By| Goodluck E.Adubazi | Abuja
The Central Bank of Nigeria has unveiled sweeping new regulations governing the Bank Verification Number (BVN) system in a decisive move to combat rising financial fraud and reinforce the country’s banking security framework.
The updated BVN Operations and Watch-List Framework, announced in a circular dated March 12, 2026, will come into force on May 1, 2026, affecting banks, financial institutions, payment service providers, and other licensed operators nationwide.
Under the revised rules, stricter identity verification procedures, tighter controls, and enhanced monitoring systems will be introduced to curb identity theft, unauthorized transactions, and other forms of financial crime.
A key highlight of the new framework is the introduction of a 24-hour temporary fraud watchlist. Financial institutions are now required to flag suspicious BVNs and place them under close monitoring for a full day while investigations are conducted.
This allows banks to act swiftly against suspected fraud without immediately imposing permanent sanctions.
In another major shift, the apex bank has imposed a lifetime limit on phone number changes linked to a BVN.
Customers will now be allowed to update their registered phone number only once, subject to strict identity verification and audit tracking.
The measure targets fraudsters who exploit frequent number changes to bypass banking security systems.
The new policy also sets 18 years as the minimum age for BVN enrolment, aligning the system with legal and financial responsibility standards.
Access to the BVN database has been significantly restricted.
Only CBN-licensed institutions will be permitted to retrieve or process BVN data, effectively shutting out unauthorized third parties and strengthening data privacy protections.
Beyond BVN-specific changes, the CBN has rolled out complementary measures to secure digital banking platforms. Customers will now be limited to one active mobile banking device per account, reducing the risk of unauthorized access.
Newly activated accounts will also face a ₦20,000 transaction cap within the first 24 hours, giving banks time to monitor early activity for suspicious patterns.
Additionally, banks must implement real-time identity verification using both BVN and National Identification Number (NIN) databases when opening accounts, reactivating dormant profiles, or updating sensitive customer information.
The new regulations are expected to trigger major operational upgrades across the financial sector. Banks and payment providers will need to enhance fraud detection systems, strengthen data protection protocols, and adopt real-time verification technologies.
For customers, the changes mean stricter identity checks, tighter control over account updates, and increased scrutiny of unusual transactions.
The reforms underscore the CBN’s commitment to safeguarding Nigeria’s financial ecosystem as digital banking adoption accelerates. By tightening identity controls and improving fraud detection mechanisms, regulators aim to boost public confidence and reduce financial crimes.
Analysts say the strengthened BVN framework could mark a turning point in Nigeria’s fight against banking fraud, reinforcing the integrity and resilience of the nation’s financial system.
