• Latest
  • Trending
  • All
  • LATEST NEWS
  • SPONSORED POSTS
  • BANKING
  • Cryptocurrency
  • Job Past Questions
  • PRICE WATCH
  • VIEW POINT
  • ECONOMY
  • Careers
  • Press Release
  • Breaking News
  • education news
  • Personal Finance
  • Networth
BVN21

FG Moves to Extend Bank Verification to MFBs

September 3, 2018
A Comprehensive Guide to the European Union Blue Card

Unlocking Opportunities: A Comprehensive Guide to the European Union Blue Card

August 31, 2024
Naira Redesign Policy Causes Banks' Deposits with CBN to Plummet by 95.82%

Currency in Circulation hits all-time-high Fueling Inflationary Pressures

August 29, 2024
Ecobank Nigeria Launches Oja Oge Pop up Marketplace to Empower SMEs

Ecobank Nigeria Launches Oja Oge Pop-up Marketplace to Empower SMEs

August 28, 2024
inflation Push Over 31 Million Nigerians into Acute Food Shortage

Insecurity and Economic Woes Push Millions of Nigerians into Acute Food Crisis

August 28, 2024
NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

August 27, 2024
Food Prices in Nigeria Soar in July 2024

Food Prices in Nigeria Soar in July 2024: Beans, Eggs, and Yam Lead the Surge

August 27, 2024
Fed Rate Cuts Could Offer Respite for Nigeria’s Naira and Economy

Fed Rate Cuts Could Offer Respite for Nigeria’s Naira and Economy

August 27, 2024
Nigeria's Manufacturing Sector Struggles in Q2 2024

Nigeria’s Manufacturing Sector Struggles in Q2 2024: Growth Slows Amid Economic Challenges

August 27, 2024
Nigeria's Agricultural Sector Shows Modest Growth in Q2 2024

Nigeria’s Agricultural Sector Shows Modest Growth in Q2 2024: Crop Production Remains Key Driver

August 27, 2024
Nigeria's Economy Grows by 3.19% in Q2 2024

Nigeria’s Economy Grows by 3.19% in Q2 2024: Services and Industry Lead the Charge

August 27, 2024
States Share $71 Billion in Seven Years, But Poverty Persists

States Share $71 Billion in Seven Years, But Poverty Persists: What’s Going Wrong in Nigeria?

August 26, 2024
Interest Rate Hikes, Inflation Squeeze Profit Margins for Nigerian Paint Manufacturers

Interest Rate Hikes, Inflation Squeeze Profit Margins for Nigerian Paint Manufacturers

August 26, 2024
  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise
Monday, June 16, 2025
  • Login
Financial Watch
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
Financial Watch
No Result
View All Result
Home BANKING

FG Moves to Extend Bank Verification to MFBs

by Haruna Magaji
September 3, 2018
in BANKING
1
BVN21

BVN21

492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

The plan to extend the use of Bank Verification Number (BVN) to customers of Microfinance banks appear to be long expected, going by the reactions of operators in the financial services sector to the planned introduction, writes Olaseni Durojaiye

The most celebrated benefits of the introduction of the Bank Verification Number (BVN) and  its strict enforcement by money deposit banks in the country may have been the blocking of leakages in government revenue as several thousands of ghost workers were discovered through the initiative. Other benefits include improved transparency in the process of granting of bank facilities to customers among others as well as helping the banks to sanitise their credit administration system and curbing fraudulent practices outside of the public service.

At the inception of the project, one of its proponent, Chief Executive Officer of Nigeria Inter-Bank Settlement System (NIBBS) Mr. Ade Shonubi, had explained that the purpose of it is to use biometric information as a means of identifying and verifying all individuals that have account(s) in any Nigerian bank and consequently, as a means of authenticating customer’s identity at point of transactions.

Shonubi had added that the BVN exercise would also provide a uniform industrially-accepted unique identity for bank customers, to authenticate transactions without the use of cards using only biometric features and Personal Identity Number (PIN) identification of blacklisted customers.

Today, many observers rated the exercise as a success on the strength of helping to block fraudulent siphoning of government finance with the discovery of several thousands of ghost workers particularly in the federal civil service. The discovery and the subsequent blocking of such conduits had vindicated the concerns of many, including international consulting groups, who noted that corruption in the public sector was a drawback for government’s ability to fund capital projects and interventions in other critical sectors of the economy with potential to grow the economy further.

However, the benefits transcend the public sector.  A report released last year by FBNQuest Research revealed that the rate of e-fraud in Nigeria in terms of value reduced by 63 per cent in 2015, partly due to the introduction of bank verification BVN project.

On the Financial inclusion leg of it, the number of unbanked adult Nigerians lags behind that of South Africa and Kenya leading to the initiative being conceptualised. In 2010 for instance, only 36 per cent – roughly 31 million out of an adult population of 84.7 million were served by formal financial services, compared to 68 per cent in South Africa and 41 per cent in Kenya. It was as a result of this that the CBN and other stakeholders in October 2012 implemented a National Financial Inclusion Strategy to decrease the number of Nigerians that are excluded from financial services from 46.3 per cent to 20.0 per cent by 2020 as committed to in the Maya Declaration.

The New Directive

The plan to extend the BVN regime to MFBs was contained in a  communication from the Minister of Finance, Mrs. Kemi Adeosun to the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele. It will be recalled that the CBN had announced plans to extend the BVN exercise to MFBs in September 2016.

In the communication, Adeosun told the CBN governor that prior to the deadline for obtaining the BVN by bank customers, a large number of salary accounts of Federal employees were found to have been moved from commercial banks to microfinance banks, which did not require the use of BVN.

Further justifying the rationale for the new policy thrust, Adeosun stated in the memo that operating bank accounts in MFBs without requirement for BVN has left a huge loophole for those, who hide and launder proceeds of crime to escape detection by law enforcement agencies.

According to her “Our on-going efforts to verify the integrity of Federal Government personnel costs and purge the system of fraud and error has made extensive use of the Bank Verification Number as a means of identifying recipients of multiple salaries, and salaries paid into accounts with names that differ from those held on our payroll records. The success of this effort has to date yielded the removal of over 50,000 payroll entries,” the minister said.

Although the minister said extending the requirement for BVN to microfinance banks may impose a huge financial strain on the smaller microfinance banks, the minister pointed out that, “Some MFBs, 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.”

“I am therefore seeking your co-operation to enforce compliance with BVN on any MFB with over 200 active salary accounts, or those above a certain size. 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,” the minister said.

Stakeholders’ Reactions

Stakeholders who spoke to THISDAY in separate interviews including the Managing Director of FinaTrust Microfinance Bank, Mr. Deji Popoola, welcome the initiative, pointing out that, it would help the MFBs with their credit management system as  it would also further deepen financial inclusion in the banking sector.

Similarly, a senior banker with one of the new generation banks, who preferred not to be named, also welcomed the extension. According to him, “The extension will strengthen the credit bureau and will check the activities of habitual loan defaulters who now approach the MFBs because of their bad records with the commercial banks.

“What some bank customers with bad credit profile now do is to approach MFBs for bank facilities because they couldn’t go to commercial banks because their details can easily be retrieved through their BVN and the credit bureaus whereas the MFBs don’t have those details,” he stated anonymously.

Meanwhile, who stated that, it is a right step in the right direction, posited that, “When it is introduced, it will help the MFBs with their credit administration and reduce incidence of bad loans because it will equip the MFBs with details of bank customers. Besides it will help to deepen financial inclusion. Since the whole essence of the financial inclusion policy was to bring as many people as possible into the financial system and considering that about 80 per cent of Nigerians live in the rural areas where some MFBs operate it then makes sense to extend the BVN initiative to that sector as it will further help to meet that objective.”

Speaking further, Popoola allayed fears that the introduction may not be well received in the rural areas, arguing that, “The policy shouldn’t be looked at on the short term, rather, customers of MFBs should be made to see the benefits through awareness campaign using the radio and television, and encouraged to enlist. They may be in the rural area today and migrate to the cities tomorrow,” he reasoned.

SOURCE: FG Moves to Extend Bank Verification to MFBs

 


CHECK OUT THESE INTERESTING STORIES:

  • Microfinance institutions needed to drive financial inclusion
  • Insurance, pension record 5,000 complaints at CPC
  • Digital Financial Inclusion To Create 3 Million New Jobs By 2025
  • CBN Directs Banks To Sell FOREX To Customers Within 24hrs
  • BoI, Diamond Bank set for disbursement of N140bn GEEP Fund
  • Forex crisis: CBN will fund BTA, PTA, Medical, school fees
  • How a cashless foreign currency policy will get Nigeria out of recession two months
  • Naira hits 520/dollar, forex retailers examine CBN action
Share197Tweet123
Previous Post

Ways to manage business growth without losing momentum

Next Post

FG to review Group Life Insurance policy for civil servants

Haruna Magaji

Haruna Magaji

Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - harunamagaji@financialwatchngr.com

Next Post
FG to review Group Life Insurance policy for civil servants

FG to review Group Life Insurance policy for civil servants

Comments 1

  1. Goodluck Timothy says:
    5 years ago

    GOOD DAY SIR/MA

    HAVE YOU HELD ABOUT RICH CONNECT TRUST INVESTMENT…?

    RICH CONNECT TRUST INVESTMENT is a matrix system which give you DOUBLE of your CAPITAL back in ( 45 Minutes ) after Registrations

    RICH CONNECT PACKAGES
    N20,000——N40,000
    N40,000——N80,000
    N50,000——N100,000
    N100,000—–N200,000
    N150,000—–N350,000
    N300,000—–N600,000
    N200,000—–N400,000
    N400,000—–N800,000
    N500,000—–N1,000,000

    NOTE: we credit your account after 45mins of Your Registeration
    INTRODUCTION
    RICH CONNECT TRUST Investment is a company duely registered under the Coporate Affairs Commission of Nigeria and certified fraud free to do business in Nigeria by the Economic Financial Crimes Commission (EFCC). This is a Nigerian network marketing company founded by Okafor Alex Monye with it’s Head Quarter’s. The company takes pride in the fact that it stands out amongst other network marketing companies. It has the best compensation plan, affordable and effective services, systems that keeps her customers coming back for more. When you join this company, you get more than their outstanding services.

    07046246360

    ITS SIMPLE HERE!!!!!!!
    We trade with hard currency here like bit coin we make 3tripple of your donation and send you you two part and we benefit one part Example if you invest with 100k within 25mins we make profit of 300k then send 200k to you then profit 100k This is not mmm where they merge people to donate for each other
    You pay directly to us and we credit you directly

    Contact Mrs. GOODLUCK TIMOTHY
    07046246360

    NOTE:- YOU GET CREDITED BACK IN LESS THAN 45 MINUTES.

    CHAT US-UP IF INTEREST FILL YOUR FORM AND START EARNING

    NOTE: You can finish reading this and decide not to take the necessary actions, but the next time you want to complain about not having money, just know that you are on your own problem.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Stanbic IBTC launches Africa-China Agent Value Proposition

List of Stanbic IBTC bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
Banks Employ More Contract Staff as full staff continue to dwindle

Nigerian bank employee grades and levels

June 14, 2021
N-power Portal Login npvn.npower.gov.ng/login 2020/2021 – Update Your Account

N-power Portal Login npvn.npower.gov.ng/login 2020/2021 – Update Your Account

November 17, 2020
Zenith Bank2

List of Zenith bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
Union Bank2

List of Union bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
How buy 2019 JAMB 2019 UTME form/ registration PIN online

UTME result: How to Check JAMB Result 2022 – Jamb Result Checker

1333
JAMB Result checker 2020 out | www jamb org ng result checker

Utme 2021: Check JAMB Results Using JAMB Registration Number

1146
List of JAMB Approved CBT Centres In Abia State 2020/2021 | Abia State Jamb Cbt Centres

Jamb Portal 2021: How to check Jamb Results – jamb.org.ng/efacility

523
P Yes registration

www.p-yes.gov.ng – Register For P-YES Progeamme Portal – Apply Now

436
Breaking: JAMB releases more 15,490 UTME results

JAMB Results 2021 Online Checking Steps | www.jamb.org.ng Result

316
A Comprehensive Guide to the European Union Blue Card

Unlocking Opportunities: A Comprehensive Guide to the European Union Blue Card

August 31, 2024
Naira Redesign Policy Causes Banks' Deposits with CBN to Plummet by 95.82%

Currency in Circulation hits all-time-high Fueling Inflationary Pressures

August 29, 2024
Ecobank Nigeria Launches Oja Oge Pop up Marketplace to Empower SMEs

Ecobank Nigeria Launches Oja Oge Pop-up Marketplace to Empower SMEs

August 28, 2024
inflation Push Over 31 Million Nigerians into Acute Food Shortage

Insecurity and Economic Woes Push Millions of Nigerians into Acute Food Crisis

August 28, 2024
NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

August 27, 2024
Financial Watch

Copyright © 2023 Financial Watch.

Navigate Site

  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH

Copyright © 2023 Financial Watch.