January 22, (THEWILL) — Banking sector fraud in Nigeria recorded a significant decline in 2025, according to industry data presented at the 2026 Nigeria Electronic Fraud Forum (NeFF) Technical Kick-Off Session in Lagos.
Figures from the Nigeria Inter-Bank Settlement System (NIBSS) show that total losses from fraud dropped by 51% to ₦25.85 billion in 2025, down from ₦52.26 billion in 2024.
The decline in loss value coincided with a continued downward trend in the number of reported fraud cases, which fell to 67,518 in 2025 from 70,111 in 2024 marking the first sustained slump in fraud volumes since 2021. Fraud case counts have trended lower over multiple years, from 95,620 in 2023, 101,669 in 2022, and 123,918 in 2021.
NIBSS Managing Director/CEO, Premier Oiwoh, attributed the improvement to strengthened fraud controls, faster response times and better identity management. Industry operators have increasingly emphasised integration of Bank Verification Numbers (BVN) with the National Identification Number (NIN) to curb identity-related fraud, a persistent challenge in earlier years.
Despite the overall decline, industry officials noted areas of concern. Internet banking emerged as the most financially damaging channel, recording losses of about ₦13.37 billion from 4,507 cases, even as platforms such as e-commerce, web and mobile channels continued to be common points for fraudulent activity.
Geographically, Lagos State accounted for over 63% of fraud incidents in 2025, underscoring its role as the nation’s commercial hub and largest payments centre.
However, NIBSS and industry stakeholders warned that declining reporting compliance by banks could mask the full picture, noting that the number of institutions actively reporting incidents fell from 45 in mid-2024 to 34 by the end of 2025.
Regulators, including the Central Bank of Nigeria, have continued to push for accelerated fraud response times targeting resolution within 30 minutes of detection and enhanced collaboration among financial institutions, payment service providers and law enforcement to further reduce fraud risk.
Ogochukwu Onwaeze
