How it unfolded
In an effort to bolster security in the rapidly evolving digital financial landscape, the Central Bank of Nigeria (CBN) announced new rules governing instant payment systems. These regulations are set to take effect on July 1, 2026, and aim to address rising concerns about fraud in mobile money transfers and online banking.
On March 12, 2026, CBN officials, including Musa Jimoh, outlined the key aspects of the new rules. Among the significant changes, customers will have the option to turn instant payments on or off at any time, providing them with greater control over their financial transactions. Additionally, new customers will have instant payments enabled by default, ensuring they can quickly engage with digital banking services.
To enhance security, banks are mandated to implement Multi-Factor Authentication (MFA) for payment settings. This requirement is designed to protect users from unauthorized access and fraudulent activities. Furthermore, the CBN has set daily spending limits that allow personal accounts to transact up to ₦25 million, while business accounts can handle up to ₦250 million, contingent upon successful risk assessments.
As part of the new regulations, the CBN requires banks to monitor unusual money movements using advanced computer systems. This initiative aims to detect and prevent potential fraud before it occurs. Additionally, the rules stipulate that ATMs must be deployed at a ratio of one for every 7,500 payment cards issued, ensuring adequate access to cash for users.
Another critical aspect of the new regulations is the handling of failed on-us ATM transactions. The CBN has mandated that these transactions must be reversed instantly, with manual reversals not exceeding 24 hours. This measure is expected to enhance customer satisfaction and trust in digital banking services.
In a move to simplify access to dormant accounts, the CBN has removed the affidavit requirement for reactivating such accounts. This change aims to eliminate unnecessary delays and administrative hurdles that previously hindered customers from reclaiming their funds. Banks are now permitted to accept dormant account reactivation requests through alternative digital channels, streamlining the process further.
Moreover, the CBN has strengthened disclosure requirements for dormant accounts and unclaimed balances, ensuring that customers are better informed about their financial status. New mobile banking users will initially face a transfer limit of ₦20,000 for the first 24 hours, allowing banks to assess risk before granting full access to their accounts.
These developments are significant for both consumers and financial institutions in Nigeria. By implementing these rules, the CBN aims to strike a balance between facilitating easier access to funds and maintaining the integrity of the financial system. As the digital banking landscape continues to evolve, these regulations will play a crucial role in shaping the future of financial transactions in Nigeria.