Nigeria’s digital economy is booming, but its future hinges on one fragile foundation: trust.

With over 122 million Internet users and a fintech sector that has positioned the country as Africa’s digital transaction leader, the stakes could not be higher.

Microsoft’s Chief Security Advisor for Africa, Kerissa, said fraud, identity theft, and cybercrime are reshaping how Nigerians engage with digital services, making trust the decisive factor in adoption, loyalty, and growth.

Varma captures the urgency: “Trust is no longer a soft reputational asset; it is the critical infrastructure of the digital economy, and the factor that will determine whether Nigeria’s digital momentum translates into lasting, inclusive growth.”

The numbers tell a sobering story. The Global Anti-Scam Alliance’s State of Scams in Nigeria 2026 report revealed that 84 per cent of surveyed adults encountered a scam in the past year. Alarmingly, 22 per cent suffered financial or data loss, yet only four per cent reported incidents to authorities. This under-reporting weakens system-wide visibility and emboldens fraudsters.

Varma, in an article, titled: ‘Trust is the real currency of Nigeria’s digital economy’, observed that fraud is no longer just a cost of doing business; it is a barrier to growth. She noted that the Central Bank of Nigeria’s Financial Stability Report 2024 recorded a 45 per cent surge in financial fraud cases in a single year, with 70 per cent of losses traced to digital channels. Governor Olayemi Cardoso warned that these developments pose major risks to consumer confidence, financial integrity, and Nigeria’s global reputation. For businesses, a weak security experience is not merely a compliance failure; it is a growth risk.

According to her, what unites these threats is identity. She said fraudsters are increasingly exploiting genuine credentials rather than attempting crude break-ins. Microsoft’s 2025 Digital Defence Report confirms that attackers are “logging in rather than breaking in.” Artificial intelligence has intensified this risk, making fraud cheaper, faster, and more personalised. AI-generated identity documents surged by 195 per cent, while AI-driven phishing campaigns are now three times more effective than traditional ones. Deepfake incidents in Africa rose sevenfold in 2024, enabling fraudsters to manipulate biometric data and fabricate identities.

She said the Nigeria Inter-Bank Settlement System (NIBSS) identifies social engineering as the most prevalent fraud technique, alongside SIM swap fraud, account compromise, and phishing. Cybersecurity firm Surfshark reported more than 150,000 compromised Nigerian accounts in the first half of 2025 alone.

INTERPOL’s Africa Cyberthreat Assessment 2025 found that business email compromise has become the most financially damaging cyber threat on the continent, while 90 per cent of African countries admitted needing significant improvement in law enforcement capacity.

Despite the challenges, Varma observed that Nigeria is proving that scale and safety can coexist. She said NIBSS data shows that digital payment fraud losses fell to N25.85 billion in 2025, a 51 per cent decline from 2024. Fraud incidents dropped steadily from 123,918 in 2021 to 67,518 in 2025. This success, according to her, is attributed to stronger coordination among banks, fintechs, and consumers, with joint industry action preventing around N20 billion in potential losses in a single year.

According to her, this requires investment in adaptive, real-time fraud detection, stronger digital identity verification, phishing-resistant authentication, and deeper intelligence-sharing across sectors and borders. It also demands transparency, open communication when incidents occur, and vigilance against under-reporting, which NIBSS noted fell by 34 per cent in late 2025.

Varma said Nigeria’s digital economy is at a crossroads. She noted that the businesses, banks, fintechs, platforms, and public institutions that prioritise trust will not only reduce fraud but also earn the loyalty of digitally engaged Nigerians.