Judge reverses controversial BVN ruling, unblocks bank accounts

Bank queue
Customers in a bank used to illustrate the story. [Photo credit: Bizzywizzy - blogger]

A federal judge who earlier granted an order for bank accounts not linked to bank verification numbers to be frozen has reversed himself.

Nnamdi Dimgba, presiding at the Abuja Division of the Federal High Court, said he later learnt that his October 17 order created an “awkward and unfortunate result.”

“Having listened to all counsel on record, and with the consent of all parties represented, I hereby revise Relief 4 of the court’s order of October 17, 2017 such that the new Relief 4 shall be: ‘An interim order of the honourable court stopping all outward payments, operations or outward transactions (including any bill of exchange) in respect of the accounts pending the linking of the accounts to a Bank Verification Number,” Mr. Dimgba said at the resumed hearing on the matter Wednesday.

“In view of the above-agreed compromise revision of Relief 4, I also hereby revoke and set aside Relief 5 of the court’s order of October 17, 2017, which provides for: “An interim order of forfeiture of the monies in the said accounts without BVN to the Claimants/Applicants being accounts with insufficient Know Your Customer guidelines contrary to Section 3 of the Money Laundering Act, 2011 and CBN guidelines the determination of the originating motion on notice,” the judge added.

The reversal means that those who have not linked their bank accounts will now be able to do so at their convenient time. But customers won’t be able to withdraw funds from unlinked accounts, but will be able to do so immediately they link their account.

This marks a departure from an earlier order that gave a 14-day period within which unlinked customers must link the account or forfeit all funds in their accounts.

Mr. Dimgba granted the controversial orders while ruling on an ex-parte motion filed by Attorney-General, Abubakar Malami.

Mr. Malami had argued under the Money Laundering Act 2011 that bank accounts not linked to BVNs were suspicious and sought absolute forfeiture of all funds trapped therein.

Mr. Dimgba authorised up to nine reliefs as sought by Mr. Malami through the ex-parte motion, drawing criticism from Nigerians who said the move was hasty and illegal.

But Mr. Dimgba now says the most critical aspects of the orders were granted in error.

All the 19 deposit money banks in the country were defendants in the lawsuit, and the Central Bank of Nigeria was joined as the 20th respondent to compel it to oversee regulatory issues and enforce the orders.

The BVN is a unique identification number that can be verified and used to transact business across all the banking platforms in Nigeria.

The CBN imposed the policy to capture customers’ data for financial transactions and check fraud in the banking system.

Registration for BVNs commenced on February 14, 2014, across the country. The CBN said over 20.8 million customers enrolled 40 million bank accounts before the October 31, 2015, final deadline for customers residing in the country.

The CBN extended the deadline for Nigerians in the diaspora to December 2016 to sign up for the BVN system. But hundreds of thousands home and abroad are still believed to be left behind.


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  • Prosperous Nigeria

    Surely this Judge is a funny fellow. How can a Judge authorize the seizure of monies belonging to citizens who have done no wrong. Some of the account owners are hustling overseas and furnish their accounts through International Money Transfers. Unfortunately, some of them are stuck overseas with no papers and can’t come home to do BVN.

    • The Optimist

      Relax! It is business!

  • The Optimist

    Going back and forth, even in the judiciary? Politics! Interested parties and lobby groups must have pressed certain keys the way of corrupt Nigeria. Where is the Change?

  • MilitaryPolice01 [Joint Chief]

    The Judge must have received an ear full of angry phone calls from his folks abroad, unfortunately just like the Peace Corps ruling, the Govt may decide not to obey the ruling.

  • Gary

    Thank God for letting commonsense prevail on this issue to prevent our hard-earned money from confiscation and preserving the integrity of Nigeria’s banking system from government impunity.

    • aisha ani

      We thank God.

  • Passionate about Nigeria

    Another Malami gaffe….smh

  • Otile

    This is the most crooked government one has seen in recent memory. Depositors are not yet out of the woods, the corrupt government will still device another crooked means of confisticating people’s money.

  • olat

    D CBN GOVN is an outsider in dis government.
    A good CBN GOVN will have come up with better regulations.
    (1) Give a short time line for all banks to forward names n amount of unlinked acct to CBN n EFCC.
    (2) All unlinked acct above a million naira can only be withdrawn in person at the bank’s headquarter.
    (3) No deposit allow into unlinked acct
    (4) $1 million fine for any violation by banks.