Nigerian banks and their customers have lost a combined N134.48 billion to fraud between 2020 and 2025, according to data from the Central Bank of Nigeria’s Nigeria Payments System Vision 2028 document.
The apex bank revealed that attempted fraud across the banking and payments ecosystem totaled N187.79 billion during the six-year period, with actual losses standing at N134.48bn.
Steady rise, then dramatic spike
An analysis of the CBN data shows fraud losses increased steadily from N11.61bn in 2020 to N12.77bn in 2021 and N14.32bn in 2022. The figure rose further to N17.67bn in 2023 before surging dramatically to N52.26bn in 2024—the highest annual loss recorded.
The 2024 figure alone accounted for nearly 39 per cent of the total N134.48bn lost between 2020 and 2025, highlighting the scale of the fraud challenge faced by banks, payment service providers, and customers.
2024 spike driven by N30bn internal fraud
The CBN attributed the sharp rise in fraud losses in 2024 largely to a major internal fraud case involving N30 billion. The document stated: “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 N30bn. Web fraud incidents also increased by 169 per cent”.
The apex bank noted that the trend demonstrated how a single large-scale fraud incident could significantly distort industry-wide loss figures despite improvements in several digital payment channels.
Payment channels under attack
Losses were recorded across multiple payment channels, including:
- Over-the-counter transactions
- Automated Teller Machines (ATMs)
- Cheques
- E-commerce platforms
- Internet banking
- Mobile banking
- Point of Sale (POS) terminals
- Web channels
Other electronic payment platforms
In 2023, fraud losses increased by 23 per cent, largely due to an explosion in e-commerce-related fraud cases that escalated by 1,961 per cent.
Improvement in 2025 following stricter controls
Despite the persistent fraud threat, the regulator said the industry recorded a notable improvement in 2025. Electronic payment fraud declined by 51 per cent, falling to N25.85bn from N52.26bn in 2024.
The document stated: “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 CBN attributed the drop to stronger collaborations among regulators and security agents, tighter controls, and improved fraud control capabilities.
CBN’s vision 2028: Security first
The findings come as Nigeria experiences an unprecedented shift towards electronic payments, with instant transfers, mobile banking, fintech applications, and digital wallets becoming central to daily commercial activities.
In the foreword to the Payments System Vision 2028 document, CBN Governor Olayemi Cardoso said Nigeria’s payments ecosystem had evolved into one of the most dynamic and innovative in the world over the past decade.
Cardoso stressed that the next phase would require stronger resilience and coordination as the system continued to expand.
Under the new framework, the regulator plans to prioritise security, trust, innovation, interoperability, inclusion, and collaboration as guiding principles for the next stage of payments system development.
The CBN acknowledged that while digitalisation has improved financial inclusion and lowered transaction costs, it has also created new risks requiring stronger cybersecurity measures, consumer protection mechanisms, and fraud-monitoring systems.
Key takeaway
While Nigeria’s digital payment ecosystem has grown rapidly, the N134.48bn fraud loss underscores the critical need for enhanced cybersecurity and consumer protection as the country moves toward Vision 2028.
