Many Nigerians with current accounts have long been asked to provide referees often strangers a practice rooted in an era when banks relied on handwritten forms and personal trust. Referees once acted as basic assurance of identity in a system with weak records and unreliable address checks.
Today, digital infrastructure like BVN, NIN, SIM registration, corporate records, and open banking allows banks to verify identities, track transactions, and assess risk more accurately than any referee could. Most applicants already hold savings or corporate accounts, making their financial history visible and verifiable.
The referee requirement now creates unnecessary friction, especially for diaspora Nigerians, foreign investors, and companies whose documentation is already verifiable. Digital banks in Nigeria operate successfully without references, using real-time monitoring, geolocation, and analytics to manage risk.
With modern tools in place, experts argue that the CBN should phase out the reference system and allow technology to replace outdated handwritten endorsements, expanding financial access and modernising the banking sector.
