The Central Bank of Nigeria has introduced stricter rules governing Bank Verification Number enrolment and data access as part of a broader effort to curb fraud and strengthen trust in the country’s financial system.
The revised policy, which will take effect on May 1, expands the regulatory framework guiding BVN operations and watch-listing across the banking industry.
According to the apex bank, the changes are aimed at improving monitoring systems and ensuring that suspicious financial transactions are detected early without unnecessarily disrupting legitimate banking activities.
The BVN system, introduced in 2014, remains the backbone of identity verification in Nigeria’s banking ecosystem. It links customer accounts across financial institutions through biometric data and helps prevent identity theft and account duplication.
In a circular announcing the new measures, the CBN said the amendments were introduced in line with its mandate to maintain financial system stability.
“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 Operations and Watch-List for the Nigerian Banking Industry 2021,” the circular stated.
A key feature of the new rule is the introduction of a temporary watchlist for accounts linked to suspicious transactions.
Under the new guideline, financial institutions are required to flag such BVNs for up to 24 hours while contacting the account holder for clarification.
“A BVN may remain on this temporary watchlist for a maximum period of 24 hours, during which the BVN owner shall be contacted to provide clarification regarding the identified transaction(s),” the CBN said.
Analysts say the move reflects a shift toward real-time fraud response, allowing banks to intervene quickly without automatically freezing accounts or escalating enforcement actions prematurely.
The directive also reinforces the CBN’s control over access to the BVN database. Only licensed financial institutions will be permitted to access the database, although the regulator retains the authority to grant exceptions under special circumstances.
“Access to the BVN databases shall be exclusively granted to Central Bank of Nigeria-licensed financial institutions… the Bank reserves the right to approve access… in accordance with extant laws,” the circular noted.
The new measures complement other regulatory initiatives aimed at improving anti-money laundering monitoring and detecting illicit financial flows.
Data from the Nigeria Inter-Bank Settlement System shows that digital payment fraud losses fell sharply to N25.85bn in 2025 from N52.26bn in 2024, representing a 51 per cent reduction.
The volume of reported fraud cases also declined significantly, dropping from more than 123,000 incidents in 2021 to about 67,515 in 2025.
Speaking at the 2026 Nigeria Electronic Fraud Forum Technical Kickoff Session in Lagos, the Deputy Governor for Financial System Stability at the CBN, Phillip Ikeazor, said the BVN system and its integration with the National Identification Number had strengthened fraud prevention.
“Enhanced identity verification across banking, agent networks, and high-risk digital channels is steadily closing gaps previously exploited by criminals,” he said.
The revised framework also introduces stricter rules governing BVN enrolment.
Under the new regulation, BVN registration will now be restricted to individuals aged 18 and above, aligning enrolment with legally recognised adulthood.
The CBN said the change is designed to eliminate grey areas linked to proxy registrations involving minors.
In addition, customers will now be allowed to change the phone number linked to their BVN only once.
Regulators say frequent changes to contact details have often been exploited by fraudsters, particularly in cases involving SIM swaps and unauthorised account access.
However, analysts note that the restriction could create challenges for some customers in a market where SIM replacement and multiple line ownership are common.
A recent report by PricewaterhouseCoopers warned that financial institutions and telecommunications companies must strengthen collaboration to tackle emerging fraud threats, particularly those driven by artificial intelligence.
According to the report, criminals are increasingly using AI tools such as deepfake technology to impersonate victims and scale fraudulent schemes.
The CBN also reaffirmed its commitment to protecting customer rights, including privacy and data confidentiality, as part of the BVN regulatory framework.
Industry stakeholders say the introduction of real-time monitoring tools could improve the system’s responsiveness to fraud risks.
President of the Bank Customers Association of Nigeria, Uju Ogubunka, said the temporary watchlist mechanism would allow banks to act swiftly without immediately penalising customers.
He noted that the approach could help strengthen confidence in the banking system.
Meanwhile, the BVN database continues to expand as financial inclusion and digital banking adoption grow.
Data from the Nigeria Inter-Bank Settlement System shows that BVN registrations reached 67.8 million by December 2025, up from 63.5 million in 2024 and 51.9 million in 2021.
The expansion reflects broader structural changes in Nigeria’s financial sector, including the growth of fintech platforms, agency banking, and mobile money services.
The CBN has also taken steps to extend BVN coverage beyond Nigeria through the introduction of the Non-Resident BVN initiative.
CBN Governor Olayemi Cardoso said the initiative aims to connect Nigerians in the diaspora to the domestic banking system and strengthen formal remittance channels.
“With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1bn in monthly remittance flows,” Cardoso said.
Industry stakeholders believe integrating diaspora Nigerians into the BVN system could improve transparency, reduce reliance on informal channels, and boost foreign exchange inflows.
As Nigeria’s financial system evolves, analysts say the BVN framework will play an increasingly central role in linking domestic and international financial flows while strengthening identity verification across the banking ecosystem.
