Nigeria’s financial sector must embrace Artificial Intelligence (AI) tools to combat rising cases of fraud, according to finance professional and compliance expert Adedamola Ibikunle, who has urged stronger collaboration between financial institutions, regulators, and technology developers to safeguard the economy.

Speaking on the need for more robust anti-fraud systems, Ibikunle said that the reliance on outdated paper-based methods and manual oversight is no longer sustainable in an era of sophisticated cybercrime. “Financial fraud is not just a loss of money. It erodes trust in our financial institutions and destabilises the economy. Whether through identity theft, credit card fraud, or investment scams, the negative impact of financial fraud on organisations and individual welfare is extensive,” he stated.

Citing a 2023 report by the Association of Certified Fraud Examiners (ACFE), which estimated global losses to fraud at $4.5 trillion, Ibikunle described Nigeria as especially vulnerable due to evolving cyber threats and systemic weaknesses. He stressed that AI-driven systems can help address these gaps by analysing transactions in real time to detect and flag anomalies that human analysts may miss.

“AI technologies are capable of preventing financial fraud by analysing data in real time, identifying irregularities that human analysts might miss. This capability is crucial for detecting fraudulent activities before they escalate,” he explained.

Globally, financial institutions have deployed machine learning and advanced analytics to monitor activities, strengthen compliance, and enhance customer confidence. Ibikunle urged Nigerian regulators such as the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to follow suit by adopting AI in their oversight roles. “Collaboration between financial institutions and regulatory bodies is essential. Such partnerships are required to create a robust framework to address current challenges, anticipate future threats, and provide tailored solutions,” he said.

Ibikunle, who has more than 17 years’ experience in financial management, budgeting, and compliance within the public sector, argued that stronger cooperation between regulators, banks, technology firms, and universities would accelerate innovation and homegrown solutions tailored to Nigeria’s peculiar fraud landscape. “We need to promote a culture of innovation that encourages the development of homegrown solutions. Homegrown solutions are uniquely targeted at our peculiar challenges, enhance our anti-fraud capabilities, and contribute to the overall growth of our technology sector,” he added.

He further noted that institutions that reduce fraud through AI adoption would not only save costs but also strengthen the wider economy by encouraging greater consumer trust, lending, and investment. “Trust is non-negotiable for financial transactions, and a secure financial environment is essential for attracting foreign investment. Investors are more likely to engage with markets that demonstrate a commitment to safeguarding their assets,” he said.

With fraud mitigation now a global priority, Ibikunle’s call underscores the urgency for Nigeria to build a financial ecosystem anchored on security and innovation. He insists that integrating AI across financial systems is no longer optional but a critical requirement for stability and growth.