The Central Bank of Nigeria (CBN) has introduced stricter Bank Verification Number (BVN) enrollment and data access rules to prevent fraudulent transactions in the financial system. The policy plan, which takes effect on May 1, helps in building a secure, stable and more efficient financial system for customers and the economy.
For the CBN, the expanded BVN rule will strengthen fraud monitoring, boost identity management, and safeguard the integrity of financial transactions as the BVN enrolment continues to surge.
The Bank Verification Number (BVN) scheme, which captures the uniqueness of every bank customer is one of the most-innovative projects introduced into the financial system by the Central Bank of Nigeria (CBN).
The BVN project gives unique identification to each of the current 68.59 million bank customers enrolled in the scheme, based on the Nigeria Interbank Settlement System (NIBSS) data.
The BVN is further revolutionalising the banking and payment systems, ensuring safety and integrity of depositors’ funds.
Since its introduction in 2014, the BVN has been described as a central tool for protecting bank customers against fraudsters.
To make the scheme stronger and its impact resounding, the CBN last week introduced a circular, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021”.
The CBN under the leadership of its Governor, Olayemi Cardoso, has consistently promoted policies that ensure a safe and secured banking system.
He said that as a financial sector regulator, the CBN has a duty of care, ensuring that it provides excellent guidance that ensures that bank customers get the best services for their patronage.
Central to achieving this goal is the need to provide financial literacy, complaints resolution mechanisms, protecting customers’ right to privacy , confidentiality and transaction integrity.
The new CBN circular signed by the CBN Director of the Payment System Policy Department, Musa Jimoh, is expected to further help banks and other financial institutions maximize the gains of BVN.
In the circular, the apex bank said it introduced the ‘Revised Regulatory Framework for Bank Verification (BVN) and Watchlist for the Nigerian Banking Industry 2021’, to promote a stable financial system.
The apex bank reiterated that enrollment for the BVN be limited to individuals aged 18 and above, while amendments to phone numbers linked to a BVN will be restricted to a one-time change only.
Financial Institutions are by the new rule mandated to establish and maintain a temporary watchlist for BVNs implicated in suspected fraudulent transactions reported by a financial institution.
“A BVN may remain on this temporary Watchlist for a maximum period of twenty-four (24) hours. During this period, the BVN owner shall be contacted to clarify the identified transaction(s).
Enrolment for BVN is restricted to individuals who have attained the age of eighteen (18) years and above. Amendments to phone numbers linked to a BVN shall be allowed only once,” the statement read.
The CBN insisted that it maintains an exclusive right to access BVN databases and to approve access to them by financial institutions.
“Access to the BVN databases shall be exclusively granted to Central Bank of Nigeria (CBN) licensed financial institutions. Notwithstanding this provision, the Central Bank of Nigeria (the Bank) reserves the right to approve access to the BVN databases in extenuating circumstances and in accordance with the provisions of extant laws,” the statement said.
The directive was part of the CBN’s recent regulatory amendments in combating fraudulent activities.
On Tuesday, the bank issued new regulations, “Baseline Standards for Automated Anti-Money Laundering (AML) Solution for Financial Institutions in Nigeria’, to all financial institutions, in a bid to automatically counter money laundering and terrorism financing.
What the CBN is saying
According to the apex bank, the amendments are aimed at strengthening fraud monitoring, improving identity management within the financial system, and safeguarding 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 watch-list for BVNs linked to suspected fraudulent transactions reported within the banking system.
“A BVN may remain on this temporary Watch-list 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),” CBN stated in the circular.
The CBN added that the measure is intended to enable banks to quickly flag suspicious transactions while allowing customers an opportunity to explain or resolve the issue before further regulatory action is taken.
More insights on BVN potential
The revised framework also introduces a stricter age requirement for BVN enrolment, limiting registration to 18-year-old individuals and above.
With the new rule, the apex bank intends to strengthen identity verification and ensure that BVN registration aligns with legally recognised age thresholds.
In addition, under the new directive, customers will only be allowed to change the phone number associated with their BVN once.
This restriction is designed to reduce the risk of identity manipulation and fraud often associated with repeated changes to contact information tied to financial identities.
The circular also tightened access to BVN databases, stating that such access will be exclusively granted to financial institutions licensed by CBN.
However, the apex bank stated that it retains the authority to approve access to the BVN database in exceptional circumstances, provided such approvals comply with existing laws and regulatory provisions.
President, Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, disclosed that by introducing a temporary watch-list for suspicious transactions, the CBN is effectively strengthening real-time monitoring of banking activities and enabling financial institutions to respond more quickly to potential fraud risks.
Other analysts said the restrictions on BVN enrolment age and phone number changes are also expected to tighten the noose against identity manipulation by fraudsters while improving verification processes across banks and payment service providers.
BVN enrolment continues surges
The NIBSS data has shown that the number of Nigerian bank account owners linked to BVN hit 68.59 million this month, higher than 66.2 million at the end of July, 2025.
The data showed a significant surge from 64.8 million recorded in January 2025 and 63.5 million as at December 2024.
The data showed that 2.7 million new BVN enrollments were recorded between December 2024 and July 2025.
Further analysis of the NIBSS data showed that as at 2021, 51.9 million accounts were linked to BVN, it rose to 56 million in 2022, and 60.1 million in 2023 and closed 2024 at 63.5 million.
According to NIBSS, the BVN gives bank account owners a unique identity that can be verified across the Nigerian banking industry, while it ensures that customers’ bank accounts are protected from unauthorized access.
The BVN project, which captures the uniqueness of every bank customer, is one of the most-innovative projects introduced into the financial system in 2014.
Non-Resident BVN impacts economy
Cardoso had explained that offering innovative and attractive financial solutions can greatly enhance diaspora participation, deepen financial inclusion, and significantly boost remittance inflows.
“Over the past year, our policy frameworks have undergone extensive refinements, informed by sustained dialogue with International Money Transfer Operators (IMTOs). The introduction of the willing buyer, willing seller regime, licensing of additional IMTOs, and market reforms that have facilitated currency convergence are notable examples. Consequently, remittance flows through official channels have risen markedly, from $3.3 billion in 2023 to $4.73 billion last year,” he said.
He added: “With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1 billion in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels”.
Cardoso explained that a fully connected system will ensure that every Nigerian in the diaspora can confidently contribute to national development through trusted and cost-effective channels. He emphasized that the launch was not the final destination, but the beginning of a broader journey.
Impact on diaspora remittances
According to President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, there are over 1.24 million Nigerian Migrants abroad and 50 per cent of them live within the African neighbourhood, and the figure is expected to rise in the coming years.
Gwadabe listed the importance of migrant remittances to the economy to include serving as a lifeline for the recipients small household in the economy and used for health, nutrition, education and societal needs.
The remittances are also higher than both Foreign Direct Investment and foreign aid flow to the economy and still, are cheaper sources of funds.
In a report: “Diaspora remittances: The power behind Africa’s sustainable growth”, Regional Vice President of Africa at Western Union, Mohamed Touhami el Ouazzani, said remittances may be measured through the movement of money, but their real impact is measured in lives changed.
He disclosed that in 2023 alone, $90 billion flowed into Africa from its global diaspora, an amount that rivals the Gross Domestic Product of entire nations.
He said that remittances symbolize deep ties that keep communities connected across borders. “Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability,” he said.
A Financial Expert, Mr Okechukwu Unegbu, urged the Central Bank of Nigeria (CBN) to sanction banks that allowed customers to operate accounts without their BVN and NIN.
Unegbu, a past president of the Chartered Institute of Bankers of Nigeria (CIBN) said the apex bank should spare the account holders and impose heavy sanctions on the DMBs.
…Reforms boosted shock resistance, investor confidence – Cardoso
The Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, has said that Nigeria’s recent monetary and financial-sector reforms have strengthened the country’s capacity to withstand external shocks and restored investor confidence.
Cardoso spoke at the Africa Capital Forum in London on Tuesday, on the sidelines of President Bola Ahmed Tinubu’s state visit to the United Kingdom, Cardoso highlighted that disciplined policy measures and institutional reforms had created a more resilient financial system.
The CBN governor noted that Nigeria’s foreign exchange market now enjoys greater transparency and liquidity, with a new FX manual simplifying trade and investment processes and removing many former capital controls.
Cardoso also announced the near finalisation of the new Payments System Vision for Nigeria, aimed at positioning the country as a regional leader in digital and cross-border payments.
Reporting on the bank recapitalisation programme, the CBN Governor said over 30 banks had met the new capital requirements, with verification ongoing for the rest.
“About 28 per cent of investment in the recapitalisation came from foreign sources,” he added, highlighting renewed confidence in Nigeria’s financial stability.
He further explained that diaspora remittances had grown substantially, helping diversify foreign exchange reserves and making them more resilient to global volatility.
“Our focus going forward is to protect the hard-earned stability we have accomplished so investors and stakeholders can plan with confidence,” Cardoso said, pledging transparency and ongoing communication to maintain trust and avoid past policy missteps.
On the digital finance agenda, he noted that the CBN is working closely with Nigeria’s fintech sector to remove regulatory bottlenecks and support innovations that enhance financial inclusion across Africa.
Cardoso also stressed the importance of coordination between fiscal and monetary authorities, noting that the inclusion of fiscal representatives on the CBN Board and Monetary Policy Committee is critical for sustainable growth.
He reported that inflation had declined sharply, exchange-rate stability had improved, and reforms had positioned Nigeria for significant growth driven by domestic investment, oil-sector reforms, and renewed global trust.
Also speaking, the Managing Director (Policy Strategy and Delivery) of the European Bank for Reconstruction and Development (EBRD), Melis Ekmen Tabojer, said: “The recent reforms that Nigeria has had have had a huge impact in attracting investors and how policies are made.”
Mrs Sanyade, Okoli, Special Adviser to the President on Finance and the Economy, who represented the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun, at the event, said the Nigerian government seeks to drive the right quality of growth, but noted that the government alone cannot fund this growth. “We need to work with partners who will bring the sticky, equity capital,” she noted.
Key sessions of the forum featuring the CBN Deputy Governors Dr. Muhammad Sani Abdullahi (Economic Policy) and Mr. Philip Ikeazor (Financial System Stability) among other subject matter experts, examined repricing risk and the reopening of capital markets, Nigerian banks’ presence on the global stage, Fintech and the future of remittances, highlighting the rise of digital platforms, as well as regulation, risk, and resilience.
The Central Bank Deputy Governor (Economic Policy), Dr Muhammad Sani Abdullahi, emphasised the level of stability achieved by the CBN, noting that net and gross reserves are high, foreign reserves are over $50bn, the foreign exchange market has stabilised, and inflation is falling, but we are cautious.
Also speaking, the Bank’s Deputy Governor in charge of Financial System Stability, Mr Philip Ikeazor, said that all the reforms that have been put in place are such that they cut across stakeholders, ensuring that even at the end of this particular administration, people will see the need not to reverse these reforms.
In their respective interventions, Segun Alebiosu (MD/CEO of First Bank); Oliver Alawuba (MD/CEO of the United Bank for Africa (UBA); Miriam Olusanya (MD/CEO of GTCO); Yemisi Edun (MD/CEO of First City Monument Bank); Roosevelt Ogbonna (MD/CEO of Access Bank); and Akin Oguranti, the Executive Director of Zenith Bank, who represented the bank’s Managing Director, all commended the banking reforms in Nigeria, noting that the reforms have increased confidence in the economy and allow the banks to fund more projects locally.
Over the past two years, Nigeria has undertaken significant monetary and structural reforms aimed at stabilising its macroeconomic environment. Under the leadership of CBN Governor Olayemi Cardoso, inflation has dropped sharply from 34 per cent to 15 per cent, exchange rate volatility has eased, and foreign reserves have risen above US $50 billion. Banking recapitalisation and foreign exchange market unification have further strengthened trust in policy consistency.
The Forum assessed the impact of these reforms and highlighted new opportunities for long-term capital mobilisation and diaspora investment.
Framed around three pillars (Nigeria’s macroeconomic reset, strengthening the financial system, and mobilising global and diaspora capital), the Africa Capital Forum seeks to build stronger bridges among Abuja, London, and the global financial community
DAILY TRUST.
