Publisher Note: Policy changes by the CBN and the Nigerian financial ecosystem move rapidly. This page serves as an ongoing live diary where the newest CBN directives are permanently added to the top, preserving older data below as a historical reference. Bookmark this page to track compliance timelines.
Table of Contents
CBN Expands PoS GPS-Tagged Radius to 70-Metres Operating Limit
The Nigerian apex bank, the Central Bank of Nigeria (CBN), has increased the allowed operating radius for Point of Sale (PoS) agents to 70 metres from 10 metres. The apex bank chose this adjustment due to fears that the initial 10-metre limit was too strict for the realities of the Nigerian market. This change is to provide additional operational flexibility, to minimise inadvertent violations and to prevent interference in agent banking services.
The policy introduced first in August 2025 is primarily about control, fraud reduction and traceability. The CBN's directive implies that all terminals (such as FairMoney, Moniepoint, Paga, UBA, OPay, FirstMonie, and Palmpay POS) must be GPS-tagged, linked to exact coordinates, and monitored in real time via payment infrastructure systems.
The policy mandates that all PoS terminals should be enrolled with a Payment Terminal Service Aggregator (PTSA), either NIBSS or Unified Payment Services Limited (UPS), and each of the terminals must be connected to specific geographic coordinates, including the latitude and longitude of the agent’s or merchant's business location, as well as its operational status. Terminals not directly connected through a PTSA are prohibited from processing transactions.
In addition, operators were mandated to ensure that their payment terminals and related/applicable applications received certification from the National Central Switch (NCS). In a May 29, 2026, circular, the apex bank extended the enforcement deadline to August 1, 2026, to buy more time for the payment companies to comply with the policy. The bank also directed financial institutions to address and resolve any outstanding operational challenges that have to do with the NCS within the prescribed timeframe.
PoS terminals were inceptioned in 2013, and since then, they have evolved into the country’s primary channel for cash transactions. In fact, an estimated density of 1,600 agents per square kilometre was recorded. However, the number of registered payment terminals climbed to 8.36 million in March 2025, of which 5.90 million of the payment terminals were actively deployed.
The transaction volumes of the terminals also surged to a record N10.51 trillion in the first quarter of 2025. The increase is 301.67 percent from last year. This growth has improved access to financial services but has also raised concerns about fraud, regulatory compliance and the potential misuse of agent networks for illegal financial activities. These are the basic reasons the CBN is using increasing regulatory measures to pay attention to Nigeria’s rapidly expanding PoS network.
The CBN’s 4th Edition FX Manual for Forex Market Reforms
The CBN’s 4th Edition Foreign Exchange (FX) Manual for Forex Market Reforms will take effect from June 1, 2026. The 4th Edition was released as part of the ongoing improvement channelled towards transparency, liquidity, and confidence in the Nigerian FX market.
In other words, the edition is a revised version of the FX manual designed to modernise foreign exchange operations. The edition is also aimed at modernising FX administration.
Key Policy Updates in the New FX Manual
Here are the major reforms introduced in the revised FX manual:
- The allowable advance payment for imports has been increased to 30% from 15%.
- Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) disbursements are now 75% electronic and 25% cash.
- Free processing of Form NXP has been introduced
- Provisions for service exports, PAPSS transactions, remittances by tech firms, and non-resident investment accounts are also implemented.
- Payments for services, tuition fees (up to $25,000 per semester) and fees with receipts in foreign currency are now allowed.
- Holders of export proceeds and ordinary domiciliary accounts can now have full access to their funds.
- Foreign extractive companies can repatriate 100% of their profits.
- Form A has now been eliminated from the requirement for domiciliary remittance. In other words, Form A is no longer required for domiciliary remittances.
These updates are implemented for the purpose of improving operational efficiency for authorised dealers, corporates, and other FX stakeholders. It will also serve as a reference for market participants, aligning operational processes, bringing consistency to market practices, and establishing a structured framework backed by robust institutional supervision to strengthen confidence among both local and foreign investors.
However, the CBN Governor Olayemi Cardoso has beseeched all market participants and stakeholders to indispensably comply strictly with the manual so that the success of the reforms will be yielded. The apex bank also clarified that the manual will be available to authorised dealers at no cost to encourage compliance.
CBN Ends ATM Maintenance Fees and Raises Acquisition Fees
In new rules outlined in the Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria 2026, the Central Bank of Nigeria (CBN) has scrapped the ₦50 monthly maintenance fee on naira-denominated cards. The draft also raises the fee for issuing and replacing ATM cards to ₦1,500, a 50% increase.
Hence, if you're replacing your physical debit card or you want to acquire a new one, a fee of ₦1,500 will be deducted from your bank account. Previously, the card acquisition fee was just ₦1,000. As a benefit, banks will no longer deduct the so-called ‘recurring monthly maintenance fee,’ which previously included a 7.5% Value Added Tax.
However, it’s important to note that these new rules apply only to standard debit and credit ATM cards. Premium and hybrid cardholders can still negotiate fees, while virtual or online cardholders do not have any charges to pay. Meanwhile, if you hold foreign-currency-denominated debit or credit cards, you will only continue to pay the annual maintenance charge of $10, as before.
The apex bank is using this updated guide to bank charges to standardise fees, improve transparency, and enhance consumer protection across the financial system. It also clarified that merchants are responsible for paying 0.5% of the card transaction amount (up to a maximum of ₦10,000), not cardholders (consumers) using point-of-sale (POS) terminals.
The Merchant Service Charge (MSC) rule applies regardless of the payment gateway, technology, or method the merchant is using; you are not eligible to pay any extra fee for using your debit card to make purchases at merchant stores. The changes are meant to reduce monthly burdens on card owners while adjusting one‑time issuance costs to current operating realities and encouraging digital payment usage.
Guide to Charges by Banks, Other Financial and Non‑bank Financial Institutions
- Electronic transfers and ATM withdrawals
- Interbank EFT transfers:
- Transfers below ₦5,000 are capped at ₦10
- ₦5,001 to ₦50,000 are capped at ₦25
- Above ₦50,000 are capped at ₦50
- ATM withdrawals (other banks):
- The fee for using another bank’s ATM after the first few free withdrawals was reduced from ₦65 to ₦35 per transaction
- Interbank EFT transfers:
- Card and account-maintenance fees
- Savings-account card maintenance:
- Reduced from ₦50 per month (₦600 per year) to ₦50 per quarter (₦200 per year)
- Current-account maintenance fee (CAMF):
- Now restricted mainly to current-account transactions to third parties
- Banks cannot freely charge it on savings accounts
- Savings-account card maintenance:
- Account-opening, closure, and documentation
- Account reactivation and closure:
- No charge for reactivation or closure of savings, current, or domiciliary accounts
- Status-enquiry documents:
- Fees for confirmation letters, letters of non-indebtedness, and reference letters are capped at ₦500 per request
- Account reactivation and closure:
- Other cost-reduction measures
- Cash-handling charges:
- Cash deposits above ₦500,000 attract a 2% fee
- Withdrawals above that threshold are charged 3% for individuals
- Advance-payment guarantees (APG):
- Maximum fee is 1% in the first year
- 0.5% in subsequent years
- Cash-handling charges:
CBN and NCC Now Let Banks Verify Fraud-Linked Numbers
The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) signed a Memorandum of Understanding (MoU) on Monday, April 20, 2026, granting Nigerian banks real-time access to telecom data. The formal agreement, signed in FCT, is part of the central bank's move aimed at tackling SIM swap–related fraud in the country’s digital payments system.
This is not the first time the apex bank has taken steps to curb financial fraud. In March, the CBN restricted changes to Bank Verification Number (BVN) phone numbers to a one-time update, a measure introduced to also reduce identity-related fraud and enhance consumer protection in the digital platform landscape.
However, this new CBN–NCC agreement has birthed a data-sharing portal called the Telecom Identity Risk Management System (TIRMS), a system that'll enable financial institutions to verify whether a mobile number tied to a transaction has recently been swapped, reassigned, marked for suspicious activity, or become inactive before the payment is processed.
The CBN–NCC initiative is aimed at curbing rising electronic fraud, especially SIM-related fraud, one of the most exploited gaps in the country’s digital payments system, which will help strengthen consumer protection in the sense that reduces the amount of account hijacks. Banks can now instantly verify if a phone number used for transactions has recently been changed (swapped) or reassigned using the TIRMS portal before authorising transactions.
According to Nigerian Interbank Settlement Systems (NIBSS), the identity layer in Nigeria’s financial fraud landscape declined by 51% to ₦25.85 billion ($18.7 million) in 2025. However, many accounts are still being hijacked through authentication bypasses caused by SIM swaps or compromised phone numbers. These incidents often result in financial losses and a significant erosion of customer trust.
Notably, these telecom systems' vulnerabilities—including SIM swaps, reassigned numbers, and compromised mobile identities—are some of the most exploited vulnerabilities in the country’s digital payments system, and until now, there has been no reliable way for banks to verify the real-time status of a mobile identity.
Despite banks deploying increasingly sophisticated tools to detect and prevent fraudulent activity, financial losses continue to rise sharply. According to NIBSS, in its Annual Fraud Report, financial losses surged from ₦17.67 billion ($12.80 million) in 2023 to ₦52.26 billion ($37.86 million) in 2024—a sharp rise that has turned fraud prevention into a high-stakes arms race for financial institutions in Nigeria.
This is not the first time the CBN and NCC have partnered to strengthen digital payment systems in Nigeria. In 2017, both regulators introduced regulations that curb SIM swap and Unstructured Supplementary Service Data (USSD) e-payment frauds. In addition to that, their coordinated action in June 2025 brought an end to the prolonged USSD debt standoff between banks and telecom operators, helping to restore stability to the service.
So, it’ll be more accurate to describe the relationship between the regulators as an evolving collaboration over time rather than a fixed number of isolated partnerships. The new agreement stands out because it’s the most structured and integrated effort so far, especially with real-time data sharing and joint infrastructure.
The regulators emphasised that the growing scale and sophistication of today’s digital economy needs to be addressed with a more structured and lasting framework. “Across Nigeria, citizens and businesses depend on digital channels to save, pay, and trade,” Olayemi Cardoso, CBN governor, said. “Those channels depend on resilient telecommunications networks, trusted identity systems, and secure data flows.”
However, tackling SIM swap and payment fraud is not the only agreement the MoU consists of. It also focuses on QR-based transactions, instant payment systems, and open banking standards, with the aim of ensuring that telecom and financial infrastructures can scale reliably. The agreement also sets out processes for the faster and seamless resolution of cross-sector issues like failed airtime purchases and transaction errors.
In other words, the MoU commits both regulators to oversee payment systems, consumer protection, and telecom identity risk management. Both regulators will also work together on public awareness initiatives and strengthen systems for handling consumer complaints.
CBN Limits BVN-Linked Mobile Number Changes to Once in a Lifetime
In 2014, Bank Verification Number (BVN) was introduced to the Nigeria banking system as the foundational identity layer for the country’s financial services sector. During that time, individuals could change the phone number linked to their BVN three times in a lifetime.
But now, everything has changed, as the Central Bank of Nigeria (CBN) has issued a circular to banks and other financial institutions directing them to limit how often Nigerians can update the phone number linked to their BVN to once in a lifetime.
The apex bank stated in the circular that the limitation will take effect from May 1, 2026. The restriction is implemented to curb risks tied to SIM-related fraud that can permit unauthorised access to financial accounts. In Nigeria's rapidly growing modern financial systems, phone number has become a central gateway for authentication and account recovery.
It is often linked to a user’s identity and serves as the primary channel for receiving one-time passwords (OTPs), transaction alerts, and security verification codes. Because many digital services rely on the phone number to confirm that the rightful owner is accessing an account, it plays a crucial role in preventing fraud and unauthorized access.
At the same time, the phone number is commonly used to recover accounts when users forget passwords or lose access to their credentials, making it one of the most important elements for maintaining both security and continuity of access in digital and banking platforms, and also one of the most vulnerable tools fraudsters use to hijack bank account.
So, by limiting how often phone number linked to BVN can be changed, the apex bank aims to reduce the risk of identity manipulation and SIM-related fraud that can have negative impact to individual financial accounts. In addition to that, CBN also stated a reminder, in the circular, that only individuals who are aged 18 and above are allowed to register for BVN, and access to BVN database information is restricted strictly to financial institutions licensed by the apex bank.
CBN orders watchlist for suspicious BVNs
In the same circular, CBN also directed all financial institutions in the country to initiate a temporary watchlist for BVNs flagged due to suspicious activity. Under this framework, transactions linked to a flagged BVN may be temporarily halted or slowed down for up to 24 hours.
During this period, the bank will contact the customer to verify the transaction. This pause gives financial institutions time to investigate and confirm whether the transaction is legitimate, helping to stop suspicious transfers before funds are moved across the banking system.
Notably, these are not the only security measures CBN has been releasing lately. The apex bank has released a broader set of security measures, including Know Your Customer (KYC) measures, that have downgraded the accounts of many OPay and PalmPay users. Both these latest and the old security measures reflect a growing regulatory clampdown on fraud in Nigeria’s payment ecosystem.
CBN’s S4: Meaning and the Full Deployment in the Fixed-Income Market
OK, let me start with the confirmation details: The Central Bank of Nigeria (CBN) has officially confirmed that its Scripless Securities Settlement System (S4) is now fully operational as the sole infrastructure (exclusive gateway) for primary market auctions of government securities such as treasury bills and, by extension, other federal government instruments.
The confirmation, provided in response to Nairametrics's enquiries, cements S4 as the only framework through which bids are submitted, prices are determined, and securities are allocated in Nigeria’s sovereign debt market. Now, all investors must submit their bids through authorised banks, which transmit them via the S4 interface.
It also reflects recent activity in February 2026’s treasury bills auction cycle, where the Federal Government offered N150 billion in 91-day bills, N200 billion in 182-day bills and N800 billion in 364-day bills under a fully centralised electronic process. It cements S4 as the only framework through which bids are submitted, prices are determined, and securities are allocated in Nigeria’s sovereign debt market.
The S4 replaces older methods involving physical submissions or decentralised bid aggregation through intermediaries. S4 now handles key functions in the auction process, including bid receipt, price discovery, allocation, and settlement instructions, all within a centralised system.
Market participants have described this transition as a significant structural shift in Nigeria’s fixed-income market that is reshaping the roles of intermediaries like Primary Dealer Market Makers (PDMMs). Instead of acting as informational conduits or aggregation points, dealers now primarily serve as bid transmitters and liquidity facilitators.
The system helps ensure auctions are transparent and that information flows efficiently among participants and regulators. In CBN's latest auction notice and operational guidelines for the February 4 NTB auction, the apex bank made it clear that only authorised banks can transmit bids on behalf of investors, with all submissions converging directly within the S4 interface.
Restricting bid submission to banks also reinforces regulatory oversight, as banks act as vetted intermediaries between investors and the central bank, reducing operational risk and improving compliance.
Important of the full S4 deployment
Scripless Securities Settlement System (S4) is a centralised, electronic securities settlement and depository platform managed by the CBN. It facilitates dematerialised holdings of securities, book-entry transfers, and the processing of auctions and settlements for eligible instruments such as Nigerian Treasury Bills and Federal Government Bonds.
The full operational use of S4 is important because it formally consolidates the CBN’s control over how government securities are issued in the primary market to ensure that all auctions are conducted through a single, standardised digital platform. So, the full deployment of S4 carries several important implications, including greater transparency, system efficiency, policy visibility, and market structure evolution.
Notably, the S4 interface has been in existence since 2014, and during those times, it was never actively deployed as the exclusive gateway for auction submissions until last year. In late 2025, CBN re-activated the system after a brief suspension due to technical challenges, but this time, it was re-activated for electronic bid submission.
Under the old arrangement, government securities auctions depended heavily on physical or proxy bid submissions, either through the CBN’s Issue Office in Lagos or via Primary Dealer Market Makers (PDMMs), who typically aggregated bids for brokers, institutional investors and other market participants. That process is now being phased out.
Following concerns highlighted in a circular issued last year, where the CBN signalled its resolve to clean up the government securities market and address structural weaknesses, the apex bank has moved to migrate the entire auction process to a single, centralised digital platform that treats all dealers equally.
By placing the CBN squarely at the heart of primary market execution, the full rollout of S4 is expected to influence how yields are formed, how securities are allocated and how investors position themselves in the fixed-income market. Given the central role of Treasury bills and government bonds in funding government operations and serving as benchmarks for interest rates, the reform marks a clear turning point in how the market is organised and administered.
CBN Removes Limits and Fees on Cash Deposits
The Nigerian apex bank, Central Bank of Nigeria (CBN), has found a new way to handle cash management to boost the economic system of the country. The central bank has detached all limits and fees on cash deposits. Now, individuals and businesses with a bank account in Nigeria can deposit any amount of cash into their bank accounts without penalties or consequences.
This shows that the central bank is shifting away from its previous cash-management rules introduced in 2022, designed to reduce the economy's reliance on cash. The bank has formed revised rules that remove all limits and fees on cash deposits. The revised rules also bring new withdrawal limits and fees: individual account holders are now allowed to withdraw as much as ₦500,000 in cash per week, and business (corporate) organizations can withdraw up to ₦5 million per week.
Any amount taken beyond these limits will attract extra charges of 3% for individuals and 5% for corporate organisations. The fee will be split between the CBN and the account holder's bank. The apex bank will get 40%, and the banks will receive the remaining 60%. These new CBN withdrawal limits also apply to card withdrawals at ATMs and POS. These withdrawal limits are capped at ₦100,000 per day and ₦500,000 per week. In addition to that, banks are now allowed to stock ATMs with all available naira denominations.
The CBN's circular doesn't leave the cheque aspect unchecked. The circular also states that the ₦100,000 limit which was previously imposed on withdrawing third-party cheques over the counter remains the same. But the cheque limit will now count toward an account holder's weekly withdrawal total — which is ₦500,000 in cash per week for individuals and ₦5 million per week for business organizations.
The central bank says it has released several cash-related policies to further amend its cash-management circulars that were introduced in 2022. The bank emphasized that the new circular is part of its efforts to address security concerns, moderate the rising cost of cash management, and reduce the potential for money laundering. The CBN explained that, “With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,” noting that the adjustments were necessary to align its rules with current economic conditions.
The circular also states that only money in government accounts and funds held by primary mortgage banks are still exempt from the new limits and charges on cash withdrawals. However, the directive has removed the previous exemptions given to diplomatic missions, embassies, and international aid agencies. These bodies must now follow the new cash rules just like everyone else.
Furthermore, the apex bank instructed banks to file monthly reports with their supervising departments detailing all transactions that go above the set withdrawal limits, including both cash withdrawals and cash deposits. In addition to that, Deposit Money Banks (DMBs) must set up special internal accounts to temporarily hold all processing charges they collect on withdrawals exceeding the limit before the money is eventually shared as directed by the CBN.
This action is part of the CBN's bigger plan to safeguard the entire financial and economic system in Nigeria, in the sense that financial fraud will be reduced and overall efficiency will be boosted. New rules are coming to tackle fraud involving authorized push payments (APP); they require victims to report any scam within 72 hours. Financial institutions, including commercial banks and fintech companies, must then conduct an investigation and process any deserved refund within 16 working days.
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