Nigeria’s fast-growing digital banking sector is facing renewed scrutiny over customer safety, as rising fraud losses and low complaint reporting expose gaps in consumer protection.

The Big Picture

Over the past decade, Nigeria has witnessed a dramatic shift from cash-based transactions to digital payments.

Mobile banking, USSD services and point-of-sale (POS) systems now dominate everyday transactions, from small roadside purchases to large corporate deals.

Industry data shows POS transactions hit a record N18 trillion in 2024, marking a 69% increase year-on-year.

At the same time, the number of POS terminals more than doubled to 5.5 million, while four in five Nigerians now use mobile banking within a 90-day period.

Experts say this growth reflects one of Africa’s most significant financial inclusion successes.

But beneath the numbers lies a growing concern.

Why It Matters

A 2024 consumer protection survey by Innovations for Poverty Action found that nearly one in four users experienced unexpected charges or fraud attempts.

Yet only half of affected customers reported these incidents.

Analysts say this signals a deeper issue — declining confidence in complaint resolution systems.

“That silence is not apathy. It reflects customers who no longer believe reporting issues will lead to results.”

Fraud statistics reinforce the concern.

Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows fraud losses rose to N52.26 billion in 2024, a sharp increase over recent years.

Although the number of fraud cases declined, experts warn this suggests attackers are becoming more strategic and targeting higher-value transactions.

Where the Risks Are Highest

Digital payment channels such as e-commerce platforms and internet banking remain the most vulnerable.

They are followed by POS systems, mobile apps and web-based banking platforms.

Security experts highlight social engineering — where fraudsters manipulate victims into revealing sensitive information — as the most common tactic.

More concerning, NIBSS identifies insider abuse by bank staff as the biggest structural threat to the industry.

Industry Response and Regulation

Regulators have begun tightening oversight in response to these risks.

Nigeria exited the Financial Action Task Force (FATF) grey list in 2025, signalling improvements in financial system safeguards.

The Central Bank of Nigeria (CBN) has also introduced risk-based cybersecurity frameworks for banks.

In 2024, regulatory enforcement intensified, with penalties exceeding N15 billion imposed across the industry.

Experts say these measures are beginning to close the gap between rapid digital expansion and consumer protection.

Inside the Banks

Banks are increasingly investing in invisible security systems designed to stop fraud before it happens.

These include real-time transaction monitoring, anomaly detection and automated intervention tools.

Industry observers say proactive prevention is more effective than post-incident resolution.

“A customer who never experiences fraud has been protected better than one who receives an apology after the damage.”

Union Bank, one of Nigeria’s leading financial institutions, says its digital platforms — including UnionMobile, *826# USSD service and Union360 — have recorded strong customer satisfaction scores in 2025.

The bank attributes this to continuous investment in backend security systems and a customer-focused culture guided by its ICARE values.

During World Consumer Rights Day in March, the bank also reiterated its commitment to protecting customer rights internally.

What Experts Are Saying

Financial analysts say Nigeria’s digital banking success story must now evolve.

They argue that trust, not convenience, will define the next phase of growth.

Without stronger protection systems and better customer education, they warn, fraud risks could undermine confidence in the sector.

What’s Next

As Nigeria deepens its digital economy, stakeholders say the focus must shift from access to protection.

This includes:

Stronger regulatory enforcement

Improved fraud detection systems

Customer awareness campaigns

Greater accountability within financial institutions

Experts agree that safety and convenience must grow together.

Conclusion

Nigeria’s digital banking revolution has transformed financial access for millions.

But its long-term success now depends on whether institutions can protect the trust that underpins every transaction.

SIFAX Group and its chairman, Dr. Taiwo Afolabi, have won three major awards at the Maritime Industry Merit Awards 2025, recognising their contributions to Nigeria’s maritime industry.

The awards ceremony, held in Lagos, saw SIFAX Group named Most Corporate Social Responsibility Friendly Company, while Dr. Afolabi received both the Lifetime Maritime Award and Maritime Man of the Year.

Organisers said the “Maritime Man of the Year” award followed a 60-day voting process involving industry stakeholders.

According to Elder Asu Beks, the recognition reflects Dr. Afolabi’s long-standing role in shaping Nigeria’s maritime sector and his vision of positioning the country as a leading maritime hub in sub-Saharan Africa.

Why it matters

Nigeria’s maritime industry plays a critical role in trade, logistics and economic growth.

Industry observers say recognising private-sector leaders could encourage further investment, innovation and improved standards across ports, shipping and logistics services.

SIFAX Group’s CSR award also highlights increasing expectations for companies to balance profit with social impact.

“A validation of decades of impact”

Receiving the awards on behalf of the chairman, Captain Ibraheem Olugbade, Executive Director at Ports & Cargo Handling Services Limited, said the recognition reflects sustained leadership and industry impact.

“These awards are deeply appreciated, and they serve as a strong validation of Dr. Taiwo Afolabi’s decades-long contributions to the growth and development of the maritime and logistics industry in Nigeria.”

He added that the company remains committed to innovation and sustainability:

“For us as a Group, this honour also reflects our unwavering commitment to initiatives that positively impact our communities, stakeholders and the wider society.”

L-R: Joseph Ogundiran, Corporate Communications Officer, SIFAX Group; Dr. Boniface Okechukwu, Former President, National Association of Government Approved Freight Forwarders(NAGAFF); Captain Ibraheem Olugbade, Executive Director, Ports & Cargo (Representing Dr. Taiwo Afolabi); and Olatunde Adewola, Deputy Manager Corporate Communications, SIFAX Group displaying the triple awards won by SIFAX Group and it’s Chairman at the Maritime Industry Merit Awards(MIMA) 2025.

Industry perspective

Experts say awards like MIMA often serve as benchmarks for excellence in Nigeria’s maritime ecosystem.

They also help spotlight indigenous companies competing in a sector historically dominated by international players.

What’s next

SIFAX Group is expected to expand its footprint across logistics, aviation, and oil and gas, as demand for integrated supply chain solutions continues to grow in Nigeria.

Analysts say continued investment in infrastructure and digital logistics will be key to maintaining its competitive edge.

Nigeria’s industrial expansion drive received a boost as billionaire industrialist Abdul Samad Rabiu and banker Tony Elumelu strengthened ties to support large-scale manufacturing, as BUA Foods posted a record N1.77 trillion in revenue for 2025.

The meeting, held in Lagos, brought together BUA Group and United Bank for Africa executives to expand financing frameworks for domestic production and export-led industries.

Why it matters

The renewed collaboration reflects a broader shift in Nigeria’s economy, where local conglomerates and financial institutions are increasingly driving growth through long-term investment in manufacturing and infrastructure.

Analysts say access to capital remains one of the biggest constraints for industrial expansion in Nigeria, particularly for large-scale projects in food production, cement, and logistics.

By strengthening partnerships between lenders and manufacturers, industry players hope to unlock growth across value chains and reduce reliance on imports.

Rabiu, Elumelu signal long-term alignment

Speaking during the meeting, BUA Group Chairman Abdul Samad Rabiu highlighted the depth of the relationship.

“Enduring partnerships are not built on transactions, but on conviction,” Rabiu said.

“What we have built with UBA and the Nigerian financial industry over the years is a shared understanding of where Nigeria is going and what it will take to get there.”

Tony Elumelu, Chairman of United Bank for Africa, framed the partnership as part of a wider vision for African-led growth.

“Institutions like BUA Group demonstrate what is possible when long-term capital meets disciplined execution,” Elumelu said.

“Our role is to continue enabling that scale, supporting enterprises that are not only growing, but reshaping the Nigerian economy.”

BUA Foods posts record growth

In a parallel development, BUA Foods reported strong financial results for the year ending December 31, 2025.

Revenue rose to N1.77 trillion, a 16% increase from N1.53 trillion in 2024, driven by demand for staples such as sugar, flour, pasta, and rice.

Profit after tax jumped by 95% to N518.4 billion, while gross profit climbed to N737.26 billion.

The company also proposed a dividend of N28 per share—more than double the previous year—bringing total payouts to N504 billion, pending shareholder approval.

What executives are saying

Rabiu said the results reflect disciplined expansion and long-term planning.

“Our 2025 performance reflects a business that is not only growing, but scaling with discipline,” he said.

“We are building capacity, deepening local production, and delivering consistent value to shareholders.”

Managing Director Engr. Ayodele Abioye added that demand remains strong.

“Our strategy remains to expand capacity, strengthen market presence, and optimise the full supply chain,” Abioye said.

“The demand signals are strong, and we are well positioned to sustain this momentum.”

Industry perspective

Economists say the results highlight the growing role of indigenous companies in shaping Nigeria’s economic trajectory.

With rising population demand and government policies favouring local production, companies like BUA Foods are increasingly seen as critical to food security and job creation.

However, challenges such as inflation, energy costs, and foreign exchange volatility continue to affect the sector.

What’s next

The strengthened partnership between BUA Group and UBA is expected to drive new financing models for large-scale projects, particularly in food production, infrastructure, and export-oriented industries.

Observers say sustained collaboration between banks and manufacturers could determine how quickly Nigeria achieves industrial self-sufficiency.