The Central Bank of Nigeria (CBN) has introduced new and stricter Bank Verification Number (BVN) safeguards as part of efforts to curb rising financial fraud and strengthen identity management within the banking system.
According to Punch Newspapers, the updated framework is designed to improve fraud detection, enhance customer identity protection, and tighten access to sensitive banking data across financial institutions.
Under the new rules, financial institutions will be required to enhance monitoring of suspicious transactions through improved watch-listing systems, allowing for temporary flagging of accounts linked to questionable activity while investigations are carried out.
The CBN also reinforced restrictions around BVN management, including stricter controls on identity enrolment, data access, and updates to customer information.
One key adjustment is the limitation on changes to phone numbers linked to BVN records, aimed at reducing risks associated with SIM swap fraud and unauthorized account access.
The apex bank further emphasized that BVN registration is now strictly limited to individuals aged 18 and above, aligning identity ownership with legal adulthood and closing gaps that previously allowed proxy enrolments.
In addition, access to BVN databases will remain strictly controlled, with only licensed financial institutions permitted to use the system under regulated conditions, strengthening data protection and reducing the risk of breaches.
The reforms come amid ongoing concerns about digital fraud in Nigeria’s financial sector, despite reported improvements in fraud detection and reduction in financial losses in recent years.
Industry data shows that although fraud attempts remain high, stronger BVN-linked verification has contributed to better containment of illegal activities.
The CBN says the revised framework is part of a broader strategy to modernize Nigeria’s financial identity infrastructure, improve trust in digital banking, and align local systems with global security standards.