The Central Bank of Nigeria (CBN) is considering removing the long-standing referee requirement for opening current accounts, a major shift that could modernise and streamline banking processes across the country.
For decades, new current-account holders were required to present referees, often acquaintances they barely knew, as a way to confirm identity and credibility. The rule was created in an era when banks relied heavily on handwritten forms and personal trust because official records were limited and address verification was weak.
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But Nigeria’s financial landscape has evolved dramatically. With tools such as the Bank Verification Number (BVN), National Identification Number (NIN), SIM registration, corporate digital records, and open-banking frameworks, banks can now verify identities, track transaction behaviour and assess risk with far greater accuracy than any referee could provide.
Most applicants for current accounts already maintain savings or business accounts, giving banks instant access to verified financial histories. However, the referee requirement has increasingly become a barrier especially for Nigerians in the diaspora, foreign investors, and businesses whose documentation is already fully verifiable.
Digital banks have further proven that safe onboarding does not depend on referees. Using geolocation intelligence, real-time monitoring and data analytics, these platforms successfully detect fraud and manage risk without traditional endorsements.
Industry experts say scrapping the referee requirement would reduce friction, expand financial inclusion and bring Nigeria in line with global best practices, where digital identity tools not handwritten references form the foundation of customer verification.
