By Ayo Kehinde
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to place Bank Verification Numbers (BVNs) linked to suspected fraudulent transactions on a temporary 24-hour watchlist, as part of new measures to strengthen fraud detection and safeguard the country’s financial system.
The directive was contained in a circular issued late Thursday to the Nigerian banking industry and signed by Musa Jimoh, the Director of the Payment Systems Policy Department.
According to the apex bank, the measure forms part of an addendum to the 2021 Revised Regulatory Framework for Bank Verification Number Operations and Watch-List for the Nigerian Banking Industry, which has now been updated to enhance monitoring of suspicious transactions across the banking system.
The circular, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number Operations and Watch-List for the Nigerian Banking Industry”, introduced new provisions requiring financial institutions to establish and maintain a temporary watchlist for BVNs implicated in suspected fraudulent transactions reported by banks.
CBN explained that a BVN placed on the temporary watchlist would remain there for a maximum period of 24 hours while the affected financial institution contacts the BVN holder to clarify the transaction that triggered the alert.
“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 provide clarification regarding the identified transaction(s)”, the circular stated.
The revised framework also introduced new guidelines covering BVN enrolment eligibility, phone number amendments and access to BVN data.
Under the new rule, BVN enrolment will now be restricted to individuals who are at least 18 years old. On phone number updates, the CBN said changes to phone numbers linked to a BVN will only be permitted once, to reduce identity manipulation and prevent fraud.
The apex bank also clarified that access to the BVN database will remain strictly limited to financial institutions licenced by the CBN.
“Access to the BVN databases shall be exclusively granted to Central Bank of Nigeria (CBN) licensed financial institutions”, the statement read.
However, the apex bank noted that it retains the authority to grant access in exceptional circumstances in accordance with existing laws and regulatory provisions.
It urged all financial institutions to comply with the new provisions, noting that implementation of the updated framework will take effect from May 1, 2026, as part of broader efforts to strengthen financial system stability and curb fraudulent activities within the Nigerian banking sector.
