Previously, customers could change their phone numbers linked to their Bank Verification Numbers (BVNs) multiple times. The expectation was that this flexibility would make banking more accessible. However, the rise in fraudulent activities prompted the CBN to take decisive action.

The new rules include:

• Phone number changes linked to BVN are now restricted to once in a lifetime.
• BVN enrolment is limited to individuals aged 18 years and above.
• Only CBN-licensed financial institutions can access the BVN database.

These changes directly affect customers and financial institutions. Customers must ensure their BVN-linked phone number is one they intend to keep long-term. Financial institutions must adapt their systems for enhanced security measures.

Additionally, the CBN introduced a temporary BVN watchlist for suspicious transactions lasting 24 hours. This measure aims to curb identity manipulation and enhance the security of customer profiles. Customers can only use their banking app on one device at a time, with transactions on new devices capped at ₦20,000 for the first 24 hours.

The CBN emphasized that these measures are part of broader efforts in fraud prevention and data privacy. The aim is not just immediate security but also long-term trust in financial institutions. Experts believe these changes will strengthen customer verification processes significantly.

The CBN’s commitment to improving banking security reflects ongoing challenges within the sector. As fraudulent activities evolve, so too must the policies designed to protect consumers.

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In January 2024, the Central Bank of Nigeria (CBN) made a significant move by dissolving the board and management of Union Bank, appointing Yetunde Oni as managing director and Mannir Ubali Ringim as executive director. This decision was met with immediate backlash from core shareholders, including Titan Trust Bank, Luxis International, and Magna International, who argued that the CBN’s actions were beyond its legal authority.

On March 26, 2026, a decisive moment occurred when the Federal High Court ruled in favor of the shareholders, ordering the restoration of the former board led by Farouk Mohammed Gumel. The court found that the CBN had acted ultra vires, meaning it had exceeded its powers, and ruled that its actions were not compliant with the Banks and Other Financial Institutions Act (BOFIA) 2020.

The court’s ruling quashed all decisions made by the CBN-appointed board and management of Union Bank, effectively halting the ongoing recapitalization process initiated under their leadership. The judgment highlighted that the shareholders’ fundamental rights were breached, as their shareholding had been reduced from 100% to 40% without a legal basis.

Justice Chukwujekwu Aneke, who presided over the case, stated, “The CBN acted beyond its powers in removing the board and management of Union Bank in January 2024.” This ruling not only reinstated the former board but also restrained the CBN and its appointed board from taking any actions related to the bank’s recapitalization.

In the wake of the ruling, the CBN acknowledged the court’s judgment and expressed its commitment to reviewing the decision while reaffirming its role in ensuring the stability and safety of Union Bank’s operations. CBN spokesperson Hakama Sidi Ali remarked, “The CBN will continue to provide the necessary regulatory oversight to ensure Union Bank operates in a safe, sound, and stable manner.”

The court’s decision has significant implications for Union Bank and its stakeholders. It not only restores the former leadership but also raises questions about the future of the bank’s operations and the legitimacy of the actions taken by the CBN-appointed board. With a capital shortfall of 224 billion Naira reported, the bank’s financial health is under scrutiny, and the shareholders’ investment of 190 million dollars is now in a precarious position.

Details remain unconfirmed regarding whether the current board can continue to carry out administrative actions following the court ruling. The situation remains fluid as stakeholders await further developments in the aftermath of this landmark decision.

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In a significant regulatory update, the Central Bank of Nigeria (CBN) announced on March 12, 2026, that it has removed the mandatory requirement for customers to present affidavits when seeking to reactivate dormant accounts. This decision, disclosed in a circular signed by Rita Sike, the Director of Financial Policy and Regulation, aims to simplify the process for customers while ensuring that necessary safeguards remain in place.

The removal of the affidavit requirement specifically applies to dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account. However, it is important to note that affidavits will still be mandatory for funds that have already been transferred to the UBTF. This distinction is crucial for customers looking to access their dormant funds.

As part of the new regulations, banks and financial institutions are required to apply enhanced due diligence when handling requests for dormant account reactivation. This means that while the affidavit requirement has been rescinded, financial institutions must implement robust safeguards to verify the accuracy and authenticity of customer information during the reactivation process. Rita Sike emphasized, “The requirement under Section 8.0(ii) for the mandatory use of affidavits in the reactivation of dormant accounts has been rescinded.”

Additionally, banks are now mandated to publish details of dormant accounts and unclaimed balances on their websites and in at least two national newspapers annually. The information disclosed must include account holder names, account type, bank name, and branch address. This transparency is intended to help customers identify and reclaim their dormant funds more easily.

The disclosure requirements align with the Nigeria Data Protection Act and are legally justified under the Banks and Other Financial Institutions Act (BOFIA) 2020. This regulatory framework aims to protect customer data while facilitating access to dormant funds.

This update supersedes an earlier circular issued on February 17, 2025, and takes immediate effect. The CBN’s decision follows representations from various stakeholders, highlighting the need for a more accessible process for customers seeking to reactivate dormant accounts. The move is seen as a step towards enhancing customer service within the banking sector.

Initial reactions to the new regulations have been mixed, with some stakeholders welcoming the changes as a positive development for customer access to funds. However, there are concerns regarding the implementation of enhanced due diligence measures and how effectively banks will manage this new responsibility. As the financial landscape evolves, the CBN’s approach to dormant accounts will be closely monitored by both customers and financial institutions alike.

Overall, the CBN’s revised regulations reflect a commitment to balancing customer accessibility with the necessary safeguards to protect financial integrity. The banking sector is now tasked with adapting to these changes while ensuring compliance with the new directives.

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Non-interest banking is gaining traction as a viable alternative to conventional banking in Nigeria. With the increasing demand for ethical and inclusive financial solutions, the Bank of Industry (BOI) and the Central Bank of Nigeria (CBN) are crucial players in this evolving landscape. This approach not only caters to the financial needs of Muslims in accordance with Islamic law but also appeals to a broader audience seeking ethical investing options.

Overview of Non-Interest Banking

Non-interest banking operates under principles that avoid interest-based transactions, deriving income through profit-sharing, leasing, and fees. This financial system aims to foster economic development while adhering to ethical standards. As of 2023, Nigeria has seen a marked increase in the establishment of non-interest banks, driven by regulatory support and rising consumer interest.

BOI’s Initiatives

The Bank of Industry has made significant strides in integrating non-interest banking principles into its operations. Recently, BOI announced initiatives to provide financing for small and medium enterprises (SMEs) through Sharia-compliant products. These efforts are designed to bridge the financing gap faced by many businesses, ensuring that all Nigerians have access to capital without compromising their ethical values.

CBN’s Regulatory Framework

The Central Bank of Nigeria plays a pivotal role in ensuring the stability and compliance of non-interest banking institutions. In 2021, CBN introduced a framework aimed at enhancing the growth of non-interest banking by facilitating better governance and risk management practices. This framework not only protects consumers but also encourages banks to develop innovative financial products that align with non-interest principles.

Recent Developments and Challenges

In 2023, there has been a notable increase in public awareness and acceptance of non-interest banking. However, challenges remain, including the need for increased public education and the establishment of more robust infrastructure. While non-interest banks currently hold a small market share, their growth potential is significant if supported by continued investment and consumer awareness.

Conclusion

The collaboration between BOI and CBN in fostering non-interest banking is vital for enhancing financial inclusion in Nigeria. As the demand for ethical financial solutions continues to rise, it is clear that this sector holds substantial promise for future economic development. For readers, understanding these dynamics can lead to better-informed financial decisions and investment opportunities that align with personal values.

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