The Central Bank of Nigeria (CBN) has raised the alarm over a major rise in {financial} fraud instances within the nation, revealing that fraud surged by 45% inside one 12 months, with 70% of the ensuing losses traced to digital channels, notably unregulated digital asset platforms.
This was disclosed by the CBN Governor, Olayemi Cardoso, in a speech delivered on his behalf by Muhammad Sani Abdullahi, Deputy Governor for {Economic} Coverage, at a public lecture organized by the {Economic} and {Financial} Crimes Fee (EFCC) on Thursday, July 10, 2025, in Abuja.
He added that findings from the CBN’s {Financial} Stability Report 2024 reveal a pointy improve in fraud
“The CBN {Financial} Stability Report 2024 reveals a forty five% surge in {financial} fraud instances, with 70% of losses linked to digital channels, together with unregulated digital asset platforms. Moreover, over 30 Ponzi-style funding schemes exploiting digital forex narratives have been flagged by the SEC and different businesses.
“These developments pose main dangers, together with lack of client confidence, weakening of monetary integrity and reputational challenges for Nigeria within the international {financial} system.
“In Nigeria, over $56 billion in crypto-related transactions had been recorded between July 2022 and June 2023, making us Africa’s digital transaction chief. However this progress shouldn’t be with out penalties,” Cardoso said.
Cardoso famous that whereas digital innovation has enabled broader {financial} inclusion, it has additionally launched advanced regulatory and safety challenges.
“The current period of fast technological transformation has made the adoption of digital {financial} providers in Nigeria, together with cryptocurrencies and tokenized investments, improve exponentially.
“The surge in digital innovation has introduced advantages, similar to larger {financial} inclusion and likewise given rise to advanced challenges, similar to fraud and cash laundering,” he said
Emomotiti Agama, Director Common of the Securities and Alternate Fee (SEC), emphasised the rising dangers posed by digital asset fraud to investor confidence and market integrity.
“Corruption stays a major obstacle to Africa’s {economic} progress, social improvement, and investor confidence.
“At present, as digital innovation transforms {financial} methods, we face new challenges, notably the rise of digital asset fraud and complex funding scams, exploiting unsuspecting buyers.
“These threats undermine market integrity, erode belief, and divert sources meant for sustainable improvement,” he mentioned
Agama reiterated the SEC’s dedication to enhancing investor safety by means of elevated training and consciousness on find out how to determine and keep away from fraudulent schemes.
He additionally emphasised the Fee’s efforts to replace regulatory frameworks in response to rising dangers in digital belongings and digital investments, whereas selling worldwide cooperation to deal with corruption and illicit {financial} flows.
Director Common of the Nationwide Orientation Company (NOA), Malam Lanre Issa-Onilu, recommended the EFCC for its efforts in combating {financial} crimes. He warned that the human price of fraud extends far past the {financial} system.
“Expertise has proven that deception is foundational to fraud, and if its affect goes far deeper, it undermines residents’ confidence of their nation. Each Naira misplaced to fraud causes far-reaching results.
It’s a few little one pulled out of college, a livelihood ruined, and an enterprise destroyed. These crimes usually are not summary. They have an effect on individuals, and our nation pays dearly for it.”
He mentioned the NOA had launched a nationwide marketing campaign in opposition to the “get wealthy fast” mentality amongst Nigerians.
“On the Nationwide Orientation Company, we consider that worth orientation is our strongest device. That’s the reason we launched a nationwide marketing campaign a number of months in the past in opposition to the unfold of get-rich-quick syndrome. The initiative helps all Nigerians, particularly younger individuals, to grasp that lasting success comes from honesty and exhausting work, and it takes time.”
The Registrar Common of the Company Affairs Fee (CAC), Hussaini Ishaq Magaji, burdened the necessity for regulators, establishments, and stakeholders to stay vigilant and proactive in addressing rising threats similar to fraud, cash laundering, and {financial} manipulation.
Magaji famous the CAC’s ongoing collaboration with the Securities and Alternate Fee (SEC) and different sector-specific regulators to strengthen company governance and implement compliance, making certain transparency and accountability inside Nigeria’s {financial} ecosystem.
