The Central Bank of Nigeria is considering removing the need for referees when opening current accounts.
For years, banks have asked customers to provide the names of referees, often strangers, as a way to confirm identity.
This practice started in a time when banks relied on handwritten forms and personal trust because official records were limited and address checks were unreliable.
Now, the banking system in Nigeria has changed.
Tools like the Bank Verification Number (BVN), National Identification Number (NIN), SIM registration, corporate records, and open banking allow banks to verify identities, monitor transactions, and assess risk without relying on referees.
Most account holders already have savings or corporate accounts, so their financial histories are visible and easy to check.
The referee requirement has become a hurdle for many, particularly for Nigerians living abroad, foreign investors, and businesses with verified documents. Digital banks in the country have shown that it is possible to operate safely without referees by using real-time monitoring, geolocation, and data analytics to manage risk.
Experts say that removing the referee system would make banking simpler, improve access, and bring the sector in line with modern financial practices.
