Fraud in Nigeria’s banking sector has nearly tripled over the past five years, with total losses reaching ₦52.3 billion ($34.8 million) in 2024, compared to ₦11.6 billion in 2020, according to a new analysis by the Nigeria Inter-Bank Settlement System (NIBSS).
The report, released on Wednesday, highlights growing concerns over weak regulatory oversight as fraudsters attempted to steal ₦86.4 billion in 2024 alone. Nigeria, known for its expanding tech and finance sector, continues to battle a parallel rise in cyber fraud perpetrated by so-called "Yahoo boys" (internet fraudsters).
The staggering fraud figures come on the heels of Nigeria’s GDP growth of 3.8% in Q4 2024, the fastest in three years, largely driven by the services sector, including finance and insurance. The rise in banking fraud underscores the urgent need for tighter security measures and stronger financial oversight to protect the sector’s growth.
“The amount lost to fraud has increased over the past five years along with the growth of financial transactions in the digital payments sector,” NIBSS said.
Nigeria’s digital payments system is regarded as one of the most developed in Africa, and tech startups in the country raised an estimated $400 million in funding in 2024.
Such services have become even more important in recent years as a cash shortage and currency reforms pushed more users away from physical banknotes.
Fraudsters were said to use various methods, including withdrawing funds to gift cards and opening accounts with the stolen identities of senior citizens, minors, and foreigners.