Financial experts are calling on the Central Bank of Nigeria (CBN) to abolish the long-standing requirement for bank references in opening current accounts, describing the rule as outdated in an era dominated by digital verification systems.
For decades, prospective current account holders in Nigeria have been required to present referees—usually existing current account holders—who attest to their credibility. The practice dates back to an analogue banking era built on handwritten forms, personal networks and limited identity-verification tools.
Industry analysts argue that the system, rooted in the Banks and Other Financial Institutions Act, once served as a safeguard in a time of unreliable address systems, weak records and the risk of customers disappearing after issuing dud cheques. Today, however, they say the justification has collapsed.
Nigeria’s banking ecosystem now relies on digital infrastructure with far stronger and more precise verification mechanisms. The Bank Verification Number (BVN) links customer identities across institutions, the National Identification Number (NIN) offers biometrics and demographic records, while SIM registration ties mobile lines to verified individuals. The Corporate Affairs Commission (CAC) also operates a digital registry that provides transparent information on company ownership and directors.
Most applicants for current accounts already maintain savings or corporate accounts, meaning their financial identities, behavioural patterns and risk profiles are already visible to regulators and banks.
Open banking has further strengthened the system. With customer consent, banks can now access verified identity data, transaction history, cashflow patterns and other behavioural insights. Experts say these tools outperform handwritten referee forms, making the requirement not only obsolete but counterproductive.
Stakeholders note that the rule creates unnecessary friction for Nigerians in the diaspora, foreign investors, pension contributors abroad and international companies operating in the country. Many struggle to meet a requirement designed for a time when referees lived close enough to vouch in person for applicants.
Digital banks operating in Nigeria have already proven that accounts can be opened safely without the reference system. They rely instead on BVN, NIN, geolocation intelligence and real-time risk monitoring — all of which provide stronger fraud prevention than personal endorsements.
Globally, markets such as the United Kingdom, United States, Singapore, South Africa and the UAE do not require referees for current account opening, depending instead on digital identification and automated fraud detection. With Nigeria possessing similar capabilities, experts argue that retaining referee forms amounts to preserving a relic of the past.
Analysts say the CBN, which has championed BVN, NIN integration, improved address mapping, credit reporting and open banking, now has the evidence base to retire the referee requirement without jeopardising financial integrity.
They insist that modern verification tools already provide banks with what they need: confirmation of identity, address, transaction behaviour and risk exposure — far more reliably than signatures from acquaintances.
As Nigeria seeks to deepen financial inclusion, attract investment, support diaspora participation and modernise its banking sector, stakeholders say scrapping the reference system is practical, necessary and long overdue.
