By Milcah Tanimu

Commercial banks in Nigeria took the proactive step of closing 2.021 million bank accounts during the first quarter of 2024, aiming to streamline their operations and adhere to regulatory directives regarding the linkage of bank accounts to the National Identity Number (NIN).

A report from the Nigerian Interbank Settlement System (NIBSS) highlighted the closure of these accounts as part of efforts to ensure compliance with regulatory standards. Additionally, the report revealed a concerning trend of growing inactivity among bank accounts, with a month-on-month increase of four million inactive accounts, reaching a total of 19.7 million by March 2024.

An account is deemed inactive when it registers zero transactions for six consecutive months, including deposits, withdrawals, transfers, or point-of-sale transactions. Despite this rise in inactive accounts, the data also indicated a growth in active bank accounts, with an increase of 6.62 million accounts, reaching a total of 219.64 million by March 2024.

This move follows the Central Bank of Nigeria’s directive issued in December 2023, instructing commercial banks to take action against tier-1 accounts lacking proper Biometric Verification Numbers (BVN) and National Identity Numbers (NIN) that were not linked by March 1st, 2024.

According to NIBSS data on BVN enrollment, approximately 61.6 million Nigerians had registered for BVN as of April 2024, underscoring efforts to enhance the integrity and security of the banking system through identity verification measures.