This study examines the effect of the Central Bank of Nigeria’s revised Bank Verification Number (BVN) policy on fraud reduction in the Nigerian banking sector, the challenges associated with its implementation, and its effect on banking security and customer trust. The study adopted a descriptive survey research design, and data were collected from a sample of 400 respondents using a structured questionnaire designed on a 5-point Likert scale. The data were analyzed using both descriptive and inferential statistical tools, including frequency distribution, mean, and standard deviation, while hypotheses were tested using the Kolmogorov–Smirnov (K-S) test and the Chi-square (χ²) test at a 0.05 level of significance. The findings revealed that the revised BVN policy is effective in reducing fraudulent activities in the Nigerian banking sector, with majority response means above the decision benchmark of 2.50. The Kolmogorov–Smirnov test results showed statistical significance (Z = 3.114, p = 0.000), while the Chi-square test also confirmed a significant relationship (χ² = 245.67, df = 16, p = 0.000), leading to the rejection of the null hypothesis. The study further found that implementation challenges such as technological limitations and poor infrastructure significantly affect the effectiveness of the policy, with statistical significance confirmed by both the K-S test (Z = 3.008, p = 0.000) and Chi-square test (χ² = 198.52, df = 12, p = 0.000). Furthermore, the results showed that the BVN policy has a positive effect on banking security and customer trust, with inferential results indicating statistical significance (K-S: Z = 3.158, p = 0.000; Chi-square: χ² = 260.44, df = 14, p = 0.000). The study concludes that the BVN policy has significantly contributed to fraud reduction and improved banking security in Nigeria, although its effectiveness is moderated by infrastructural and awareness-related challenges. The study recommends improved technological infrastructure, increased public awareness, and stronger regulatory enforcement to enhance policy effectiveness.
Chukwu et al. (Sat,) studied this question.