At a time when you can pay bills online using a cell phone, it is amazing how many Nigerians still don’t have bank accounts. Almost two-fifth of the population is under-banked, lacking the full range of basic financial services.
In February 2014, the Central Bank of Nigeria (CBN) introduced the Bank Verification Number (BVN) to provide unique identities for all bank customers and other users of financial services in the country. Customers’ biometrics were taken for the identification of individual. The unique identity gives leverage for customers to undertake transactions at various banks.
Statistics from the Nigeria Inter-Bank Settlement System Plc, (NIBSS), whose role it is to guide financial system automation in the banking sector, show that about 20.8 million bank customers enrolled over 40 million accounts in various banks under the BVN scheme as at October 25, 2015.
Even Nigerians that hold two or more accounts will be enrolled under one unique number, the NIBSS said. The financial system automation company said most Nigerians fall under this category.
However, Nigerians in diaspora were not left out, customers enrolled with Nigerian banks with branches abroad.
Even with the 40 million accounts in all the banks, still 40 percent of Nigeria’s population do not see the need to own a bank account.
Recently, while addressing reporters at a fair for small and medium scale business enterprises in Benin City, the capital of Edo State, Mr Sam Okojere, a Deputy Director at the CBN payment system announced that about 40 percent of Nigerians don’t still have a bank account.
In the past, before the introduction of the BVN the number of people that owned bank accounts reduced from 53.0 percent in 2008 to 46.3 percent in 2010.
In line with the CBN’s Vision 2020, the cashless policy was established to drive development and modernisation of Nigeria’s payment system. The cashless policy was introduced to reduce the cost of banking services by providing efficient transaction options for citizens and improve the effectiveness of monetary policy in managing inflation and driving economic growth.
Although, the policy increased convenience and reduced risk of cash related crimes for consumers. It provided faster access to capital and reduced revenue leakage and reduced cash handlings costs.
Cashless policy proposed limits on daily withdrawal, and even on over the counter transactions and third party cheques encashed over the counter for individuals account holders.
But with every policy comes a bias. For some, the cashless policy encouraged access to funds earnestly while for others it was a restriction to their funds.
Okojere said that with proper improvement in telecommunications the number of enrollment will reduce by 20 percent in 2020.
