The Central Bank of Nigeria (CBN) has called on banks and financial institutions to take faster and more coordinated action against emerging electronic fraud threats, as the country’s digital payments sector continues to grow rapidly. The appeal was made during the 2026 Nigeria Electronic Fraud Forum (NeFF) Technical Kick-Off Session in Lagos, which brought together regulators, banks, payment service providers, identity agencies, and law enforcement officials.
Deputy Governor for Financial System Stability, Mr. Philip Ikeazor, highlighted that fraud schemes are becoming increasingly complex, including social engineering, SIM-swap abuse, insider compromise, and Authorised Push Payment (APP) scams. Speaking through Mr. Ibrahim Hassan, Ikeazor emphasized that reducing fraud response times to under 30 minutes and adopting enterprise-wide fraud management systems with real-time analytics are critical for safeguarding Nigeria’s payment infrastructure.
The CBN official credited industry-wide collaboration under the NeFF framework, established in 2011, with significantly strengthening the resilience of Nigeria’s payments system. He pointed to key achievements such as the introduction of EMV chip-and-PIN cards, two-factor authentication, centralized fraud reporting, and the integration of Bank Verification Numbers (BVN) with National Identification Numbers (NIN), which collectively contributed to a decline in fraud losses despite rising transaction volumes.
Supporting these findings, the Managing Director and CEO of the Nigeria Inter-Bank Settlement System (NIBSS), Mr. Premier Oiwoh, confirmed that electronic payment fraud losses fell notably in 2025. He noted that while internet banking and e-commerce remain vulnerable, improved reporting, stronger KYC and KYD processes, and a central database of over 13,000 “Persons of Interest” are enhancing fraud detection. Oiwoh also warned that weak reporting and poor identity verification could still expose the system to risks if not addressed.
Looking ahead, NIBSS plans to work with the CBN and other stakeholders to deploy advanced AI-driven monitoring tools and develop new national payment infrastructure. The goal is to further strengthen fraud prevention while promoting financial inclusion. The 2026 NeFF Technical Kick-Off Session, themed “Shrinking Fraud Losses With ISO 20022 and Identity Management,” underscores the urgent need for proactive, coordinated action as Nigeria confronts a surge in digital fraud, with losses linked to virtual asset platforms rising sharply in 2025.
source: nairametrics