OPay has announced that it will deactivate all accounts that are not associated with the National Identification Number (NIN) by March 1.

 

Story by Iyiola Ayomide

OPay, a financial technology firm, has announced that it will block all accounts that are not connected to the owners' National Identification Numbers (NIN) by March 1, 2024.   

 On Wednesday in Lagos, Ikponmwosa Odiase, the Director of Partnerships at OPay, revealed this information during a media session.   

 The fintech company has already stated that its tier 1 account holders cannot carry out transactions on its mobile application unless they provide their NIN for updating.    

"These actions are consistent with the instructions given by the Central Bank of Nigeria to enhance Know-Your-Customer (KYC) procedures within the financial system."    

"NIN is now obligatory for opening an account.   

Odiase stated during the meeting that the fintech company has made NIN mandatory for all new account registrations, alongside the ongoing updates required from existing customers." 

  To continue their transactions, individuals with a tier one account are now required to link it with their NIN. Failure to do so will result in an inability to proceed. 

Additionally, new customers will now need to start with their NIN as we are implementing this requirement. We will retrieve information from your NIN to populate your wallet, thus eliminating the need for you to manually enter your name. By March 1st, non-compliant individuals will be denied access.    

Any fraudulent accounts will be removed from our platform as there must be a match between the individual's face and the photo on their NIN, stated Odiase. This new KYC system aims to address the issue of fraud, which has been a significant problem in the financial industry. To achieve this, fintechs, banks, the CBN, and other stakeholders are collaborating. "We are all aware of the significant presence of fraud. The individuals involved in fraud are constantly active, but the industry is now responding to this issue," he stated. 

 

Effect on expanding access to financial services 

Nevertheless, the Director of OPay acknowledged that this process could hinder the current efforts to enhance financial inclusion in the country since numerous individuals who possess wallets might lose them if they cannot connect them with their NIN. "We may face setbacks in terms of financial inclusion due to this, as our mobile money operation is mandated to drive financial inclusion. Initially, there was no requirement for NIN or BVN for tier one accounts, as it was believed that those in rural areas would not have access to these. However, we now see that things have changed, and many people have obtained NIN and BVN. Having a BVN implies financial inclusion, but with NIN, it may not be the case," he stated. 

 

CBN's Directive 

In a circular issued last December, the CBN announced that all bank accounts without a Bank Verification Number (BVN) and National Identification Number (NIN) would be subjected to a "Post no Debit" restriction starting from April 2024. Moreover, the central bank has also outlined that presently unfinanced individual Tier 1 accounts lacking BVN or NIN will be promptly subjected to a "Post No Debit or Credit" status. "Starting now, any Tier 1 accounts/wallets that do not have a BVN or NIN will be placed on 'Post No Debit or Credit' status until they fulfill the new requirements.   

 

From March 1, 2024, all funded accounts or wallets will be put on 'Post No Debit or Credit' status, and no additional transactions will be allowed.    

By January 31, 2024, the BVN or NIN connected to and/or linked with all accounts/wallets must undergo electronic revalidation," stated the circular.