Nigeria’s digital payment system has witnessed a significant decline in losses in the past year, according to the 2026 Adherence Compliance Forum’s report.
The report, published at a recent event in Lagos, revealed that fraud losses in the digital payment industry fell by 51% to N25.85 billion in 2025, down from 2024’s record of N52.26 billion.
The Nigeria Inter-Bank Settlement System (NIBSS) reported about 67,518 fraud cases in 2025, which is half of 2024’s loss. This signals a continued multi-year slide.
This improvement was linked to the initiation of stronger identity verification through the Bank Verification Number (BVN) together with the National Identification Number (NIN), and improved transaction monitoring under the ISO 20022 payment standard.
Despite the reported decline, industry experts warn the headline figures tell only part of the story. Reports show that underlying attacks are more costly and sophisticated. This signals that criminals have moved upmarket, using Artificial Intelligence (AI) and insider help to target larger-value flows.
According to the Adhere Compliance 2026 data, fraud losses have risen by about 350% since 2020, even as reported fraud cases have fallen by roughly 31%. The trend suggests criminals are shifting from high-volume, low-value scams to fewer attacks targeting larger transactions and weaker operational controls.
The report stated that:
“The institutions that come through the next eighteen months intact will not be the ones with the best AI tools, but the ones with the architecture around them, built on proactive detection, full customer risk context, model governance and collaboration across institutions,”
AI is accelerating the Cyberattack shift
The advent of AI has made fraud detection more difficult as fraudsters are now increasingly leveraging the technology for criminal activities. These include launching phishing campaigns, creating deepfakes, impersonating customers, automating account testing, and exploiting SIM-swap attacks.
Also, the rise of instant payments has reduced the time banks have to verify and detect fake transactions. It has become increasingly difficult to stop suspicious transactions before funds leave customer accounts.
However, the Central Bank of Nigeria (CBN) has responded by strengthening cybersecurity, Anti-Money Laundering (AML), and data protection requirements across the financial sector.
Per the report, the regulator is also encouraging banks to deploy AI-powered fraud detection systems alongside stronger identity verification measures.
During the Adherence Compliance Frontline Forum held in Lagos, industry stakeholders contributed significantly.
Firstly, they noted that compliance is no longer only a regulatory obligation, stating that stronger fraud controls are essential. They reckon it’s needed for customers’ protection, to reduce financial losses, and to maintain relationships with global banking partners.
The latest figures suggest Nigeria’s payment ecosystem is becoming more resilient against routine fraud. However, the next challenge may be stopping fewer attacks that are more expensive, AI-enabled, and harder to detect.
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