The Central Bank of Nigeria Introduces New Instant Payment Security Requirements: Compliance Considerations for Financial Institutions
On 12 March 2026, the Central Bank of Nigeria (“CBN”) issued its circular titled “Additional Functionalities for Instant Payment” addressed to all banks, other financial institutions (“OFIs”) and payment service providers (“PSPs”) (together, “Financial Institutions”) operating in Nigeria (the “Circular”). The Circular took effect from 1 July 2026 and introduces a suite of new mandatory safeguards designed to strengthen fraud prevention and identity assurance.
The Circular signals a notable regulatory shift and reflects the CBN’s ongoing commitment to promoting financial system stability and addressing the evolving fraud risks associated with the rapid growth of instant payment services in Nigeria’s digital financial ecosystem. Rather than merely facilitating payment speed and efficiency, the CBN now expects financial institutions to build stronger preventive controls into instant payment structures. The resulting obligations have significant operational, legal, data protection, cybersecurity and consumer protection implications.
