The Central Bank of Nigeria (CBN) has rolled out fresh regulatory measures tightening controls around the Bank Verification Number (BVN) system, in what analysts describe as a significant step to curb financial fraud and strengthen the country’s digital banking security.
In a circular issued to banks and other financial institutions, the apex bank introduced stricter BVN enrolment conditions, a temporary fraud watchlist for suspicious transactions, and limits on phone number changes linked to BVNs.
The new rules are expected to take effect from May 1, 2026.
Under the revised framework, financial institutions are now mandated to place any BVN implicated in suspected fraudulent activity on a temporary watchlist for up to 24 hours.
During this period, the affected customer will be contacted to clarify the flagged transaction, enabling banks to pause suspicious transfers before funds are moved across the system.
The regulator also announced that BVN enrolment will be restricted to individuals aged 18 years and above, reinforcing identity verification standards within the banking sector.
In addition, customers will only be allowed to change the phone number linked to their BVN once in a lifetime, a move designed to reduce identity manipulation and SIM-related fraud risks.
Industry experts say the tightening of BVN rules is aimed at closing loopholes frequently exploited by internet fraudsters popularly known as “Yahoo Boys,” particularly in cases involving SIM swap schemes, social engineering and unauthorised access to bank accounts.
Phone numbers tied to BVNs are central to authentication processes such as one-time passwords and transaction alerts, making them a major target for fraud.
The CBN further clarified that access to the BVN database will remain strictly limited to licensed financial institutions, part of broader efforts to protect sensitive customer data and promote financial system stability.
The latest directive forms part of ongoing regulatory reforms aimed at tightening Know-Your-Customer compliance, improving fraud monitoring, and boosting public confidence in Nigeria’s rapidly expanding digital payments ecosystem.
Financial analysts believe the policy could significantly disrupt fraud networks by slowing down suspicious transactions and making it harder for criminals to manipulate identity records within the banking system.
