Key points
- Nigerian banks and customers lost a combined ₦134.48 billion to fraud between 2020 and 2025, according to the Central Bank of Nigeria (CBN).
- Fraud losses peaked at ₦52.26 billion in 2024, largely driven by a major internal fraud case involving ₦30 billion.
- The CBN says enhanced regulations, industry collaboration and stronger monitoring helped reduce fraud losses by 51 per cent in 2025.
Main story
Nigerian banks and their customers lost a combined ₦134.48 billion to fraud between 2020 and 2025, underscoring the growing security challenges accompanying the rapid expansion of digital payments and financial technology services across the country.
The figures are contained in the Central Bank of Nigeria’s (CBN) Nigeria Payments System Vision 2028 document, which revealed that total attempted fraud during the six-year period amounted to ₦187.79 billion, while actual losses stood at ₦134.48 billion.
According to the apex bank, the losses occurred across multiple payment channels, including Automated Teller Machines (ATMs), Point of Sale (PoS) terminals, Internet banking, mobile banking, e-commerce platforms, web-based transactions, over-the-counter services and cheque transactions.
Data from the report showed that fraud losses increased steadily from ₦11.61 billion in 2020 to ₦12.77 billion in 2021, ₦14.32 billion in 2022, and ₦17.67 billion in 2023 before surging to ₦52.26 billion in 2024.
The 2024 loss represented nearly 39 per cent of the total fraud losses recorded during the six-year period and marked the highest annual fraud loss within the review period.
Similarly, attempted fraud rose from ₦13.26 billion in 2020 to ₦14.48 billion in 2021, ₦16.41 billion in 2022 and ₦19.72 billion in 2023 before climbing sharply to ₦86.36 billion in 2024.
However, both attempted fraud and actual losses declined significantly in 2025, falling to ₦37.57 billion and ₦25.85 billion respectively.
The CBN attributed the sharp rise in fraud losses recorded in 2024 largely to a major internal fraud incident involving ₦30 billion.
The issues
The report highlights the increasing complexity of fraud risks within Nigeria’s rapidly evolving digital payments ecosystem.
While the country’s transition towards electronic payments has improved financial inclusion, enhanced convenience and reduced transaction costs, it has also created new vulnerabilities across banking and payment channels.
The CBN noted that despite reductions in fraud incidents across some digital platforms in 2024, overall losses increased significantly due to the scale of the internal fraud case.
The regulator further observed that fraud patterns have continued to evolve, with different payment channels experiencing spikes at various periods.
In 2021, losses increased despite a decline in web-based fraud due to a sharp rise in Point of Sale fraud incidents. In 2022, corporate account-related fraud and ATM fraud contributed significantly to losses, while 2023 witnessed a dramatic increase in e-commerce fraud cases.
The report also identified cyber threats, insider abuse, weak controls and increasingly sophisticated fraud techniques as emerging concerns requiring stronger safeguards.
What’s being said
The apex bank said the 2024 spike demonstrated how a single large-scale fraud incident could significantly affect industry-wide loss figures despite improvements in several payment channels.
According to the report, “Fraud amounts in Internet Banking, Mobile, and POS channels declined, yet overall losses rose by 196 per cent, primarily due to a major internal case involving ₦30 billion. Web fraud incidents also increased by 169 per cent.”
The CBN, however, expressed optimism over the significant decline recorded in 2025, attributing the improvement to stricter regulations, enhanced monitoring systems and increased collaboration among industry stakeholders.
“In 2025, electronic payment fraud declined by 51 per cent, demonstrating the success of stricter regulations, increased industry cooperation, enhanced prevention strategies, and improved monitoring,” the report stated.
CBN Governor, Olayemi Cardoso, noted in the foreword to the Payments System Vision 2028 document that Nigeria’s payments ecosystem has become one of the most dynamic and innovative globally, driven by rapid digital adoption, fintech innovation and real-time payment solutions.
He stressed that sustaining the momentum would require stronger resilience, improved coordination and enhanced security measures as digital transactions continue to grow.
What’s next
Under the Nigeria Payments System Vision 2028 framework, the CBN plans to strengthen cybersecurity, improve consumer protection mechanisms and deploy advanced technologies to combat emerging fraud threats.
The regulator also intends to deepen industry-wide collaboration, enhance regulatory oversight and improve cyber resilience across the banking and payments ecosystem.
Key priorities under the new framework include security, trust, innovation, interoperability, financial inclusion and stakeholder collaboration aimed at building a safer and more efficient digital payments environment.
Industry stakeholders are expected to intensify investments in fraud detection systems, artificial intelligence-powered monitoring tools and customer awareness programmes to reduce vulnerabilities across payment channels.
Bottom line
The loss of ₦134.48 billion to fraud between 2020 and 2025 underscores the growing risks facing Nigeria’s increasingly digital financial ecosystem. While recent regulatory measures have begun to curb fraud losses, the CBN’s latest report highlights the urgent need for stronger cybersecurity frameworks, tighter internal controls and sustained industry collaboration to protect consumers and preserve confidence in the country’s expanding digital payments landscape.
