Monday , January 17 2022

Nigerian Banks Records 16 Million New Accounts in May



…As Account Holders Increase to 160.03 million

Nigerian banks witnessed a rush of new bank account openings in May following the easing of the full lockdown across the country by President Mohammadu Buhari as more people from the informal sector saw the need to open bank accounts.

Deposit Money Banks (DMBs) recorded 16 million new accounts opened in May according to data gleaned from Nigeria Interbank Settlement System (NIBSS). NIBSS data showed that total bank accounts in the country at the end of May stood at 160.03 million compared to 143.38 million in April and 125.01 million in January this year.

Between April and May this year 16.66 million new accounts were opened compared to December 2019 when the country had 124.84 million accounts, year to date 35.19 million new accounts had been opened.

Likewise, active accounts had surged from 97.48 million in April to 111.53 million, a 14.05 million accounts addition. The increases had been mainly in new savings accounts as the number of current account rose slightly to 25.17 million from 24.3 million while saving accounts rose significantly to 129.9 million from 114.13 million.

Also, total Bank Verification Number (BVN) rose standing at 42.41 million as at July 5, 2020 compared to 41.8 million which it was as at May 17, 2020, according to data by the Nigeria Inter Bank Settlement System (NIBSS).

This brings the total number of customers with the unique identifier, BVN, registered this year to 1.82 million between January and July. As at January 12, 2020, the number of BVN on the NIBSS platform had stood at 40.59 million as 4.15 million customers had been issued BVN by financial institutions in 2019.

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Also, NIBSS’ Electronic Payments Fact sheet for January to December 2018 showed that total BVN enrolments stood at 36.4 million at the end of December 2018. In 2018, total new BVN enrolment stood at about 5.7 million.

The rise in the number of new account opening and enrolment on BVN platform by bank customers is attributable to the increasing number of customers opening new accounts and those regularising delinquent accounts.

Meanwhile, electronic banking transactions which had dropped in April began to pick as customers began spending after the five weeks of lockdown. NIBSS Instant Payment (NIP) had seen an increase in both volume and value in May as 141.25 million transactions with an attached value of N10.4 trillion had been consummated in May as against N7.01 trillion that was done in 107.17 million transactions in April.

Point of sale terminals (PoS) also saw a pickup in transactions as 48.37 million transactions with a value of N358.01 billion had been done via the channel in May compared to 40.85 million transactions with a value of N272.05 billion that was done in April this year.

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About Bukola Olanrewaju

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