Tuesday, September 16, 2025
23.6 C
Lagos

Bank Customers Lost N2bn to e-Fraud in 2016

The Central Bank of Nigeria (CBN) says that bank customers in Nigeria lost over n2 billion to e-fraud in 2016 while it has identified e-fraud as the biggest challenge facing the electronic payment system in the country.

Mr. Dipo Fatokun, the CBN Director, Banking & Payments System said in Lagos, that fraud not only leads to loss of funds, but reduces confidence of customers using e-channels.

Fatokun, who spoke at the Finance Correspondents Association of Nigeria (FICAN) Bi-Monthly Forum said e-fraud has never been completely eliminated yet in Nigeria

Speaking on the theme: “Electronic Payments Industry’s Performance and Regulatory Issues”, Fatokun described e-payment as any form of payment that allows the use of electronics system to initiate, authorize and confirm the transfer of money between two parties.

“Banks, Payment Service Providers(PSPs), Financial Authorities and Central Banks play various roles in developing the payments system infrastructure to drive electronic payments, that is nationally utilised. The e– payments industry refers to all stakeholders, operators, regulators, infrastructures, merchants, retailers and the final consumers of the payments products and services. Payment technologies and platforms bind the industry together in a tight ecosystem,” he said.

Fatokun disclosed that global non-cash (electronic payment) transaction volumes grew at 8.9 per cent to reach $387.3 billion in 2014, an increase, driven by accelerated growth in developing markets.

“Cards have been the fastest growing payments instrument since 2010, as cheque use has declined consistently and significantly. Debit cards accounted for the highest share (45.7 per cent) of global e-payment transactions and were also the fastest growing (12.8 per cent) payments instrument in  2014,” he said.

According to him, global non-cash volumes are estimated to have grown by 10.1 per cent to reach $426.3 billion in 2015, aided by high growth in emerging economies across the world, including Africa even as the Nigerian e-payments industry has been evolving in line with the evolution in global payments in both Wholesale and Retail systems.

“Banks, PSPs, and the CBN have played various roles in developing the payments system and creating products and channels for electronic payments. The Retail Payments Transformation Programme of the CBN has led to the introduction of various electronic payments products and services by operators in the industry. The electronic products are gradually reducing the usage of cheques and cash, as noticed consistently in the annual performance report since the inception of the Cash-less Policy in 2012,” he said.

He said the volume and value of transactions based on cheques and National Electronic Funds Transfer (NEFT) have been consistently reducing annually since 2013, while same data for the Nigeria Interbank Settlement System- NIBSS Instant Payment (NIP), Automated Teller Machine (ATM), and mobile money channels have been on the increase. This is an indication of users’ preference for instant value channels over non-instant payment channels.

“The ATM Channel accounts for the highest volume of transactions, while the NIP accounts for the highest value of transactions annually. This is because the ATM is usually the e-payment channel that new and lower value account holders always interface with, while corporates and upwardly mobile middle class customers make transfers using NIP,” he said.

According to Fatokun “regulation is necessary to ensure that operators focus on delivering products and services that enable compliance, efficiency, financial stability and a positive customer experience. The attempt to regulate electronic payments in Nigeria started with the CBN Electronic Banking Guidelines, issued in August 2003.

spot_img
spot_img

Hot this week

Designing the Future: Arc Christian Benimana, Prof Taibat Lawanson to Headline Ecobank Design and Build 2025

Ecobank Nigeria has announced that celebrated architect Arc. Christian...

Sovereign Trust Insurance Wins Enactus Catalyst Award

From L-R: Victor Akinfala, Head Partnerships & Special Projects,...

SEC DG: Commission Considering Gradual Implementation of ISSB Standards

The Director General of the Securities and Exchange Commission...

Universal Insurance MD/CEO, Jeff Duru, Bags CIBN Associate Membership

  Dr. Jeff Duru Managing Director/CEO Universal Insurance Plc The Managing Director/CEO of...

Sterling One Foundation CEO, Olapeju Ibekwe, Joins Board of UN Global Compact Network Nigeria Ahead of UNGA 80

    Olapeju Ibekwe, Chief Executive Officer of Sterling One Foundation,...

Topics

Crown Flour Mill’s ‘Seeds for the Future’ Programme Achieves 1st-Year Target

Crown Flour Mill (CFM) Limited, the wheat milling subsidiary...

MTN Digital TV Goes Live TODAY!

Nigerians Embraces Convergence as MTN launches Nigeria’s 1st converged...

Nigerian Fertilizer Firms to Benefit from $2.2m Financing

    The Africa Fertilizer Financing Mechanism (AFFM) has kick-started a...

NCC Debunks Allegation of Extending 5G Deadline When Only MTN Submitted Bid

The Nigerian Communications Commission (NCC), in the course...

‘Nigeria’s Hospitality Industry Must Increase Payment Options to Maximise Growth’

    ·         The World Travel & Tourism Council’s Economic Impact...

Realnews Seeks Integration of Africa into Global Economy for Socio-economic Growth

The Editor and Publisher of Realnews Magazine, Maureen Chigbo,...

Savannah Energy Reports H1 2024 Result with 3% Rise in Nigerian Production

Savannah Energy Plc, the British independent energy company focused...

Huawei, Vodafone Complete World’s First 2 Tbit/s WDM Field Trial

­Huawei and Vodafone have announced the successful trial of...
spot_img

Related Articles

Popular Categories

spot_imgspot_img