Access, UBA, GTB, Zenith, Others Close Over 2 Million Customers' Bank Accounts, Give Reasons

• Nigerian banks, including Access, UBA, and Zenith, have frozen over 2 million customers' bank account
• The move is in obedience to the order from the Central Bank of Nigeria on linking BVN and NIN to bank accounts
• CBN explained that the directives are necessary to clean up the sector and reduce the growing incidence of financial fraud

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

A new report shows that commercial banks in Nigeria closed 2.021 million bank accounts in the first three months of 2024 (January to March).

The decision follows instructions from the Central Bank of Nigeria that banks must ensure Tier-1 bank accounts and wallets for individuals have either the Bank Verification Number (BVN) or National Identity Number (NIN) or both linked or be fined.

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The apex bank had given banks until March 1, 2024, to begin full implementation. The CBN ordered that any account not fully compliant with the requirement should not be permitted to carry out transactions.

Banks obey CBN

Vanguard reports that banks decided to clean their books of questionable accounts and comply with regulatory orders.

The Nigerian Interbank Settlement System (NIBSS) report shows that the implementation has increased the number of inactive bank accounts in Nigeria to 19.7 million in March 2024.

A bank account is classified as inactive when it records zero transactions, including deposits, withdrawals, transfers, or point-of-sale transactions, for six months.

Access, others to debit customers' bank accounts

Earlier, Legit.ng also reported that the federal government instructed all Nigerian banks to debit customers with domiciliary accounts.

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The debit is for old foreign currency transactions carried out by customers between 2021 and 2023 and will be remitted to the government.

Access Bank, GTB, UBA, Zenith, and other commercial banks have sent messages to customers to expect the debits.

In a notice titled 'Important Notice: Electronic Money Transfer Levy Deductions Begin on Foreign Currency Transactions,' the First Bank of Nigeria announced that deductions would start promptly and be forwarded to the FIRS.

Source: Legit.ng