Reported by: Ijeoma G | Edited by: Gabriel Osa
Lagos — In a major regulatory push aimed at tackling the escalating threat of digital fraud across Nigeria’s financial sector, the Central Bank of Nigeria (CBN) has unveiled a comprehensive, industry-wide strategy designed to dramatically improve fraud detection and response times. Unveiled Wednesday at the 2026 Nigeria Electronic Fraud Forum (NeFF) in Lagos, the initiative seeks to reduce the time it takes banks and other financial institutions to respond to reported fraud to under 30 minutes, a threshold that regulators and industry leaders say could significantly enhance recovery outcomes and mitigate systemic risk.
The announcement reflects growing concern within Nigeria’s financial system over increasingly sophisticated fraud schemes that exploit digital payment channels, mobile banking platforms and electronic transfer systems. At the forum, Deputy Governor Philip Ikeazor, representing the CBN’s Financial System Stability Directorate, acknowledged that while progress has been made in addressing conventional threats, new forms of digital fraud — including social engineering, SIM-swap attacks, insider compromise and authorised push payment (APP) scams — continue to undermine confidence in digital finance and pose a threat to financial stability.
Central to the new framework is a shift away from traditional, often slow reactive mechanisms toward predictive and real-time fraud management systems. The CBN’s strategy emphasises rapid coordination among banks, fintechs, payment service providers, identity management agencies and law enforcement. Under the agreement, financial institutions across Nigeria will be expected to detect, assess and begin responding to fraud complaints in under half an hour. This target is viewed as a benchmark that aligns Nigeria more closely with global best practices in digital fraud mitigation.
“The industry has agreed on concrete, measurable actions, including reducing fraud response times to under 30 minutes, a move expected to significantly improve recovery outcomes and limit systemic exposure,” a representative of the CBN told participants in Lagos.
Officials said that achieving this goal will require enhanced collaboration through the Nigeria Electronic Fraud Forum (NeFF) — an industry platform that has, since its inception in 2011, provided a coordinated approach to fraud information sharing, threat intelligence, and fraud-loss tracking. The NeFF framework has been credited with several earlier achievements, including the introduction of mandatory two-factor authentication and stronger identity verification protocols.
A key pillar of the CBN’s strategy is the strengthened use of identity infrastructure. Over the past several years, the introduction of the Bank Verification Number (BVN) and its ongoing integration with the National Identification Number (NIN) have bolstered identity verification across banking channels and agent networks, helping to close gaps that fraudsters previously exploited. Regulators say this integration has already contributed to declines in certain types of fraud and provides a solid foundation for more advanced, real-time risk controls.
Alongside identity integration, the industry’s migration to the ISO 20022 global messaging standard has been identified as a transformative development. Unlike legacy messaging frameworks, ISO 20022 offers richer, structured transaction data that improves traceability, analytics and early detection of suspicious patterns. The CBN and industry stakeholders believe that harnessing such data will be crucial to achieving faster response times and enabling cross-institutional cooperation when fraud is detected.
Although traditional forms of bank fraud — such as ATM card cloning — have been largely contained, stakeholders at the NeFF forum acknowledged that the evolving digital landscape presents complex challenges. Fraud schemes now increasingly exploit social engineering techniques, manipulate payment infrastructures, or leverage insider access. In response, banks and fintech firms are expected to deploy more advanced analytics, machine learning tools and round-the-clock monitoring desks to identify and counter threats more effectively.
Officials also underscored the importance of collaboration beyond the banking sector. Telecommunications companies, digital platforms and identity agencies are all seen as essential partners in the fight against fraud. Enhanced information sharing between these stakeholders, backed by legal and regulatory frameworks, is expected to strengthen the industry’s collective ability to detect and disrupt fraudulent activity before significant losses occur.
Industry leaders attending the forum welcomed the initiative, noting that shorter fraud response times not only benefit individual customers but also contribute to broader financial stability and trust in Nigeria’s digital economy. Recent data indicate a downward trend in electronic payment fraud incidents, a development attributed in part to coordinated fraud controls and improved identity systems. Yet, regulators and industry players remain cautious, recognising that rapid digital adoption continues to expand the attack surface for fraudsters.
Beyond response time targets, discussions at the NeFF forum highlighted additional priorities for 2026, including structured liability-sharing frameworks, transparent industry performance scorecards, and deeper engagement with payment service providers and technology partners. Observers say these measures, if fully implemented, could strengthen the sector’s resilience even as new threats emerge.
For consumers, the CBN’s offensive against digital fraud is also about building confidence in electronic payments and digital banking services. Faster response times are expected to translate into higher rates of fraud recovery and lower financial losses for customers who fall victim to unauthorized transactions. The CBN’s broader fraud mitigation agenda also includes awareness campaigns aimed at educating the public about common scam techniques and best practices for safeguarding personal financial information.
Nevertheless, some analysts argue that achieving consistent sub-30-minute response times will require significant investment in technology and training, particularly for smaller banks and fintech operators. They also point to the need for robust regulatory oversight to ensure that all institutions meet agreed targets and adhere to standardized response protocols.
As Nigeria’s financial ecosystem continues to deepen and digital payment volumes grow, the CBN’s strategy represents a decisive effort to stay ahead of fraud risks that could undermine innovation and customer trust. By rallying the entire industry around ambitious performance benchmarks, identity-driven controls, and real-time analytics, the apex bank aims to transform the way digital fraud is managed in one of Africa’s largest and fastest-evolving financial markets.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments