Nigeria’s financial regulator is strengthening identity requirements around the Bank Verification Number, a system central to customer authentication across the banking sector. SAMI TUNJI examines how the revised framework brings tighter controls on enrolment, data access, and transaction monitoring, amid growing concerns over fraud and identity abuse

The Central Bank of Nigeria has introduced stricter Bank Verification Number enrolment and data access rules as part of efforts to curb fraud and strengthen trust in the financial system. The revised policy, scheduled to take effect on 1 May, expands the existing regulatory framework governing BVN operations and watch-listing across the banking industry.

The move comes amid sustained growth in digital transactions and increasing cases of identity-related fraud, which regulators say require faster detection and response mechanisms. The BVN system, introduced in 2014, remains the backbone of identity verification in Nigeria’s banking ecosystem, linking customer accounts across institutions through biometric data.

According to the apex bank, the latest amendments are designed to reinforce monitoring systems and ensure that suspicious transactions are identified early without immediately disrupting legitimate banking activities.

“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 major component of the new rule is the introduction of a temporary watchlist for accounts linked to suspicious transactions. Financial institutions are now required to flag such BVNs for a maximum of 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 stated.

This approach reflects a shift towards real-time fraud response, allowing banks to intervene quickly without automatically freezing accounts or escalating enforcement prematurely. Industry analysts say the measure could reduce wrongful account restrictions while maintaining vigilance against illicit transactions.

The directive also reinforces the CBN’s exclusive control over access to BVN databases. Under the revised framework, only licensed financial institutions can access the database, although the regulator retains discretion to grant access under exceptional 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 changes align with other regulatory actions taken by the CBN, including new baseline standards for automated anti-money laundering systems aimed at strengthening the detection of illicit financial flows.

Digital payment fraud losses declined sharply to N25.85bn in 2025 from N52.26bn recorded in 2024, representing a 51 per cent reduction, based on data from the Nigeria Inter-Bank Settlement System. The volume of reported fraud cases also fell from more than 123,000 in 2021 to about 67,515 in 2025. The trend indicates that although attempts persist, the BVN framework is enabling quicker detection and containment of fraudulent activities.

Speaking at the 2026 Nigeria Electronic Fraud Forum Technical Kickoff Session in Lagos on Wednesday, the Deputy Governor, Financial System Stability, CBN, Dr Phillip Ikeazor, who was represented by the Director, Development Finance Institution Supervision, CBN, Ibrahim Hassan, said, “The introduction of the Bank Verification Number and its ongoing integration with the National Identification Number have significantly constrained impersonation and synthetic identity fraud.

“Enhanced identity verification across banking, agent networks, and high-risk digital channels is steadily closing gaps previously exploited by criminals. This reinforces the critical role of identity infrastructure as a foundational control for payment system integrity, with NIMC remaining a key partner in strengthening fraud prevention going forward.”

Customer identity rules tighten amid rising digital adoption

Beyond fraud monitoring, the revised framework introduces stricter rules governing who can enrol for a BVN and how customer data can be modified. The CBN has now limited BVN registration strictly to individuals aged 18 and above, aligning enrolment with legally recognised adulthood.

“Enrolment for BVN is restricted to individuals who have attained the age of 18 years and above,” the circular stated.

This marks a shift from earlier practices where minors could be enrolled under certain conditions, often linked to guardians’ accounts. The move aims to eliminate grey areas in identity ownership and reduce vulnerabilities linked to proxy registrations.

In addition, the apex bank has placed a cap on how often customers can change phone numbers linked to their BVN. Under the new rule, such changes will be allowed only once.

“Amendments to phone numbers linked to a BVN shall be allowed only once,” the directive stated.

Regulators believe frequent changes to contact details have been exploited by fraudsters to bypass authentication systems, especially in cases involving SIM swaps and unauthorised account access. Limiting such changes is expected to strengthen the reliability of BVN-linked identities.

However, the restriction may also introduce practical challenges for customers, particularly in a market where mobile number churn remains high. Telecom industry data shows that SIM replacement and multiple line ownership are common in Nigeria, raising questions about how banks will manage legitimate cases of number changes.

According to a recent report from PricewaterhouseCoopers, banks and telecommunications companies must deepen their collaboration and share intelligence to combat the growing threat of artificial intelligence-driven fraud. The professional services firm noted that the rapid adoption of AI is reshaping the fraud landscape in the telecommunications sector, enabling criminals to automate scams, impersonate victims through deepfake technologies, and scale fraudulent schemes with unprecedented speed.

Therefore, financial institutions are expected to update their customer service processes to accommodate the new rule, including stricter verification procedures before approving any modification.

The CBN has also reiterated its commitment to protecting customer rights, including privacy and data confidentiality, as part of the broader framework guiding BVN operations.

The new measures reflect a balancing act between tightening controls and maintaining accessibility. While stricter identity rules could reduce fraud, they may also require customers to adapt to more structured verification processes.

President of the Bank Customers Association of Nigeria, Dr Uju Ogubunka, said the introduction of real-time monitoring tools would improve the system’s responsiveness to fraud risks.

He noted that the temporary watchlist mechanism allows banks to act swiftly without immediately penalising customers, adding that the approach could improve confidence in the banking system.

The Director, Payments System Supervision Department and Chairman, Nigeria Electronic Fraud Forum, Dr Rakiya Yusuf, noted that the rollout of the BVN and its integration with NIN has significantly reduced impersonation and the use of false identities for fraud, closing long-standing gaps exploited by criminals across both banking and agent networks.

BVN growth reflects deeper financial inclusion push

The regulatory overhaul comes at a time when BVN enrolment continues to expand, driven by increased financial inclusion efforts and digital banking adoption. Data from the Nigeria Inter-Bank Settlement System shows that the number of BVN-linked accounts has risen steadily in recent years.

As of December 2025, the BVN database reached 67.8 million registrations, expanding from 63.5 million in 2024 and 51.9 million in 2021. The data highlights consistent growth in the number of Nigerians integrated into the formal banking system.

According to NIBSS, the BVN provides a unique identity that can be verified across all banks, helping to prevent unauthorised access and reduce duplication of customer records.

The system has become central to Nigeria’s financial infrastructure, supporting everything from account opening to loan processing and digital payments.

The continued growth in BVN enrolment reflects broader structural changes in the financial sector, including the rise of fintech platforms, agency banking, and mobile money services.

The introduction of stricter BVN rules is therefore seen as an effort to safeguard an expanding ecosystem that now serves tens of millions of users.

At the same time, the CBN has taken steps to extend BVN coverage beyond Nigeria’s borders through the introduction of the Non-Resident BVN initiative.

The NRBVN allows Nigerians in the diaspora to enrol remotely, enabling them to access financial services and participate more actively in the domestic economy.

The initiative is expected to support remittance flows and improve access to banking services for Nigerians living abroad.

Industry stakeholders say the combination of rising enrolment and tighter regulation signals a maturing financial system where identity verification is becoming more robust and standardised.

Diaspora integration and remittances to drive next BVN phase

The introduction of the Non-Resident BVN marks a significant expansion of Nigeria’s identity infrastructure into the global financial space. The initiative is designed to connect Nigerians abroad to the domestic banking system, with potential implications for remittance flows and foreign exchange liquidity.

CBN Governor Olayemi Cardoso said the policy is part of a broader effort to strengthen formal remittance channels and deepen financial inclusion.

He added that the apex bank is targeting monthly remittance inflows of $1bn, supported by improved access and regulatory reforms.

“With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1bn in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels,” Cardoso said at the launch of the NRBVN platform.

The governor described the initiative as a bridge connecting Nigeria to its global diaspora, emphasising its potential to enhance participation in the domestic economy.

He also stressed the importance of regulatory compliance, noting that stakeholders must adhere to foreign exchange guidelines to maintain market stability.

Industry data underscores the importance of remittances to Nigeria’s economy. According to estimates, over 1.2 million Nigerians live abroad, with remittances serving as a critical source of household income and foreign exchange.

President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, said remittances play a key role in supporting livelihoods and economic activity.

He noted that such inflows are often used for education, healthcare, and basic consumption, making them more stable than other forms of capital inflow.

Global estimates also show that diaspora remittances to Africa reached about $90bn in 2023, highlighting their growing significance in economic development.

Analysts say integrating diaspora Nigerians into the BVN system could improve transparency, reduce reliance on informal channels, and enhance foreign exchange inflows.

At the same time, reducing transaction costs remains a priority. Cardoso noted that remittance costs in Sub-Saharan Africa still exceed seven per cent on average, limiting the full impact of such inflows.

The success of the NRBVN initiative will depend on adoption rates, system reliability, and the ability of financial institutions to develop products tailored to diaspora needs.

The Deputy Governor, Economic Policy, CBN, Mr Muhammad Abdullahi, described the NRBVN as a transformative tool for enhancing the banking experience for Nigeria’s diaspora.

He urged stakeholders to collaborate in refining the platform to meet the evolving needs of the diaspora community.

“Together, we stand at the threshold of a new era, poised to deepen the trust, enhance remittance growth, and forge a stronger, more meaningful connection between Nigeria and its global citizens,” Abdullahi said.

As Nigeria’s financial system evolves, the BVN framework is expected to play a more central role in linking domestic and international financial flows while strengthening identity verification across the ecosystem.