The Central Bank of Nigeria (CBN) has officially unveiled a massive, industry-wide initiative to combat the surging rate of electronic fraud (e-fraud) in the nation’s financial system.
Announced today, Wednesday, 21 January 2026, the new framework introduces stricter compliance rules for banks, fintechs, and Payment Service Providers (PSPs), aiming to restore consumer confidence in digital banking.
The CBN’s strategy moves beyond simple warnings, implementing structural changes to how transactions are processed and monitored.
Banks are now mandated to implement AI-driven systems that can detect and freeze suspicious transactions in real-time, rather than after the funds have been moved.
A new industry-wide “Watchlist” of BVNs (Bank Verification Numbers) associated with fraudulent activities. Once a BVN is flagged for fraud by one bank, the individual will be restricted across all financial institutions.
Two-factor authentication (2FA) is now mandatory hence, strengthening 2FA for all digital transfers above ₦50,000, including biometric or hardware-based tokens.
PSPs and fintech startups are now under stricter “Know Your Customer” (KYC) requirements, closing the loopholes often used to move illicit funds quickly.
The CBN noted that in 2025, Nigerian banks lost an estimated ₦25 billion to electronic fraud, a 15% increase from the previous year.
| Fraud Type | % of Total Losses | Primary Target |
| Mobile Banking | 45% | Individual retail accounts |
| POS Scams | 30% | Small businesses and traders |
| Web/Internet Banking | 20% | Corporate accounts |
| ATM/Other | 5% | Physical card users |
Statement from the CBN Governor
“The digital economy cannot thrive on a foundation of fear. This ‘war’ is about building a wall of protection around every Nigerian’s hard-earned money. We are telling fraudsters: the loopholes are closing, and the technology is catching up.”
