Nigerians lost N25.85 billion to digital payment fraud in 2025, the Central Bank of Nigeria (CBN) has disclosed.
The figure represents a significant decline from the N52.26 billion recorded in 2024, but the apex bank said the losses remained substantial for payment service providers (PSPs).
The disclosure was contained in the CBN’s assessment of risks in Nigeria’s payments system for 2025.
The report identified digital payment fraud, cybersecurity threats, systemic risks, concentration of payment activities among a few systemically important payment service providers and the operations of unlicensed payment companies as major risks to the financial system.
According to the apex bank, the reduction in fraud losses was linked to improved monitoring systems, the integration of Bank Verification Number (BVN) and National Identification Number (NIN) records, as well as tighter controls across the financial sector.
The CBN, however, warned that the rapid expansion of digital payments had increased the interconnectedness of banks, fintech companies and other financial institutions, creating potential channels through which operational failures could spread across the financial system.
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It also raised concerns over the level of interoperability within the fintech sector.
The report said about 50 percent of fintech stakeholders rated system-wide interoperability as poor, largely due to the absence of universal application programming interfaces and common data-sharing standards.
The apex bank further expressed concern over the concentration of payment activities among a few Systemically Important Payment Service providers.
It warned that a major operational failure or insolvency involving any of the providers could trigger a domino effect across the financial system and disrupt payment services.
Cybersecurity was also identified as a major threat to the country’s digital payment ecosystem.
The CBN said banks and fintech companies remained prime targets for ransomware attacks, data breaches and credential theft, adding that cyber threats were becoming increasingly targeted and organised.
The apex bank also cautioned Nigerians against using unlicensed payment service providers, saying customers who transact through such platforms are not covered by the regulatory protection provided by effective supervision.
It warned that unlicensed payment companies could also be used to facilitate money laundering and other illicit financial activities.
The CBN said strengthening fraud detection mechanisms, improving interoperability, enhancing cybersecurity resilience and tightening regulatory oversight were critical to safeguarding Nigeria’s rapidly expanding digital payment ecosystem.
