Nigerian Financial Services Fraud Estimated at N 197 Billion Annually


Multiple sources reported that Prof. Yemo Osinbajo, Nigeria's Vice President, estimated the annual cost of Nigerian telecommunications related financial services fraud at N197 billion (USD544,048,605) while addressing industry stakeholders at a forum organized by the Nigerican Communications Commission (NCC) and the Central Bank of Nigeria (CBN).

Osinbajo insisted that technological innovation must continue and confidence in the marketplace and system be maintained in spite of the regular presence of fraudsters seeking to exploit weaknesses. He identified several new methods of fraud and malicious activities including SIM swaps, identity theft, information database hacks and theft of Nigerian Bank Verification Numbers.

The Vice President also noted that mobile telecommunications has the power to rapidly reach people at great distances and has a significant impact on the delivery of financial services. Mobile payment platforms provide an opportunity to economically achieive financial inclusion goals providing benefits to the poor and vulnerable in rural and remote areas. He also noted that the CBN intends to work with mobile network operators to substantially increase the level of mobile money penetration, aiming at achieiving the much higher percentages present in other regional countries such as Kenya and Ghana.

The NCC "8-Point Agenda" aims to address telecom, financial services and financial inclusion challenges, among others, to "actively facilitate the development of a knowledge-driven, inclusive, gobally competitive and prosperous Nigeria."

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