The Central Bank of Nigeria (CBN) has revealed that the number of Bank Verification Numbers (BVNs) flagged for fraud jumped to 13,117 in 2025, up from 9,476 a year earlier. This 38.4 per cent rise, published in the CBN's 2025 Annual Report and Statement of Accounts, underscores how Access Bank, Zenith Bank, United Bank for Africa (UBA) and other commercial banks have expanded their fraud detection operations nationwide.
Fraud Watchlist Surges by 38.4%
According to the apex bank, financial institutions added 3,641 new BVNs to the industry watchlist during the year as part of stronger compliance measures, improved risk management and enhanced fraud detection systems. The CBN explained that the increase does not necessarily indicate a greater volume of fraudulent activity, but rather more aggressive efforts by banks to identify suspicious transactions and protect customers from financial crimes.
The report stated: 'Fraud-related BVNs on the watchlist rose to 13,117 compared with 9,476 in the preceding period. This highlighted improvement in fraud monitoring and resolution.'
Consumer Credit Records First Annual Drop Since 2019
While banks tightened fraud surveillance, lending to consumers weakened sharply. The CBN disclosed that outstanding consumer credit fell by 19.89 per cent to N3.78 trillion in 2025, from N4.72 trillion in 2024. This marks the first yearly decline since December 2019, and the regulator attributed the drop largely to Nigeria's high-interest-rate environment, which made borrowing more expensive for households.
Personal loans suffered the biggest decline, falling to N1.85 trillion, while retail loans surged by 63.77 per cent to N1.94 trillion. As a result, retail lending became the largest segment of consumer credit for the first time in years, accounting for 51.16 per cent of total consumer credit, overtaking personal loans which represented 48.84 per cent. Consumer credit also formed a smaller portion of lending to the private sector, accounting for 6.6 per cent of total private sector credit in 2025, down from 7.98 per cent a year earlier.
Banks Prefer Short-Term Lending
The report further revealed that Nigerian banks maintained a strong preference for short-term lending, which accounted for 51.6 per cent of credit portfolios despite a slight decline from the previous year. Medium-term lending edged lower to 13.46 per cent, while long-term loans increased to 34.94 per cent. The CBN attributed this trend to the banks' funding structure, noting that most customer deposits remain short-term, making shorter-tenor lending a safer option. Indeed, deposit liabilities with maturities of one year or less accounted for 91 per cent of banks' total deposits in 2025.
BVN Registration and Financial Inclusion Grow
Beyond fraud monitoring, the BVN ecosystem continued to expand rapidly. Registered BVNs increased to 67.82 million from 64.40 million in 2024, adding 3.42 million new enrolments. The total number of bank accounts linked to BVNs climbed sharply to 368.92 million from 297.29 million, while active bank accounts rose to 339.26 million from 311.6 million.
The CBN also disclosed that the number of BVNs belonging to deceased persons on the watchlist increased from 21,118 to 28,754, reflecting ongoing efforts to clean up customer records and reduce identity-related fraud. According to the apex bank, the continued growth in BVN registrations, linked accounts and active bank accounts underscores improving financial inclusion, stronger regulatory compliance and enhanced integrity of Nigeria's banking system, even as financial institutions intensify efforts to combat fraud nationwide.
Lending Rates Published for Transparency
In a related development, the CBN has published updated lending rates of commercial and merchant banks, giving borrowers a clearer picture of what credit currently costs in Nigeria's banking sector. The data, released in July, is part of the central bank's broader transparency and consumer protection framework, enabling households, small businesses and corporate borrowers to compare the cost of credit before approaching any lender. Two categories of rates are involved: prime lending rates, reserved for customers with strong credit standings, and maximum lending rates, which apply to borrowers carrying higher perceived risk.
