CBN Cracks Down on Fraud, Limits Mobile Banking to One Device Under New BVN Rules
ABUJA — The Central Bank of Nigeria (CBN) has introduced sweeping restrictions on digital banking operations, including limiting customers to a single mobile device per account, as part of a major overhaul of the Bank Verification Number (BVN) framework aimed at curbing rising fraud.
The new guidelines, which take effect from May 1, are designed to tighten security around Nigeria’s fast-growing digital banking ecosystem and close loopholes increasingly exploited by cybercriminals.
Under the revised rules, bank customers will only be allowed to operate their mobile banking applications on one device at a time. Any attempt to log in on a new device will automatically deactivate access on the previous one, while users seeking to switch devices will be subjected to enhanced verification procedures.
The apex bank also introduced stricter surveillance for suspicious BVN-linked activities. Accounts flagged for potential fraud may be placed under a 24-hour monitoring window, during which financial institutions are empowered to temporarily freeze or restrict transactions.
In a move targeting SIM-swap fraud, the CBN said customers will now be limited to a one-time update of their BVN-linked phone numbers, significantly reducing the risk of fraudulent account takeovers.
The new framework further tightens onboarding processes, restricting independent BVN registration to individuals aged 18 and above, while minors must operate accounts under parental or guardian supervision. Additionally, newly activated devices will face transaction limits, capped at ₦20,000 within the first 24 hours.
The policy marks one of the most significant revisions to the BVN system since its introduction in 2014, when it was launched in collaboration with the Bankers’ Committee to assign unique biometric identities to bank customers and strengthen Know-Your-Customer protocols.
Over time, the BVN has become central to Nigeria’s financial system, underpinning account authentication, credit checks, and government intervention programmes. However, the rapid expansion of digital banking and fintech services has exposed new vulnerabilities, with electronic fraud cases especially via mobile channels on the rise.
Analysts say the CBN’s latest measures reflect a broader global shift toward stricter identity verification and layered authentication in financial systems.
The regulator maintained that while the new rules may introduce additional steps for users, they are critical to enhancing consumer protection, safeguarding deposits, and sustaining confidence in Nigeria’s digital financial landscape.
