Nigerian banks and their customers collectively incurred losses amounting to N134.48 billion due to fraud between 2020 and 2025. This significant figure, revealed by the Central Bank of Nigeria (CBN), underscores the persistent and evolving nature of financial crime within the nation’s banking sector. Over the same six-year period, fraudsters attempted to illicitly obtain N187.79 billion, with a substantial portion of these attempts proving successful.
The data, extracted from the CBN’s Nigeria Payments System Vision 2028 document, details the impact of fraudulent activities across a spectrum of payment channels. These include mobile banking, internet banking, Automated Teller Machines (ATMs), Point of Sale (POS) terminals, e-commerce platforms, over-the-counter transactions, and other electronic payment systems. The figures paint a stark picture of escalating losses, with 2024 emerging as the most challenging year.
Fraud losses escalated from N11.61 billion in 2020 to N12.77 billion in 2021 and N14.32 billion in 2022. A further increase to N17.67 billion was recorded in 2023, followed by a dramatic surge to N52.26 billion in 2024. This 2024 figure alone represented nearly 39% of the total losses over the entire six-year period, highlighting a significant escalation in the scale of successful fraud.
Concurrently, attempted fraud followed a similar upward trajectory. From N13.26 billion in 2020, attempts rose to N14.48 billion in 2021, N16.41 billion in 2022, and N19.72 billion in 2023. The year 2024 saw a sharp jump to N86.36 billion in attempted fraud. A notable improvement was observed in 2025, with attempted fraud declining to N37.57 billion and actual losses dropping to N25.85 billion, indicating a potential shift in the effectiveness of mitigation strategies.
The CBN has attributed the pronounced spike in 2024 losses primarily to a single, substantial internal fraud incident valued at N30 billion. This singular event significantly skewed the industry-wide statistics, even as improvements were noted in certain digital payment channels. The regulator also highlighted a considerable increase in web-based fraud incidents during the period, with e-commerce fraud identified as one of the fastest-growing threats to the financial system. While 2023 losses were largely driven by e-commerce scams, previous years saw spikes in POS and ATM fraud.
Despite these challenges, the CBN reported a 51% reduction in electronic payment fraud in 2025, a success attributed to the implementation of stricter regulations, enhanced industry collaboration, improved monitoring systems, and more robust fraud prevention measures. CBN Governor, Olayemi Cardoso, acknowledged the dynamic nature of Nigeria’s payment ecosystem, driven by rapid digitalisation, fintech innovation, and the growing adoption of electronic transactions. He cautioned that while these advancements foster financial inclusion and reduce transaction costs, they concurrently heighten exposure to cyber threats and financial crimes.
In response to these evolving risks, the CBN’s Payments System Vision 2028 framework will prioritise strengthening cybersecurity, enhancing consumer protection, reinforcing regulatory oversight, and deploying advanced technologies to combat increasingly sophisticated fraud schemes across the financial sector. This strategic focus is critical for safeguarding the integrity of the payment system and protecting the interests of all stakeholders, including financial institutions, their customers, and investors.
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