BENIN CITY, Nigeria — Nigerian banks lost a staggering N42.6 billion to fraud in the second quarter of 2024, according to the Association of Mobile Money and Bank Agents in Nigeria, AMMBAN.
The losses were primarily linked to fraudulent activities carried out at agent locations, involving stolen cards, phones, fake alerts, and ransom cash-outs.
The report, based on data from the Financial Institutions Training Center, FITC, was revealed by AMMBAN’s National President, Fasasi Atanda, during the 8th Annual National Conference of AMMBAN in Benin City, Edo State.
Atanda explained that the rise in fraud cases has become a major concern for both financial institutions and agents.
In response, AMMBAN has launched several initiatives to combat the growing threat, including the introduction of an automated verifiable identity card for agents and the formation of a Joint Task Force (JTF) in collaboration with the Inspector General of Police (IGP), the Department of State Services (DSS), and other security agencies.
Speaking at the conference, themed “Matching Data with Actions,” Atanda highlighted the importance of data-driven approaches to improving financial inclusion and tackling fraud.
He noted that while financial inclusion in Nigeria stood at 64% as of 2023, over 300 local government areas still lack bank branches, creating gaps in the country’s financial infrastructure.
“Why is access to commercial banks a concern?” Atanda asked.
“The recent Central Bank of Nigeria (CBN) regulation on mandatory BVN (Bank Verification Number) and/or NIN (National Identification Number) 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 to these challenges, AMMBAN has created a one-stop shop for financial services, particularly in underserved regions.
These shops offer essential services, including BVN and NIN registration, account opening, card issuance, SIM registration, savings, credit, and insurance.
This initiative aims to bridge the gap in access to financial services across excluded local government areas.
Addressing the issue of fraud, Atanda reiterated that the N42.6 billion lost to fraudulent activities in the second quarter of 2024 represents a significant challenge to the banking sector.
The association is working to translate data into actionable solutions, including the implementation of QR-coded ID cards for agents, the establishment of the Agent Joint Task Force, and the formation of the AMMBAN cooperative and women’s wing.
During the conference, Philip Ikeazor, Deputy Governor of Financial Stability at the CBN, represented by the Controller of the CBN Benin Branch, Michael Mgbeze, affirmed the CBN’s commitment to improving financial inclusion.
He recognized AMMBAN’s pivotal role in providing access to financial services for Nigeria’s underserved populations and reiterated the central bank’s target of achieving 95% financial inclusion by the end of 2024.
“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,” Ikeazor said.
He added that formal financial services usage grew from 30% in 2016 to 57% in 2023, while the number of Nigerians using financial service agents surged from 4.4% in 2018 to 54% in 2023.
Additionally, the use of informal financial service providers, particularly village associations in the South East, has increased by 39% since 2020.
Representing President Bola Ahmed Tinubu’s administration, Senator Ibrahim Hadejia, Deputy Chief of Staff to the President, Office of the Vice President, through his Technical Advisor for Financial Inclusion, Nurudeen Zauro, emphasised the government’s commitment to building sustainable mechanisms aimed at achieving a $1 trillion economy by 2030.
The AMMBAN conference provided a platform for key stakeholders to address the critical issues affecting Nigeria’s financial ecosystem, from combating fraud to advancing financial inclusion, as the nation strives for economic growth and stability.
