Millions of Nigerians Are Still Outside the Identity System Despite 67.8 Million BVNs

Nigeria may be recording steady growth in Bank Verification Number enrolment, but a much bigger problem remains: millions of people are still missing from the country’s digital identity system.

That is the warning from Dr. Olalekan Olasiyan, Regional Head of Biometrics for West Africa at Identy.io, who says the rise in BVN numbers does not mean Nigeria has solved its identity problem. BVN registrations reached 67.8 million by December 2025, up from 63.5 million in 2024. The increase shows progress, but it still leaves a large share of the adult population outside the formal identity net.

That gap matters more than it seems.

In Nigeria today, identity is no longer just about having your name in a database. It shapes whether people can open bank accounts, access digital services, receive government support, and take part in the modern economy. When millions remain excluded, the country’s digital growth becomes uneven. It helps some people move faster while leaving others behind.

According to Olasiyan, those most affected are people in rural communities, workers in the informal economy, women, and persons with disabilities. These are the same groups already at risk of exclusion from finance, healthcare, and government programmes. Without proper identity coverage, that exclusion becomes deeper and harder to fix.

The issue is also tied to fraud.

Nigeria’s digital economy has expanded quickly, especially in fintech and mobile-based services. But that growth has come with rising fraud risks. Industry data cited by Olasiyan shows fraud losses climbed to ₦52.26 billion in 2024 before dropping to ₦25.85 billion in 2025 after improvements in identity verification and data standards. The message is clear: weak identity systems create openings for fraud, while stronger verification can reduce losses.

That is why the identity gap is not just a social problem. It is also an economic one.

A country cannot build a strong digital economy if too many people cannot be reliably identified. Financial inclusion slows down. Trust in digital systems weakens. Public service delivery becomes patchy. Fraud becomes easier. And growth becomes less stable because too many citizens are still operating outside secure formal systems.

Nigeria has made wider progress through its Digital Public Infrastructure, with over 121 million residents already captured under the National Identification Number framework. But coverage alone is not the full answer. Reaching the remaining population, especially people in low-connectivity and underserved areas, is now the harder test.

That is where the quality of the system becomes important.

Olasiyan argues that identity solutions must not only be secure, but inclusive, privacy-conscious, and able to work in real Nigerian conditions. That means tools that can function offline, work on common smartphones, and reduce dependence on centralised storage of sensitive personal data. He points to contactless, on-device biometric verification as one example of the kind of system that can improve security while lowering exposure to data breaches.

This matters as Nigeria moves toward the Modular Open Source Identity Platform, known as MOSIP, through the National Identity Management Commission, with support from the World Bank’s $430 million ID4D programme. The goal is not just to register more people. It is to build a system people can trust and actually use, even in places with weak internet access and limited infrastructure.

The bigger point is simple.

Nigeria’s digital economy cannot reach its full potential while millions remain invisible to the systems that now shape economic life. More BVNs are a sign of progress, but they are not proof that the problem is solved. Until identity becomes both secure and truly accessible, the country will keep talking about inclusion while leaving too many people outside the gate.

That is the real gap Nigeria still has to close.