The Central Bank of Nigeria (CBN) has declared that as from January 1, 2018, customers of microfinance banks and other financial institutions (OFIs) without the bank verification number (BVN) will be unable to make withdrawals from their accounts.
The apex bank made this declaration in a statement issued on Friday as a way of indicating that it has extended the deadline for the verification, which was initially set for July 31.
The statement which was issued by the director, other financial institutions supervision department, Tokunbo Martins, quoted the apex bank as saying that it extended the deadline following appeals from various bodies.
“As you are aware, the deadline expired on July 31, 2017, and consequently several OFIs are in breach of this regulatory directive,” the statement read.
“We have already commenced a review of such cases to identify and investigate cases of fraud,” she had said.
“We know that extending the requirement for BVN to microfinance banks may put a huge financial strain on the smaller microfinance banks; but some such as National Police Force microfinance (NPF), have over 27,000 salary accounts.
“Our inability to perform checks on such a large number of salary earners is a key risk.
“This will support the federal government’s efforts at reducing leakages to create headroom for the capital projects that will support the growth of the economy.”
Click here to see circular
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