Nigerian Banks Lost N42.6b to Fraud in Q2 2024

Fasasi Sarafadeen Atanda National President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) said Nigerian Banks lost N42.6b to fraudsters in Nigeria within the Q2 of 2024.

Atanda quoting Financial Institutions Training Center (FITC) report, said the loses were traced to agent locations through the use of stolen cards, phones, fake alerts and ransom cash out.

Atanda, who made the disclosure at the 8th Annual National Conference of the association in Benin City, Edo State with the theme “Match Data With Actions” said that to steam the tide AMMBAN has introduced an automated verifiable identity card for agents and launched a Joint Task Force (JTF) in conjunction with the Office of the Inspector General of Police (IGP), DSS, NSCDC and other security agencies.

According to him, “The 8th AMMBAN annual national conference is unique as it is meant to match data with actions.

Data on Access to Financial Inclusion: As at the last EFInA report in 2023, financial inclusion was at 64% but on the ground, over 300 local government areas in Nigeria are without bank branches (AMMBAN Survey, 2024).

Why access to commercial banks are of concern? CBN recent regulation on mandatory BVN and/or NIN for owning an account or a wallet requires the presence of bank branches, because they are majorly the structures enabled for BVN enrollment/modification.

On action from AMMBAN, he noted that the association has introduced a one-stop shop for financial services, offering NIN, BVN, Account Opening, Card Issuance, Sim Registration, Savings, Credit, Insurance etc across the excluded local government areas.

Continuing, he said. “Data on Security: Nigerian banks lost N42.6B to fraud in Q2, 2024 (FITC), and most were traced to agent locations through the use of stolen cards or phones, fake alerts, ransom cash out, etc.

“Action From AMMBAN: AMMBAN introduced an automated verifiable identity card for agents and launched a Joint Task Force (JTF) in conjunction with the Office of the Inspector General of Police (IGP), DSS, NSCDC and other security agencies. JTF has been providing intelligence for the security agencies on enforcement sanity and regulatory standards at agent locations – in public interest.

AMMBAN has indeed led the way of data to actions by turning our insights into inclusive financial solutions (NFIC, Agent QR-coded ID card, Agent Joint Task Force, AMMBAN cooperative, AMMBAN women wing etc).”

In his keynote address Mr. Philip Ikeazor, Deputy Governor Financial Stability, Central Bank of Nigeria (CBN) represented by the apex bank Controller, Benin Branch, Michael Mgbeze said that the Central Bank aims at advancing financial inclusion and building a robust and inclusive financial system that leaves no Nigerian behind.

He said the contribution of AMMBAN have been instrumental in ensuring that millions of Nigerians particularly in the underserved communities now have access to financial services.

“We gather today with a shared mission – to advance financial inclusion and build a robust and inclusive financial system that leaves no Nigerian behind. Your contributions have been instrumental in ensuring that millions of Nigerians, particularly in underserved communities, now have access to financial services.

“As we approach the end of 2024, we are closer than ever to our goal of 95% financial inclusion. Currently, less than 25% of Nigerians are financially excluded – an impressive leap from 32% in 2020. This figure represents millions of people gaining access to the tools needed to improve their lives, from savings and loans to insurance and investment products.

“Nigeria’s financial inclusion landscape has transformed significantly from 2016 to 2024. As at 2023, the formal financial service usage has grown from 30% to 57%, the adoption of financial service agents has also skyrocketed, from 4.4% in 2018 to 54%in 2023.

“The Usage of informal financial service providers increased by 39% since 2020, with significant increase in the use of village associations predominantly in the South East. The use of financial services, including transaction accounts, savings, remittances, credit, and insurance, is on the rise. Notably, savings increased by 2%, remittances by 8%, and credit by 4%”, he said.

On his part, the Sen Ibrahim Hadejia Deputy Chief of Staff to the President Office of the Vice President, represented by Nurudeen Abubakar, said President Bola Ahmed Tinubu’s administration is putting sustainable mechanisms in place to build a $1trillion economy by 2030, adding that while substantial progress has been made. Something around 26% of the adult population primarily women, rural dwellers, and small business owners are financially excluded.

“As we seek to achieve this milestone, financial inclusion is at the heart of our economic agenda, ensuring that all Nigerians—regardless of location, gender, or socioeconomic status—are not only included but also empowered in our financial system.

“President Bola Ahmed Tinubu’s administration is putting sustainable mechanisms in place to build a $1 trillion economy by 2030,

“This has been made evident in the administration’s effort to boost access to credit for Micro, Small, Medium, and Nano Enterprises (MSMSNE), and various other programs targeted at enhancing inclusive growth through economic and financial inclusion”, Abubakar stated.