The Central Bank of Nigeria (CBN) has announced a sweeping overhaul of Bank Verification Number (BVN) regulations, introducing stricter enrolment criteria, enhanced fraud monitoring, and tighter data access controls that will take effect on 1 May 2026. The revised framework, issued as an addendum to the 2021 BVN Operations and Watch-List regulations, represents the most significant tightening of identity verification rules since the system's launch in 2014 . Under the new directive signed by Musa Jimoh, Director of the Payments System Policy Department, financial institutions must establish a temporary watchlist for BVNs linked to suspicious transactions, with flagged accounts subject to a maximum 24-hour hold while account holders are contacted for clarification. The CBN has raised the minimum age for BVN enrolment to 18 years, eliminating previous provisions that allowed minors to register under guardian supervision . Additionally, customers will be permitted to change phone numbers linked to their BVN only once, a measure designed to curb SIM swap fraud and unauthorised account access that has exploited frequent contact detail modifications. Database access has been further restricted to CBN-licensed financial institutions exclusively, though the regulator retains authority to grant exceptions under extant laws . These changes align with broader anti-money laundering initiatives, including newly issued baseline standards for automated AML solutions across Nigerian financial institutions. Industry data suggests the regulatory tightening comes amid measurable progress in fraud reduction. Nigeria Inter-Bank Settlement System figures indicate digital payment fraud losses fell by 51% to N25.85 billion in 2025 from N52.26 billion in 2024, while reported fraud cases dropped from over 123,000 in 2021 to approximately 67,515 . The BVN database has simultaneously expanded to 68.6 million enrollees as of March 2026, up from 63.5 million at the close of 2024. Speaking at the 2026 Nigeria Electronic Fraud Forum, CBN Deputy Governor Phillip Ikeazor noted that BVN integration with the National Identification Number has "significantly constrained impersonation and synthetic identity fraud". The new temporary watchlist mechanism aims to balance rapid fraud response with customer protection, allowing banks to intervene swiftly without immediately freezing legitimate accounts. Financial institutions and payment service providers must update compliance frameworks before the May 1 deadline, with the CBN emphasising that the measures form part of its statutory mandate to promote financial system stability.
Stay Informed: Visit our website for Breaking News, Intelligence and Insights