Nigeria’s banking sector faces a significant challenge as fraud losses soar, highlighting vulnerabilities in its digital financial ecosystem.
Between 2020 and 2025, banks and their customers lost a total of N134.48 billion due to criminal activities targeting financial institutions. The Central Bank of Nigeria reported that attempted fraud during this period reached N187.79 billion, with actual losses peaking dramatically in 2024.
Fraud Losses Surge in Nigeria’s Banking Sector
The Central Bank of Nigeria’s Payments System Vision 2028 document reveals alarming trends in fraud losses. In 2024 alone, losses surged to N52.26 billion, accounting for nearly 39 percent of the total losses recorded from 2020 to 2025. This spike was largely attributed to a major internal fraud case involving N30 billion.
Fraud attempts also escalated, with attempted fraud climbing to N86.36 billion in 2024. Despite a decline in both attempted fraud and actual losses in 2025, the overall figures underscore the growing challenge of safeguarding Nigeria’s increasingly digital financial system.
Nigeria: Key figures on Fraud Losses
- N134.48 billion lost between 2020 and 2025
- N187.79 billion attempted fraud from 2020 to 2025
- N52.26 billion lost in 2024
- N30 billion involved in a major internal fraud case
- N86.36 billion attempted fraud in 2024
- N37.57 billion attempted fraud in 2025
- N25.85 billion actual losses in 2025
Context of Rising Fraud in Digital Payments
The report highlights a shift in fraud patterns across various payment channels. For instance, while web-based fraud incidents decreased by 43 percent in 2021, Point of Sale fraud incidents surged by 276 percent. In 2023, e-commerce-related fraud cases exploded, contributing significantly to the overall increase in fraud losses.
Despite these challenges, the Central Bank noted improvements in 2025 due to stricter regulations and enhanced collaboration among stakeholders. The decline in electronic payment fraud by 51 percent demonstrates the effectiveness of these measures.
Future Steps for Nigeria’s Payment System
- Strengthening regulatory oversight and cyber resilience
- Implementing emerging technologies to combat fraud
- Enhancing consumer protection mechanisms
- Prioritizing security and trust in the payments ecosystem
Nigeria’s banking sector must adapt to the evolving fraud landscape to protect its digital financial ecosystem.
