The Central Bank of Nigeria (CBN) has introduced a temporary ₦20,000 transaction limit for customers who activate or reinstall mobile banking applications.

The new rule aims to reduce digital fraud and improve security in Nigeria’s electronic payment system. As a result, banks will restrict transactions made through a newly activated banking app.

Under the policy, customers can only transfer up to ₦20,000 within the first 24 hours after activating or reinstalling a banking app. However, banks will restore normal transaction limits after completing verification checks.

Why the CBN introduced the restriction

The new limit aims to reduce several security risks. These include:

• Unauthorised account access
• Identity theft
• Fraudulent transfers from newly registered devices

In addition, the restriction allows banks to monitor account activity during the critical first 24 hours after an app is installed or reactivated.

Strengthening digital banking security in Nigeria

Mobile banking and digital payments continue to grow rapidly across Nigeria. As a result, regulators have introduced stronger consumer protection rules.

Banks must now enforce the ₦20,000 limit automatically whenever a banking app is:

• Newly activated
• Reinstalled
• Linked to a different mobile device

Meanwhile, the Central Bank of Nigeria has continued to introduce new cybersecurity policies.

These measures aim to protect customers and maintain trust in Nigeria’s growing digital financial system.

Financial experts say the rule will help banks detect suspicious activity early.
Therefore, it could reduce fraud linked to stolen phones or compromised banking apps.