During the first quarter of 2024 (Q1’24), Nigerian commercial banks made the decision to close a minimum of 2 million bank accounts.
This step was implemented to eliminate suspicious accounts, specifically targeting customers who did not adhere to regulatory directives regarding linking their accounts with the National Identity Number (NIN).
Last December 2023, the Central Bank of Nigeria (CBN) instructed all commercial banks in the nation to freeze tier-1 accounts that lacked proper NIN and Biometric Verification Number (BVN).
A recent report by the Nigerian Interbank Settlement System (NIBSS) revealed that over two million accounts were shut down in compliance with the CBN’s order.
NIBSS also highlighted that the count of inactive bank accounts witnessed a monthly rise of four million or 2.0% to reach 19.7 million in March 2024 compared to 19.3 million in the prior month, February.
Contrarily, the same report, cited by Vanguard, indicated an increase of 6.62 million active bank accounts or 3.0%, now standing at 219.64 million from 213.02 million in February.
An account is marked as inactive if it shows no activity, such as deposits, withdrawals, transfers, or point-of-sale transactions, for a duration of six months.