Losses to fraud in Nigerian financial institutions fell 51% to 25.85 billion naira ($17 million) in 2025 from 52.26 billion naira a year earlier, even as the central bank rolls out tougher, industrywide measures to combat rising digital fraud, officials said.
The Central Bank of Nigeria said the new push aims to cut fraud response times to less than 30 minutes across the banking system.
Data presented by Nigerian Interbank settlement System showed the number of reported fraud cases dropped 4% to 67,518 in 2025 from 70,111 in 2024.
Speaking at the Nigeria Electronic Fraud Forum technical kickoff session in Lagos, NIBSS Managing Director Premier Oiwoh said internet and mobile channels remained the most targeted platforms by volume, accounting for 27,460 and 22,470 cases, respectively.
Internet banking, however, caused the highest financial damage, with losses of 13.37 billion naira from just 4,507 cases, he said.
According to the data, social engineering was the most significant fraud threat in 2025, responsible for 47% of total cases and 17.84 billion naira in losses. Card theft accounted for 17% of cases, while robbery made up 11%, highlighting what officials described as the continued overlap between physical and digital crime.
Geographically, Lagos State remained the country’s main fraud hotspot, accounting for more than 63% of total fraud volume in 2025. The Abuja and other major urban centers were also identified as emerging bases for fraud operations.
Despite the drop in losses, Oiwoh raised concerns about weakening fraud-reporting compliance among financial institutions. He said the number of banks actively reporting fraud cases fell to 34 by the fourth quarter of 2025, down from a peak of 45 in the second quarter of 2024.
“Reporting is critical,” Oiwoh said. “Fraud reporting is not just about recovery; it enables tracking and prevention. We have seen cases where fraudsters left one bank and moved to another simply because there was no reporting.”
He said NIBSS, working with the central bank, the Nigerian Financial Intelligence Unit and security agencies, has expanded a Person of Interest Portal that has captured more than 3,400 individuals linked to fraudulent activities since 2019. The system, he said, integrates industry watchlists and regulatory databases and allows real-time identity verification.
Oiwoh also urged banks to strengthen internal controls, including staff profiling, job rotation and mandatory leave, and to cooperate more closely by sharing intelligence.
“Fraudsters succeed when institutions operate in silos,” he said. “Collaboration is key.”
