No fewer than 31 million customers have been captured in the Bank Verification Number (BVN), the Central Bank of Nigeria (CBN) has said.
“As at December 2017, the implementation of the project recorded 31,426,091 registered BVNs and 43,959,282- accounts linked with BVN,’’ CBN Director in charge of Banking and Payment System, Mr. Dipo Fatokun, said in Abuja.
His lecture titled: Nigeria’s progress towards the creation of a robust, trusted and inclusive financial services environment, was given at the annual meeting of the ID4Africa Movement.
Fatokun said: “To address the absence of a unique identifier in the Nigerian banking industry and to facilitate the creation of inclusive financial services environment, the CBN, in collaboration with the Bankers’ Committee launched the BVN Project on February 14, 2014, with biometric solution, as a unique identifier for all bank customers.
“The objectives include the following: increase access, convenience, service levels across the industry; enable greater financial inclusion and integration of financial services into the economy, with its attendant positive impact on economic development.”
Fatokun said the BVN was also targeted at promoting safe and sound financial system in the country.
The BVN, he said, had helped in the provision of a unique identity for customers that impact other areas such as credit check, and non-repudiation of transactions.
According to him, the BVN has also helped to increase deterrent controls on financial transactions and reduce or mitigate fraud risk and identity theft.
The CBN official said: “Most importantly, it has created avenues for people who cannot write a regular signature to make financial transactions, thus facilitating financial inclusion."
“As at December 2017, the implementation of the BVN Project recorded 31,426,091 registered BVNs and 43,959,282- accounts linked with BVN.’’
Fatokun explained that the BVN was part of the Federal Government’s strategy towards accelerating financial inclusion in the country.
“Nigeria launched its National Financial Inclusion Strategy in October 2012 with the goal of reducing the percentage adult Nigerians that are excluded from financial services from 46.3 per cent in 2010 to 20 per cent by 2020,’’ he said.
Fatokun added that a number of factors were identified as barriers to financial inclusion among Nigerians.
He said: “The identified barriers to financial inclusion include lack of income, long distance to access points, lack of knowledge about financial services, high cost of services and cumbersome requirements for account opening."
“In order to achieve the set target, and to address the aforementioned barriers, different measures and initiatives were put in place by the CBN."
“To address the cumbersome documentation requirement for account opening, the CBN introduced the Three-tiered Know-Your-Customer (T-KYC) in 2013, which was modified in July 2016."
“The three-tiered KYC guideline allows individuals who may not meet the formal identification requirements and in banks to operate and enjoy banking services within defined thresholds."
“The simplification consists of lowering the account opening requirements and less-paper documentation in exchange for a lower threshold."
“The CBN T-KYC is one of the initiatives for improving financial inclusion in Nigeria to facilitate easy access to a broad range of formal financial services.’’