CBN Introduces Bank Verification Numbers

Introduction

The Central Bank of Nigeria (CBN) has introduced a bank verification number scheme into the banking system. The scheme aims to revolutionise the country's banking and payment systems.

The bank verification number scheme is designed to address issues such as:

• ensuring the safety of depositors' funds;
• avoiding losses through the compromise of personal identification numbers;
• preventing identity theft;
• checking fraud; and
• including illiterate persons in the banking system.

Background

The CBN plans to roll out the scheme to 1,000 bank branches in Lagos State, Nigeria's commercial capital. The success (or otherwise) of this rollout will determine how it will be implemented in other states.