The number of verified Bank Verification Number (BVN) holders in Nigeria has soared to 65 million, according to the latest report published by the Nigeria Inter-Bank Settlement System (NIBSS).

The Bank Verification Number (BVN) system was introduced by the Central Bank of Nigeria (CBN) in 2014 as a biometric identification initiative aimed at reducing fraud and enhancing security in the banking industry. The BVN serves as a unique identifier that links bank accounts across multiple financial institutions, ensuring streamlined processes and improved customer verification. Since its inception, the system has grown exponentially, now covering a significant portion of Nigeria’s banked population.

Between April 2024 and July 2024 alone, the number of BVN-registered accounts grew from 61.47 million to 62.7 million, representing an increase of 854,267 in just three months. This upward trend, coupled with the surge to 65 million by August, signifies a growth of more than 4 million new verified BVN holders in 2024; a remarkable achievement in the drive toward full financial inclusion.

The Managing Director and Chief Executive Officerof NIBSS, Premier Oiwoh attributed the growth to continuous technological upgrades and innovation.

While the growth in BVN registration signals progress, industry experts have raised concerns about the 40% of the Nigerian population that remains financially excluded. The Enhancing Financial Innovation and Access (EFInA) Access to Finance (A2F) 2023 survey highlighted that despite the increasing adoption of digital services and urbanisation, many Nigerians still lack access to formal banking services. This gap is especially evident in rural areas, where low financial literacy and deep-seated mistrust of banking institutions persist.

Kurfi Garba, Managing Director of APT Securities, explained, “Many Nigerians remain unaware of the benefits of having a bank account. Financial literacy is still low, and cultural factors, such as mistrust of formal banking institutions, deter a significant portion of the population from participating in the formal financial sector.”

Garba also noted that there is a growing demand for alternative financial services, such as mobile wallets and payment service banks, which require less stringent identification processes compared to traditional banks. These options could potentially bridge the gap and increase financial inclusion, particularly for the unbanked and underbanked segments of the population.

Former Chief Economist at Coronation Merchant Bank, Chinwe Egwim, underscored the need for a holistic approach to increasing financial inclusion. “Improving financial literacy, fostering trust in formal financial institutions, and creating an enabling environment for economic growth are critical steps toward closing the financial inclusion gap. The banking sector must also invest in advanced cybersecurity to protect the BVN database and reassure customers that their personal data is secure.”

Egwim further stressed the importance of ongoing public education efforts, not only to promote the benefits of BVN registration but also to safeguard against fraud and identity theft. “As we continue to expand digital banking services, we must ensure that both urban and rural communities are equipped with the knowledge and tools needed to engage safely with these systems.”

By addressing these challenges head-on, experts note that Nigeria can fully capitalise on the advantages of the BVN system, paving the way for a more inclusive, secure, and technologically advanced financial ecosystem.

Sun