CBN OPERATIONAL GUIDELINES: THE NEW INSTANT PAYMENT FUNCTIONALITIES FOR FINANCIAL INSTITUTIONS.

The Central Bank of Nigeria (CBN), through its Payments System Policy Department, released a circular (hereinafter the ‘Circular’) on the 12^th of March 2026 on additional functionalities for Instant Payment (IP) in Nigeria.

In line with its mandate to promote financial system stability, particularly to curb fraud-related transactions, the CBN issued additional operational guidelines for banks, other financial institutions, and service providers.

The Circular containing the guidelines, signed by the Director of the department on Payments System Policy, is to take effect on July 1, 2026.

This newsletter focuses on the operational guidelines, breaking down the new requirements to ensure that all financial institutions remain compliant with the updated regulatory framework.

Additional Operational Guidelines for Financial Institutions in Nigeria

In addition to the existing operational guidelines of Financial Institutions offering instant payment services in Nigeria, they are expected to implement the following system functionalities:

• Voluntary Opt-in and Opt-out Function: By the Circular, customers should be able to voluntarily opt-in/opt-out of IP services at will, and for a given period. This process is, however, subject to Multi-Factor Authentication (MFA) control. The default settings for new customers upon onboarding will be the opt-in mode. The opt-out mode prevents a customer from making an instant online transfer of funds from their account to another customer. However, such a customer is permitted to perform these transfers by visiting the physical branch of the financial institution during the opt-out period.

• Transaction Limit: Before this time, the maximum transaction limit for individuals at ₦25,000,000.00 and for corporate entities at ₦250,000,000.00 was not flexible. By these guidelines, individuals and corporate entities alike can make needed adjustments to these limits. Such adjustments are, however, subject to enhanced due diligence and appropriate risk management by the financial institution. The new transaction limit will be effective after the customer has completed the multi-factor authentication process.
• Fraud Monitoring Functionality: All financial institutions are to implement and activate an enterprise fraud monitoring functionality that covers in-flows and outflows. This monitoring aims to restrict suspicious transactions and facilitate fraud detection.
• Liveliness Checks for Online Account Opening and Account Reactivation: Where a customer seeks to open an account online or reactivate an online account, the following shall apply;
  • Liveliness check of the online account.
  • Real-time validation of BVN/NIN database for online account openings/reactivations.
  • Adoption of enhanced authentication mechanisms (such as biometric authentication, soft token, hard token, liveliness checks, etc) for online account reactivations.

• Additional requirements for Mobile Financial Services via Mobile Applications:
  • Mandatory device binding: Mobile financial service applications can only be enabled on one device at a time, and customers cannot operate the application concurrently on multiple devices.
  • A change in device will trigger an automatic reactivation and authentication process.
  • New account owners are subject to a transaction limit on inflow and outflow upon the activation of a mobile financial services application within the first 24 hours. The limit shall be set by the financial institution, with a maximum limit not exceeding ₦20,000.00.
  • Existing account owners are subject to a transaction limit on outflow upon the activation of a mobile financial ser services application within the first 24 hours. The limit shall be set by the financial institution, with a maximum limit not exceeding ₦20,000.00.
  • A first-time log on to a new device for internet banking services will require additional multi-factor authentication.

By making these guidelines operable across all financial institutions, the financial sector will be strengthened by enhancing fraud security, increasing consumer trust, and promoting digital adoption. These measures provide stronger fraud prevention, better customer control, and improved stability for the digital ecosystem.