Payment is the lifeblood of any economy, representing the flow of money from buyer to seller. For most of history, payments were physical, relying on cash. With digital technologies, transactions have shifted online and become largely contactless. While cash remains dominant in places like Nigeria, the pandemic spurred widespread adoption of electronic payments. A report by the Nigeria Inter‑Bank Settlement System titled “Instant Payments – 2020 Annual Statistics” confirmed that COVID‑19 transformed the e‑payments landscape, accelerating instant‑payment adoption as more people turned to electronic channels for fund transfers.
Since then, the Central Bank of Nigeria’s naira redesign policy has driven e‑payment volumes to record highs. In January 2023, cashless transactions rose 45.41 % year‑on‑year to N39.58 trillion. The CBN expects this growth to continue. Its Payments Vision 2025 document outlines a future where a cashless, efficient electronic‑payment infrastructure will gradually phase out cash transactions. The bank notes that “the use of cash will naturally slow with the ‘mobile‑first generation’, which will be economically active by 2025,” and that enhancing the cashless policy is a key focus of PSV 2025. The CBN adds that, as it implements the agenda, the Nigerian payments system will be widely utilised domestically, support financial‑inclusion goals, meet international standards, and contribute to national economic growth and development.
The surge in e‑payments has also led to a rise in online fraud, with scammers accessing accounts and stealing victims’ money. According to the NIBSS, faster transaction processing and more channels have created opportunities for fraudulent activity. In the first half of 2022, three Nigerian banks reported 26,877 fraud cases, based on analyses of their financial reports. Speaking at a webinar organized by the Committee of e‑Banking Industry Heads (CeBIH) on “Digital Fraud and the Need for a National Intelligence Programme,” CeBIH Chairperson Ms Celestina Appeal warned that online fraud could become the most prominent type of fraud by 2030. Experts attribute the growing fraud rate to slow adoption and low trust in e‑payment platforms.
Basic awareness of online scams can help you avoid becoming a victim. Here are several protective measures, compiled from The Economic Times:
– **Use verified apps only.** Download financial or other apps exclusively from official stores such as Google Play, Apple App Store, or Windows App Store.
– **Browse authorized websites only.** Beware of imposter sites that mimic legitimate ones. Look for “https://” and the lock icon in the browser’s address bar.
– **Use secure connections only.** Avoid public Wi‑Fi hotspots for financial transactions, as they are more vulnerable to data theft.
– **Be vigilant while using cards.** Make card payments in view, and ensure the POS machine is genuine to prevent skimming.
– **Maintain security software.** Keep your phone, computer, web browser, and operating system updated. Use strong, regularly changed passwords with a mix of characters, numbers, and cases.
– **Do not share personal information.** Verify the identity of anyone requesting financial details; banks never ask for OTPs or CVVs over the phone. Avoid posting bank details on social media.
– **Do not click suspicious links.** Phishing attempts often arrive via SMS or email with enticing offers. Do not follow such links or answer unsolicited calls.
Victor Irechukwu, Head of Engineering at OnePipe, emphasizes that “security should continue to be a top priority for every party involved in e‑payment transactions. Fraud prevention involves taking measures to stop fraud from occurring and detecting it quickly when it does, then stopping it as soon as possible. Different techniques are required because there are different types of fraud in e‑payment transactions.”
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