By Favour Pius
The Central Bank of Nigeria (CBN) has introduced stricter controls on banking transactions and identity management within the financial system, unveiling a temporary fraud watchlist for suspicious Bank Verification Numbers (BVNs) and tightening rules governing enrolment and data access in a move aimed at curbing rising financial fraud.
The new measures were announced in a circular dated March 12, 2026, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021.”
The circular, signed by the Director of Payments System Policy Department at the apex bank, Musa I. Jimoh, was addressed to all banks, financial institutions and payment service providers operating within Nigeria’s financial system.
According to the CBN, the amendments are designed to strengthen fraud monitoring, improve identity management and safeguard the integrity of banking transactions as digital payments continue to expand across the country.
“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 revised framework, financial institutions are now required to establish and maintain a temporary watchlist for BVNs linked to suspicious or potentially fraudulent transactions reported within the banking system.
The apex bank explained that any BVN placed on the temporary watchlist will remain there for a maximum period of 24 hours while the affected customer is contacted to provide clarification regarding the flagged transaction.
“A BVN may remain on this temporary watchlist 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),” the circular stated.
The measure, according to the regulator, is intended to enable banks to quickly flag suspicious activities while giving customers the opportunity to explain or resolve the issue before further regulatory action is taken.
Industry analysts say the move represents a significant shift toward real-time fraud monitoring within Nigeria’s banking system, where digital payments and electronic transactions have grown rapidly in recent years.
Beyond fraud monitoring, the revised framework also introduces stricter eligibility requirements for BVN registration. Under the new rule, only individuals aged 18 years and above will be eligible to enrol for a BVN.
The CBN said the measure is aimed at strengthening identity verification and ensuring that BVN enrolment aligns with legally recognised age thresholds.
In another key change, customers will now be allowed to change the phone number linked to their BVN only once, a restriction designed to reduce identity manipulation and fraud associated with repeated changes to contact information tied to financial identities.
The apex bank also tightened access to the BVN database, stating that such access will be limited strictly to financial institutions licensed by the CBN.
However, the regulator retained discretionary powers to grant access in exceptional circumstances, provided such approvals comply with existing laws and regulatory guidelines.
The BVN system remains a central identity infrastructure used by regulators to track banking activities, monitor credit exposure and combat financial crimes across Nigeria’s financial ecosystem.
Analysts say the new temporary watchlist mechanism could strengthen the ability of banks and regulators to detect fraudulent activities early, particularly as Nigeria’s digital payments landscape continues to expand with the growth of fintech platforms and electronic banking services.
The new provisions are expected to take effect from May 1, 2026, with the CBN directing all banks, financial institutions and payment service providers to ensure full compliance with the updated framework.
According to the regulator, the amendments will improve the integrity of customer identity records, enhance fraud detection capabilities and reinforce trust in Nigeria’s rapidly evolving digital payments ecosystem.
