Banks in Nigeria are set to enforce the National Identity Number (NIN) issued by the National Identity Management Commission (NIMC) as the only acceptable means of identification and verification for all financial transactions in the country.
This development has raised mixed reactions, as Nigerians who were hitherto mandated to enroll for the Bank Verification Number (BVN) for financial transactions now have to undergo the same treacherous process to obtain a National Identity Number.
The identity management program was established by the National Identity Management Commission (NIMC) Act No 23 of 2007, with the mandate to establish, own, operate, maintain and manage the National Identity Database in Nigeria, register persons covered by the Act, assign a unique National Identification Number and issue general multi-purpose cards to those registered individuals, and to harmonise and integrate existing identification databases in Nigeria, as a way of easy identification of citizens and in order to facilitate better government planning.
However, the slow process of issuing numbers and getting the cards and harmonisation of previously collected digital identity through the BVN, SIM card registrations, Voters card, Driving license and others has made it almost impossible for the NIN to be enforced by the Federal Government. This is until recently when banks sent out newsletters to customers informing them of plans to enforce NIN as the only acceptable means of identification for purchase and sale of foreign currency, loan facilities, acquisition, sale or transfer or transmission of shares or equities and other financial instruments and for general operation of a bank account.
In an email sent by StanbicIBTC bank on Wednesday 21, February, the banks stated that the ‘Use of the National Identification Number (NIN) has been made mandatory by the National Identity Management Commission (NIMC) under the National Identification Number (NIN) Regulations, 2017.’
The email read that ‘customers will now be required to provide the NIMC card or slip to enjoy financial services including purchase of personal and business travel allowance, school fees payment and cashing in on financial instruments.’
‘Please be advised that the old national identity card will no longer be accepted as a valid means of ID for account opening purpose as the only recognised national identity card is the NIMC card,’ the bank said.
Apart from banks, Hadiza Dagabana, General Manager, Legal Services at NIMC said; ‘the Commission is still taking steps to ensure the mandatory use of NIN according to the Act which stipulates that transactions including, applications for, and issuance of an International Passport; opening of individual and/or group bank accounts, all consumer credits; purchase of insurance policies; the purchase, transfer and registration of land by any individual; National Health Insurance Scheme, such transactions that have social security implications, registration of voters, payment of taxes, and pensions, etc., will be done with the NIN.’
Although the process of developing a digital data base for all Nigerian citizens has been lauded, experts urge the federal government to deal with registration, issuance, and harmonisation before commencing enforcement.
Recent tweets on the official twitter handle for NIMC (@nimc_ng) show that the commission has several issues pertaining to registration.
There have been several complaints on Twitter and traditional media platforms about the tardy process of NIN collection. Hope Amadi with twitter handle @goodhopeamadi2 said; ‘The NIMC representatives here in Port Harcourt charge N500 before capturing. Why must we pay to be captured?’. In response, the NIMC said ‘all complaints are noted and further action will be taken. We would also appreciate either pictures or video evidence to enable us address the issue properly. Please accept our apologies.’
Experts have criticised the inconclusive process of the National Identity program, attributing it to the lack of appropriate planning, policy inconsistency and poor budget allocation, as well as lack of well-synchronised data. They note that the lack of a proper identity management system in the country has a negative impact on the economy.
‘The absence of a unique identity number for every citizen in Nigeria may have been a contributory factor to the halting development of certain services and industries in the country. For instance, the growth of consumer credit may have been stymied by the absence of a unique means of identification of all citizens, which in turn created room for high rate of consumer delinquency and lenders unwillingness to advance credits to individuals without tangible collateral,’ Johnson Chukwu, MD and CEO of Cowry Asset Management Limited told BusinessDay.
‘National Identity Numbers are essential in any economy in order to help with appropriate planning, however, how can you enforce something that has not been perfected and has been dragging on for so long? How many people have actually registered for NIN in Nigeria as at today, not a lot,’ Subomi Sodipo, CEO CFmobile told BusinessDay.
Jumoke Akiyode-Lawanson
