CBN Suspends Paystack, Others From Offering BVN Validation Services

Non-banks may have to look for alternative ways to carry out identity verification for their users, following new CBN regulation.

The Central Bank of Nigeria has reportedly suspended finTechs and other third-party partners from offering BVN validation service.

This was made known in an email from Paystack to customers which stated, “We’ve recently been made aware of a regulatory directive from the primary custodian of Nigeria’s BVN service to all their partners to suspend the provision of the BVN validation service to their third-party partners. This directive affects every non-bank in Nigeria that offers BVN Validation services. In light of this news, we’re hereby informing you that the BVN Resolve service will be temporarily unavailable starting at midnight, April 8, 2021.”

What this means

This suspension could mean that non-banks will have to look for alternative ways to carry out identity verification (KYC) for their users through NIN, Voters ID, Driver’s license etc.

Details soon…