New directive strengthens fraud prevention, introduces device-specific authentication and customer-controlled instant payment settings….
The Central Bank of Nigeria (CBN) has announced a maximum transaction limit of N20,000 for mobile banking applications during the first 24 hours of activation on a new device.
The directive, contained in a circular dated March 12, 2025, was signed by Musa Jimoh and sent to all financial institutions, including mobile money operators such as PalmPay, Opay, Moniepoint, and Paga.
Purpose: Strengthening Digital Payment Security
According to the banking regulator, the measure is part of broader efforts to enhance fraud prevention and bolster security in Nigeria’s growing digital payments ecosystem.
Under the new rules:
- Mobile financial services (MFS) apps may only be enabled on one device at a time.
- Migration to a new device triggers automatic reactivation and authentication.
- For new accounts, transaction limits (both inflow and outflow) apply for the first 24 hours, capped at N20,000.
- For existing accounts, outflow limits apply under the same maximum threshold during the first 24 hours of app activation on a new device.
Customer Control and Transaction Flexibility
The CBN also requires financial institutions to implement a voluntary opt-in and opt-out feature for instant payment services:
- Customers who opt out cannot perform online instant transfers, either within the same bank or across banks, but may still conduct in-branch transactions.
- Customers can adjust transaction limits voluntarily, subject to regulatory ceilings of N25 million for individuals and N250 million for corporate accounts.
- Adjustments must undergo enhanced due diligence, multi-factor authentication, and risk assessment before taking effect.
Enhanced Fraud Monitoring and Safeguards
Financial institutions are expected to deploy enterprise fraud monitoring systems capable of detecting suspicious transactions in real time for both incoming and outgoing payments.
Additional requirements include:
- Liveliness checks for online account openings to verify the physical presence of the account holder.
- Real-time verification of accounts with BVN or NIN databases during account opening or reactivation.
Effective Date and Industry Context
The new minimum standards for instant payment services take effect July 1, 2026, and will apply to all financial institutions offering instant payments in Nigeria.
Earlier this year, the CBN warned banks and other operators about emerging electronic fraud threats, including social engineering, SIM-swap attacks, insider compromise, and Authorised Push Payment (APP) scams.
The regulator noted that despite rapid growth in digital transactions, fraud losses have declined, thanks to coordinated measures across the financial industry.
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