BVN Causing Reductions in Bank Customers Or Ponzi Schemes?

Is the BVN affecting banks in Nigeria or arebpeople choosing alternative money managenent means besides the banks? The Central Bank of Nigeria’s (CBN) effort to promote financial inclusion, the Nigeria Inter-Bank Settlement System (NIBSS) banking industry statistics shows that the number of customers using financial services has reduced.

The use of BVN in linking customers’ account, seems to have been making great strides as the statistics obtained from the NIBSS website on Sunday, showed that the total number of Nigerian banks customers dropped from 61 million in 2016 to 59 million in 2017. Though the banking industry source blamed the BVN for the low patronage of banking products, especially in the rural areas where awareness was already very low, however a bank customer, Olaitan Alagbe told NAN that she closed some of her accounts due to unnecessary and illegal charges by banks.

Another bank customer who spoke to NAN correspondent, said she was forced to close down the bank accounts she opened, following the Ponzi schemes which crashed in late 2016 and early 2017.

A source at the CBN  told NAN that the reduction in the number of Nigerian banks customers, was caused mainly by the introduction of BVN. Are the Nigerian banks’ hrinking reserves and careless handling of customers‘ money are tarnishing the system’s once-sterling reputation or is it simply the bvn as they say.