Fraud-related losses in Nigeria’s banking sector have nearly tripled over the past five years, according to a report by the Nigeria Inter-Bank Settlement System (NIBSS). The analysis revealed that financial fraud cost the country 52.3 billion naira ($34.8 million) in 2024, a sharp rise from 11.6 billion naira in 2020.
The report also noted that fraudsters attempted to siphon 86.4 billion naira in 2024, leveraging various schemes, including identity theft and unauthorized withdrawals. The rise in fraud coincides with Nigeria’s expanding digital payments sector, which has grown significantly due to a cash shortage and currency reforms. Despite its reputation as one of Africa’s most robust digital payment ecosystems, the country remains vulnerable to cybercriminals, popularly known as “Yahoo boys.”
Nigeria’s financial sector has seen remarkable growth, contributing to a 3.8% GDP increase in Q4 2024, the highest in three years. The fintech industry also attracted an estimated $400 million in funding last year, further solidifying the country’s digital finance expansion. However, regulatory challenges persist, with Nigeria remaining on the global “grey list” for deficiencies in anti-money laundering measures.
The Economic and Financial Crimes Commission (EFCC) has intensified efforts to combat internet fraud, recently arresting 792 suspects in Lagos, including 192 foreign nationals—148 of whom were Chinese. Authorities revealed that international fraud rings recruit Nigerian accomplices to target victims across North America and Europe through phishing schemes. Meanwhile, NIBSS confirmed that some stolen funds have been recovered, and implicated bank staff are under investigation.
Nigeria’s statistics agency has announced plans to include illegal and underground economic activities in future GDP calculations, reflecting the growing impact of cyber fraud on the nation’s economy.
Source: Swifteradio.com
