Central Bank of Nigeria has announced stricter rules for the Bank Verification Number (BVN) system in a bid to curb financial fraud and bolster trust in Nigeria’s increasingly digital banking ecosystem.
The updated regulations, set to take effect from May 1, focus on tightening enrollment procedures, limiting data modifications, and enhancing institutional oversight. The move marks a shift from rapid system expansion to a more security-focused approach.
According to the new circular titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021,” financial institutions will now employ real-time monitoring tools to flag suspicious activity and protect consumers from cyber threats.
Musa Jimoh, who signed the circular, stated that the measures are intended to help banks and other financial institutions maximise the benefits of BVN while promoting a stable and secure financial system.
Key provisions include:
1. BVN enrollment is limited to individuals aged 18 and above.
2. Amendments to phone numbers linked to a BVN are allowed only once.
3. Financial institutions must maintain a temporary watchlist for BVNs implicated in suspected fraudulent transactions, with a maximum watchlist period of 24 hours. BVN owners on the watchlist will be contacted to clarify the identified transactions.
The CBN emphasised that the regulations prioritise security, traceability, and accountability as digital finance continues to grow across the economy. The central bank’s directive signals the end of an era of loosely managed identity data in financial transactions, strengthening safeguards against increasingly sophisticated cybercriminal activities.
