The Nigeria Inter-Bank Settlement System (NIBSS) has reported that the number of verified Bank Verification Number (BVN) holders in Nigeria has reached 65 million as of August 15, 2024. This milestone underscores NIBSS’s pivotal role in advancing Nigeria’s financial sector and driving digital transformation.
Introduced by the Central Bank of Nigeria (CBN) in 2014, the BVN system aims to reduce fraud and enhance security in banking by providing a unique biometric identifier for bank accounts. The system has seen significant growth since its launch, now covering a substantial portion of Nigeria’s banked population.
From April to July 2024, BVN registrations increased from 61.47 million to 62.7 million, adding over 854,000 new accounts. By August, the total number of verified BVN holders had surged to 65 million, marking a growth of over 4 million in 2024 alone.
Premier Oiwoh, Managing Director and CEO of NIBSS, attributed this growth to ongoing technological advancements and innovations. “NIBSS was established to provide service-oriented solutions addressing key financial sector challenges. Our modernization efforts have been crucial in achieving this significant milestone,” Oiwoh stated.
Despite this progress, concerns remain about the 40% of Nigerians who are still financially excluded. The Enhancing Financial Innovation and Access (EFInA) 2023 survey indicates that many Nigerians, particularly in rural areas, continue to face barriers to accessing formal banking services due to low financial literacy and mistrust of banking institutions.
Kurfi Garba, Managing Director of APT Securities, noted that financial literacy remains low and cultural mistrust deters many from engaging with traditional banks. He highlighted a growing demand for alternative financial services like mobile wallets and payment service banks, which may help bridge the financial inclusion gap.
Chinwe Egwim, former Chief Economist at Coronation Merchant Bank, emphasized the need for a comprehensive approach to enhance financial inclusion. She advocated for improved financial literacy, greater trust in banking institutions, and robust cybersecurity measures to protect the BVN database and reassure users.
Egwim also stressed the importance of public education to promote BVN registration and safeguard against fraud. Addressing these issues effectively will help Nigeria leverage the BVN system’s benefits and move towards a more inclusive and secure financial ecosystem.
