The Nigeria Inter-Bank Settlement System has disclosed that losses from digital payment fraud in Nigeria declined by 51 per cent in 2025, dropping to N25.85bn from N52.26bn recorded in 2024.

The Managing Director and Chief Executive Officer of NIBSS, Premier Oiwoh, revealed this on Wednesday at the 2026 Nigeria Electronic Fraud Forum Technical Kickoff Session held in Lagos.

Speaking at the event, themed “Shrinking Fraud Losses With ISO 20022 & Identity Management,” Oiwoh said a review of industry data over the past five years showed a steady reduction in fraud cases, with a more notable improvement in the value of losses recorded in 2025.

According to him, actual losses stood at about N17.67bn in 2023 before rising sharply to N52.26bn in 2024, a spike largely attributed to a single fraud incident involving N31.1bn at one banking institution. He noted that the situation improved significantly in 2025 as fraud losses dropped to N25.85bn.

Data presented at the forum showed that while the value of fraud increased by 196 per cent in 2024 due to the isolated incident, overall fraud cases have continued to decline. The number of reported cases fell from 123,918 in 2021 to 101,669 in 2022 and 95,620 in 2023. The figure further dropped to 70,111 in 2024 and declined by four per cent to 67,518 in 2025.

Geographically, Lagos remained the epicentre of fraud-related activities, accounting for 63.43 per cent of reported cases, reflecting its status as Nigeria’s commercial hub. Abuja recorded 3.12 per cent, showing a notable rise, while Ogun, Rivers, and Delta states followed with distributions ranging between 2.51 per cent and 2.09 per cent.

Oiwoh explained that fraud was most prevalent through e-commerce and internet banking channels, followed by point-of-sale, mobile, and web platforms. He added that social engineering remained the most common fraud technique, with insider abuse identified as the most significant threat to the financial system.

He stressed that fraud methods such as SIM swap, account compromise, and phishing were becoming more sophisticated, while many victims remained vulnerable due to low awareness. He emphasised the need for stronger internal controls, closer monitoring of staff activities, and sustained collaboration among financial institutions.

Oiwoh disclosed that coordinated industry actions helped prevent losses estimated at about N20bn in the past year. However, he expressed concern over a 34 per cent decline in fraud reporting in the last quarter of 2025, warning that failure to report incidents allowed perpetrators to move freely between institutions without detection.

He maintained that consistent reporting was critical for effective tracking, investigation, and prosecution of fraud cases across the banking industry.