The Digest:
The Central Bank of Nigeria is considering ending the long-standing requirement for current account holders to provide personal referees. The move aligns with modern digital verification systems like BVN and NIN, which offer more reliable identity and risk assessment.
Key Points
- The referee system dates back to an era of manual forms and weak identity records.
- Today, BVN, NIN, SIM registration, and open banking enable more accurate verification.
- The requirement creates friction for diaspora Nigerians, foreign investors, and businesses.
- Digital banks in Nigeria already operate successfully without reference checks.
- Experts recommend replacing handwritten endorsements with real-time digital monitoring.
- Public reaction strongly supports the removal, calling it “long overdue” and “stressful.”
- Some critics link the move to upcoming tax policies rather than customer convenience.
As Nigeria’s financial system evolves, scrapping this archaic rule symbolizes a shift from trust in strangers to trust in technology, a small but significant step toward a more inclusive and modern banking experience.
Sources: Nairametrics, Business Day
