The rate at which frudulent
activities is going on in the country these days is becoming unbearable; the
federal government of Nigeria and the CBN have being on their toes to resolve
the issue of frauds and to boost financial security in most of the Nigerian
banking industry; because all these issues the central bank of Nigeria on
february, 2014 made it compulsory that all account holders should have a bank
verification number so as to enable the account holder to have a single
identity in all the banks in Nigeria; all he or she need to do is to link it
with his or her accounts. The essence of this system is to help the bank in the
protection of their customers from theft and other financial/ economic crimes
growing in the banking industry (orji, 2014)
The Bank Verification Nlumber
(BVN) is a great step taken by the Central Bank of Nigeria, to strengthen the
financial security and order in the banking sector of Nigeria. One of the
importance of the BVN is that transactions will be safer once all protocol is duely
observed. The essence of this BVN exercise is to ensure that bank transactions
are safer and fraudulent transactions are minimized, if not totally eliminated.
The central bank of Nigeria have put in alot of effort to see the success of
this excercise, but the general public do not know the importance of the bank
verification number; but they started seeing the importance of the bank
verification number when the cental bank made it clear that the excercise will
stop by october 2015.
The bank verification number
system uses biometric technology to register customers in the banking sector.
It records these physical features which are unique to individuals fingerprints
and the face; this techniques was made effective because every individual has
his or her own unique finger prints. The record would be used to identify the
person afterwards. Once a person’s biometrics have been recorded, and BVN
issued the account would be accessed through BVN. The major objectives of the
initiative are to protect bank customers, reduce fraud and strengthen the
Nigerian banking system. Biometric enrolment is helpful to people who cannot
read and write. Their finger prints and pictures would serve the same purpose
1.2 STATEMENT OF THE PROBLEM
Without doubts, Nigerian
banking sector has contributed to the growth and development of the Nigeria.
The Nigerian banking sector has maintained the inflow of money in the country
so as to stabilize the country’s economy. According to Udenze, 2014; stated
that growth in this sector has been reduced due to high cases of economic and
financial crimes; fraud and money laundry have significant effect on the
financial security in the Nigeria banking industry. They have caused damage to
the reputation of the image of the country, loss of FDI, poor infrastructural
development, dwindling confidence and distortions in our political as well as
financial systems, among other things.
In view of these crises crimes
perpetuated by cyber thieves, the mandatory bank verification number exercise
embarked by various banks nationwide has also caused congestions in banking
halls. Although the exercise commenced since February, 2014, the fire brigade
approach of most Nigerians has warranted most bank halls to be filled to its
maximum capacity. Queues in some banks even extended outside the banking hall.
This development has caused confusion in some banking halls as other
transactions are placed on hold due to inadequate staff to attend to clients or
1.3 OBJECTIVES OF THE STUDY
The main object of the research
work is to elicit information on the impact of BVN on financial security in
Nigerian Banks. Specific objectives of the study are:
To monitor effect of the bank
verification number on the level of financial crimes in Nigeria
To give everyone access to a
To help limit multiple account
by a single owner.
To investigate the role of the
central bank of Nigeria in the implementation of the bank verification number
To investigate the impact of
BVN system on the level of financial safety in the Nigerian banks.
1.4 RESEARCH QUESTIONS
1. What are effects of the BVN
on the level of financial crimes in Nigeria?
2. What is the impact of BVN
system on the level of financial safety in the Nigerian banks?
3. What are roles of the
central bank of Nigeria in the implementation of the BVN?
1.5 SIGNIFICANCE OF THE STUDY
The research work is a very
important one as it will investigate the the role of the central bank of
Nigeria in the implementation of the BVN system, the study will discuss the
importance of bank verification number, the bank verification number
initiatives will help limt every one to single account so as to monitor the
level of financial crimes in Nigeria. The study will also discuss the role of
the central bank of Nigeria in the implementation of bank. verification number
system. Finally the study will discuss the role of bank verification number on
the level of security.
1.6 SCOPE OF STUDY.
The research work is limted to
the study of the impact of BVN on financial security in Nigeria banks.
1.7 LIMITATION OF STUDY.
The study is limited to Central
Bank of Nigeria, Uyo branch.
TERMS AND CONDITIONS APPLY
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