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IMPLEMENTING BIOMETRIC VERIFICATION NUMBER (BVN) TAX POLICING IN NIGERIA

IMPLEMENTING BIOMETRIC VERIFICATION NUMBER (BVN) TAX POLICING IN NIGERIA

Implementing Biometric Verification number tax policing in Nigeria became very necessary considering the recent moves by dubious Nigerians.

We considered the following persons before writing this piece of article Biometric Verification number tax policing in Nigeria:-

  1. All Female Chief Executive Officers and Managing Directors.
  2. All Male Chief Executive officers and Managing Directors.
  3. All financial firms which include Banks, Insurance houses and Bureau De Change houses.
  4. All Politically exposed persons

Before we go on Implementing Biometric Verification number tax policing in Nigeria, we will like to start with the definition of Biometric Verification Number.

Biometric Verification Number (BVN) is best defined as a unique 11 digit bank passcode in Nigeria issued to all individuals and introduced by Central Bank of Nigeria (CBN) to help mitigate financial crimes.

This is in line too with the First Bank Definition of BVN which in itself is a masterstroke definition.

Guarantee Bank Trust- GTB has another awesome BVN-definition here.

This takes us to the question has the emergence of BVN reduced financial crimes in Nigeria.

Implementing Biometric Verification number tax policing in Nigeria

BIOMETRIC VERIFICATION NUMBER (BVN) VERSUS FINANCIAL CRIMES IN NIGERIA

The emergence of BVN directly contended with financial crimes in Nigeria except that average Nigeria believes that technologies can be outsmarted.

Biometric Verification Number BVN came into play at first without a means verifying to ascertain fake and real once.

Customer in their bids to access funds in various Banks present any 11 digit that looks like BVN to banks. In those days, Banks accept such BVNs and oblige them their financial requests.

These fake BVN were admitted and used in many Banks. Whether as a continuation of a process or as a means of correcting error in a process, Central Bank Of Nigeria (CBN) introduced a common platform for BVN verification.

This platform is unique in the sense that it serves all inquiry purposes by the 28 Banks in Nigeria.

The Basic things that made the BVN unique and a hard nut to crack after the introduction of this common verification portal CBN are”

  1. Biometric verification Number (BVN) is done once.
  2. Only one phone number can be used as primary phone number.
  3. This particular number is the only number that can be used to access information on the platform.
  4. The NIBSS – Nigeria Inter-bank Bank Settlement System platform rejects inquiry from any other number other than this BVN enrollment phone number.
  5. Attempt to inquire for BVN using *565*0# on another number will be met with a response that , “sorry your number is not enrolled on BVN Platform. Please contact 01-4485388.”
  6. Once ones Biometrics are captured, they are stored in the data base of NIBSS – Nigeria Inter-bank Bank Settlement System.
  7. New enrollments generates Biometric Verification Number – BVN after 24 hour of enrollment.
  8. Within this 24 hours, the newly enrolled Biometric Verification Number is matched against all Biometric Verification Numbers (BVN) already in the system.
  9. This is done automatically either as self automated process or Back Office engineered process.
  10. All duplicated Biometrics will be cancelled and Biometric Verification Number will not be generated for them.
  11. Before this time, many persons, either out of knowledge gap or fraudulent intent, had more than one Biometric Verification Number – BVN. That was in early stage of Biometric Number Verification – BVN introduction.
  12. These duplicated BVN were all identified NIBSS. They were either deleted or one will be deleted leaving one.
  13. There were cases were same phone numbers, same customer IDs, Same account numbers and same address were mistakenly used for different customers. These were all phished out an corrected.
  14. In difficult situations, the BVN will be deleted from the system and the customer will be advised to re-enroll.
  15. NIBSS always write to Banks with such BVN to delete it in accounts and place such account on Post No Debit (PND). This simply means that any form of cash withdrawal in that account is prohibited.

With these fifteen points raised, it becomes difficult for one to actually penetrate and deceive the NIBSS – Nigeria Inter-bank Bank Settlement System.

Implementing Biometric Verification number tax policing in Nigeria

History has proven that time is the only barrier between a technology and a criminal minded person.

This is so because a criminal minded person spends time to think on how to manipulate any form of technology.

Many technology have been manipulated in the past by such criminal minded person which makes Biometric Verification Number not to be an exception.

This now takes us to the topic implementing Biometric Verification number tax policing in Nigeria.

IMPLEMENTING BIOMETRIC VERIFICATION NUMBER (BVN) TAX POLICING IN NIGERIA

In view of the above topic many companies were currently hit by Federal Inland Revenue Services of Nigeria – FIRS.

These companies were slammed taxes as high as N13m in their respective corporate accounts. Some of these customers opened individual savings account that wont attract COT in other to avoid such tax payment.

WHY CHOOSING SAVING ACCOUNT INSTEAD OF CURRENT ACCOUNT

Saving account was chosen because:

  1. The customer wants to be doing a high volume transactions.
  2. These transactions would attract COT if they do it with current accounts.
  3. The customer now chose an account that will attract no COT but still pays him or her an interest of 3% per annum.
  4. The customer comfortably enjoys his/her business with added incentive of 3% per annum but without paying the government the statutory fee.
  5. The customers intentionally avoids tax.

Respect the Women Initiatives came across a widow who visited just inherited the property and the business of the late husband.

She benefited from the topic HOW PROBATE REGISTRY BENEFITS WIDOWS AND WIDOWHOOD IN NIGERIA which she came upon after reading our work THE PLIGHT OF WIDOWHOOD IN NIGERIA.

She wants to open a corporate account with the company’s name for the first time. People were advising her on the need to not to since she risks tax huge payment drive by FIRS/EFCC.

These make us to wonder how Nigeria will progress if tax evasion has gotten to this extent.

RTWI then decided to do this work to educate female CEOs and their male counter parts alike.

The main point here is that Implementing Biometric Verification number tax policing in Nigeria is a dream the criminal minded should pray for it not to happen.

Implementing Biometric Verification number tax policing in Nigeria

The concept of Implementing Biometric Verification number tax policing in Nigeria as conceived by Respect the Woman Initiatives – RTWI goes this way:-

  1. Biometric Verification Number – BVN has ensured that account names on all individual accounts matches with names on Primary Means of Identifications and customer ID of a corporate account customer. Joshua Afelumo of JEKAD blog got it all right on his work on primary means of Identification in Nigeria.
  2. This means that for account change of name or BVN-change-of-name-in-Nigeria to happen, it must happen in a way that uniformity and identity is not lost.
  3. By way of example if RTWI Limited has a corporate account with Bank ABC, the customer ID which is created using the individual signatory/Trustee details on Corporate affairs documents/individuals details on Primary means of Identification must agree with what is in the  BVN.
  4. The BVN will be linked to all other accounts owned by this same person whether corporate or individual.
  5. The Tax Identification numbers of all corporate account with we synced with the customer ID/CIFs (which is customer ID for Bank’s using Finacle as their Core Banking Applications) and the Biometric Number Verification – BVN of the individual(s).
  6. Commercial Banks must be instructed to ensure that the same customer ID/CIF is used for same individual irrespective of the account type and class the person is running. Same BVN must be on these accounts too.
  7. Tax implementation will be automated across the Banks where same BVN exists.
  8. The automation will be in such a way that the accounts are debited irrespective of the amount there until the sum owed is taken.
  9. By way of example, if the customer has a total of 10 accounts with the same BVN but the balances are in certain tranches of the total sum being owed by the individual, the system will keep debiting until it has gotten the total sum owed by this individual.
  10. The system will have the power to force debit accounts above minimum balance.
  11. When this is done. Criminal minded persons would learn to do the right thing and individual account opening to evade tax will stop.

CHALLENGES WITH IMPLEMENTATION OF THE IMPLEMENTING BIOMETRIC VERIFICATION NUMBER (BVN) TAX POLICING IN NIGERIA

The following are the challenges that may be met in implementing Biometric Verification number tax policing in Nigeria: –

  1. Accounts especially Corporate Accounts are believed to be entities separate from another. In the same way it is believed that such accounts should be treated separately according to its merits and demerits.
  2. Such infringements attracts legal actions if not properly handled.
  3. This means that Legal consultations must the done before implementation.
  4. The only certain thing here is that implementing Biometric Verification number tax policing in Nigeria is doable.

Why did we consider the following persons before writing the topic Biometric Verification number tax policing in Nigeria:-

  1. All Female Chief Executive Officers and Managing Directors.
  2. All Male Chief Executive officers and Managing Directors.
  3. All financial firms which include Banks, Insurance houses and Bureau De Change houses.
  4. All Politically exposed persons

The NGO – Respect the Woman Initiatives believes the following:

  1. We represent the interest of women. We wont promote ideas and fail and fails to alert Female CEOs. We are not alerting them because we want to aid them. We are alerting them so that they will take note and avoid situations that will put them behind bars. We hope to aid produce law abiding women.
  2. The male CEOs are husbands to many women, father to many sons and daughters and bread winner to many families. RTWI would want them to get involved in any thing that can put them behind bars.
  3. The financial firms need to open their eyes to fraudulent BVN name changes which many have adopted to avert the scourge of BVN Tax Policing in Nigeria. BVN Name change in Nigeria must be done in line with CBN regulations. Bank must make sure that their control department do their work. This they must do to avoid sanctions from Central Bank of Nigeria.
  4. RTWI concerns on politically exposed persons is that most of them are becoming victim of avoidable situations. Most of this ordeal that befalls them are self inflicted. With the dangling of axe of justice on the head of all Nigerians, good practices will come to stay. This will expose politicians with fictitious accounts for contract execution.

PREDICTING THE USE OF BVN TO POLICE TAX PAYMENT IN NIGERIA

Many see the shallow part and use of BVN but Respect The Woman Initiatives sees a different world of economic gain for Nigeria from the use BVN.

Biometric Verification number tax policing in Nigeria requires Federal Inland Revenue Services (FIRS) and Central Bank of Nigeria (CBN) putting head together. It also requires the backing of the three arms of Government.

You may be seeing abuses in certain quarters of the country but Respect The Woman Initiatives sees not only the abuses but also the uses of the elemental structures already in place to move Nigeria Forward.

BVN is one of such elemental structures.

Our corporate aim with this publication is to join our effort with many efforts already in place and move Nigeria forward.

RTWI believes that adoption of Biometric Verification number tax policing in Nigeria will eradicate tax frauds, eradicate certain taxes abuses and promote tax uses in Nigeria.

Remember, “Abuse should not take away use in our lives and in Nigeria”.

Pay your taxes and educate others on the need to pay their taxes too.

RTWI believes that this topic will help Nigeria become the nation it is called to be.

When the system fails women suffer it the most hence our concern to blog the topic Implementing Biometric Verification number tax policing in Nigeria

Proudly RTWI; Proudly Nigeria

 

Comments (4)

  1. Avatar
    Ebere Emefo
    May 13, 2019

    Will the power that be in Nigeria allow this? Nice piece of work

    1. Respect The Woman Initiatives
      June 23, 2019

      Dear Ebere, RTWI is here to make sure they do just that dear. Thanks for your frequent visit.

  2. June 14, 2019

    […] BVN is a mandatory requirement for all account operation but not a mandatory requirement for opening this account […]

    1. Respect The Woman Initiatives
      June 23, 2019

      Still counting.

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