N134 Billion Lost to Fraud: Nigeria’s Financial Sector Faces Escalating Digital Threats
Nigeria’s banking and payments ecosystem suffered staggering losses of N134.48 billion between 2020 and 2025 due to criminal activities targeting financial institutions and their customers. This figure, derived from the Central Bank of Nigeria’s (CBN) Nigeria Payments System Vision 2028 document, underscores the escalating challenge of securing the nation’s rapidly digitising financial landscape. Over the same six-year period, attempted fraud reached an alarming N187.79 billion, highlighting the pervasive nature of these illicit operations across a multitude of payment channels.
The losses were distributed across various transaction methods, including over-the-counter services, Automated Teller Machines (ATMs), cheques, e-commerce platforms, internet banking, mobile banking, Point of Sale (POS) terminals, web channels, and other electronic payment avenues. Data analysis reveals a concerning upward trend in fraud losses, escalating from N11.61 billion in 2020 to N12.77 billion in 2021 and N14.32 billion in 2022. This trajectory continued with N17.67 billion in 2023, before a dramatic surge to N52.26 billion in 2024, marking the highest annual loss within the analysed period. The 2024 figure alone constituted nearly 39% of the total losses incurred over the six years.
Similarly, attempted fraud saw a significant increase, 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 a substantial jump to N86.36 billion in 2024. A notable decline was observed in 2025, with both attempted fraud and actual losses falling to N37.57 billion and N25.85 billion, respectively. The CBN attributes the sharp increase in 2024 primarily to a major internal fraud incident involving N30 billion. This event significantly distorted industry-wide loss figures, despite reported declines in fraud amounts within Internet Banking, Mobile, and POS channels. Web fraud incidents also saw a substantial increase of 169% in 2024.
The report further details evolving fraud patterns prior to the 2024 spike. In 2021, while web-based fraud declined by 43%, overall losses increased due to a 276% surge in POS fraud incidents. The following year, 2022, saw a 12% rise in fraud losses, largely driven by significant incidents affecting corporate accounts, and a more than 2,000% increase in ATM fraud, even as mobile, POS, and web channels experienced declines. In 2023, fraud losses rose by 23%, predominantly due to a massive 1,961% escalation in e-commerce-related fraud cases, with moderate increases observed in mobile, POS, and web channels.
Despite these persistent threats, the industry demonstrated a notable improvement in 2025, attributed to stricter controls and enhanced stakeholder collaboration. The CBN noted a 51% decline in electronic payment fraud in 2025, signalling the success of strengthened regulations, increased industry cooperation, improved prevention strategies, and enhanced monitoring. The apex bank, in conjunction with industry stakeholders, has bolstered oversight and implemented collaborative safeguards to mitigate vulnerabilities across payment platforms.
These findings emerge as Nigeria experiences a profound shift towards electronic payments, with real-time transfers, mobile banking, fintech applications, and digital wallets becoming integral to daily commerce. Olayemi Cardoso, Governor of the CBN, highlighted in the foreword to the Payments System Vision 2028 document that Nigeria’s payments ecosystem has become one of the world’s most dynamic and innovative, driven by digital adoption and fintech advancements. While the previous Payments System Vision 2025 framework facilitated significant growth in electronic payments and digital financial services, the next phase necessitates enhanced resilience and coordination. The CBN acknowledges that while digitalisation promotes financial inclusion and reduces transaction costs, it also introduces new risks requiring robust cybersecurity, consumer protection, and fraud monitoring systems. The Payments System Vision 2028 prioritises security, trust, innovation, interoperability, inclusion, and collaboration, aiming to strengthen regulatory oversight, improve cyber resilience, and deploy emerging technologies to combat sophisticated fraud.
In parallel, the federal government has issued comprehensive guidelines for the implementation of the Tax Acts 2025, establishing a formal framework for the nation’s transition to a new tax regime effective January 1, 2026. These guidelines, released by the Federal Ministry of Finance, address taxpayers, practitioners, and revenue authorities, covering the treatment of existing tax liabilities, ongoing audits, pending incentive applications, and transactions spanning both old and new legal regimes. Finance Minister and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, described the document as a framework for managing transitional issues without retroactive application of the new laws, anchored on clarity, fairness, and administrative certainty. The Tax Acts 2025 comprise four statutes: the Nigeria Revenue Service (Establishment) Act, the Nigeria Tax Act, the Nigeria Tax Administration Act, and the Joint Revenue Board (Establishment) Act. Tax liabilities, assessments, audits, investigations, disputes, and enforcement actions relating to periods before January 1, 2026, will continue under the repealed laws. Tax returns for accounting periods ending before this date must also be filed under the previous framework, while returns due from January 1, 2026, onwards will fall under the new regime. Existing tax incentives and exemptions remain valid until expiry, with new applications and pending requests subject to the Tax Acts 2025 provisions. The guidelines also address income and transaction taxes, development levies, record-keeping, and cross-regime transactions, ensuring uniform implementation across all revenue administration bodies.
Fidelity Bank Plc has reiterated its commitment to social impact and economic inclusion through initiatives focused on empowering women and schoolchildren in Anambra State. The recent Fidelity Empowerment Programme in Awka saw the distribution of 200 sewing and grinding machines, N25 million in seed capital, 1,500 food packs, and 250 solar-powered school bags. This initiative, conducted in partnership with Healthy Living with Nonye Soludo, an NGO led by the Wife of the Governor of Anambra State, Dr. Mrs. Nonye Soludo, consolidated three of Fidelity Bank’s flagship social impact programmes: the Fidelity Food Bank Initiative, Lighting Young Minds Programme, and Give Her Power Initiative. Dr. Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, emphasised the bank’s purpose beyond banking, aiming to help individuals realise aspirations and build better lives, recognising that community prosperity fuels business success. The Fidelity Food Bank Initiative provides critical support to vulnerable households, while the Lighting Young Minds Programme equips schoolchildren with solar-powered bags to enhance learning. The Give Her Power Initiative supports women entrepreneurs through vocational tools and financial assistance. Dr. (Mrs.) Nonye Soludo commended Fidelity Bank’s dedication to uplifting vulnerable groups and investing in community development, highlighting the programme’s role in empowering individuals and strengthening the future of Anambra State.
