The Central Bank of Nigeria (CBN) has introduced new Bank Verification Number (BVN) guidelines aimed at strengthening financial security and curbing fraud in the country’s banking system.
The new rules, which will take effect from May 1, will affect how customers access mobile banking apps, change devices, and update phone numbers linked to their BVN.
The measures are part of efforts by the apex bank to address rising cases of SIM-swap fraud and unauthorised access to bank accounts.
1. Under the new rules, customers will only be allowed to use their mobile banking application on one device at a time.
Logging in on a new phone will automatically deactivate the banking app on the previous device.
The new system will also require additional verification checks whenever customers attempt to switch devices.
2. The CBN has also introduced a temporary transaction cap for customers who activate their mobile banking app on a new device.
According to the guidelines, transactions carried out within the first 24 hours after activating a new device will be limited to ₦20,000.
The measure is designed to prevent fraudsters from quickly transferring large sums of money after gaining access to a customer’s banking app.
3. The new framework also introduces a 24-hour fraud monitoring watchlist.
BVNs suspected of being involved in suspicious activities may be flagged during this period, and banks may place restrictions on the affected accounts while investigations are carried out.
Financial institutions will also have the authority to temporarily freeze accounts while verifying unusual transactions or suspicious activities.
4. The new rules also place limits on how often customers can update the phone number linked to their BVN.
Under the revised guideline, customers will be allowed to change their BVN-linked phone number only once in a lifetime.
The policy is intended to address cases where fraudsters carry out SIM-swap operations to hijack bank accounts.
5. The CBN also clarified that only individuals aged 18 and above will be allowed to enrol for a BVN.
Minors will be required to operate bank accounts through guardian-managed arrangements.
The apex bank believes the new measures will improve the security of Nigeria’s digital banking ecosystem and reduce the risk of fraud in the financial system.