Nigerian banks and their customers suffered cumulative losses of N134.48 billion to fraud between 2020 and 2025, underscoring the growing security challenges accompanying the rapid expansion of digital financial services in the country.
The figures are contained in the Central Bank of Nigeria’s (CBN) Nigeria Payments System Vision 2028 document, which revealed that fraudsters attempted to steal N187.79 billion during the six-year period, with more than 70 per cent of the amount successfully lost.
The report highlights the increasing vulnerability of Nigeria’s payment ecosystem, which has witnessed a surge in the use of mobile banking, instant transfers, fintech applications, digital wallets and other electronic payment platforms.
According to the document, fraud-related losses rose steadily over the years, climbing from N11.61 billion in 2020 to N12.77 billion in 2021 and N14.32 billion in 2022. The figure increased further to N17.67 billion in 2023 before recording a dramatic jump to N52.26 billion in 2024.
The 2024 loss represented nearly 39 per cent of the total fraud losses recorded between 2020 and 2025, making it the worst year within the period under review.
Similarly, attempted fraud cases followed an upward trajectory, rising from N13.26 billion in 2020 to N14.48 billion in 2021, N16.41 billion in 2022 and N19.72 billion in 2023 before soaring to N86.36 billion in 2024.
However, the report showed signs of improvement in 2025, with attempted fraud dropping to N37.57 billion, while actual losses declined to N25.85 billion.
The apex bank attributed the unusually high losses recorded in 2024 largely to a major internal fraud incident involving N30 billion.
“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 N30 billion. Web fraud incidents also increased by 169 per cent,” the CBN stated.
The regulator noted that the episode demonstrated how a single large-scale fraud case could significantly affect industry-wide statistics despite improvements recorded across several electronic payment channels.
An analysis of fraud trends over the years showed varying patterns across payment platforms.
In 2021, losses increased despite a 43 per cent decline in web-based fraud, largely due to a 276 per cent surge in Point of Sale (POS) fraud incidents.
The following year, fraud losses rose by 12 per cent, driven mainly by major attacks on corporate accounts. ATM-related fraud also spiked by more than 2,000 per cent, even as mobile, POS and web fraud declined.
In 2023, the report said fraud losses increased by 23 per cent, largely on the back of a sharp rise in e-commerce fraud cases.
“Fraud losses rose by 23 per cent, largely due to a spike in e-commerce incidents, which escalated by 1,961 per cent. Mobile, POS and web channels recorded moderate increases,” the document noted.
Despite the persistent threat, the CBN said stronger regulatory interventions and industry-wide collaboration contributed to a significant reduction in fraud in 2025.
According to the report, electronic payment fraud fell by 51 per cent during the year, reflecting the impact of tighter regulations, enhanced monitoring systems, improved fraud prevention mechanisms and greater cooperation among financial institutions.
The apex bank said it has continued to work closely with stakeholders across the financial sector to strengthen oversight and reduce vulnerabilities within the payments ecosystem.
The findings come amid sustained growth in Nigeria’s digital payments landscape, with electronic channels increasingly becoming the preferred mode of transaction for businesses and consumers.
In the foreword to the Payments System Vision 2028 framework, CBN Governor, Olayemi Cardoso, said Nigeria’s payments ecosystem has transformed significantly over the past decade, driven by innovation, real-time payment systems and fintech-led growth.
While acknowledging the gains recorded under the previous Payments System Vision 2025 framework, Cardoso stressed the need for greater resilience, security and coordination as digital transactions continue to grow.
The CBN said its new Payments System Vision 2028 will focus on strengthening security, promoting trust, enhancing interoperability, expanding financial inclusion and fostering collaboration across the industry.
The framework also seeks to improve cyber resilience, strengthen consumer protection and deploy emerging technologies to combat increasingly sophisticated fraud schemes targeting the nation’s financial system.