CBN Orders Banks to Respond to E-Fraud Complaints Within 30 Minutes 

The Central Bank of Nigeria (CBN) has directed commercial banks to treat electronic fraud complaints with new urgency, mandating a response time of under 30 minutes. The move comes as fresh industry data shows a 51% decline in fraud-related losses across Nigeria’s financial system.

The new approach, aimed at protecting customers and improving recovery outcomes, is also tied to the regulator’s push for stronger anti-fraud controls as digital banking expands and fraud tactics evolve.

Figures presented by the Managing Director of the Nigeria Inter-Bank Settlement System (NIBSS), Premier Oiwoh, show that the value of funds lost to fraud fell from ₦52.26 billion in 2024 to ₦25.85 billion in 2025—a steep 51% drop.

However, the volume of fraud cases declined only slightly. The fraud count dipped by 4%, from 70,111 incidents in 2024 to 67,518 in 2025. The highest number of reported cases came from Lagos, according to the data.

The statistics were shared at the Nigeria Electronic Fraud Forum (NeFF) Technical Kick-off Session held in Lagos.

The breakdown of reported incidents shows Lagos accounting for 63.43% of total fraud volume. Abuja ranked a distant second with 3.12%, reflecting a wide concentration of recorded activity in Nigeria’s commercial hub.

CBN: speed is critical to limiting losses

Speaking at the session, CBN Deputy Governor (Financial System Stability), Philip Ikeazor, represented by Ibrahim Umar Hassan, Director of Development and Finance Institutions Supervision, said the industry has agreed to shorten intervention timelines because delays typically worsen losses and reduce the chances of recovery.

He said the new sub-30-minute response target is intended to materially improve recovery outcomes and reduce risk exposure within the electronic payments ecosystem.

Ikeazor noted that while older forms of fraud,such as ATM card cloning,have largely been curbed, the threat landscape has changed with digitisation. He listed newer risks including online fraud, social engineering, SIM-swap abuse, insider compromise, and authorised push payment scams, warning that fraudsters are adapting to faster, more remote banking channels.

ISO 20022 positioned as an anti-fraud weapon

A major pillar of the CBN’s strategy is deeper compliance with ISO 20022, the global financial messaging standard. The apex bank said it will begin actively enforcing compliance, describing ISO 20022 as more than a box-ticking requirement.

According to Ikeazor, ISO 20022 enables richer and more structured transaction data, improving traceability, analytics, and early detection—capabilities that can speed up investigations, strengthen pattern recognition, and support cross-border cooperation where needed.

Also speaking, the CBN Director of Payment System Supervision and Chair of NeFF, Dr Rakiya Yusuf, said the bank will soon commence inspections to confirm industry compliance with ISO 20022 and other controls.

She urged banks to tighten Know Your Customer (KYC), Know Your Business (KYB) and Customer Due Diligence (CDD) practices, warning that compliance will be monitored closely.

Yusuf also dismissed the idea of “KYC zero,” stating that KYC categories exist with varying thresholds, but there is no recognised category where accounts carry no identity. She added that institutions operating unapproved KYC classifications should correct them quickly, noting that teams would examine bank records to ensure alignment.

NIBSS: fraud is faster, bigger, more sophisticated

Oiwoh, the NIBSS managing director, said digital payments fraud is growing in speed and sophistication due to the rise of instant and remote banking platforms. He added that NIBSS has adopted strategic measures to reduce fraud losses, including improved intelligence-sharing across institutions.

He also disclosed that a “persons of interest” portal containing records of individuals linked to fraud since 2019 is now operational, aimed at tightening visibility across the system and making it harder for perpetrators to evade detection.