Nigerian Banks Face Tighter Deadline to Refund Fraud Victims Amid Soaring Financial Crime
The Central Bank of Nigeria (CBN) is implementing a significant overhaul of its financial fraud framework in response to the escalating crisis of financial crime plaguing the Nigerian banking sector. This new initiative establishes a stricter timeline for handling fraudulent transactions, placing greater accountability on financial institutions to protect their customers. This initiative is especially critical in the African tech landscape where the expansion of digital banking services has also increased opportunities for financial crime.
New Rules for Fraud Reporting and Reimbursement
Under the new guidelines, customers will now be required to report fraudulent transactions within 72 hours of the incident. In a decisive move to protect consumers, the CBN has mandated a 16-working-day cycle for financial institutions, including banks and fintech companies, to investigate reported fraud cases and issue refunds to affected customers. This commitment reflects the urgency to address the rising tide of financial crime. This measure aims to bolster preventative measures, improve bank accountability, and accelerate the refund process for victims of Authorized Push Payment (APP) fraud. Data from the Financial Institutions Training Centre (FITC) highlights the severity of the situation, revealing that fraud losses soared by an astonishing 603% to ₦3.29 billion ($2.27 million) in the first quarter of 2025 alone. The number of reported fraud cases also rose by 7.63% to 12,347 cases within the same period. The CBN released draft guidelines on November 26, 2025, specifically designed to mitigate APP fraud.
The CBN’s push for a more responsive and efficient system is a crucial step towards rebuilding trust in the Nigerian financial sector and protecting the growing number of digital banking users across the African continent. This revised framework underscores the central bank’s commitment to safeguarding consumers and fostering a more secure financial ecosystem.
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