New directive mandates financial institutions to flag suspicious BVNs for up to 24 hours as regulator tightens fraud monitoring across Nigeria’s banking system…..
The Central Bank of Nigeria has directed banks and other financial institutions to establish a temporary watchlist for Bank Verification Number (BVN) holders linked to suspected fraudulent transactions, as part of new measures aimed at strengthening security within the country’s financial system.
The directive was issued in a circular to banks, financial institutions, and payment service providers across Nigeria, with implementation scheduled to begin on May 1, 2026.
The circular, titled “Addendum to the Revised Regulatory Framework for BVN Operations and Watchlist for the Nigerian Banking Industry 2021,” was signed by Musa Jimoh, Director of the Payments System Policy Department at the apex bank.
Under the new guidelines, financial institutions are required to flag BVNs associated with suspicious transactions and place them on a temporary watchlist once such activities are reported.
According to the CBN, the BVN may remain on the watchlist for a maximum period of 24 hours, during which the account holder will be contacted by the relevant institution to provide clarification regarding the transaction in question.
The apex bank explained that the measure is part of its ongoing efforts to promote stability and improve oversight within Nigeria’s banking sector.
“Financial institutions are mandated to establish and maintain a temporary watchlist for BVNs implicated in suspected fraudulent transaction(s) reported by a financial institution,” the circular stated.
“A BVN may remain on this temporary watchlist for a maximum period of twenty-four hours. During this period, the BVN owner shall be contacted to provide clarification regarding the identified transaction(s).”
The CBN also introduced new restrictions regarding changes to personal information linked to a BVN.
Under the updated rules, phone numbers associated with a BVN can only be amended once, a measure designed to reduce the risk of fraud involving repeated identity updates.
Additionally, the bank clarified that BVN enrolment is restricted to individuals aged 18 years and above, reinforcing existing identity verification standards within the banking system.
The regulator further stated that access to the BVN database will remain strictly limited to financial institutions licensed by the Central Bank of Nigeria.
However, it noted that the apex bank retains the authority to grant access in exceptional circumstances, provided such approvals comply with existing laws and regulatory provisions.
The new directive forms part of broader efforts by the CBN to tighten controls in Nigeria’s digital banking ecosystem amid growing concerns about electronic fraud and identity-related financial crimes.
Financial institutions have been advised to ensure full compliance with the new provisions ahead of the May 1, 2026 implementation date.
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