apex bank warned customers in a circular that all accounts not linked to BVN and NIN will be placed on “Post no debit or credit” effective April I, 2024.

The circular dated December 1, 2023, and addressed to all commercial, merchant, non-interest and payment service banks; as well as Other Financial Institutions, OFIs, and mobile money operators, was jointly signed by the CBN Director, Payments System Management Department, Chibuzo Efobi and Director, Financial Policy and Regulation Department, Haruna Mustafa

The Yemi Cardoso-led bank had said the decision was part of the CBN efforts to promote financial system stability in the country.

In spite of the warning, the magazine learned that many bank customers failed to comply, a situation that has forced the closure of such accounts which have seized to be operational since April.

Some customers who spoke to The Source complained about the closure of their accounts. According to them, they expected that the deadline would be extended by the CBN, adding that they expected more than the three months timeline set by the apex bank.

Also, it was learned that many accounts that have now been rendered operational by the CBN were used to commit fraud by the owners, many of such accounts had been opened without BVN and NIN, according to sources in the apex bank.

Effective April 1, 2024 such accounts were not expected to record deposits, withdrawals, transfers or point-of-sale transactions.

Meanwhile, the NIBSS said in the report the number of inactive bank accounts grew to 19.7 million in March 2024 from 19.3 million in February.