CBN Tightens Rules After ₦26 Billion Drop In Electronic Fraud Losses
CBN Mandates Faster Bank Response to Fraud Complaints
THE Central Bank of Nigeria (CBN) has directed commercial banks to respond to electronic fraud complaints within 30 minutes, following a significant 51 per cent reduction in fraud-related losses across the financial sector in 2025.
The new directive, announced at the Nigeria Electronic Fraud Forum (NeFF) Technical Kick-off Session in Lagos, is aimed at strengthening consumer protection, improving recovery rates, and sustaining the downward trend in electronic fraud losses amid Nigeria’s rapidly expanding digital payments ecosystem.
According to data presented at the forum, funds lost to electronic fraud declined sharply from ₦52.26 billion in 2024 to ₦25.85 billion in 2025. The figures were released by the Managing Director of the Nigeria Inter-Bank Settlement System (NIBSS), Premier Oiwoh.
Fraud Volume Drops, Lagos Tops Incidents
While the total value of fraud losses recorded a steep decline, the number of reported fraud cases fell marginally by four per cent, from 70,111 incidents in 2024 to 67,518 in 2025.
Geographically, Lagos State accounted for the overwhelming majority of fraud incidents, representing 63.43 per cent of total reported cases nationwide. The Federal Capital Territory, Abuja, followed distantly with 3.12 per cent, underscoring persistent regional disparities in fraud exposure.
CBN: Faster Response Critical to Recovery
Speaking on behalf of the CBN Deputy Governor for Financial System Stability, Philip Ikeazor, the Director of Development and Finance Institutions Supervision, Ibrahim Umar Hassan, said the industry had reached a consensus on the need for rapid intervention once fraud is detected.
“The industry has agreed to reduce fraud response time to under 30 minutes, a decisive step that materially improves recovery outcomes and limits systemic exposure,” he said.
He warned that delays in responding to fraud incidents often compound losses, weaken customer trust, and erode confidence in electronic payment channels.
Evolving Fraud Risks in a Digital Economy
Hassan noted that although Nigeria has made notable progress in securing its payments infrastructure, fraud risks have continued to evolve alongside increasing digitisation.
He explained that traditional forms of fraud, such as ATM card cloning, have been largely neutralised, but newer and more complex threats have emerged. These include online fraud, social engineering scams, SIM-swap abuse, insider compromise, and authorised push payment fraud.
To counter these risks, the apex bank is placing renewed emphasis on the adoption of ISO 20022, a global financial messaging standard.
ISO 20022 as an Anti-Fraud Tool
According to the CBN, ISO 20022 is not merely a compliance requirement but a strategic tool for combating fraud. The standard enables richer, more structured transaction data, which enhances traceability, analytics, and early detection of suspicious activities.
“Beyond compliance, ISO 20022 provides richer, structured transaction data that enhances traceability, analytics and early fraud detection,” Hassan said, adding that better data quality would support faster investigations and improved cross-border cooperation.
Compliance Checks and KYC Enforcement
Also speaking at the forum, the CBN Director of Payment System Supervision and Chairman of NeFF, Dr. Rakiya Yusuf, disclosed that the central bank would soon begin inspecting banks to ensure full compliance with ISO 20022 requirements.
She also stressed the importance of strict adherence to Know Your Customer (KYC), Know Your Business (KYB), and Customer Due Diligence (CDD) standards, warning that the apex bank would not tolerate lapses.
“There is no such policy as KYC zero,” Yusuf said, clarifying that only KYC Levels 1, 2, and 3 are recognised by regulation.
NIBSS Steps Up Intelligence Sharing
Meanwhile, NIBSS Managing Director Premier Oiwoh said digital payments fraud in Nigeria has grown in scale, speed, and sophistication, driven by the widespread adoption of instant and remote banking channels.
To address this, he said NIBSS has strengthened fraud intelligence sharing among financial institutions and operationalised a centralised portal containing records of fraud perpetrators dating back to 2019, ensuring offenders are systematically flagged across the financial system.
