CBN Refunds N19.12bn, $329.3m To Customers, Flags 13,117 Fraud-linked BVNs

The Central Bank of Nigeria (CBN) refunded N19.12 billion and $329.3 million to customers of financial institutions in 2025 after resolving thousands of consumer complaints.

It also flagged 13,117 Bank Verification Numbers (BVNs) linked to fraudulent activities, highlighting the scale of financial crime in the banking system.

According to the CBN’s 2025 Annual Report, the number of fraud-related BVNs on the apex bank’s watchlist rose by 38.4 per cent, from 9,476 in 2024 to 13,117 in 2025, underscoring the growing challenge of financial fraud despite improvements in fraud detection and monitoring.

The report showed that customer refunds more than doubled in naira terms, rising from N9.66 billion in 2024 to N19.12 billion in 2025. Refunds in foreign currency also surged significantly, increasing from $670,000 to $329.3 million during the period.

The apex bank received 23,129 consumer complaints in 2025, representing a 10.53 per cent increase from the 20,925 complaints recorded in 2024. It attributed the rise to greater public awareness and increased confidence in its consumer complaints resolution framework.

Of the complaints received, the CBN successfully resolved 18,824 cases, up 9.36 per cent from the 17,213 resolved in the previous year.

The value of claims lodged by customers also increased sharply. Claims in local currency rose to N40.61 billion from N17.13 billion in 2024, while foreign currency claims jumped to $344.2 million from $1.06 million.

The report also highlighted continued growth in the banking system. BVN enrolment increased to 67.82 million from 64.40 million in 2024, while the number of bank accounts linked to BVNs rose to 368.92 million from 297.29 million. Active bank accounts also increased to 339.26 million from 311.60 million.

Further more, the number of BVNs classified as belonging to deceased persons on the watchlist rose to 28,754 from 21,118 in the previous year.

Despite the increase in fraud-linked BVNs, the CBN reported that losses from digital payment fraud declined sharply to N25.85 billion in 2025 from N52.26 billion in 2024. The bank attributed the reduction to enhanced fraud monitoring, tighter security controls and the integration of the BVN with the National Identity Number (NIN).

The apex bank, however, warned that payment service providers (PSPs) with weak fraud monitoring systems continued to incur significant losses, noting that banks and fintech firms remain prime targets for ransomware attacks, data breaches and credential theft.

It added that cyber threats had become increasingly sophisticated, organised and identity-driven, while cautioning that unlicensed payment service providers pose risks to consumers because they operate outside regulatory oversight and could facilitate money laundering.

As part of efforts to enforce compliance with consumer protection regulations, the CBN sanctioned several financial institutions in 2025.

The report disclosed that the regulator imposed 11 penalties totalling N1.26 billion on financial institutions for regulatory breaches and failure to respond to regulatory queries.

It also imposed 21 additional penalties amounting to N430 million for delays in resolving customer complaints and failure to comply with regulatory directives.

Meanwhile, lending activity through the National Collateral Registry (NCR) continued to expand. The value of credit perfected in naira rose to N2.38 trillion in 2025 from N1.57 trillion in 2024, bringing cumulative financing statements on the registry to N24.78 trillion.

Foreign currency-secured lending also recorded strong growth, with the value of credit perfected in US dollars increasing to $401.43 million from $227.83 million, while cumulative dollar-denominated financing statements reached $4.28 billion. Credit perfected in euros stood at €6.02 million, bringing cumulative euro-denominated financing statements to €18.95 million.

The number of financing statements registered on the National Collateral Registry increased by 12.4 per cent to 85,473 from 76,031 in 2024, while the number of active financial institutions on the platform rose to 97, up from 74 a year earlier.