The Central Bank of Nigeria is weighing the option of scrapping the use of referees for opening current accounts.
For many years, banks have required customers to submit the names of referees, often people they barely knew, as a way of confirming identity.
This process began at a time when banks depended heavily on handwritten documentation and personal trust because official records were scarce and it was difficult to verify addresses.
The situation in Nigeria’s banking sector has now changed.
Systems such as the Bank Verification Number, National Identification Number, SIM registration, corporate databases, and open banking now enable banks to verify identities, track transactions, and evaluate risk without the need for referees.
Most customers already operate savings or corporate accounts, meaning their financial history is clear and easy to review.
The referee requirement has therefore become a barrier for many people, especially Nigerians in the diaspora, foreign investors, and businesses with authentic documentation. Digital banks in the country have also demonstrated that it is possible to operate securely without referees by using real-time monitoring, geolocation, and data analytics to manage risk.
According to experts, ending the referee system would make banking easier, expand access, and align the sector with modern global standards.
