Nigeria’s banking sector and its customers lost more than ₦134 billion to fraud between 2020 and 2025, according to figures released by the Central Bank of Nigeria. The losses highlight the risks facing the country’s fast-growing digital financial ecosystem, where mobile banking, fintech apps, and instant transfers have become central to daily life.
Fraud attempts across the banking and payments system amounted to ₦187.79 billion during the six-year period, with actual losses recorded at ₦134.48 billion. The incidents cut across ATMs, mobile banking, Internet banking, Point of Sale terminals, e-commerce platforms, and web transactions.
Losses rose steadily from ₦11.61 billion in 2020 to ₦17.67 billion in 2023, before surging dramatically to ₦52.26 billion in 2024, the highest annual figure recorded. That year alone accounted for nearly 39 percent of total losses, driven largely by a ₦30 billion internal fraud case. Losses declined in 2025 to ₦25.85 billion, reflecting tighter controls and improved monitoring.
The report noted that while fraud in Internet banking, mobile, and POS channels declined, overall losses spiked due to large-scale incidents. Web fraud incidents also increased by 169 percent, while e-commerce fraud surged by nearly 2,000 percent in 2023.
Despite the persistent threat, regulators said the industry recorded a notable improvement in 2025, with electronic payment fraud declining by 51 percent following stricter regulations, enhanced cooperation among banks, and stronger fraud-prevention strategies.
CBN Governor Olayemi Cardoso described Nigeria’s payments ecosystem as one of the most dynamic in the world, driven by real-time payments, digital adoption, and fintech-led transformation. He stressed that the next phase would require stronger resilience and coordination as the system continues to expand.
On social media, Nigerians reacted sharply. One user wrote: “₦134 billion gone to fraudsters? That’s more than some states’ budgets. Banks must do better.” Another added: “Digital banking is convenient, but it feels like we’re paying the price with fraud.”
Economists warned that the figures highlight the need for stronger regulation. “This is a wake-up call. Fraud at this scale undermines trust in the financial system,” said Lagos-based analyst Dr. Chika Okafor.
Bank officials acknowledged the challenge but pointed to progress. “We are investing heavily in fraud detection technology and customer awareness campaigns. The 2025 decline shows progress,” said a senior compliance officer at one of Nigeria’s tier-one banks.
Legal experts stressed accountability. “Internal fraud cases of this magnitude point to governance failures. Regulators must ensure prosecutions and stricter oversight,” said Abuja lawyer Funke Adebayo.
The CBN said its new Payments System Vision 2028 will prioritize security, trust, innovation, inclusion, and collaboration, aiming to strengthen regulatory oversight, improve cyber resilience, and deploy emerging technologies to combat increasingly sophisticated fraud threats.
