As of February 1, the National Pension Commission mandated the provision of Bank Verification Numbers (BVN) for all Retirement Savings Account (RSA) registrations and data recapture processes.
Pension Commission's Requirements
In a circular signed by the PenCom Head, Surveillance Department, A.M. Saleem, it is directed that all pension fund administrators (PFAs) must require the BVN from individuals when processing their RSA registration or data recapture requests. PFAs are to verify the BVNs and update their forms to include a mandatory Bank Verification Number field.
Increase in BVN Enrollment
Following PenCom's directive mandating BVN, there has been an increase in enrollment, reaching 64.8 million in January. Data from the Nigeria Inter-Bank Settlement System (NIBSS) indicated an increase of approximately 800,000 new account holders registering for BVN in December last year. Despite mandatory requirements, there remains a significant gap between the number of bank accounts and BVNs due to multiple accounts linked to a single BVN.
Future of New Technologies
The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, announced that NIBSS will launch a non-resident BVN platform to include Nigerians in the diaspora. However, the launch has been delayed beyond the initially planned timeline.
The National Pension Commission is strengthening data security measures through mandatory BVN use. However, challenges remain in implementing new initiatives timely.
