127m NINs later, Nigeria still faces a digital identity usage gap

Nigeria has issued more than 127 million National Identification Numbers (NINs), making it one of Africa’s leading digital identity markets, yet experts say the country’s biggest challenge is no longer registration but ensuring that the digital identity system is fully integrated into everyday economic activities.

Recent data from the National Identity Management Commission (NIMC) shows that NIN enrolments rose from about 114.5 million at the beginning of 2025 to approximately 127 million by December, reflecting one of the fastest identity expansion programmes on the continent.

However, a new global study suggests that possessing millions of digital identities does not automatically translate into economic value unless businesses, government agencies and public institutions actively use them.

The study, published in May 2026 by global secure identity firm IN Groupe and based on research covering 210 countries, found that countries that achieve meaningful digital identity success are not necessarily those with the most advanced technology. Instead, they are nations where digital identities are deeply embedded in banking, telecommunications, healthcare, education and public service delivery.

For Nigeria, this finding raises an important question: after years of focusing on enrolment, is the country doing enough to make its digital identity infrastructure work for citizens and businesses?

The report ranks Nigeria among Africa’s most mature digital identity ecosystems, alongside Kenya, Ethiopia and South Africa. The achievement was driven largely by policy decisions that made identity verification central to economic activities.

One of the most significant milestones was the federal government’s directive linking NINs to SIM cards, which accelerated registrations from 46.4 million in early 2021 to more than 94 million within two years.

Another major step was the integration of the NIN with the Bank Verification Number (BVN). Following directives from the Central Bank of Nigeria requiring customers to link both credentials to their accounts, identity verification became a routine part of banking operations. By the end of 2025, the BVN database had expanded to 67.8 million records.

The impact of these integrations is already visible in the financial sector. Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that digital payment fraud losses dropped by 51 percent, falling from N52.26 billion in 2024 to N25.85 billion in 2025.

Industry analysts say the decline demonstrates how a trusted digital identity system can strengthen financial security, reduce fraud and improve trust in electronic transactions.

However, despite these gains, experts argue that Nigeria is only beginning to unlock the economic benefits of digital identity.

The country currently has more than 320 million active bank accounts but fewer than 70 million unique BVNs. While part of this gap reflects customers holding multiple accounts, it also highlights the existence of dormant, unverified and duplicate accounts that a stronger identity framework could help address.

Similarly, while NIN enrolment has crossed 127 million, it remains significantly below Nigeria’s estimated population of over 200 million people.

Women continue to account for a smaller share of registrations, while rural communities and residents in low-connectivity areas remain harder to reach.

To achieve its target of 180 million enrolments by the end of 2026 under the Digital Identity for National Development programme, NIMC would need to register more than three million people every month, a pace that presents significant operational challenges.

The report noted that these gaps are not primarily technological. Rather, they reflect issues of accessibility, inclusion and practical usage.

One of the strongest lessons emerging from global digital identity programmes is that the true value of an identity credential is realised when it simplifies daily life.

A bank should be able to open an account in minutes using a trusted identity. Hospitals should be able to retrieve patient records securely. Schools should use verified identities for admissions and certification. Government agencies should deliver benefits directly to verified recipients without duplication or fraud.

Where such integrations exist, organisations reduce costs, improve efficiency and deliver better services. Where they do not, even the most sophisticated digital identity systems risk becoming little more than large databases.

Nigeria’s next phase of digital identity development is therefore expected to focus on expanding adoption beyond telecommunications and banking.

The report identified healthcare, education, social welfare programmes and digital commerce as sectors where stronger identity integration could generate significant economic and social benefits.

The introduction of the multipurpose national identity card under the AFRIGO payment scheme was designed to support this broader vision. By combining identification and payment functions, policymakers hope to create more everyday use cases for the national identity ecosystem. However, the success of the initiative will depend on how widely it is accepted by businesses, financial institutions and public agencies, the report averred.

Trust is also emerging as a critical factor. As more personal data becomes digitised, citizens are increasingly concerned about privacy and security. While Nigeria’s Data Protection Act provides a legal framework for safeguarding personal information, the report argued that strong enforcement, transparent governance and accessible complaint mechanisms will determine whether citizens feel confident enough to fully embrace digital identity services.

There is also a regional dimension. As West Africa moves towards greater economic integration, digital identity systems that can work across borders could support trade, migration, education and financial inclusion. Analysts believe designing Nigeria’s identity infrastructure with regional interoperability in mind could position the country as a leader in Africa’s digital economy.

For now, the numbers tell two different stories. One is a story of remarkable progress, with more than 127 million NINs issued and significant reductions in financial fraud. The other is a story of unfinished work, where many sectors of the economy have yet to fully integrate digital identity into their operations.

The challenge facing Nigeria is no longer whether it can build a digital identity system. It has already done that. The bigger challenge is ensuring that the millions of identities already issued become tools that make banking easier, healthcare more accessible, education more efficient and public services more transparent. Until that happens, the country’s digital identity revolution will remain a work in progress rather than a fully realised economic asset.