Nigeria has taken a major step in its fight against digital fraud, with banks now gaining access to telecom data under a new regulatory partnership aimed at strengthening financial security. The initiative, driven by the Central Bank of Nigeria and the Nigerian Communications Commission, introduces a system that allows financial institutions to verify mobile number activity before transactions are completed.
At the centre of the collaboration is a new platform known as the Telecom Identity Risk Management System (TIRMS). This system enables banks and fintechs to check whether a phone number linked to a transaction has recently been swapped, recycled, flagged for suspicious activity, or become inactive—factors that are often associated with fraud.
The move directly targets one of the most persistent vulnerabilities in Nigeria’s financial ecosystem: SIM-based fraud. Criminals frequently exploit SIM swap attacks to take control of victims’ phone numbers, bypass one-time passwords, and gain access to bank accounts. Until now, banks have had a limited ability to verify the real-time status of a mobile number, leaving a critical gap in fraud prevention systems. Under the new framework, these checks will happen in real time, often without the customer noticing. If a number shows signs of risk—such as a recent SIM swap—transactions can be flagged or halted before funds leave an account. This marks a shift from reactive fraud management to proactive prevention.
The urgency behind the initiative is clear. Nigeria has recorded significant financial losses from electronic fraud in recent years, with billions of naira lost annually despite improvements in identity systems like the Bank Verification Number (BVN). While reported losses dropped to ₦25.85 billion in 2025, experts warn that threats such as phishing, insider fraud, and SIM-related attacks remain widespread.
Beyond fraud detection, the partnership also establishes a broader framework for cooperation between the banking and telecom sectors. Joint committees will oversee payment system integrity, consumer protection, and dispute resolution, addressing long-standing issues that often fall between both industries.
Industry observers see the move as a long-overdue alignment of two increasingly interconnected sectors. Mobile numbers now serve as a critical layer of identity in Nigeria’s digital economy, underpinning everything from banking to fintech services. By integrating telecom intelligence into financial systems, regulators aim to build a more secure and trustworthy payments ecosystem. The success of this initiative will depend on execution and data governance. If effectively implemented, the new system could significantly reduce fraud, boost consumer confidence, and set a precedent for cross-sector collaboration in Africa’s rapidly evolving digital economy.
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