CBN tightens BVN rules, introduces fraud watchlist for banking customers

The Central Bank of Nigeria (CBN) has introduced stricter controls on suspected fraudulent transactions, BVN enrolment, and data access within the banking system.

This is according to CBN’s circular dated March 12, 2026, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021.” 

Signed by the Director of Payments System Policy Department, Musa I. Jimoh, the circular, published on Friday, March 13, 2026, was addressed to all banks, other financial institutions, and payment service providers operating in Nigeria.

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 Bank Verification Number (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

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.

What you should know: 

The BVN database remains the key identity infrastructure used by Nigerian financial system regulators to monitor banking transactions, track credit exposures, and combat financial fraud.

• 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 more quickly to potential fraud risks.
• The new 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.
• According to the circular, the new provisions will take effect from May 1, 2026, and all banks, financial institutions, and payment service providers have been directed to ensure full compliance with the updated framework.

The regulator believes the measures will enhance fraud detection, improve the integrity of customer identity records, and reinforce trust in Nigeria’s rapidly expanding digital payments ecosystem.