Financial fraud jumps 45%, digital platforms account for 70% of losses-CBN
BY TEMITOPE ADEBAYO
The Central Bank of Nigeria (CBN) has reported a 45 per cent increase in financial fraud cases in the country within a year, with 70 per cent of the resulting losses linked to digital platforms, particularly unregulated virtual asset schemes.
CBN Governor, Mr Olayemi Cardoso, disclosed this in a speech delivered on his behalf by the Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, at a public lecture organised by the Economic and Financial Crimes Commission (EFCC) on Thursday, July 10, 2025, in Abuja.
According to the CBN’s 2024 Financial Stability Report, the surge in digital fraud is accompanied by the proliferation of over 30 Ponzi-style investment schemes exploiting digital currency narratives, flagged by the Securities and Exchange Commission (SEC) and other regulatory agencies.
Cardoso warned that these developments risk undermining consumer confidence, weakening financial integrity, and damaging Nigeria’s global financial reputation.
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He noted that between July 2022 and June 2023, over $56 billion in crypto-related transactions were recorded in Nigeria, making the country a digital transaction leader in Africa but also exposing it to significant vulnerabilities.
Cardoso acknowledged that digital innovation has boosted financial inclusion but also introduced complex regulatory and security challenges.
He said the rapid adoption of digital financial services, including cryptocurrencies and tokenised investments, is contributing to a rise in fraud and money laundering.
Echoing these concerns, SEC Director General Emomotiti Agama stated that corruption and virtual asset fraud are increasingly eroding market integrity and investor trust. She said digital investment scams are diverting resources intended for development and reiterated the SEC’s commitment to investor protection through education, updated regulations, and international collaboration.
Director General of the National Orientation Agency (NOA), Malam Lanre Issa-Onilu, commended the EFCC for its anti-corruption efforts and warned that the impact of financial fraud extends beyond monetary loss to affect lives, livelihoods, and national morale.
He said the NOA has launched a nationwide campaign against the get-rich-quick mentality, encouraging Nigerians, especially the youth, to embrace honesty and hard work as the path to sustainable success.
Registrar General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, also stressed the importance of vigilance and collaboration among institutions.
He said the CAC is working closely with the SEC and other regulators to strengthen corporate governance, enforce compliance, and enhance transparency within Nigeria’s financial system.
