Nigeria’s banking sector and its customers lost a staggering N134.48 billion to fraud between 2020 and 2025, according to new data released by the Central Bank of Nigeria (CBN), highlighting the growing security challenges accompanying the country’s rapid shift toward digital payments.
The figures were contained in the CBN’s Nigeria Payments System Vision 2028 document, which provides an overview of the evolution, opportunities, and risks within the nation’s increasingly digital financial ecosystem.
According to the report, attempted fraud across Nigeria’s banking and payment systems reached N187.79 billion during the six-year period, while actual losses totaled N134.48 billion. The incidents occurred across multiple transaction channels, including mobile banking, internet banking, Point of Sale (POS) terminals, Automated Teller Machines (ATMs), e-commerce platforms, web-based payment systems, cheques, and over-the-counter transactions.
The data revealed a steady increase in fraud-related losses over the years. Financial institutions and customers lost N11.61 billion in 2020, a figure that rose to N12.77 billion in 2021 and N14.32 billion in 2022. Losses climbed further to N17.67 billion in 2023 before surging dramatically to N52.26 billion in 2024, the highest annual loss recorded during the period under review.
The 2024 figure alone accounted for nearly 39 percent of all fraud-related losses recorded between 2020 and 2025, underscoring the scale of the threat facing Nigeria’s financial services industry.
Similarly, attempted fraud increased significantly over the same period. The value of attempted fraudulent transactions rose from N13.26 billion in 2020 to N14.48 billion in 2021, N16.41 billion in 2022, and N19.72 billion in 2023. The figure then jumped sharply to N86.36 billion in 2024 before declining to N37.57 billion in 2025.
The CBN attributed the extraordinary spike recorded in 2024 largely to a major internal fraud incident involving approximately N30 billion. According to the regulator, while fraud incidents across internet banking, mobile banking, and POS channels actually declined during the year, the impact of the single large-scale case significantly inflated overall industry losses.
The report also highlighted how fraud patterns have evolved across different payment channels over the years. In 2021, web-based fraud cases declined substantially, but losses still increased due to a sharp rise in POS-related fraud. In 2022, major fraud incidents involving corporate accounts contributed to higher losses, while ATM fraud surged despite improvements in other digital channels.
By 2023, the focus shifted to e-commerce platforms, where fraud incidents recorded an explosive increase. The CBN noted that online shopping and digital commerce fraud became one of the most significant contributors to rising losses during the year.
Despite these challenges, the apex bank reported a notable improvement in 2025. Fraud losses declined significantly alongside a reduction in attempted fraud cases, a development the regulator attributed to stronger regulatory measures, improved monitoring systems, increased collaboration among industry stakeholders, and enhanced fraud prevention strategies.
The CBN stated that tighter controls across the financial sector helped reduce electronic payment fraud by more than 50 percent in 2025, demonstrating the effectiveness of coordinated efforts between regulators, banks, fintech companies, and other payment service providers.
The findings come at a time when Nigeria is experiencing unprecedented growth in digital financial services. Mobile banking, instant transfers, fintech applications, and digital wallets have become central to everyday transactions, accelerating financial inclusion and transforming how millions of Nigerians interact with the financial system.
In the foreword to the Nigeria Payments System Vision 2028 document, CBN Governor Olayemi Cardoso described Nigeria’s payments ecosystem as one of the most dynamic and innovative in the world. He noted that significant progress had been made under the previous Payments System Vision 2025 framework, driven by fintech innovation, digital adoption, and real-time payment solutions.
However, Cardoso emphasized that the next phase of growth would require stronger resilience, enhanced cybersecurity, and improved coordination among stakeholders to address emerging risks associated with a rapidly expanding digital economy.
As part of its Payments System Vision 2028 strategy, the CBN plans to prioritize security, trust, innovation, interoperability, financial inclusion, and industry collaboration. The framework also seeks to strengthen regulatory oversight, improve cyber resilience, and leverage emerging technologies to combat increasingly sophisticated fraud threats.
The latest figures serve as a reminder that while digital transformation continues to unlock economic opportunities and expand access to financial services, safeguarding consumers and institutions against cybercrime remains one of the most critical challenges facing Nigeria’s financial sector.
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