The Central Bank of Nigeria (CBN) released 3 circulars targeting banks, financial institutions, and payment providers to boost electronic payment security, enhance Bank Verification Number (BVN) oversight, and streamline handling of dormant accounts and unclaimed funds.
Customers will be automatically enrolled for instant payments but will have the option to opt out, while all transactions must be protected by multi-factor authentication. Individuals can reduce their transfer limits through enhanced verification, though the maximum limits remain ₦25 million for individuals and ₦250 million for corporate accounts. Banks are also required to deploy real-time fraud monitoring systems, conduct liveliness checks during digital account openings linked to national ID and BVN databases, and use biometric verification when reactivating accounts. In addition, mobile banking apps must be tied to a single device, and newly activated devices will face a ₦20,000 transaction cap within the first 24 hours.
BVN Framework Updates (Effective May 1, 2026)
Under a revised Bank Verification Number (BVN) oversight framework, the Central Bank of Nigeria now requires financial institutions to maintain a 24-hour watchlist for BVNs suspected of fraudulent activity, giving account holders an opportunity to clarify issues before further action. The updated rules also restrict BVN enrollment to individuals aged 18 and above, limit changes to the registered phone number to a single occurrence, and confine access to the BVN database strictly to licensed financial institutions, except in limited special cases.
Dormant Accounts and Unclaimed Funds (Immediate Effect)
CBN has also simplified the process for reactivating dormant bank accounts by allowing customers to complete the process through secure digital channels rather than visiting bank branches. However, once funds have been transferred to the Unclaimed Balances Trust Fund, an affidavit will be required for recovery. Banks are also now mandated to publish annual lists of dormant accounts and unclaimed balances on their websites, in national newspapers, and at microfinance bank branches where applicable. These disclosures must comply with the Nigeria Data Protection Act 2023 and the Banks and Other Financial Institutions Act 2020 to ensure transparency and facilitate the recovery of funds by rightful owners.
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