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With the increasing incidents of compromise on conventional security (password and PIN), there is a high demand for greater security for access to sensitive or personal information in the Banking System. In recent times, biometric technologies have been used to analyze human characteristic as an enhanced form of authentication for real time security processes.

Biometrics refers to identifying an individual based on physiological or behavior attributes, fingerprint, signature e.t.c.

The Central Bank of Nigeria trough the banker’s committee and in collaboration with all banks in Nigeria on February 14, 2014 launched a centralized biometric identification system for the banking industry tagged Bank Verification Number (BVN).


Title Page             –        –        –        –        –        –        –        –        –        i

Approval             –        –        –        –        –        –        –        –        –        ii


Dedication            –        –        –        –        –        –        –        –        –        iii

Acknowledgements-       –        –        –        –        –        –        –        –        iv

Abstract               –        –        –        –        –        –        –        –        –        v

Table of Contents –        –        –        –        –        –        –        –        –        vi


  • Background of the Study –        –        –        –        –        –        –        1
  • Statement of the Problem –        –        –        –        –        –        –        4
  • Objective of the Study –        –        –        –        –        –        –        5
  • Research Questions –        –        –        –        –        –        –        –
  • Research Hypothesis –        –        –        –        –        –        –        1
  • Significance of the Study –        –        –        –        –        –        –        4
  • Scope of the Study –        –        –        –        –        –        –        5
  • Limitations of the Study –        –        –        –        –        –        –        6
  • Definition of Terms –        –        –        –        –        –        –        6


  • Conceptual Framework of Bank Verification Number –        –        –
  • The Importance of Bank Verification Number –        –        –        –
  • Enrolment Process –        –        –        –        –        –        12
  • NUBAN (Nigerian Uniform Bank Account Number) –        –        –
    • Transition –        –        –        –        –        –        –        –        –        19
  • Differences between BVN and NUBAN –        –        –        –        –
  • The Histroy Development of Computer in Banking Industry – –
  • Nature of Fraud
    • What is Fraud –        –        –        –        –        26


Research Methodology  –        –        –        –        –        –        –        –        31

  • Introduction –        –        –        –        –        –        –        –        31
  • Research Design –        –        –        –        –        –        –        –        32
  • The Study Area –        –        –        –        –        –        –        –        33
  • Population of Study –        –        –        –        –        –        –        33
  • Sample Size and Sampling Techniques –        –        –        –        –
  • Source of Data Collection –        –        –        –        –        –        35
  • Instrument for Data Collection –        –        –        –        –        –        35
  • Validity of Research Instrument –        –        –        –        –        35
  • Reliability of the Instrument –        –        –        36
  • Administration of the Instrument –        –        –        –
  • Method of Data Analysis –        –        –        –        –        –
  • Decision Rule


  • Data Presentation and Analysis –        –        –        –        –        37
  • Hypothesis to be Tested


  • Summary of Findings –        –        –        –        –        –        –        46
  • Conclusion –        –        –        –        –        –        –        –        46
  • Recommendations –        –        –        –        –        –        –        47

References            –        –        –        –        –        –        –        –        48

Appendix             –        –        –        –        –        –        –        –        49

Questionnaires     –        –        –        –        –        –        –        –        50




The role of Bank Verification Number (BVN) aimed at curtailing hazards associated with social security and credit risk cannot be underestimated. In recent times, biometric technologies have been used to analyze human characteristics as an enhanced form of authentication for real-time security processes. In the face of increasing incidents of compromise on our conventional security systems (password and PIN), the need for greater security on access to sensitive or personal information in the Banking system becomes inevitable (Blass &Oved, 2003).

In addressing existing challenges with identity management, the Central Bank of Nigeria, through the banker’s committee in collaboration with all Nigerian banks in February 14, 2014 launched a centralized biometric identification system tagged “Bank Verification Number (BVN)”.

The Bank Verification Number (BVN) gives each Bank customer a unique identity across the Nigerian Banking industry that can be used for easy identification and verification at Point of Banking operations (Evangelista et al, 2001). Biometrics refers to identification of an individual based on physiological or behavioral attributes- fingerprint, voice, signature, facial features etc.

Bank Verification Number (BVN) uses biometric technology to register customers in the financial system. It records these physical features which are unique to individuals – fingerprints and the face. 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 as signatures (Claudio, 2002). Multiple account holders would be covered with a single registration in any of the banks where they have accounts. BVN will help the banking system reduce situations where loan defaulters, for instance, move from one bank to the other and the banks extend new credits to them, without knowing their history. Banks would be able to track transactions across all banks in Nigeria with more ease. As CBN implements the BVN initiative, it has to ensure the security of the data, from rogue bankers and also importantly from damage, as has been the experience with other sectors that engaged in biometric enrolments. It should also create measures to punish banks that might exploit the information they have to blackmail customers with whom they have disagreements.

Customers Bank Accounts are protected from unauthorized access with the use of BVN. Through an enhanced biometric real-time security system, the danger of unauthorized access to customer’s bank account is brought under check. The BVN is encompassing in detecting fraud of whatever type, whether through unauthorized access or through illegally authorized forms, and any other forms of fraud that’s against the rule of law and social justice (De Meza & David, 2000).

It will be of great benefit to Nigerian economy as she undertakes a means to effective transaction delivery through the BVN irrespective of diversities in opinions, critics and shortcomings that may ensue in actualization of this project. With BVN, Customers who borrow from one bank and default would not go to another bank to borrow without being tracked due to a unified credit performance system as Credit Bureau and lenders would be able to effect ‘’Know Your Customer (KYC)’’ policy by the CBN and fraudulent activities would be curtailed and banking activities would be monitored appropriately.

It is also a plan to eliminate fear in banks and make the country to be in league with developed countries of the world, it is therefore imperative for all Nigerians to ensure that they are enrolled. It is believed that if the BVN enrollment is  properly managed, it will not only enhance credit advancement to bank customers, but also reduce reported cases of scam, fraud, and account impersonation, while at the same time assist commercial banks in keeping authentic records of their clients (Ade Shonubi, 2016).

The rate at which fraudulent activities are going on in the country this days is becoming unbearable; the Federal Government of Nigeria and the Central Bank of Nigeria have been on their toes to resolve this issue of fraud and to boost financial security in most of the Nigerian banking industry; The essence of this system is to help the bank in protection of their customers from theft and other financial/economic crimes growing in the banking industry and in the Nigerian economy. (Gladys 2017).

The Bank Verification Number is a great step taken by the Central Bank of Nigerian, to strengthen the financial security and order in the banking sector of Nigeria. One of the importances of BVN is that transaction will be safer once all protocol is duly observed. The essence of this BVN exercise is to ensure that bank transaction is safer and fraudulent transactions are minimized, if not totally eliminate. Also the initiative is part of the overall policy of the financial sector strategy, to ensure that Nigeria becomes one of the twenty largest economies in the world by the year 2020 (Ehi Eric E. 2015).

Bank Verification Number is part of the Central Bank of Nigeria cashless policy to capture customer’s data and check fraud in the Nigerian Banking System a unique identification system that can be verified across all banks in Nigeria.


BVN is a great initiative that would reduce illegal banking transactions and improve national financial intelligence gathering which will boost the economy. The interests of account holders should be accorded importance so that their increased confidence in the banking system would improve the financial standing of banks. Customers will use banks more when they know that their transactions are safe. BVN offers vast opportunities to protect customers, banks and the entire financial system.



The following are the objectives of this study:

  1. To examine the implication of Bank Verification Number BVN on the Nigerian economy.
  2. To examine the implication of Bank Verification Number BVN on the Nigerian banking sector.
  3. To determine the threats and weaknesses of the implementation of Bank Verification Number BVN.


  1. What is the implication of Bank Verification Number BVN on the Nigerian economy?
  2. What is the implication of Bank Verification Number BVN on the Nigerian banking sector?


HO: There is no significant relationship between Bank Verification Number and the Nigerian economy


The following are the significance of this study:

  1. The outcome of this study will educate the general public on the benefits and implications of Bank Verification Number and it effect on the Nigerian economy and the banking sector.
  2. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.


This study will cover the issues of Bank Verification Number and its implication on the Nigerian economy and the banking sector


Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.


BVN: Bank Verification Number

CBN: Central Bank of Nigeria

Biometrics: It refers to an identification of individual based on physiological attributes- fingerprints, voice, and facial features e.t.c.


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