A significant surge in customer presence inundated banking halls on Monday in response to the recent directives from the Central Bank of Nigeria (CBN). The directive, issued on Friday, instructed banks to restrict access for customers who have not linked their Bank Verification Numbers (BVN) and National Identity Numbers (NIN) to their accounts. Effective immediately, accounts without linked BVN and NIN face “Post no debit or credit” measures until compliance is achieved. Come March 1, 2024, funded accounts failing to meet the new requirements will be subject to restrictions, with no further transactions permitted.
Observations at various bank branches, including Zenith Bank, Guaranty Trust Bank, and First Bank, revealed extensive queues as customers rushed to link their NIN to their accounts. The influx has presented operational challenges for banks, with concerns raised about the ability to handle the anticipated rush. Some banks are considering extending working hours, including weekends, to accommodate the increased workload.
Latest data from the Nigeria Inter-Bank Settlement System indicates that over 75 million bank accounts could face restrictions or outright blocks due to the non-linking of BVN and NIN, with only 59 million BVNs registered as of October 9, 2023.
Despite the CBN’s directive allowing the continued issuance and acceptance of old and redesigned naira banknotes, there remains a scarcity of local currencies. Automated Teller Machines (ATMs) are programmed to dispense limited cash, leading to customer dissatisfaction. Bank officials attribute the scarcity to fears that the banking regulator might ban some old denominations by the end of the year.
In response to concerns, the CBN clarified through its acting Director of Corporate Communications, Mrs. Sidi Hakama, that all denominations of Nigerian banknotes, including old and re-designed versions, will continue to be accepted. The Supreme Court’s order on November 29, 2023, extended the use of old naira banknotes indefinitely, providing assurance to the public.
While some ATMs are rationing cash, bank spokespersons deny receiving any new directive from the CBN to limit cash transactions. They attribute the scarcity to potential hoarding of cash that has not been returned to the economy.
