The Regional Head of Biometrics for West Africa at Identy.io, Olalekan Olasiyan, has raised concerns over Nigeria’s widening identity gap, warning that millions of citizens remain outside the country’s digital identity ecosystem despite steady growth in the Bank Verification Number scheme.
Olasiyan disclosed on Wednesday that registrations under the Bank Verification Number increased to 67.8 million as of December 2025, up from 63.5 million recorded in 2024. The figure represents a 6.8 per cent year-on-year growth.
Despite the increase, he noted that the numbers still fall short of covering Nigeria’s adult population, leaving a significant segment of citizens, particularly those in rural and informal sectors, without formal digital identification.
“Despite the steady rise in BVN enrolment, millions of Nigerians remain outside the identity net, limiting their access to financial services and digital opportunities,” Olasiyan said in a statement he personally signed.
He explained that the identity gap poses a major challenge to Nigeria’s ambition of building a robust digital economy, noting that trusted digital identification remains critical for financial inclusion, service delivery, and economic participation.
“The strength of any digital economy hinges on the ability to uniquely identify citizens and residents. Without this, financial inclusion stalls, fraud flourishes, and access to services remains uneven,” he added.
Olasiyan also pointed to the impact of weak identity coverage on Nigeria’s financial system, particularly the rise in digital fraud cases. According to industry data, fraud losses surged to ₦52.26bn in 2024 before declining to ₦25.85bn in 2025 following improvements in identity verification and data standards.
“These figures clearly show that fraud is costly, but also that stronger identity systems can significantly reduce these risks when effectively implemented,” he said.
He called for urgent efforts to expand Nigeria’s identity infrastructure to underserved populations, including rural communities, women, and persons with disabilities, warning that exclusion from identity systems often translates into broader economic exclusion.
Beyond financial services, the biometrics expert noted that identity gaps also affect access to essential public services such as healthcare, social intervention programmes, and government initiatives.
Nigeria’s Digital Public Infrastructure, anchored on the National Identification Number, has so far captured more than 121 million residents.
However, Olasiyan stressed that reaching the remaining population, especially those in low-connectivity areas, remains a critical challenge.
“Identity systems must not only be secure but also inclusive. If millions remain excluded, the promise of digital transformation cannot be fully realised,” he said.
He also highlighted the need for more secure and privacy-preserving identity solutions. According to him, Identy.io’s contactless, on-device biometric authentication technology enables identity verification without storing sensitive data in centralised databases, reducing exposure to potential data breaches.
Such innovations, he said, align with global standards and support Nigeria’s transition to the Modular Open Source Identity Platform, which is being implemented by the National Identity Management Commission with support from the World Bank through its $430 million ID4D programme.
“A digital economy cannot thrive without secure authentication mechanisms that protect both institutions and citizens,” Olasiyan said.
He added that adopting modern biometric systems could reduce fraud, strengthen trust in digital channels, and enable financial institutions to extend services to previously excluded populations.
Olasiyan also stressed the importance of technologies that can function offline and on widely available smartphones, particularly in rural areas where internet connectivity remains limited.
“Bridging Nigeria’s identity gap requires solutions that are not only secure but also accessible to people regardless of location or connectivity,” he said.
Experts note that while Nigeria has emerged as one of Africa’s leading digital economies, driven by rapid growth in fintech, mobile penetration, and digital services, the absence of a comprehensive and inclusive identity framework could limit the sustainability of these gains.
Olasiyan concluded that closing the identity gap will be essential to reducing fraud, strengthening public trust, and unlocking the full potential of Nigeria’s digital economy.
