The Central Bank of Nigeria (CBN) has revealed a new set of regulations aimed at improving the security of instant payment systems and empowering customers with better control over their mobile and online banking transactions.
These measures were outlined in a circular issued on March 12, signed by Musa Jimoh, and are set to come into effect from July 1, affecting all banking and payment service operations across Nigeria.
As stated by the central bank, these new provisions aim to mitigate the risks of fraud while bolstering security within Nigeria's expanding digital payment framework.
Notably, one primary feature of the guidelines allows customers to choose whether they wish to activate instant payment services for their accounts. Banks are required to offer users the ability to opt in or opt out of these services at their discretion.
The CBN articulated: "Clients shall have the choice to opt-out of/opt-in to the instant payment service at any time for any specified period. The process will be subject to Multi-Factor Authentication (MFA). The default option for new customers will be to opt-in upon registration." The circular explains that should a customer decide to opt out of these services, online transfer options will be temporarily suspended.
"In opt-out mode, individuals will not be able to perform online instant money transfers to other customers from their accounts. However, they can still make transfers by visiting the banking institution physically during this time," it was noted.
Furthermore, the new guidelines permit customers to modify their transaction limits within the existing maximums of ₦25 million for individuals and ₦250 million for corporate accounts, contingent on the banks conducting appropriate risk evaluations before granting such adjustments. The circular added: "Any amendments will be subject to rigorous due diligence and risk assessment by the financial institution."
Additionally, it emphasizes, "The updated transaction limits will be activated immediately once multi-factor authentication is completed successfully with the customer's consent." Alongside these regulations, the CBN has mandated that banks implement enterprise-level systems for monitoring fraud that can track both incoming and outgoing funds to spot any unusual activities.
Banks are also tasked with enhancing their processes for validation of identities. New account openings and reactivations must involve liveness checks compared against the Bank Verification Number (BVN) and National Identification Number (NIN) databases.
Liveness checks require users to demonstrate their physical presence through actions such as blinking, speaking, smiling, or turning their heads during the verification process. In the realm of mobile banking, the CBN has introduced a device binding requirement to restrict simultaneous access on multiple devices.
The CBN clarified: "Mobile financial services applications can only be operational on one device at a time, and customers are prohibited from using the applications on more than one device concurrently." Switching to a different device will necessitate a complete re-authentication process.
"Moving to a different device will automatically initiate re-activation and authentication," it stated. The bank also established temporary transaction limits for newly activated mobile banking apps.
"For new accounts, transaction limits for both inflows and outflows will be enforced on a newly activated mobile financial services app during the first 24 hours, with a maximum limit of ₦20,000.00," the CBN added.
The same stipulation applies to existing users making the app active on a new device. Additionally, first logins on a new device for internet banking will undergo further multi-factor authentication checks.
According to the CBN, these latest guidelines represent the minimum requisite standards for instant payment services across Nigeria and are part of an ongoing effort to enhance customer protection, bolster fraud detection capabilities, and improve oversight of digital payment systems.
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