The Central Bank of Nigeria (CBN) on Friday reeled out a new regulatory policy, which restricted the operation of mobile banking applications (apps) by lenders’ customers to one device, implying that a customer cannot simultaneously operate the same bank mobile app on two different devices.
The latest directive from the apex bank was reflected in a circular to all deposit money banks (DMBs), other financial institutions (OFIs) and payment service providers (PSPs) spelling out additional guidance for the operations of instant payments (IP) in Nigeria.
The circular signed by the CBN’s Director of Payments System Policy Department, Musa Jimoh, partly reads: “The Central CBN in line with its mandate of promoting financial system stability hereby issues additional guidance for the operations of Instant Payments in Nigeria.
“All Financial Institutions (FIs) offering Instant Payment (IP) shall provide the following additional functionalities: Mandatory device binding: Mobile financial services applications (apps) shall only be enabled on one device at a time, and customers cannot operate the apps concurrently on multiple devices.
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“Migration to another device shall trigger automatic re-activation and authentication.
“Customers shall have the option to opt-out of opt-in to IP service at any time and for any given period. This process shall be subject to Multi-Factor Authentication (MFA) control. Default setting shall be Opt-in upon on-boarding a new customer.
“In the opt-out mode, a customer shall not be able to carry out online instant transfer of funds (intra or inter) from his/her account to another customer”, the apex bank added.
It clarified, however, that customers can physically visit the financial institution to effect transfer during this period.
The circular further stipulated: “Voluntary Transaction Limit: Subject to the existing maximum limits of N25 million for individuals and N250 million for corporates, customers shall have the option to adjust the limits as needed.
“Any such adjustment shall be subject to enhanced due diligence and appropriate risk assessment by the financial institution.
“The new transaction limit shall take effect immediately upon successful completion of multi-factor authentication (customer consent).
“Enterprise Fraud Monitoring functionality: All FIs shall implement and activate Enterprise Fraud Monitoring for both inflows and outflows to facilitate fraud detection and restriction of suspicious transactions.
“Liveliness Checks for online account opening/account reactivation: Accounts opened online shall be subjected to liveliness check; All online account opening / online reactivation, shall be validated real-time with the BVN/NIN database; and Enhanced authentication mechanisms (such as MFA, biometric authentication, soft token, hard token, liveliness check etc.) shall be adopted for online account reactivation.
“For new accounts, transaction limits (inflow and outflow) shall be imposed on a newly activated mobile financial services app in the first 24-hours of activation.
“The limit shall be as determined by the financial institution, subject to a maximum transaction limit of N20,000.00”, it added.
The CBN maintained that for existing accounts, transaction limits (outflow) shall be imposed on a newly activated mobile financial services app in the first 24-hours of activation and that the limit shall be as determined by the financial institution, subject to a maximum transaction limit of N20,000.00.
It stated that for internet banking access, first-time log on a new device shall require additional MFA, adding that the above are the minimum standard requirements for instant payments in Nigeria and that the implementation of the above provisions shall take effect from July 1, 2026.
