28 C
Lagos
Wednesday, July 15, 2020
Subscribe to News360 Info by Email
Home Banking FG extends BVN to Microfinance Banks as ‘ghost workers’ migrate there

FG extends BVN to Microfinance Banks as ‘ghost workers’ migrate there

The Federal Government has urged the Central Bank of Nigeria to enforce the use of Bank Verification Number, BVN, in Microfinance Banks, amid suspicions that fraudulent government employees have set up “ghost workers” accounts in MFBs to avoid detection.

The Minister of Finance, Kemi Adeosun, in a correspondence to the governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, said the introduction of the BVN has immensely improved the integrity of the Federal Government payroll, from which more than 50,000 ghost workers had been detected.

Mrs. Adeosun however said operating bank accounts in MFBs without requirement for BVN has left a huge loophole for those who hide and launder proceeds of crime to escape detection by law enforcement agencies.

“Our ongoing efforts to verify the integrity of Federal Government personnel costs and purge the system of fraud and error has made extensive use of the Bank Verification Number as a means of identifying recipients of multiple salaries, and salaries paid into accounts with names that differ from those held on our payroll records. The success of this effort has to date yielded the removal of over 50,000 payroll entries,” the Minister said.

Mrs. Adeosun told the CBN governor that prior to the deadline for obtaining the BVN by bank customers, a large number of salary accounts of Federal employees were found to have been moved from commercial banks to microfinance banks, which did not require the use of BVN.

“This is a suspicious activity, and we have already commenced a review of such cases to identify and investigate any cases of fraud,” the Minister said.

Although the minister said extending the requirement for BVN to microfinance banks may impose a huge financial strain on the smaller microfinance banks, the Minister pointed out that “some MFBs, such as National Police Force Microfinance, NPF, have over 27,000 salary accounts. Our inability to perform checks on such a large number of salary earners is a key risk.”

“I am therefore seeking your co-operation to enforce compliance with BVN on any MFB with over 200 active salary accounts, or those above a certain size. This will support the Federal Government’s efforts at reducing leakages to create headroom for the capital projects that will support the growth of the economy,” the Minister said.

 

The CBN had earlier announced its intention to extend the requirement for the extension of the BVN to MFBs in September 2016 but has delayed the measure.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

NAF loses first, only female combat Helicopter Pilot in road accident

Flying Officer Tolulope Arotile, the first-ever and only female combat helicopter pilot in the Nigerian Airforce has died. The tragic incident occurred...

Complete Sweep: Buhari suspends EFCC secretary Olukoyede, 10 others

President Muhammadu Buhari has suspended no fewer than 11 senior officials of the Economic and Financial Crimes Commission, as the probe of...

US bows to pressure, rescinds policy targeting foreign students

The United States has rescinded its recent immigration policy requiring foreign students to leave the country if all their classes were to...

COVID-19: Nigeria records 463 new cases as total infections rise to 33,616

Nigeria’s COVID-19 infections have risen with 463 new cases, bringing the total number of infections in the country to 33,616.

Recent Comments