The rapid rise of fintech companies in Nigeria has been accompanied by a troubling surge in fraud cases within the payment ecosystem, according to recent findings by financial sector analysts and regulatory bodies.
Data released by the Nigeria Inter-Bank Settlement System (NIBSS) reveals that money lost to fraud in the Nigerian banking system has nearly tripled over the past five years, signaling growing vulnerabilities in digital financial services.
Further analysis by the Financial Institutions Training Centre (FITC) shows a rise in reported fraud cases, with 11,532 incidents recorded in Q2 2024, slightly up from 11,472 in Q1 2024.
Industry experts attribute this trend to the expanding footprint of digital payment platforms, increased mobile money usage, and gaps in cybersecurity measures, especially among newer fintech startups.
While fintechs continue to drive financial inclusion and innovation, the sharp increase in fraud is prompting calls for stronger regulatory oversight, enhanced data protection, and investment in anti-fraud technology to protect consumers and maintain trust in Nigeria’s evolving financial landscape.