Banks hasten connection as govt warns no NIN, no cash transfer

Millions of vulnerable Nigerian households may miss out on a government awarded cash transfers as the authorities say only those who connect their bank accounts to NIN will receive payments.

Banks are enforcing an urgent connection of customers’ accounts to their national identity numbers (NIN) after the government announced a restart of cash transfers to cushion dire economic hardship. Customers have just days to complete the linkage, the banks said in messages seen by Pluboard.

The government says it will pay N25,000 to 12 million vulnerable households, hoping the financial aid will touch on 60 million people members of those families.

Nigerians must own bank accounts or mobile money wallets connected to their NINs to be able to receive payments, it says.

Minister of Finance Wale Edun said on Monday after the government’s cabinet meeting that restarting the direct cash transfer was crucial to tackling rising prices, especially elevated food prices and will provide purchasing power to millions of people who are less well-off.

Mr Edun told journalists that to address concerns about past irregularities in similar payments under the Buhari administration, the government has introduced strict measures to identify beneficiaries.

Payments will be made directly into bank accounts or mobile money wallets linked to a NIN and bank verification number (BVN), to ensure transparency and traceability.

“Each person receives 25,000 naira for a total of three months,” he said. “It will be clear who it went to and when it went to them.”

Banks give deadline

Banks have sent messages to customers to connect their bank verification numbers (BVN) to their NINs within a week, although they did not explain the reason of the urgency.

Stanbic IBTC asked customers to complete their linking by March 1 in messages sent Saturday.

“We would like to inform you of the mandatory requirement to link your Bank Verification Number (BVN) and National Identity Number (NIN) to your personal GTBank Account,” Guaranty Trust Bank said in messages to customers.

Customers have the option of visiting the banks’ websites or using codes to link up.

Cost-of-living crisis

Nigeria descended into a steep cost-of-living crisis after President Bola Tinubu scrapped petrol subsidy last May and twice devalued the naira in less than a year, leading to soaring prices. Inflation has reached the highest level in nearly three decades.

The Nigeria Labour Congress began a two-day protest on Tuesday against the economic crisis. The union accused the government of failing to uphold pledges to soften the impact of reforms.

The government said in addition to cash transfers it will provide additional support, including plans for a social security program for unemployed youth and graduates, alongside a consumer credit scheme to boost affordability and economic recovery.

The latest measures to cushion the impact of ongoing reforms follow a two-week ultimatum by Nigeria’s main labour unions to the government to meet demands ranging from wage hikes to improved access to public utilities.