Chukwu Obinna 
LAGOS, Nigeria – Nigeria records a 51 per cent drop in digital payment fraud losses in 2025, as banks strengthen security frameworks despite persistent threats from insider abuse and social engineering scams.
Data released by the Nigeria Inter-Bank Settlement System (NIBSS) show that fraud losses decline to ₦25.85 billion in 2025, down from ₦52.26 billion in 2024, marking the sharpest year-on-year reduction in recent times.
The Managing Director and Chief Executive Officer of NIBSS, Premier Oiwoh, disclosed the figures on Wednesday at the 2026 Nigeria Electronic Fraud Forum Technical Kickoff Session in Lagos.
“In 2025, fraud losses dropped significantly due to coordinated industry action and improved controls,” Oiwoh says.
He explains that 2024’s unusually high losses stem largely from a single fraud incident involving one bank, which accounted for ₦31.1 billion of the total losses and triggered a 196 per cent spike from 2023 levels.
Beyond financial losses, fraud volumes also continue a five-year downward trend, falling from 123,918 cases in 2021 to 67,518 incidents in 2025.
Lagos State remains the epicentre, accounting for 63.43 per cent of reported cases, followed by the Federal Capital Territory and Ogun, Rivers and Delta states.
Oiwoh identifies social engineering and insider compromise as the most dangerous threats.
“Insider involvement remains high, and recent investigations confirm this,” he says.
However, he raises concern over declining fraud reporting, warning that under-reporting enables perpetrators to move freely between institutions.
“Non-reporting is unacceptable. Reporting is essential to tracking and prevention,” Oiwoh stresses.
About the Author
Edino Chubiyo Cornelius 
Oluwatobi Adu 
Hussaini Ibrahim 