Nigeria: Microfinance Bank Depositors to be Issued BVN Soon

 President, National Association of Microfinance Banks (NAMB) Mr Valentine Whensu, has announced that customers of MFBs in the country would soon be issued the Bank Verification Number (BVN) before the end of 2016.

Whensu said this on Friday in Abuja, noting that the high cost of embarking on the process had earlier discouraged MFBs, but that the cost has now been reduced by the Central Bank of Nigeria (CBN).

The Central Bank of Nigeria (CBN) on Feb.14, 2014 inaugurated the BVN for bank customers and by October 2015 Commercial banks in the country had enrolled more than 90 per cent of their depositors with an extended deadline for those in the Diaspora.

The BVN is a unique digital identity that can be verified across the Nigerian banking industry and protects customers’ accounts from unauthorised access. It also serves as a uniform identity for multiple accounts owned by an individual in all Nigerian banks.

Whensu, commended the intervention of the CBN and the Federal Government for their efforts in ensuring that the sub-sector was financially included in the economy.

“We are grateful to the CBN for having approved the cost of carrying out that enrolment in the microfinance subsector.

“CBN has approved part of the grant of the N220 billion MSME fund to be used in the take off and before the end of last quarter; we hope to have it done.

“A committee has been set up to this effect and it is working already with the CBN to achieve this and very soon we believe we will get there.’’

Whensu said microfinance banks had been losing deposits and customers due to the BVN and all the micro finance banks were eager to comply.

SOURCE:Footprint2Africa