Impact Of Bank Verification Number (BVN) Policy on the Nigerian Economy

Abstract

This paper assesses the impact of the Bank verification number (BVN) policy on the Nigerian economy for the period 2009 to 2022 using a regression model. The model adopted for this study was specified using gross domestic product (GDP) as dependent variable with the BVN policy as the explanatory variable included in dummy form. Payments on Point of Sales (POS) terminals and Automated Teller Machines (ATM), money supply and credit to private sector were included as control variables The result revealed that the BVN policy had a negative but insignificant impact on the Nigerian economy within the period under study. It was recommended that to improve on the contribution of the BVN policy in enhancing identity management in the Nigerian banking sector, both operators and regulators must put additional measures in place to improve on safety during banking transactions and the security issues associated with increase in the use of electronic banking and increased sophistication of cybercrimes. Loopholes in the operation of the system should be identified and steps taken to beef up security by improving on protocols required in carrying out bank transactions particularly in the area of internet banking. To enhance identity management in the banking industry, it was also suggested that all bank account numbers be linked to the National Identity Number (NIN) in line with proposals made by the Federal Government.