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A new framework implemented by the Central Bank of Nigeria compels banks and fintechs to expedite their handling of fraud accusations and refund victims.

Customers must report suspected fraudulent transactions within 72 hours under this draft guideline, and financial institutions have 16 working days to look into the matter and repay money.

The action comes in the wake of a dramatic increase in banking sector fraud.

According to data from the Financial Institutions Training Center, losses in the first quarter of 2025 increased to ₦3.29 billion, a startling 603 percent increase over the previous year. In the same time frame, reported cases also increased to 12,347.

The November 26, 2025, proposed regulations seek to improve bank accountability, expedite reimbursements, and boost prevention.

Director of the Financial Policy and Regulation Department Rita Sike signed the circular, which describes stricter regulations intended to prevent fraud before it occurs.

The apex bank’s ongoing fight against financial fraud has advanced with the adoption of this guidance. To enhance cooperation between operators, it established the Nigeria Electronic Fraud Forum in 2011.

It directed banks to establish specialized fraud bureaus four years later. By requiring BVN or NIN for account opening, it reinforced Know Your Customer checks in 2023.

It instructed NIBSS to debit banks that collected revenues from fraud by 2024.

Building on these changes, the new framework aims to address any vulnerabilities that scammers may still exploit.

When thieves trick consumers into voluntarily authorizing transfers over WhatsApp, SMS, email, or other means, it is known as Authorized Push Payment (APP) fraud.

According to the CBN, such fraud frequently flourishes as a result of lax controls, ignored warning signs, sluggish reactions, or even employee complicity within financial institutions.

Victims are required to report instances within 72 hours and include information about their account, the date of the transaction, and the amount involved. Banks have 24 hours to notice the complaint and start looking into it right away.

The CBN may direct NIBSS or another settlement organization to withhold payments associated with questionable transactions—including those that went through several institutions—during investigations.

Investigations must be completed by banks within 14 working days. Customers can report issues to the Consumer Protection and Financial Inclusion Department if they are still unresolved.

Refunds must be given within 48 hours of the conclusion of an investigation.

The originating bank is required to notify other institutions within 30 minutes and guarantee resolution within 16 working days when numerous institutions are involved in the transaction chain.

The expense of the return is borne by the bank if its inaction or inadequate systems were a factor in the fraud. In cases where neither banks nor customers are at fault, the institutions in question will equally share responsibility for refunds.

Who is eligible for refunds

Refunds are available to customers who report on time, cooperate completely, and are determined not to have been careless or complicit. If they acted irresponsibly, withheld information, or submitted their report after the deadline, they are ineligible. There are exceptions in cases when delays were brought on by internal bank issues, illness, force majeure, or unavailable reporting routes.

What banks now need to implement

Banks must maintain 24-hour reporting channels, implement early warning systems, monitor suspicious activity, record fraud trends, and routinely report events to the CBN in order to comply with the regulation. To assist clients in identifying fraud efforts, they must also conduct financial literacy initiatives.

As part of a larger initiative to safeguard consumers and stabilize Nigeria’s financial system, the draft guideline is available for public comment for three weeks before becoming legally obligatory.

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