Page 144 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Table D.7 – Nigeria Case Study (1)

NIGERIA – Bank Verification Number (BVN)
INTRODUCTION/BACKGROUND: The Bank Verification Number (BVN) was introduced in 2014 to establish a form of identification
for bank account owners and authentication at points of transaction in part to reduce access to blacklisted customers, reduce
1,2
fraud, and increase the efficient of banking operations. The program is actively enrolling, and the deadline to register for a BVN
has been extended to October 31 , 2015 at which point it will be required for all formal banking and financial transactions in Nige-
st
3
ria. Significant challenges with enrollment, most prominently limited public knowledge about the program and regulations, have
caused confusion, decreased registration, and even led to customers withdrawing their money from banks out of fear of being
shut out. There has been additional challenges with the National Identity Management Commission (NIMC) that is responsible for
4
issuing national identity cards over who is the dominant institution collecting biometric information. 5
BASIC NATIONAL IDENTITY PROGRAM INFORMATION
Institution(s) Managing the Program: The Central Bank of Nigeria (CBN) 6

Funding Source: The Central Bank of Nigeria (CBN) 7
Budget for Program Operation: US $55 million, N8,579
Total budgeted for the BVN scheme 8

Target Population: Adults eligible for a bank account 9
Target Age: Not specified

Year Introduced: 2014 10

Program Currently Active: Actively enrolling
The deadline to enroll for the BVN program was extended to October 31st, 2015, at
which point it will be required for all banking and financial transactions 11
Are Changes to the Program Planned or Yes – There is a plan to implement biometric functions on POS and ATM terminals
Anticipated: for use with BVN in the future. CBN is expected to release revised guidelines for
12
the enrollment of Nigerians who do not live in the country and do not have plans
to visit before the deadline 13
NATIONAL IDENTITY PROGRAM METHODOLOGY

Mandatory Enrollment: Yes – Customers will not be able Method of Enrollment / Not specified
to access or operate their bank Initial Capture:
accounts without the BVN after the
deadline 14
Physical Creden- No – Authentication involves bio- Electronic Component N/A
tial Involved in metric features and a PIN 15 Involved in Physical
Authentication: Credential:
Personal Informa- N/A Photo of Individual on N/A
tion Involved in Physical Credential:
Authentication:
Biometric Infor- Facial image, two thumbs and index fingerprints 16
mation Involved in
Authentication:

PROGRAM IMPLEMENTATION
Level of Coverage: 52% – In July 2015, 15 million customers enrolled in the BVN program out of an
estimated 28.6 million adults operating bank accounts in Nigeria. 17,18
Challenges with enrollment or use of the Not specified
program by the poor:

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