The Nigeria Inter-Bank Settlement Systems has identified social engineering as the most common fraud technique in the country’s banking sector and digital payment system. According to Premier Oiwoh, Managing Director of NIBSS, this method is particularly prevalent in e-commerce and internet banking, followed by point of sale, mobile, and web platforms.
Speaking at an event in Lagos, Oiwoh noted that digital payment declined by 51 percent in Nigeria to N25.85 billion in 2025, down from N52.26 billion in 2024. He attributed this decline to the high incidence of fraud, particularly insider abuses or involvement, which pose the greatest threat to the sector. Oiwoh emphasized that incidents such as SIM swap fraud, account compromise, and phishing continue to evolve, with Lagos State accounting for 63 percent of all fraud cases, followed by Abuja, Ogun, Rivers, and Delta States.
The NIBSS Managing Director revealed that coordinated actions by stakeholders saved approximately N20 billion that could have been lost to fraud last year. He stressed the importance of awareness, as many victims are still easily deceived by social engineering tactics. Oiwoh also highlighted the need for internal controls, close monitoring of staff activities, and consistent joint industry action to combat fraud.
In terms of actual losses, Oiwoh reported that in 2023, the figure stood at about N17.67 billion, rising to N52.26 billion in 2024, largely due to a single incident of N31.1 billion involving one entity. However, losses dropped significantly in 2025. To address the issue, Oiwoh urged institutions to prioritize internal controls and trust among themselves, emphasizing that this is essential for effective fraud prevention.
The Nigerian banking sector’s experience with fraud highlights the need for continued vigilance and cooperation among stakeholders to protect consumers and prevent financial losses. As the sector continues to evolve, it is crucial for institutions to stay ahead of emerging threats and prioritize security measures to maintain trust and confidence in the system. By working together, stakeholders can help prevent fraud and promote a safer and more secure digital payment environment.
