Nigeria’s banking industry has intensified its fight against financial fraud, with the number of Bank Verification Numbers (BVNs) placed on the fraud watchlist rising by an impressive 38.4% in 2025. According to the Central Bank of Nigeria’s (CBN) 2025 Annual Report, a total of 13,117 BVNs were flagged during the year, up from 9,476 recorded in 2024. While the sharp increase may appear alarming, the apex bank says it reflects stronger fraud detection systems and improved regulatory oversight rather than a rise in criminal activity within the financial sector.
The report revealed that banks added 3,641 new BVNs to the fraud watchlist as part of enhanced compliance measures aimed at protecting customers and safeguarding the integrity of banking transactions. The CBN explained that financial institutions have significantly improved their ability to identify suspicious activities, resolve fraud-related cases, and prevent fraudulent accounts from being used across the banking ecosystem. This development highlights the growing effectiveness of Nigeria’s biometric identity system in combating financial crimes.
Beyond fraud detection, the banking regulator also recorded major progress in cleaning up customer records. The number of deceased persons’ BVNs on the watchlist increased by 36.2%, rising from 21,118 in 2024 to 28,754 in 2025. This reflects ongoing efforts by banks to maintain accurate customer databases, eliminate identity misuse, and strengthen the security of financial records. These measures are expected to reduce opportunities for fraudsters who exploit inactive or improperly managed accounts.
The BVN ecosystem also experienced remarkable growth as more Nigerians embraced formal banking services. Total BVN registrations climbed to 67.82 million, adding 3.42 million new customers within a year. Meanwhile, bank accounts linked to BVNs surged to 368.92 million from 297.29 million, while active bank accounts increased to 339.26 million. According to the CBN, these figures demonstrate continued progress in financial inclusion, customer onboarding, and the adoption of secure banking practices across the country.
The expansion of the fraud watchlist forms part of broader reforms designed to strengthen Nigeria’s digital payments ecosystem. Earlier regulatory measures introduced by the CBN tightened controls on suspicious transactions, BVN enrolment, and access to customer data, allowing banks to quickly identify unusual activities while giving customers an opportunity to resolve issues before regulatory sanctions are applied. With bank customers reportedly losing over ₦134.48 billion to fraud between 2020 and 2025, the CBN’s Payments System Vision 2028 places cybersecurity, consumer protection, and risk management at the heart of Nigeria’s evolving financial landscape. As digital banking continues to grow, stronger fraud prevention measures are expected to play a crucial role in protecting customers and boosting confidence in the nation’s financial system.
source: Nairametrics
