On Friday, the Central Bank of Nigeria (CBN) made an announcement, revealing its intention to impose a freeze on accounts lacking a Bank Verification Number (BVN) or National Identification Number (NIN) starting from April 2024.

Naija News gathered that the apex bank instructed a "Post no Debit" restriction on all affected bank accounts. "Post No Debit" is a term denoting a restriction imposed by banks on specific accounts, preventing customers from executing withdrawals, transfers, or any other debits from their accounts. This action effectively immobilizes the funds in the account, making it inaccessible during the period of the restriction.

The CBN's directive was communicated through a circular issued by the apex bank and disseminated to all deposit money banks on Friday. The circular also specified that all BVNs or NINs associated with AL accounts/wallets must undergo electronic revalidation by January 31, 2024.

The document was jointly signed by Chibuzo Efobi, the Director of Payments System Management Department, and Haruna Mustapha, the Director of the Financial Policy and Regulation Department.

The CBN clarified that this directive is part of its ongoing efforts to enhance financial system stability and reinforce the Know Your Customer procedures across all financial institutions.

It also amended Section 1.5.3 of the Regulatory Framework for BVN to ensure mandatory registration of all tier-1, 2, and 3 Bank accounts and wallets with BVN or NIN.

The circular read, “As part of its efforts in promoting financial system stability, it becomes necessary to strengthen the Know Your Customer procedures in financial institutions under the purview of the Central Bank of Nigeria.

“Accordingly, the CBN hereby issues an amendment to Section 1.5.3 of the Regulatory Framework for Bank Verification Number Operations and Watch List for the Nigerian banking industry.

“In this regard: it is mandatory for all Tier-1 bank accounts and wallets for individuals to have BVN and/or NIN. It remains mandatory for Tiers 2 & 3 accounts and wallets for individual accounts to have BVN and NIN.

“The process for account opening shall commence by electronically retrieving BVN or NIN related information from the NIBSS BVN or NIMC’s NIN databases and for same to become the primary information for onboarding of new customers.

“All existing customer accounts/wallets for individuals with validated BVN shall be profiled in the NIBSS ICAD immediately and within 24 hRS of opening accounts/wallets.

“Effective immediately, no new Tier1 accounts and wallets should be opened without BVN or NIN,

“For all existing Tier1 accounts/wallets without BVN or NIN: i. Effective immediately, any unfunded account/wallet shall be placed on “Post No Debit or credit until the new process is satisfied.

“Effective April 1, 2024, all funded accounts or wallets shall be placed on “Post No Debit or Credit, and no further transactions permitted.

“The BVN or NIN attached to and/or associated with all accounts/wallets must be electronically revalidated by January 31, 2024.

“To ensure uniform and full compliance, the Executive Compliance Officers, Chief Compliance Officers, or Heads of the Compliance Functions are advised to acquaint themselves with the attached Guidance Notes which becomes applicable to ALL institutions regulated by the CBN.

“Also, a comprehensive BVN and NIN audit shall be conducted shortly and where breaches are identified, appropriate sanctions shall be applied.

“Finally, all financial institutions regulated by CBN are required to apply strict compliance on restrictions on Tier1 accounts/wallets as they relate to limits on transaction values and cumulative balances.”