BVN: 2 Million Bank Customers ‘Abandon Their Accounts’ In 2017

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2 Million Bank Customers In Nigeria ‘Abandoned Their Accounts’

A recently released banking statistics from the Nigeria Inter-Bank Settlement System (NIBSS) has shown that the number of customers in Nigeria using financial services has reduced in 2017.

This is in spite of the effort by the Central Bank of Nigeria (CBN) to promote financial inclusion.

The statistics, which was obtained by the News Agency of Nigeria (NAN) from the NIBSS website on Sunday, showed that the total number of bank customers dropped from 61 million in 2016 to 59 million in 2017.

In the same vein, the active bank accounts reduced from 65 million in 2016 to 63.5 million accounts in 2017.

According to NIBSS, the banking sector, however, made great strides in linking customers’ account using the Bank Verification Number (BVN).

The report showed that linked BVN accounts grew from 26 million in 2016, to 41.3 million in 2017.

A banking industry source told NAN that the reduction in banking customers is not unconnected to the federal government’s anti-graft battle.

“When Buhari assumed office, many people abandoned their accounts, especially civil servants because of fear of investigation.

“While some closed down their accounts outright, others opted for gradual withdrawal so as not to raise the alarm,’’ the source said.

The source, who works at one of the top banks, blamed the BVN for the low patronage of banking products, especially in the rural areas, where awareness was very low.

A bank customer, Olaitan Alagbe told NAN that she closed some of her accounts due to unnecessary and illegal charges by banks.

“First of all, the interest rate is next to nothing, so there is little reason to keep your money at the bank when you can turn it over doing other businesses,” she said.

Another customer, who preferred to remain anonymous said he opened several accounts during the Ponzi scheme boom in the country, but was forced to abandon them after the schemes crashed in late 2016 and early 2017.

However, a source at the CBN told NAN that the reduction in the number of banking customers was caused mainly by the introduction of BVN.

“The reduction may not necessarily be a bad thing. For example, many people opened accounts using different variations of their names.

“A person bearing Musa Salisu Mohammed, may have other accounts as Salisu Mohammed or Musa Salisu.

“So with the introduction of BVN, such customers were forced to regularise their names, however, some opted to close down their accounts, which resulted in the reduction of active bank accounts and customers,’’ the source said.

The CBN source was, however, optimistic that the financial inclusion strategy of the bank would succeed in bringing in more people into the formal banking system.

Datboyjerry

Datboyjerry

I am but your herald boy in the art of the pen.. An eccentric Environmental Biologist smouldered in the glorious epiphany of online journalism. If you ever find my article unduly insipid, sue me and i’ll refund you...

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