Nigeria’s banking sector lost approximately N134.48 billion to fraud between 2020 and 2025, reflecting the growing risks tied to the country’s rapid expansion in digital payments and fintech adoption, according to data from the Central Bank of Nigeria’s Nigeria Payments System Vision 2028 report.
The document, published on the CBN website, also showed that attempted fraud within the financial ecosystem rose to N187.79 billion over the same period, highlighting sustained pressure on banks, payment service providers and customers across multiple transaction channels.
These channels include mobile banking, internet banking, Point-of-Sale (PoS) terminals, Automated Teller Machines (ATMs), e-commerce platforms, cheque transactions, over-the-counter services and other electronic payment systems.
Fraud losses in Nigeria’s digital payment ecosystem rose steadily over the years, increasing from N11.61 billion in 2020 to N12.77 billion in 2021 and N14.32 billion in 2022. The figure further climbed to N17.67 billion in 2023 before surging sharply to N52.26 billion in 2024 the highest annual loss within the period reviewed.
That 2024 figure accounted for nearly 39 per cent of total fraud losses recorded between 2020 and 2025.
Attempted fraud followed a similar 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 jumping significantly to N86.36 billion in 2024.
By 2025, however, both attempted fraud and actual losses declined to N37.57 billion and N25.85 billion respectively.
The CBN attributed the sharp increase in 2024 largely to a major internal fraud incident valued at about N30 billion.
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 N30bn. Web fraud incidents also increased by 169 per cent.”
The report showed that fraud patterns varied significantly across different payment platforms over the years.
In 2021, web-based fraud fell by 43 per cent, but overall losses still rose due to a 276 per cent increase in PoS related fraud cases.
In 2022, fraud losses increased by 12 per cent, driven mainly by corporate account-related incidents, while ATM fraud surged by more than 2,000 per cent despite declines in mobile, PoS and web channels.
By 2023, losses rose by 23 per cent, largely due to a sharp spike in e-commerce fraud, which jumped by 1,961 per cent. Mobile, PoS and web channels also recorded moderate increases.
“Fraud losses rose by 23 per cent, largely due to a spike in e-Commerce incidents, which escalated by 1,961 per cent,” the report stated.
Despite previous increases, the financial system recorded a major improvement in 2025, with electronic payment fraud declining by 51 per cent.
The CBN attributed this development to tighter regulatory measures, improved collaboration across the financial industry, enhanced monitoring systems and stronger fraud prevention strategies
The findings come amid Nigeria’s continued shift toward a cashless economy, driven by widespread adoption of mobile banking, instant transfers, fintech applications and digital wallets.
CBN Governor Olayemi Cardoso noted in the report’s foreword that Nigeria’s payment system has evolved into one of the most dynamic globally, supported by rapid digital adoption and innovation in financial services.
While the previous Payments System Vision framework expanded financial inclusion and electronic payments, the new Payments System Vision 2028 is focused on strengthening resilience and addressing emerging risks.
The CBN acknowledged that while digitalisation has improved access, efficiency and inclusion, it has also introduced more sophisticated fraud risks.
Under the new framework, priorities include strengthening cybersecurity, improving fraud detection systems, enhancing consumer protection and ensuring stronger interoperability across payment platforms.
The apex bank also outlined plans to deepen regulatory oversight and deploy advanced technologies to detect and prevent increasingly complex fraud schemes.
As Nigeria’s digital economy continues to expand, the report suggests that future growth will depend not only on innovation and adoption, but also on the strength and resilience of the country’s financial security systems.
