By, Remi Ladigbolu

Nigeria’s banking system is under growing strain from digital fraud that is becoming harder to predict and even harder to stop. What once appeared as scattered incidents now points to a pattern that cuts across institutions and platforms.

Recent prosecutions by the Economic and Financial Crimes Commission show how deeply the problem has taken root. Large sums are moved through unauthorised access to banking platforms, often within a short time, sometimes with help from within the system.

The most recent example played out in a Lagos court, where investigators traced over N3.09 billion siphoned from customer accounts in a first generation Nigerian bank through unauthorised access to its digital channels.

A suspect was arraigned for retaining about N9.87 million, while others linked to the operation remain at large. The case stands as the latest sign of a problem that has been building for years.

Across the sector, the figures are far more striking. The EFCC has confirmed that six Nigerian banks were hit by coordinated cyberattacks, with recoveries of N9.7 billion, N6.7 billion, and N3.7 billion in separate operations. Those recoveries alone point to a combined exposure that runs well beyond N20 billion.

Data from the Nigeria Inter-Bank Settlement System continues to show steady growth in electronic fraud, with annual losses running into tens of billions of naira. The Central Bank of Nigeria has also acknowledged the rise in incidents tied to mobile and online banking. The numbers leave little room for doubt about the direction of travel.

Several high profile cases illustrate how the system is being exploited. At First Bank of Nigeria, a manager was accused of diverting up to N40 billion over time by manipulating internal approval processes. At Wema Bank, staff were convicted over a fraud exceeding N8.5 billion. At Globus Bank, internal and external actors allegedly combined to execute thefts totalling more than N1.7 billion, followed by another N900 million.

An employee of Ecobank Nigeria faced prosecution over theft involving $50,000 and N9.2 million. A loophole at Access Bank allowed withdrawals of N54.9 million from a much smaller credit limit. In another incident, Moniepoint Microfinance Bank was targeted in a breach involving more than N1.1 billion.

What stands out in many of these cases is the role of insiders. The Nigeria Deposit Insurance Corporation has warned about rising fraud involving bank staff.

Investigations by the EFCC have also shown that some attacks succeeded because internal controls were bypassed with help from within. According to EFCC Chairman, Ola Olukoyede, insiders in certain cases created access points that external actors later exploited.

At the same time, the methods used by fraudsters are becoming more refined. They move funds quickly across multiple accounts, build convincing clones of banking platforms, and take advantage of both technical gaps and human error. Some reports point to foreign groups testing Nigerian systems, which adds another layer of risk. The Nigerian Communications Commission has warned that more than 150 million Nigerians are exposed to financial fraud, a figure that reflects how wide the net has become.

Banks are finding it difficult to respond at the same pace. Many still rely on older core systems that were not designed for today’s volume of digital transactions. New services have been added over time, but not always with matching upgrades in security. Limited capital has also played a role, as strong cybersecurity requires sustained investment in both technology and skilled personnel.

The recapitalisation programme introduced by the Central Bank of Nigeria, with a deadline of March 31, 2026, is expected to strengthen the financial position of banks. More than 30 institutions are reported to have met or approached the new thresholds. This could improve their ability to invest in better systems, though results will depend on how those resources are used.

For customers, the impact is immediate. Funds are lost, complaints take time to resolve, and confidence begins to weaken. Digital banking depends on trust, and once that trust is shaken, recovery is slow.

The wider economy also feels the strain. Investors pay attention to the reliability of financial systems. Fintech companies depend on public confidence to grow. Nigerians working across borders in technology and professional services face more scrutiny when moving money. International payment channels can become tighter when risk perception rises.

Banks themselves carry a heavier burden as well. Beyond the direct losses, there is damage to reputation, higher compliance costs, and the risk of losing customers. Fraud has moved from the margins to the centre of operational risk.

Responding to this challenge will require more than routine adjustments. Banks need stronger real time monitoring, tighter internal controls, and better oversight of access to critical systems.

Regulators must enforce clear security standards and ensure faster reporting of breaches. Coordination with telecom operators is also essential, given the role of mobile access in many of these incidents.

Customers need to remain alert, use stronger authentication, and act quickly when irregularities appear.

Nigeria’s banking sector is at a point where the next steps will matter. Digital services have expanded access to finance, but they have also opened new doors for abuse.

Ladigbolu is a Lagos-based journalist.