The Central Bank of Nigeria (CBN) has introduced new regulations governing the linking of phone numbers to Bank Verification Numbers (BVNs), sparking concerns from digital rights activists that millions of customers could be alienated from the banking system.
Digicivic Initiative Raises Alarm
The advocacy group Digicivic Initiative issued a statement warning that the stringent process for changing BVN-linked phone numbers could effectively lock out a significant portion of Nigerians from accessing their bank accounts. The group highlighted that rural dwellers, students, low-income citizens, and informal sector workers who heavily rely on mobile banking may face immense challenges due to this rigidity.
According to the group, many Nigerians regularly switch SIM cards due to theft, damaged chips, network challenges, insecurity, or inability to retain SIM card registrations. Creating difficulties in changing BVN-linked phone numbers could lead to financial exclusion, as reported by AIT.
Potential Disruptions for Millions
Digicivic noted that the policy could hinder users from receiving transaction alerts, completing transactions, using mobile banking applications, or completing verification required for services from banks and fintech companies. They emphasized that those in rural areas with poor access to bank branches and telecom service centers would be most affected.
The group urged regulatory bodies to adopt a flexible policy that supports financial inclusion alongside security. They suggested a risk-based approach allowing users to update their records multiple times with strict security checks, utilizing robust fraud detection systems and advanced monitoring technology to flag potential fraud and unauthorized changes.
Digicivic warned that any restriction contravening the existing Nigerian Data Protection Act should not be implemented.
CBN Announces New Age Limit for BVN Enrolment
Earlier, Legit.ng reported that the CBN announced that only individuals aged 18 years and above will be eligible to enroll for BVN. This directive was part of an addendum to the revised regulatory framework for BVN operations and watchlist guidelines. According to the CBN, any BVN placed on a temporary watchlist can remain there for a maximum of 24 hours, during which the holder must be contacted for clarification on flagged transactions.
