Institute backs CBN’s new digital banking measures

The Chartered Risk Management Institute of Nigeria has endorsed the Central Bank of Nigeria’s latest regulatory measures aimed at tightening security across the country’s fast-growing digital payments space.

In a statement issued on Saturday, the Institute’s President and Chairman of Council, Kevin Ugwoke, described the framework as a timely response to escalating threats within the financial system, particularly fraud, identity theft and unauthorised access linked to instant payment platforms.

CRMI drew attention to several of the safeguards introduced by the apex bank, including a ₦20,000 transaction cap on newly activated mobile banking applications within their first 24 hours, compulsory device binding, and the deployment of real-time enterprise fraud monitoring systems.

According to the institute, these controls are targeted at one of the most vulnerable stages in digital banking—account onboarding and activation—when fraudsters often attempt to compromise user credentials.

“By limiting transaction exposure during the high-risk activation window, the framework significantly reduces the opportunity for fraudsters to exploit newly onboarded or compromised accounts,” the statement read in part.

The CBN’s new framework comes amid a sharp rise in electronic transactions driven by mobile banking, fintech platforms and the broader push toward a cash-lite economy. Over the past few years, Nigeria’s instant payment system has recorded exponential growth, with millions of daily transactions running into trillions of naira monthly.

This expansion, however, has been accompanied by increasingly sophisticated fraud schemes, including SIM swap attacks, phishing, social engineering and account takeovers. Industry data and regulatory disclosures have repeatedly shown spikes in fraud attempts, especially during onboarding or when customers switch devices.

Against this backdrop, the CBN has been tightening oversight of banks, fintech firms and payment service providers, issuing a series of guidelines focused on consumer protection, operational resilience and cybersecurity. The latest measures build on earlier directives around Know-Your-Customer compliance, transaction monitoring and dispute resolution timelines.

A key element of the new framework is the introduction of layered security at the point of entry into digital channels—particularly the restriction on transaction values immediately after activation, alongside device registration protocols designed to prevent unauthorised access from new or cloned devices.

The Institute also welcomed the introduction of the Nigerian Overnight Financing Rate, a benchmark expected to bring greater clarity and consistency to short-term funding costs within the financial system.

CRMI said the initiative would “deepen financial markets, improve transparency, and enhance monetary policy effectiveness.”

While backing the policy direction, the Institute stressed that its effectiveness would depend largely on how well financial institutions execute the new requirements.

It urged banks, fintech operators and payment service providers to upgrade cybersecurity infrastructure, strengthen fraud detection systems and invest in continuous staff training, while also improving customer awareness around safe digital banking practices.

The Institute further added that it would continue to support regulatory reforms through professional training, policy advocacy and collaboration with industry stakeholders as Nigeria advances toward a more technology-driven financial system.