Juliet Ezeh
Nigeria’s banking customers have been given until Friday to adjust to sweeping new digital banking regulations introduced by the Central Bank of Nigeria (CBN), in what officials describe as one of the most significant overhauls of electronic banking security in recent years.
The new framework introduces tighter controls on Bank Verification Number (BVN) data management, mobile banking access, and instant payment services, all aimed at reducing rising cases of fraud, identity theft, and unauthorized transactions across the financial system.
The policy changes, which affect millions of bank account holders nationwide, are expected to reshape how Nigerians access and use digital banking platforms.
Stricter BVN phone number rules to curb SIM swap fraud
One of the most notable changes is the introduction of a restriction on phone number changes linked to BVN records.
Under the new rule, account holders will only be allowed to change the phone number associated with their BVN once. Any further request will be subject to strict review or may be rejected outright.
The CBN explained that the measure is designed to strengthen identity verification and reduce fraud cases linked to SIM swap scams, where criminals take over victims’ phone numbers to gain access to bank accounts.
SIM swap fraud has become a growing concern in Nigeria’s financial sector, with fraudsters exploiting weak identity controls to intercept one-time passwords (OTPs) and authorise unauthorized transfers.
By limiting phone number changes, regulators say they aim to close one of the most commonly exploited loopholes in digital banking security.
Restricted access to BVN database and new fraud watchlists
In another major update, access to the BVN database will now be strictly limited to licensed financial institutions only.
This move is intended to reduce exposure of sensitive customer data and improve overall data protection across the banking system.
Additionally, banks and financial institutions have been directed to introduce temporary BVN watchlists for accounts suspected of fraudulent activity.
Under this system, any BVN flagged for suspicious transactions can be placed on a watchlist for up to 24 hours. During this period, the bank is required to contact the customer to verify the transaction and confirm its legitimacy before further action is taken.
The CBN said this approach is designed to strike a balance between fraud prevention and customer protection, ensuring legitimate transactions are not unnecessarily blocked while suspicious activity is investigated in real time.
New age limit for BVN registration introduced
The apex bank has also introduced a minimum age requirement for BVN enrollment.
Under the revised guidelines, only individuals aged 18 years and above will be eligible to register for a BVN.
However, the CBN noted that exceptions may be granted in special cases, in line with existing legal and financial regulations.
This policy is expected to standardize identity registration processes and ensure that BVN records are aligned with adult legal financial responsibility.
Instant transfer controls and customer-initiated restrictions
Beyond BVN reforms, the CBN has also rolled out new rules governing instant payment services, which have become one of the most widely used banking tools in Nigeria.
Under the new framework, customers will now have the option to voluntarily deactivate instant transfer services on their accounts.
This means users can temporarily disable electronic transfers for a chosen period, during which no online transactions can be carried out. However, customers will still be able to conduct transactions physically at bank branches.
The regulator said this feature is aimed at giving customers greater control over their accounts, particularly in situations where they suspect unauthorized access or heightened security risks.
To activate or deactivate instant transfer services, banks must now implement multi-factor authentication, ensuring that only verified account holders can make such changes.
Customers allowed to set lower transaction limits
In a move designed to improve personal financial security, customers will now be allowed to set lower transaction limits on their accounts.
While existing regulatory limits remain unchanged N25 million for individual accounts and N250 million for corporate accounts customers may choose lower thresholds depending on their personal risk preference.
Any request to modify transaction limits must undergo enhanced verification and risk assessment before approval.
The CBN said this measure is aimed at reducing potential losses in cases of account compromise or unauthorized access.
Stronger digital banking security and real-time fraud detection
The new regulations also place significant responsibility on banks to upgrade their fraud detection systems.
Financial institutions are now required to deploy advanced real-time monitoring tools capable of identifying suspicious transactions as they occur.
Banks must also strengthen identity verification processes for online account openings and account reactivations.
Under the new rules, all digitally opened accounts must undergo a “liveness check,” a biometric verification process designed to confirm that the person opening the account is physically present and not using fake or stolen identity data.
Customer details must also be validated instantly against national identity systems and the BVN database to ensure accuracy and prevent identity manipulation.
Mobile banking apps restricted to single-device use
One of the most impactful changes for everyday users is the introduction of a single-device restriction for mobile banking applications.
Going forward, a mobile banking app will only function on one device at a time. If a customer attempts to log in from a new device, they must complete a full re-authentication and reactivation process before access is granted.
In addition, newly activated mobile banking applications will be subject to temporary transaction limits.
For the first 24 hours after activation, transactions will not exceed N20,000, regardless of whether the account is newly created or simply activated on a new device.
Customers using internet banking on a new device will also undergo additional verification steps to prevent unauthorized access.
The CBN said these measures are necessary to reduce the growing risk of account takeover attacks, which have increased alongside the expansion of digital banking in Nigeria.
Industry implications and customer impact
The new regulatory framework is expected to have wide-reaching implications for both banks and customers.
For financial institutions, compliance will require significant upgrades to cybersecurity infrastructure, identity verification systems, and fraud monitoring tools.
For customers, the immediate impact will be stricter access controls, additional verification steps, and reduced flexibility in modifying account-linked data such as phone numbers and devices.
However, regulators argue that these short-term inconveniences are necessary to ensure long-term stability and trust in Nigeria’s digital financial system.
CBN says reforms are part of broader financial security strategy
The Central Bank of Nigeria stated that the reforms are part of a broader effort to strengthen digital financial security and protect consumers in an increasingly cashless economy.
According to the regulator, rising cases of fraud, identity theft, and cybercrime have made it necessary to introduce stronger safeguards across all digital banking channels.
The CBN added that the minimum operational standards for instant payment services will officially take effect from July 1, giving banks time to fully implement the required systems.
Conclusion: tighter controls signal new era for digital banking in Nigeria
With these new rules, Nigeria is entering a more tightly regulated digital banking environment where identity verification, transaction monitoring, and device security will play a central role.
While the reforms may initially slow down certain banking processes, they are designed to significantly reduce fraud risks and improve confidence in electronic financial services.
For millions of Nigerian bank customers, the message from regulators is clear: digital banking is becoming more secure, but also more controlled.