Nigeria’s financial sector recorded a sharp decline in fraud-related losses in 2025, with total losses falling to ₦25.85 billion, representing a 51 per cent reduction from ₦52.26 billion reported in 2024, amid intensified regulatory and industry-wide counter-fraud actions led by the Central Bank of Nigeria (CBN).
Data presented at the 2026 Nigeria Electronic Fraud Forum (NeFF) Technical Kick-Off Session in Lagos revealed that while electronic fraud remains a major risk, coordinated controls and stronger identity systems are beginning to yield results. The number of reported fraud cases also declined to 67,518 incidents, down from 70,111 cases recorded a year earlier.
According to figures released by the Nigerian Interbank Settlement System (NIBSS), internet and mobile banking platforms continued to attract the highest number of attacks, accounting for 27,460 and 22,470 cases respectively. However, internet banking emerged as the costliest channel, with losses of ₦13.37 billion from just 4,507 incidents, underscoring the financial impact of fewer but more sophisticated attacks.
Brandspur Banking News Desk reports that social engineering fraud remained the dominant threat, responsible for 47 per cent of total fraud volume and ₦17.84 billion in losses. Other prevalent methods included card theft, accounting for 17 per cent of incidents, and robbery-related fraud, which contributed 11 per cent, reflecting the persistent overlap between physical and digital crime.
Geographical data showed that Lagos State accounted for more than 63 per cent of total fraud activity, maintaining its position as Nigeria’s primary fraud hotspot. The Federal Capital Territory, Abuja, alongside other major urban centres, was also identified as gaining prominence in organised fraud operations.
Despite the improved loss figures, industry stakeholders expressed concern over declining fraud-reporting compliance. The number of financial institutions actively reporting fraud incidents dropped from 45 in mid-2024 to 34 by the end of 2025, a trend experts warned could undermine early detection and coordinated response efforts.
To address emerging risks, the CBN has launched an industry-wide anti-e-fraud offensive, targeting a reduction in fraud response times to under 30 minutes. The initiative prioritises real-time monitoring, predictive analytics, and stronger collaboration among banks, fintechs, payment service providers, telecom operators, and law enforcement agencies.
The apex bank said the new strategy marks a shift away from reactive controls towards enterprise-wide, real-time fraud management, as electronic fraud increasingly poses a threat to financial stability, consumer trust, and financial inclusion gains.
Key elements of the framework include tighter BVN–NIN integration, expanded use of shared fraud databases, and enhanced identity verification through application programming interfaces (APIs). Regulators disclosed that over 3,400 individuals linked to fraudulent activities are already listed on an integrated fraud watch portal, accessible to security agencies and financial institutions.
Industry leaders stressed that sustained cooperation, intelligence sharing, and strict reporting standards remain critical, warning that fraudsters thrive where institutions operate in isolation. With digital transactions continuing to rise, regulators say the success of Nigeria’s anti-fraud drive will depend on speed, transparency, and collective action across the financial ecosystem.
