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Can NIBSS save BVN from bank scams and be a fair umpire?

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NIBSS wants to tighten security around Nigeria’s Bank Verification Number (BVN) system. But there are concerns about fair competition.

On the 29th of March this year, the Nigeria Interbank Settlement Scheme (NIBSS) published an important document.

The “Approved Standard Operating Guidelines for BVN Matching System Version 2.0” document is Nigeria’s BVN operations manual. It explains how banks should enrol and verify customers for BVNs, and how institutions can access the BVN system.

BVNs – unique identification numbers for bank customers – were launched in 2014 by the Central Bank of Nigeria (CBN) and the Bankers’ Committee as a “Know Your Customer” (KYC) infrastructure for the financial sector.

The ambition was noteworthy: to create a biometric-based standard for verifying client identity and enabling safe, seamless electronic payments. That standard was actually supposed to be the National Identification Number (NIN) but banks floated BVNs following several government delays on the NIN project.

Combating fraud in the system
BVN has become a core pillar of Nigeria’s anti-money laundering and combating of financial terrorism (AML/CFT) framework. It has driven the rise of Nigerian fintech; payments, savings, lending and even cryptocurrency startups have relied on it.

Among its other powers, NIBSS determines who can and cannot have access to BVNs. Some weeks ago, they showed this power by cutting some fintechs off the BVN system.

Reactions swirled that it was a move by deposit money banks (who co-own NIBSS) to protect themselves against competition from fintechs. But according to a highly placed source at a bank, the move was a necessary response to “alarming proportions” of fraud that have been traced to December 2020.

The short version of the fraud story is that when an individual at virtually any commercial bank in Nigeria opened an account, a fraudster who has got access to their BVN and account number would call them on the phone.

It is not clear how fraudsters get remote access to customer information but the problem only affected customers who opened or reactivated bank accounts from around the middle of December.

The fraudster would have downloaded the customer’s bank app. To take control of the account, they would ask the customer to hand over a one-time password sent by the bank.

The scam was being attempted on anyone including some bank staff, the source said. But banks were alarmed because a major target group was serving members of Nigeria’s National Youth Service Corps (NYSC).

NYSC mobilises about 250,000 Nigerian graduates each year and is a source of new accounts for banks.

In that framing, NIBSS’s new 49-page document clarifies and tightens the BVN system for the safety of Nigeria’s financial system.

Access to the BVN database
Banks and fintechs access the BVN database through Application Programming Interface (API) calls. The CBN approves groups who can access BVN information, while NIBSS manages the security of the APIs.

There are two tiers of access: tier 1 and tier 2. Both are differentiated by the need for CBN approval and the number of data fields they can access.

Esigie Aguele, CEO of VerifyME, explains that NIBSS gives different levels of access to cater to different use cases. Banks have access to more demographic data because their operating license imposes strict KYC and AML requirements.

Apart from banks, any organisation that wants to access customers’ information must first get customers’ consent.

This consent is split into two; one for demographic data and another for details like account number and names in different banks. When an organisation needs any of these details, NIBSS will notify customers, indicating what their consent is being asked for.

Fintechs cannot store BVN data on their database for later use. So if there is downtime at NIBSS, there will be no alternative way to do verifications with vendors until the service is back up.

Aguele says this is a reasonable requirement for data security in line with Nigeria’s Data Protection Regulation. But he thinks there should be more clarity from NIBSS on how fair the playing field will be under the guidelines.

“The fact of the matter is that NIBSS is a private institution and should not be regulating data access to companies that could potentially be their competitor.”

“Many of these fintechs are releasing products that will compete with what NIBSS offers to banks; CBN still needs to update the framework to cater to this reality.”

VerifyMe offers a facial recognition service that is in competition with NIBSS’s product. With NIBSS in control of some of the data useful for that purpose, Aguele believes an antitrust issue arises which should be clarified by the CBN.

“Ideally, NIBSS should not be treated as an agency. There needs to be an independent committee that handles these responsibilities.”

What are the alternatives?
On a phone call, a spokesperson for NIBSS said fintechs will find all answers they need for compliance to the BVN system within the new guidelines.

Fintech startups like Carbon, Fairmoney and Branch that have licenses that allow them to take user deposits continue to enjoy BVN matching access.

But the new guidelines might push some fintechs to begin using NIN as a substitute for BVN for their verification purposes. QuickCheck, a digital lending app, now requests NIN from users who want to sign up.

Aguele says VerifyMe can be a channel for fintechs without direct access, though the identity technology startup will first have to secure a license from the CBN to provide that service.

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ENHANCING PUBLIC SAFETY AND SECURITY: THE HALO TRUST AND US GOVERNMENT PARTNER TO PROVIDE AMMUNITION HANDLING AND ACCOUNTING TRAINING AT IKEJA LAGOS.

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The Nigeria Police Force Explosive Ordnance Disposal – Chemical Biological Radiological and Nuclear (NPF EOD-CBRN) has successfully completed the first batch of training for 19 personnel on Ammunition Handling and Accounting Course. The training, held in Ikeja, Lagos, from December 3-20, 2024, was organized by The HALO Trust and sponsored by the United States Department of State’s Bureau of International Narcotics and Law Enforcement Affairs.

According to The HALO Trust’s Country Director for Nigeria, Prince Ganiyu Otunba, this training is part of aholistic NPF-HALO developed project aimed at supporting personnel capacity building, addressing equipment needs, and enhancing the operational readiness of the NPF EOD-CBRN Command to mitigate explosive ordnance threats in Nigeria. A second batch of 22 personnel is scheduled to undergo the same training in January.

The Inspector General of Police, IGP Kayode Adeolu Egbetokun PhD, NPM, through the CP EOD–CBRN CP Patrick Atayeroexpressed gratitude to the Bureau of International Narcotics and Law Enforcement Affairs andThe Trust HALO for their support.

The training aimed to equip NPF EOD-CBRN personnel with the knowledge, skills, and best practices necessary to handle and account for ammunition and explosives safely and securely. The course also focused on ensuring proper accounting and record-keeping, preventing theft and diversion, reducing the risk of unplanned explosions at munitions sites, and promoting international best practices.

The NPF appreciates the support provided by the United States government, which will have a profoundly positive impact on the society.

CP Patrick Atayero emphasized the importance of responsible ammunition management in preventing the proliferation of illicit weapons and reducing the risk of unplanned explosions at munitions sites. He urged all stakeholders to collaborate with the Police in efforts to prevent the diversion, misuse, and unauthorized handling of explosive and other hazardous materials.

About HALO

The HALO Trust is the world’s largest humanitarian organization engaged in the field of Mine Action and weapons and ammunition management. With over 35 years’ experience, The HALO Trust is the most experienced organization in the field of Weapons and Ammunition Management, rehabilitating and constructing armouries and ammunition stores to international standards, disposing of unsafe and unserviceable weapons and ammunition, and building national capacity to allow for the safe, accountable and secure management and control of weapons and ammunition.

The HALO Trust presently implements Mine Action and weapons and ammunition management projects in 30 countries and territories. In 2024, HALO trained a total of 106 Nigeria security forces personnel in weapons and ammunition management.

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Aliu Gafar delivers stellar performance as Esusu in Femi Adebayo’s Seven Doors

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By Rtn. Victor Ojelabi

The much-anticipated movie series Seven Doors by Femi Adebayo has finally premiered, currently showing on Netflix, captivating audiences with its intricate storytelling and compelling characters.

The movie begins with a haunting scene of seven women under a mysterious spell leaping to their deaths from a waterfall, setting the tone for a gripping tale that unravels in Ilara Kingdom.

The series explores various societal issues, including corruption, greed, gluttony, family values, malicious conspiracies, and the delicate balance of law and order.

Central to its plot is the calamitous fate of Oba Adedunjoye, the Onilara of Ilara, whose failure to perform traditional rites—symbolised by knocking on seven doors—unleashes devastating consequences on his kingdom.

At the heart of this chaos is Esusu, a malevolent and exiled villain whose return wreaks havoc.

Esusu, a ni ohun t’Eledumare o ni.
Eledumare o ni ika, ika ni Esusu

The character of Esusu, pivotal to the story’s depth, is masterfully brought to life by Aliu Gafar.

Gafar’s first appearance, late in Episode 2, immediately shifts the narrative, introducing a chilling force that spares no one, not even the royal family. His commanding portrayal encapsulates the essence of Esusu, a man whose wickedness defies comprehension.

The backstory reveals Esusu’s sinister pact with Ọba Adejuwọn, an ancestor of Adedunjoye.

Desperation led Adejuwon to seek Esusu’s help to evade death—a move that came at an unthinkable cost, forgetting that bi alọ ba lọ, abọ nbọ (a pendulum that swings to is still coming to swing fro).

Esusu’s return demanded not only royal treatment but the freedom to live as he pleased, challenging the very fabric of the kingdom.

Gafar embodies this complex character with remarkable precision, delivering a performance that is both chilling and unforgettable.

With almost two decades in Nollywood, Aliu Gafar has solidified his reputation as a versatile and dedicated actor.

His extensive filmography includes acclaimed productions such as Jagun Jagun, Anikulapo, Iyalode, Eefin, and Omo Ajele.

His role in Seven Doors further cements his legacy as a master of his craft, showcasing his ability to seamlessly portray multifaceted characters.

The Yoruba actor has also garnered accolades for his work, including the Best Actor award at the Dallas International Yoruba Movies Awards for his role in Peregun.

His commitment to the industry and his talent for captivating performances continue to make him a force to be reckoned with in Nollywood.

In Seven Doors, Gafar’s nuanced performance as Esusu elevates the series, demonstrating his ability to command attention and bring depth to a complex narrative.

His contribution to the Nigerian film industry remains invaluable, and his portrayal of Esusu is a testament to his enduring excellence.

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Ogun State Prominent Monarchs, Business Tycoons, Others Honor Olusho Agba At The Confession 2024

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The Olusho Agba’s confession 2024 attracted more dignitaries as three respected monarchs in Ogun honour the event by physical appearance, alongside side most prominent CEOs in Ogun.

 

The royal fathers present at the laudable event held at Continental Suits in Abeokuta include HRM Oba Oyabanji Adetunji (Oloja Of Oja Odan) HRM Oba Buhari Makinde (Oniwoye of Iwoye Land) HRM. Oba Lukmon Kuoye (Olu of Imasayi).

 

Also Chief Executive Officer of IBD Foundation, Dr. Mrs. Lara Dende, the Chief Executive Officer of Pelican Valley Nigeria Limited Amb. Dr Tunde Adeyemo and CEO of Zolakaz Oil and Gas Alh. Sanni Azeez was also present at the event.

 

The Confession 2024 features a series of content creators, comedians, singers and dancers, and artists of different fields such as Dr Smile, Hafeez Oyetoro (Simply Saka), Woli 3310, Chukwuka Jude, Babalegba

Biola Adekunle, Femi Obimodede, Ishau Abidemi, and many more.

 

Below are some pictures from the event…

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