CBN: Building Secured, Stable Financial System With Stricter BVN Rules

Dike Onwuamaeze

The Central Bank of Nigeria (CBN) has introduced stricter Bank Verification Number (BVN) enrollment and data access rules to prevent fraudulent transactions in the financial system. The policy plan, which takes effect on May 1, helps in building secured, stable and more efficient financial system for customers and economy. For the CBN, the expanded BVN rule will strengthen fraud monitoring, boost identity management, and safeguard the integrity of financial transactions.

The BVN scheme, which captures the uniqueness of every bank customer is one of the most-innovative projects introduced into the financial system by the Central Bank of Nigeria (CBN).

The BVN project gives unique identification to each of the current 68.59 million bank customers enrolled in the scheme, based on the Nigeria Interbank Settlement System (NIBSS) data.

The BVN is further revolutionalising the banking and payment systems, ensuring safety and integrity of depositors’ funds. Since its introduction in 2014,  the BVN remains a central tool for protecting bank customers against fraudsters.

To make the scheme stronger and its impact resounding, the CBN last week introduced a circular, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watchlist for the Nigerian Banking Industry 2021”.

The CBN under the leadership of its Governor, Olayemi Cardoso, has consistently promoted policies that ensure a safe and secured banking system.

He said the CBN has a duty of care, ensuring that it provides excellent guidance that ensures that bank customers get the best services for their patronage.

Central to achieving this goal is the need provide financial literacy, complaints resolution mechanisms, protecting customers’ right to privacy , confidentiality and transaction integrity.

The new CBN circular signed by the CBN Director of the Payment System Policy Department, Musa Jimoh, is expected further help banks and other financial institutions maximize the gains of BVN.

In the circular, the apex bank said it introduced the ‘Revised Regulatory Framework for BVN and Watchlist for the Nigerian Banking Industry 2021’, to promote a stable financial system.

The apex bank reiterated that enrollment for the BVN be limited to individuals aged 18 and above, while amendments to phone numbers linked to a BVN will be restricted to a one-time change only.

Financial Institutions are by the new rule mandated to establish and maintain a temporary watchlist for BVNs implicated in suspected fraudulent transactions reported by a financial institution.

“A BVN may remain on this temporary Watchlist for a maximum period of twenty-four (24) hours. During this period, the BVN owner shall be contacted to clarify the identified transaction(s).

Enrolment for BVN is restricted to individuals who have attained the age of eighteen (18) years and above. Amendments to phone numbers linked to a BVN shall be allowed only once,” the statement read.

The CBN insisted that it maintain an exclusive right to access BVN databases and to approve access to them by financial institutions.

“Access to the BVN databases shall be exclusively granted to CBN-licenced financial institutions. Notwithstanding this provision, the Central Bank of Nigeria (the Bank) reserves the right to approve access to the BVN databases in extenuating circumstances and in accordance with the provisions of extant laws,” the statement said.

The directive was part of the CBN’s recent regulatory amendments in combating fraudulent activities.

On Tuesday, the bank issued new regulations, “Baseline Standards for Automated Anti-Money Laundering (AML) Solution for Financial Institutions in Nigeria’, to all financial institutions, in a bid to automatically counter money laundering and terrorism financing.

What the CBN is saying?

According to the apex bank, the amendments are aimed at strengthening fraud monitoring, improving identity management within the financial system, and safeguarding the integrity of banking transactions.

“In line with its mandate of promoting financial system stability, the CBN hereby issues the following amendments to the Revised Regulatory Framework for BVN Operations and Watch-List for the Nigerian Banking Industry 2021,” the circular stated.

Under the new guidelines, financial institutions are required to establish and maintain a temporary watch-list for BVNs linked to suspected fraudulent transactions reported within the banking system.

“A BVN may remain on this temporary Watch-list 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),” CBN stated in the circular.

The CBN added that the measure is intended to enable banks to quickly flag suspicious transactions while allowing customers an opportunity to explain or resolve the issue before further regulatory action is taken.

More insights on BVN potential

The revised framework also introduces a stricter age requirement for BVN enrolment, limiting registration to 18-year-old individuals and above.

With the new rule, the apex bank intends to strengthen identity verification and ensure that BVN registration aligns with legally recognised age thresholds. In addition, under the new directive, customers will only be allowed to change the phone number associated with their BVN once.

This restriction is designed to reduce the risk of identity manipulation and fraud often associated with repeated changes to contact information tied to financial identities.

The circular also tightened access to BVN databases, stating that such access will be exclusively granted to financial institutions licensed by CBN. However, the apex bank stated that it retains the authority to approve access to the BVN database in exceptional circumstances, provided such approvals comply with existing laws and regulatory provisions.

President, Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, disclosed that by introducing a temporary watch-list for suspicious transactions, the CBN is effectively strengthening real-time monitoring of banking activities and enabling financial institutions to respond quickly to potential fraud risks.

Other analysts said the restrictions on BVN enrolment age and phone number changes are also expected to tighten the noose against identity manipulation by fraudsters while improving verification processes across banks and payment service providers.

Expanding Access with BVN

The CBN recently took steps to expand financial services access with the launch of Non-Resident Biometric Verification Number (NRBVN) policy. The surge in BVN enrollment is an indication that the policy is achieving its objective of getting more Nigerians into the domestic financial services net.

The project is now witnessing enrollment surge, Cardoso-led CBN continues to take strategic steps to advance financial inclusion in the country.

Following the unveiling of NRBVN in Abuja, the CBN boss Cardoso directed Nigerian banks to proactively develop and offer products specifically tailored to meet the unique needs and preferences of  the diaspora community. The NRBVN launch is seen as a major step to keep remittances inflow to the country soaring and dollar liquidity strong.

The NIBSS data has shown that the number of Nigerian bank account owners linked to BVN hit 68.59 million this month, higher than  66.2 million at the end of July, 2025.

The data showed significant surge from 64.8 million recorded in January 2025 and 63.5 million as at December 2024.

The data showed that 2.7 million new BVN enrollments were recorded between December 2024 and July 2025. Further analysis of the NIBSS data showed that as at 2021, 51.9 million accounts were linked to BVN, it rose to 56 million in 2022, and 60.1 million in 2023 and closed 2024 at 63.5 million.

According to NIBSS, the BVN gives bank account owners a unique identity that can be verified across the Nigerian banking industry, while it ensures that customers’ bank accounts are protected from unauthorized access.

The BVN project, which captures the uniqueness of every bank customer, is one of the most-innovative projects introduced into the financial system in 2014.

How Non-Resident BVN impacts economy

Cardoso explained that offering innovative and attractive financial solutions can greatly enhance diaspora participation, deepen financial inclusion, and significantly boost remittance inflows.

“Over the past year, our policy frameworks have undergone extensive refinements, informed by sustained dialogue with International Money Transfer Operators (IMTOs). The introduction of the willing buyer, willing seller regime, licensing of additional IMTOs, and market reforms that have facilitated currency convergence are notable examples. Consequently, remittance flows through official channels have risen markedly, from $3.3 billion in 2023 to $4.73 billion last year,” he said.

He added: “With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1 billion in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels”.

Cardoso explained that a fully connected system will ensure that every Nigerian in the diaspora can confidently contribute to national development through trusted and cost-effective channels. He emphasized that the launch was not the final destination, but the beginning of a broader journey.

 “The NRBVN is a dynamic initiative, one that will continue to evolve in response to the needs of its users. It presents a unique opportunity to learn, to innovate, and to adapt. We encourage all stakeholders to engage actively, share insights, and help shape a system that serves millions of Nigerians across geographies and generations. The NRBVN is not just a tool; it is a bridge between Nigeria and its global citizens,” he said.

He added: “With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1 billion in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels”.

“To meet these targets, collaboration and compliance with established regulatory frameworks remain essential. All stakeholders MUST adhere strictly to the FX Code and other relevant regulatory guidelines. This is critical to ensuring market stability, integrity, and overall confidence in Nigeria’s financial system.”

The CBN boss further invited the IMTOs to integrate with the NRBVN platform as part of shared vision to build a secure, efficient, and inclusive financial ecosystem for Nigerians globally.

Cardoso explained that a fully connected system will ensure that every Nigerian in the diaspora can confidently contribute to national development through trusted and cost-effective channels. He emphasized that the launch was not the final destination, but the beginning of a broader journey.

Impact on Diaspora Remittances

According to the President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, there are over 1.24 million Nigerian Migrants abroad and 50 per cent of them lives within the African neighbour hood, and the figure is expected to rise in the coming years.

Gwadabe listed the importance of migrant remittances to the economy to include serving as a lifeline for the recipients small house hold in the economy and used for health, nutrition, education and societal needs.

The remittances are also higher than both Foreign Direct Investment and foreign aids flow to the economy and still, are cheaper sources of funds.

In a report: “Diaspora remittances: The power behind Africa’s sustainable growth”, Regional Vice President of Africa at Western Union, Mohamed Touhami el Ouazzani, said remittances may be measured through the movement of money, but their real impact is measured in lives changed.

He said remittances symbolize deep ties that keep communities connected across borders. “Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability,” he said.

“Beyond their immediate impact, remittances are powerful drivers of economic change. They fuel infrastructure development, spur entrepreneurship, and promote financial inclusion – all essential for long-term economic development. Ghana’s National Financial Inclusion and Development Strategy (NFIDS) is simplifying access to remittances, while countries like Kenya, Ethiopia and Nigeria are tapping into diaspora bonds to fund infrastructure and other national projects,” he added.