Nigerian banks lost ₦25.85bn to fraud in 2025, a sharp decline from ₦52.26bn recorded in 2024, according to data released by the Nigeria Interbank Settlement System (NIBSS).
The data also showed a reduction in fraud cases across banks, falling from 123,918 in 2021 to 67,515 in 2025. The Central Bank of Nigeria attributed the drop to improvements in identity management, particularly the Bank Verification Number and its integration with the National Identification Number.
CBN Deputy Governor for Financial System Stability, Philip Ikeazor, said stronger identity verification across banking and digital channels has significantly reduced impersonation and synthetic identity fraud. He spoke in Lagos at the technical kick-off of the Nigeria Electronic Fraud Forum.
Despite the decline, NIBSS Managing Director, Premier Oiwoh, warned that digital fraud is becoming more sophisticated, driven by the growth of instant and remote banking. He said Lagos remains a major fraud hub, while Abuja and other cities are emerging as operational bases.
Oiwoh noted that internet banking recorded fewer cases but accounted for the highest losses in 2025, describing it as a low-volume, high-value fraud channel. He added that social engineering, often aided by insider collusion, remains the biggest threat.
He also raised concerns about possible underreporting of fraud cases and called for stricter enforcement of mandatory reporting rules to protect the financial system.
