In a circular issued on Friday, the apex bank directed banks to implement a “Post no Debit” restriction on all existing Tier-1 accounts/wallets without BVN or NIN. This restriction prevents customers from conducting withdrawals, transfers, or any other debits.

The circular, signed by CBN’s Director of Payments System Management Department, Chibuzo Efobi, and Director of Financial Policy and Regulation Department, Haruna Mustapha, outlined the timeline for the implementation of these measures.

“Effective immediately, unfunded accounts/wallets will face a ‘Post No Debit or Credit’ restriction until compliance is achieved. Starting March 1, 2024, funded accounts or wallets without BVN or NIN will also be subject to this restriction”.

The CBN emphasized the need for all BVN or NIN linked to accounts/wallets to undergo electronic revalidation by January 31, 2024. The bank plans to conduct BVN and NIN verification shortly as part of its efforts to enhance financial system stability and reinforce Know Your Customer (KYC) procedures.

A comprehensive BVN and NIN audit will be conducted, and sanctions will be applied for identified breaches. The account opening process will involve electronically retrieving BVN or NIN information from the Nigeria Inter-Bank Settlement System (NIBSS) or National Identity Management Commission’s (NIMC) databases.

For new customers without a BVN or NIN, regulated financial institutions are advised to enroll the individual onto the BVN database, following protocols issued by NIBSS. The CBN aims to streamline the onboarding process, making BVN or NIN the primary information for new customers and existing accounts with validated BVN.

This move is part of the CBN’s commitment to promoting financial system stability and reinforcing KYC procedures within financial institutions.