Nigerian banks lost N42.6b to fraud in Q2 2024 — AMMBAN

The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) announced on Friday that banks in Nigeria lost N42.6 billion to fraud in the second quarter of 2024.

The National President of AMMBAN, Fasasi Sarafadeen Atanda, attributed the losses to agent locations where fraudulent activities involved stolen cards, phones, fake alerts, and ransom cash-outs, citing a report from the Financial Institutions Training Center (FITC).

Atanda disclosed this at the 8th Annual National Conference of AMMBAN in Benin City, Edo State, themed “Matching Data with Actions.”

To address the rising trend of fraud, AMMBAN has introduced an automated verifiable identity card for agents and established a Joint Task Force (JTF) in partnership with the Inspector General of Police (IGP), the Department of State Services (DSS), the Nigeria Security and Civil Defence Corps (NSCDC), and other security agencies.

Atanda said: “The 8th AMMBAN Annual National Conference is unique as it aims to match data with actions. Which data and what action? Data on access to financial inclusion: As of our last report in 2023, financial inclusion was at 64%, but over 300 local government areas in Nigeria still do not have bank branches (AMMBAN Survey, 2024).

“Why is access to commercial banks a concern? The recent CBN regulation on mandatory BVN and/or NIN for opening an account or wallet requires the presence of bank branches, as these are the primary structures for BVN enrollment and modification.”

In response, AMMBAN has created a one-stop shop for financial services, offering essential services such as NIN and BVN registration, account opening, card issuance, SIM registration, savings, credit, and insurance in excluded local government areas.

The AMMBAN President further discussed the alarming statistics on security, reiterating that Nigerian banks suffered a loss of N42.6 billion to fraud in the second quarter of 2024, primarily linked to agent locations where fraud was executed through stolen cards, phones, fake alerts, and ransom cash-outs. He stated that AMMBAN is leading initiatives to translate data into actionable financial solutions, including the introduction of the NFIC, agent QR-coded ID cards, the Agent Joint Task Force, the AMMBAN cooperative, and the AMMBAN women’s wing.

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During the conference, Mr. Philip Ikeazor, the Deputy Governor of Financial Stability at the Central Bank of Nigeria (CBN), represented by the Controller of the CBN Benin Branch, Michael Mgbeze, stressed the CBN’s commitment to enhancing financial inclusion and building a robust financial system that accommodates all Nigerians. He acknowledged AMMBAN’s significant contributions in providing access to financial services, particularly for underserved communities.

Ikeazor noted the progress made toward achieving 95% financial inclusion by the end of 2024, noting that less than 25% of Nigerians are currently financially excluded, a notable improvement from 32% in 2020.

“As we gather today with a shared mission to advance financial inclusion, we are closer than ever to our goal of 95% inclusion by the end of 2024. Currently, less than 25% of Nigerians are financially excluded, an impressive improvement from 32% in 2020. This progress means millions of people now have access to savings, loans, insurance, and investment products that can improve their lives,” he said.

He reported that the usage of formal financial services grew from 30% to 57% from 2016 to 2023, while the adoption of financial service agents surged from 4.4% in 2018 to 54% in 2023. Additionally, there was a 39% increase in the use of informal financial service providers since 2020, particularly through village associations in the South East, along with increases in savings, remittances, and credit.

Senator Ibrahim Hadejia, the Deputy Chief of Staff to the President, Office of the Vice President, represented by Dr. Nurudeen Abubakar Zauro, Technical Advisor for Financial Inclusion, noted that President Bola Ahmed Tinubu’s administration is committed to establishing sustainable mechanisms aimed at building a $1 trillion economy by 2030.