Banking in Nigeria is governed by regulatory standards set by the Central Bank of Nigeria (CBN). One of the key requirements is having a Bank Verification Number (BVN) linked to every bank account. The BVN serves as a unique identifier for customers and aids financial inclusion.
However, there are still many Nigerians who have bank accounts without a BVN linked to it. While opening such accounts may have been allowed previously, continuing to operate them without BVN comes with significant risks.
This article seeks to comprehensively highlight the risks of not having a BVN linked to your bank account in Nigeria. By understanding these risks, you will be motivated to promptly link your BVN or enroll for one if yet to. Let’s get right into exploring each risk factor.
Limited Access to Financial Services
The biggest risk is being locked out of essential financial services in your bank account. As long as there is no BVN linked, you will have very limited access to your own funds. Deposits can be made but withdrawals, transfers, bill payments, etc will all be restricted.
In effect, your account becomes frozen without the ability to carry out even basic debit transactions. This defeats the purpose of opening a bank account in the first place. You are left helpless without access to your own savings when needs arise.
Some specific limitations include the inability to withdraw or transfer funds through ATMs, banks, and mobile/internet banking platforms. You also can’t purchase airtime or data bundles using account debit. Employment salaries and other receivables cannot be credited into such accounts.
Overall, lacking a BVN ties one hand behind your back from freely utilizing monetary services that a functional bank account should optimally provide. Frustration over limited funds usage is inevitable in this restricted banking predicament.
Difficulty Resolving Banking Issues
Banking and financial problems sometimes occur that require the intervention of your financial institution. However, not having a BVN linked makes solving such issues a herculean task.
A key requirement for investigating or addressing many account complaints is providing your BVN. Expectedly, you cannot furnish this detail since the mandatory number is absent from your records.
A clear example is difficulty obtaining bank statements of accounts to submit as evidence. The bank is legally bound not to release statements for accounts without a BVN, leaving you stuck without proof of transactions.
Even routine requests like reprinting lost debit cards become an uphill task the bank is reluctant to entertain without verifying your identity via BBV. Complex issues like reported fraud will be practically impossible to get addressed.
In summary, unforeseen banking dilemmas that normally get speedily addressed with BVN presence remain unresolved long term for unlinked accounts. Customers are left frustrated by the lack of swift remedies to issues affecting their money.
Limited to Low Tier Bank Account
By regulation, only low tier bank accounts characterized by ₦100,000 maximum balance can be opened without BVN integration. Once deposits exceed this paltry threshold, integration is required by law.
However, successful modern banking involves handling higher account balances, transaction volumes, and values above entry-level limits. However, progressing your account beyond the initial stages remains impossible without BVN.
This traps customers in a gridlock of minimal monetary activity far below their actual potential. Big life expenses, investment goals, and business aspirations that need higher balance handling cannot be achieved from such low accounts.
Ultimately, missing BVN locks away access to expanded account services and impedes customers from fully optimizing the capabilities of their bank in important aspects of finances beyond basic levels. Significant growth gets restricted.
No Debit Card Request is Possible
Debit and ATM cards are essential banking tools for accessing cash anywhere and making both offline and online payments through points of sale terminals.
However, requesting these popular payment instruments is a bridge too far for BVN-less accounts. That’s because debit transactions required for card usage and maintenance are not allowed on such accounts.
As a customer, you are stuck without the convenience of cards even if badly need them. Whether it’s utility bill payments while traveling or medical emergency cash withdrawals, lack of cards is problematic.
This limits payment options and increases reliance on direct branch visits for certain transactions better suited to cards. Customers lose out on the flexibility afforded by modern cashless payment tools.
Exclusion from Digital Banking Platforms
Digitalization has infiltrated the highly competitive Nigerian financial system with many banks offering robust online and mobile transaction options.
However, if your account lacks core identity information like BVN, enrollment on these exciting digital channels will not be permitted. You are cut off from experiences like:
- Mobile/Internet banking apps for funds transfer, bill payment etc.
- BVN-dependent USSD codes for balance checks, and airtime purchases.
- Platforms for services like loan applications, investments, insurance, trade, etc.
Essentially, missing BVN equates to staying off the grid in an evolving digital economy where online convenience is paramount. Financial inclusion remains incomplete without experiencing cutting-edge non-branch offerings.
Risk of Compulsory Account Closure
The biggest risk is the possible compulsory closure of your long-standing bank account. The CBN wields this powers and has continuously threatened to close all unverified BVN-less accounts after given deadlines.
While mass closures are yet to occur, this looming regulation remains a Damocles sword over the heads of unaffected customers. Keep in mind, any held funds will then become inaccessible with no assurance of refunds post-closure.
Even if closure is avoided, the account will keep facing the above limitations with no roadmap for upgrades. Eventually, you may be left with no choice but closure due to the lack of BVN integration mandated for all accounts.
This uncertainty and risk of permanent banking exclusion is understandably unsettling for customers unaware of the seriousness in CBN’s BVN compliance drive. Immediate linking action helps save accounts from an uncertain future.
Frequently Asked Questions
To further drive home the issues at play, here are answers to some common FAQs on the risk of operating a bank account without a linked BVN number:
Q: Can I avoid these risks by just depositing without withdrawals or transfers?
A: No, mere deposits do not circumvent the issues. Access to basic services like balance checks, and payment requests will remain restricted without BVN.
Q: What if I travel often – can I link BVN when in Nigeria?
A: Yes, you can enroll and link upon return. But ongoing risks apply till integration. It’s best done remotely through your bank’s international representatives.
Q: Will my existing balances be lost if the account gets closed for lacking BVN?
A: Not necessarily, but there are no guarantees. Banks may comply and refund, or pull a carpet under customers. It’s prudent not to risk viable balances.
Q: What happens if I have two accounts but enrolled BVN in only one?
A: The unlinked account remains at risk until BVN is synchronized across all. Banks may request integration with other accounts you hold with them.
Q: Can a First Bank-enrolled BVN work for my UBA account?
A: Yes, any bank can facilitate your BVN linkage as long as you provide enrollment details like date and place. Inter-bank BVN synchronization is possible.
Conclusion
In summary, the above extensively underscores the key risks associated with not having ones Bank Verification Number linked to an existing bank account in Nigeria. While opening without BVN was possible before, continuing under those conditions is strongly not advisable and against financial regulations.
Customers stand to lose access to savings and payments, endure unresolved banking issues, get stuck in entry-level accounts and miss out on digital opportunities without linking up. Worst still is the threat of regulatory closures looming over inactive accounts.
Rather than tolerate the consequences, it is advisable citizens promptly liaise with their banks to integrate their BVN or newly enroll for verification at the earliest. This protects funds’ security and makes banking a seamless experience as mandated under nationwide CBN guidelines.