CBN report: Fraud-linked BVNs jump to 13,117, consumer credit falls 19.89% in 2025

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The Central Bank of Nigeria's 2025 Annual Report shows fraud-related Bank Verification Numbers on the industry watchlist rose to 13,117, up from 9,476 in 2024. That is a 38.4 per cent jump, reflecting stricter bank monitoring rather than a sudden explosion in fraud alone.

The report covers commercial banks including Access Bank, Zenith Bank, United Bank for Africa and other financial institutions. It also shows Nigeria's consumer credit market recorded its first annual contraction in six years as high borrowing costs hit households.

Fraud watchlist rises 38.4%

The apex bank said financial institutions added 3,641 new BVNs to the watchlist as part of stronger compliance measures, improved risk management and enhanced fraud detection systems.

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."

The increase signals more aggressive efforts by banks to identify suspicious activities, strengthen internal controls and protect customers from financial crimes.

Consumer credit shrinks as borrowing costs bite

Outstanding consumer credit fell by 19.89 per cent to N3.78 trillion in 2025, from N4.72 trillion in 2024. That marks the first yearly decline since December 2019.

The CBN attributed the drop 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. Retail loans surged 63.77 per cent to N1.94 trillion, making retail lending the largest segment of consumer credit for the first time in many years.

Retail loans accounted 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 maintained a strong preference for short-term lending. Short-term loans accounted for 51.6 per cent of banks' 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 said the trend reflects banks' funding structure, as most customer deposits remain short-term. Deposit liabilities with maturities of one year or less accounted for 91 per cent of banks' total deposits in 2025.

BVN registrations hit 67.82 million

The BVN ecosystem continued to expand. Registered BVNs increased to 67.82 million, up from 64.40 million in 2024, adding 3.42 million new enrolments.

Bank accounts linked to BVNs climbed sharply to 368.92 million from 297.29 million. Active bank accounts rose to 339.26 million from 311.6 million.

The CBN also disclosed that BVNs belonging to deceased persons on the watchlist increased from 21,118 to 28,754. That reflects ongoing efforts to clean up customer records and reduce identity-related fraud.

The report says 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.

For Nigerian households and businesses, the sharp drop in consumer credit means tighter access to loans at a time when borrowing costs remain high. That could slow consumer spending and dampen business activity, even as better fraud monitoring helps clean up the banking sector.

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