By Eteteonline
According to data released by the Nigeria Interbank Settlement System (NIBSS) Plc, banks lost N25.85 billion to fraud in 2025.
According to industry-wide data provided at the 2026 Nigeria Electronic Fraud Forum, fraud losses in Nigerian banks decreased by 51% in 2025, to roughly ₦25.85 billion from ₦52.26 billion in 2024. Even though overall losses decreased, digital channels—especially internet and mobile banking—remained the most targeted.
The number of reported fraud instances decreased, according to some studies, but the value of major incidents—particularly high-value cyberfraud—remained a worry.
Law enforcement and the Central Bank of Nigeria have warned of a rise in digital fraud linked to the expansion of mobile banking and cybercrime throughout Africa, which also impacts Nigerian institutions and consumers.
People illegally gained access to a bank’s computers in January 2025 and took approximately ₦8.56 billion out of accounts. In late 2025, one defendant entered a guilty plea and received a sentence of three years in jail for his involvement.
In January 2026, a bank customer was found guilty of converting more than ₦1.5bn in monies between June and November 2025. He was sentenced to one year in prison (or a fine of ₦5 million) and was required to return a portion of the stolen assets.
Some banks reported losses that were mostly related to fraudulent withdrawals and transfers as well as falsified instruments. These losses demonstrate how fraudsters now primarily target digital transaction areas (web, mobile, PoS). The majority of occurrences were caused by external actors, whereas internal involvement was less common.
The Central Bank of Nigeria (CBN) credited the nation’s advancements in identity management for the decrease in the amount and value of fraud.
According to Mr. Philip Ikeazor, Deputy Governor (Financial System Stability) at the CBN, impersonation and synthetic identity fraud have been greatly reduced since the Bank Verification Number (BVN) was introduced and continues to be integrated with the National Identification Number (NIN).
Ikeazor gave a speech in Lagos during the Nigeria Electronic Fraud Forum’s (NEFF) technical kick-off session, which focused on the topic of “Shrinking fraud losses ISO 20022 & identity management.”
The CBN official said in his keynote talk that improved identity verification across banking, agent networks, and high-risk digital channels is steadily closing gaps previously exploited by criminals.
“This reinforces the critical role of identity infrastructure as a foundational control for payment system integrity, with NIMC remaining a key partner in strengthening fraud prevention going forward.”
In order to combat digital fraud, banks and regulators—particularly the CBN and NIBSS—have stepped up their efforts. Some of these measures include enhanced identity checks like BVN-NIN integration and quicker fraud response objectives.
Stronger consumer protections were reflected in the CBN’s late 2025 proposal of guidelines mandating banks to compensate victims of specific fraud types (such as APP scams) within 48 hours of investigations.
Nigerian bank fraud in 2025 was characterized by a notable decrease in overall fraud losses as compared to 2024, ongoing high-value digital fraud, particularly via mobile and internet channels, and regulatory pressure for improved client protection, quicker responses, and more robust safeguards.
Industry observers have cautioned that the fall in reported cases may be partially due to underreporting rather than a real decline, which could conceal persisting hazards.
Although fraud is still a major problem, particularly with digital payments, improved industry cooperation and technologically advanced defences are making some headway.
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