The Central Bank of Nigeria (CBN) has introduced stricter controls on suspected fraudulent transactions, Bank Verification Number (BVN) enrolment and access to customer data within the banking system.
The measures were contained in a circular dated March 12, 2026, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021.”
Signed by the Director of Payments System Policy Department, Musa I. Jimoh, the circular was addressed to all banks, other financial institutions and payment service providers operating in Nigeria.
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According to the apex bank, the amendments are designed to strengthen fraud monitoring, improve identity management within the financial system and safeguard the integrity of banking transactions.
“In line with its mandate of promoting financial system stability, the CBN hereby issues the following amendments to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021,” the circular stated.
Under the new guidelines, financial institutions are required to establish and maintain a temporary watchlist for BVNs linked to suspected fraudulent transactions reported within the banking system.
“A BVN may remain on this temporary watchlist for a maximum period of twenty-four (24) hours, during which the BVN owner shall be contacted to provide clarification regarding the identified transaction(s),” the CBN stated.
The bank explained that the measure will enable financial institutions to quickly flag suspicious transactions while allowing customers to explain or resolve the issue before further regulatory action is taken.
The revised framework also introduces a stricter age requirement for BVN enrolment, limiting registration to individuals aged 18 years and above. The CBN said the rule is intended to strengthen identity verification and align BVN registration with legally recognised age thresholds.
In addition, customers will now be allowed to change the phone number linked to their BVN only once. The restriction is aimed at reducing identity manipulation and fraud associated with frequent changes to contact details tied to financial identities.
The circular also tightens access to the BVN database, stating that it will be restricted to financial institutions licensed by the CBN. However, the regulator noted that it may grant access in exceptional circumstances, provided such approvals comply with existing laws and regulatory provisions.
The BVN database remains a key identity infrastructure used by regulators in the Nigerian financial system to monitor banking transactions, track credit exposure and combat financial fraud.
The CBN said the introduction of a temporary watchlist for suspicious transactions will strengthen real-time monitoring of banking activities and enable financial institutions to respond more swiftly to potential fraud risks.
According to the circular, the new provisions will take effect from May 1, 2026, and all banks, financial institutions and payment service providers have been directed to ensure full compliance with the updated framework.
The regulator added that the measures are expected to enhance fraud detection, improve the integrity of customer identity records and reinforce trust in Nigeria’s expanding digital payments ecosystem.
