Nigeria’s central bank has mandated that all lenders, fintech companies, and payment service providers in the country limit mobile banking applications to one device per customer and impose a transaction cap of 20,000 naira within the first 24 hours of app activation.
This initiative is part of a comprehensive anti-fraud framework set to be implemented on July 1, 2026.The directive was detailed in a policy circular released on March 12, 2026, signed by Musa Jimoh, Director of the Payments System Policy Department at the Central Bank of Nigeria (CBN), and directed at all banks, financial institutions, and payment service providers.
The central bank has characterized these new provisions as minimum operational standards, allowing institutions the flexibility to implement stricter controls if their internal risk assessments warrant such measures.In accordance with the device binding regulation, customers will be prohibited from utilizing the same banking application on multiple smartphones or tablets simultaneously.
Should a user wish to transition to a new device, the system will initiate a new verification and re-authentication process before allowing the app to be activated on the new device.
This restriction aims to thwart a fraud scheme wherein individuals obtaining a customer’s login credentials rapidly transfer funds by activating banking applications on different devices.Additionally, new accounts will experience a 24-hour freeze on large transfer capabilities.
All newly activated mobile banking applications will be subject to a stringent transaction limit during their initial day of use, with both incoming and outgoing transfers capped at 20,000 naira. This same limitation applies when an existing customer activates their mobile banking application on a new device.
The Central Bank of Nigeria (CBN) has indicated that this cooling-off period provides financial institutions with adequate time to identify any suspicious activities before potentially compromised accounts are used for significant transactions.For internet banking, the first login attempt from any newly registered device must undergo additional Multi-Factor Authentication (MFA) checks prior to granting user access.Customers Are Empowered with ControlA key consumer-oriented feature within this framework allows account holders to temporarily disable instant payment services on their accounts at any time. Customers opting for this mode will have online instant transfers restricted, both within the same financial institution and across different banks.
However, they can still visit a branch in person to initiate transfers if necessary. New account holders will be automatically enrolled in instant payment services upon account creation.Moreover, customers will have the option to voluntarily modify their individual transaction limits within the existing regulatory ceiling of 25 million naira for individuals and 250 million naira for corporate accounts. Any such adjustments will require validation through enhanced due diligence by the financial institution and must be confirmed through multi-factor authentication prior to implementation.
Face Verification and Real-Time Identity ConfirmationThe initiation of online account openings and reactivations now mandates the inclusion of liveness checks. This verification method serves to ensure that the individual engaging in the process is physically present, thus preventing the use of pre-recorded images or fraudulent identity information. Furthermore, all newly established accounts via digital channels are required to be validated in real-time against the Bank Verification Number (BVN) and National Identification Number (NIN) databases.
Financial institutions and payment service providers are now mandated to implement enterprise fraud monitoring systems that can track all incoming and outgoing transactions in real time. These systems must be capable of identifying and restricting suspicious activities prior to the disbursement of funds from accounts.Nigeria has witnessed significant advancements in electronic payment systems and mobile banking in recent years. While the growth of digital financial services has enhanced financial inclusion throughout the country, it has also heightened vulnerability to cyber fraud, SIM-swap attacks, and account takeover schemes. The newly established regulations afford lenders until July 1 to upgrade their systems to ensure full compliance.
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