The Central Bank of Nigeria has announced a major policy shift aimed at strengthening the country’s digital financial security through the use of artificial intelligence and machine learning, with the aim of reducing losses from financial fraud by up to 70% by 2028.
The initiative aims to strengthen detection of fraudulent transactions and strengthen oversight of Nigeria’s rapidly growing electronic payments ecosystem. This forms part of a broader reform agenda under the Nigeria Payments System Vision 2028, which outlines how Nigeria will modernize its payments infrastructure and bring it in line with global standards.
A key feature of this plan is the transition from traditional reactive fraud monitoring systems to real-time predictive monitoring systems. Rather than confirming transactions after they are completed, the new AI-driven system analyzes payment data as it happens, allowing you to flag or stop suspicious activity before funds are fully transferred. To support this, the central bank will establish a dedicated National RegTech and SupTech Lab that will host automated compliance tools and live risk monitoring dashboards.
The upgraded system is expected to rely heavily on behavioral analytics such as spending patterns, device information, location data, and transaction history. The tool aims to accurately detect complex fraud, such as phishing and authorized push payment fraud, while mitigating the high rate of false fraud alerts often seen in older rules-based systems. The goal is to minimize unnecessary interruptions to legitimate transactions, improving both security and user experience.
As part of its implementation roadmap, the central bank has set a target of reducing losses from financial fraud by up to 70% by 2028. It also plans to require all regulated financial institutions, including banks and fintech companies, to implement AI-based compliance and real-time reporting systems within three years. The success of this initiative will depend on collaboration between financial institutions, payment service providers and security agencies, with the broader objective of building stronger trust in Nigeria’s digital financial system.
