Nigeria's banking sector and its customers have lost a staggering N134.48 billion to fraud between 2020 and 2025, underscoring the growing security challenges accompanying the country’s rapid transition to digital payments and financial technology-driven services.
The alarming figure was disclosed in the Central Bank of Nigeria's Nigeria Payments System Vision 2028 document, which revealed that total attempted fraud during the six-year period reached N187.79 billion, while actual losses stood at N134.48 billion.
The losses cut across virtually every major payment channel in the financial ecosystem, including Automated Teller Machines (ATMs), Point of Sale (POS) terminals, Internet banking, mobile banking, e-commerce platforms, over-the-counter transactions, cheques, web-based channels and other electronic payment systems.
The data highlights the growing battle between financial institutions and increasingly sophisticated fraudsters at a time when digital transactions have become central to commercial activities nationwide.
Fraud Losses Climbed Steadily Before Exploding in 2024
An analysis of the figures showed a consistent rise in fraud-related losses over the years.
Banks and customers lost N11.61 billion in 2020, with the figure increasing to N12.77 billion in 2021 and N14.32 billion in 2022. Losses rose further to N17.67 billion in 2023 before recording a dramatic spike to N52.26 billion in 2024 — the highest annual fraud loss recorded during the period under review.
The 2024 figure accounted for nearly 39 per cent of the total N134.48 billion lost within six years, highlighting the severity of fraud incidents that year.
A similar trend was observed in attempted fraud cases. The value of attempted fraud increased from N13.26 billion in 2020 to N14.48 billion in 2021, N16.41 billion in 2022 and N19.72 billion in 2023 before surging sharply to N86.36 billion in 2024.
Although both attempted fraud and actual losses declined in 2025, the figures remained substantial at N37.57 billion and N25.85 billion respectively.
N30bn Internal Fraud Case Drove 2024 Spike
According to the Central Bank, a major internal fraud incident involving N30 billion was largely responsible for the extraordinary jump in losses recorded in 2024.
The regulator explained that while fraud levels reduced across several electronic payment channels, the scale of the single incident significantly distorted industry-wide statistics.
“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 development demonstrated how one large-scale internal compromise could overshadow improvements made across other payment channels.
Fraud Patterns Shifted Across Payment Platforms
The report showed that fraud trends evolved differently across channels over the years, reflecting changing tactics by cybercriminals and fraud syndicates.
In 2021, web-based fraud losses declined by 43 per cent. However, the overall industry still recorded higher losses because Point of Sale fraud incidents surged by 276 per cent.
The following year, fraud losses increased by 12 per cent, largely due to major incidents involving corporate accounts. During the same period, ATM-related fraud skyrocketed by more than 2,000 per cent despite improvements in mobile banking, POS and web transactions.
By 2023, fraudsters increasingly shifted their attention to online shopping platforms and digital commerce.
“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 CBN stated.
The figures underscore how fraud schemes continue to adapt to technological changes and emerging payment trends.
Stronger Controls Yield Results in 2025
Despite persistent threats, the Central Bank reported significant progress in reducing fraud losses during 2025 through tighter regulations, enhanced monitoring systems and stronger industry collaboration.
According to the report, coordinated efforts among banks, fintech firms, payment service providers and regulators contributed to the decline.
“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 regulator said industry stakeholders have intensified efforts to identify vulnerabilities across payment platforms and implement safeguards capable of reducing financial crime risks.
Digital Payments Expansion Creates New Security Challenges
The findings come against the backdrop of Nigeria’s rapidly expanding digital economy, where instant transfers, mobile banking applications, fintech solutions and digital wallets have become the preferred channels for millions of consumers and businesses.
Over the last decade, electronic payment adoption has accelerated significantly, driven by financial inclusion initiatives, growing smartphone penetration and innovations within the fintech ecosystem.
In the foreword to the Payments System Vision 2028 framework, CBN Governor, Olayemi Cardoso, acknowledged the remarkable transformation of Nigeria’s payments landscape.
He noted that the country's payment ecosystem has emerged as one of the most innovative and dynamic globally, supported by real-time payment systems, increased digital adoption and fintech-led innovation.
However, Cardoso cautioned that sustaining this growth would require stronger resilience, improved coordination among stakeholders and greater attention to security risks.
CBN Targets Safer Digital Payment Ecosystem
While recognising that digitalisation has improved financial inclusion and reduced transaction costs for consumers, the apex bank warned that the expansion of electronic payments has also created new vulnerabilities.
The regulator said future priorities under the Payments System Vision 2028 framework will focus on strengthening trust, security and resilience across the financial system.
The framework is built around key pillars including innovation, interoperability, inclusion, collaboration and enhanced cybersecurity.
It also seeks to deepen regulatory oversight, improve cyber resilience capabilities and deploy emerging technologies capable of detecting and preventing increasingly sophisticated fraud attempts.
For regulators and financial institutions, the challenge is no longer just expanding access to digital payments but ensuring that the ecosystem remains secure as transaction volumes continue to grow.
As Nigeria advances toward a more cashless economy, the battle against fraud is expected to remain a major priority for banks, fintech operators and regulators seeking to preserve public confidence in the country's digital financial infrastructure.