Every tap, click, and transfer was a potential battlefield, with faceless cybercriminals working tirelessly to siphon away the hard-earned money of everyday Nigerians.

By 2024, the attackers were winning, breaching digital defenses to steal a staggering ₦52.26 billion. It felt like an unstoppable tide.

But then, the ecosystem fought back.

Banks tightened their algorithms, fintechs erected stronger digital fortresses, and everyday users grew wiser to the tricks of the trade.

According to the latest data from the Nigeria Inter-Bank Settlement System (NIBSS), this collective resistance paid off dramatically in 2025.

In a stunning plot twist for the fraudsters, digital payment fraud plummeted by 51 percent over the course of twelve months. The bleeding was effectively cut in half, with losses dropping to ₦25.85 billion.

While the war is far from over, and billions are still being chased through the digital ether, the narrative has shifted. Nigeria’s financial ecosystem proved that it is no longer an easy target; it’s a system that learns, adapts, and strikes back.

The figures were disclosed by Premier Oiwoh, the managing director and chief executive officer of NIBSS in Lagos, recently.

Addressing participants at the event themed ‘Shrinking Fraud Losses With ISO 20022 & Identity Management,’ Oiwoh noted that while the number of fraud cases has steadily declined over the past five years, the value of losses remains the key concern.

“Looking at industry fraud over the past five years, the number of cases has declined significantly. While case counts are important, what matters more is the value. In 2023, actual losses stood at about ₦17.67 billion.

In 2024, losses rose to ₦52.26 billion, largely driven by a single fraud incident of ₦31.1 billion involving one entity. In 2025, losses dropped significantly,” he said.

Data presented at the forum showed that fraud incidents fell from 123,918 in 2021 to 67,518 in 2025, with a small four per cent decline in the last year.

Geographically, Lagos accounted for 63.43 per cent of fraud activity, reflecting its role as Nigeria’s commercial hub.

Abuja, the Federal Capital Territory (FCT), recorded 3.12 per cent, while Ogun, Rivers, and Delta States contributed between 2.09 per cent and 2.51 per cent of total fraud volume.

E-commerce and internet banking remain the channels most affected, followed by point-of-sale, mobile, and web platforms. Oiwoh highlighted social engineering, particularly insider abuse, as the most prevalent fraud technique.

“Insider involvement is high, and recent investigations have confirmed this. Services such as SIM swap fraud, account compromise, and phishing continue to evolve. Awareness remains critical, as many victims are still easily deceived,” he said.

The NIBSS boss stressed the importance of institutional controls, monitoring staff activity, and coordinated industry action.

According to Oiwoh, joint industry measures last year prevented about ₦20 billion in potential losses. Despite this, fraud reporting fell by 34 per cent in the final quarter of 2025.

“While some institutions reported zero incidents, non-reporting is unacceptable.

Reporting enables tracking and investigation. In several cases investigated last year, individuals involved in fraud simply moved to other institutions because incidents were not reported,” he added.

The forum also discussed the adoption of the ISO 20022 standard and identity management systems as tools to strengthen transaction security and reduce the risk of digital payment fraud.

Seeking to improve how Nigerians abroad send money home, the approval allows NALA to plug directly into the Nigeria Inter-Bank Settlement System (NIBSS).

This removes the need to route transactions through intermediary banks, a process that usually slows transfers and adds extra expenses.

Speaking at a briefing in Lagos, Nicolai Eddy, NALA’s co-founder and chief operating officer, described Nigeria as central to the company’s growth plans in Africa.

“Nigeria is one of our largest markets on the continent. With this licence, we can ensure that money reaches families, businesses and institutions quickly and reliably,” he said.

Until now, many cross-border transfers passed through multiple financial institutions before reaching recipients, with each layer taking a fee.

Direct integration with NIBSS removes that chain, allowing funds to move more efficiently into Nigerian bank accounts.

Eddy said the licence also ensures compliance with CBN regulations while enabling faster and more cost-effective transfers from key corridors such as the UK, United States and Europe.

The expected impact includes:

• Faster transfers: Funds can arrive in Nigerian accounts within minutes
• Lower fees: Fewer intermediaries reduce transaction costs
• Improved reliability: The company is targeting a 99.9% success rate

Nigeria is one of the largest recipients of diaspora remittances in Africa, with official inflows estimated at about $23 billion annually.

Reports, however, say the true figure could be higher when informal channels are included.

Brian Edwards, NALA’s country manager for West Africa, said a key objective is to bring more of these flows into formal, regulated channels.

“The official numbers are strong, but a large volume still moves through informal routes. Our goal is to provide a trusted alternative that is transparent and secure,” he said.

He also addressed a common concern among senders, noting that remittances sent through licensed IMTOs are not subject to tax in Nigeria.

Expanding Beyond Personal Transfers

NALA is also targeting business transactions through its B2B platform, Rafiki. The service allows global firms and remittance providers, including partners such as MoneyGram, to use NALA’s infrastructure to move funds into African markets more efficiently.

This positions the company both as a consumer remittance app, and as a backend provider for cross-border payments at scale.

Transparency as a Selling Point

One of NALA’s distinguishing features is price visibility. The platform shows users how its rates compare with competitors in real time, allowing them to choose the best available option.

The company says this approach is aimed at building trust with diaspora users who are usually sensitive to exchange rates and hidden charges.

Implications for Nigeria’s Economy

Increased use of licensed IMTOs will enhance convenience for senders in Nigeria, and higher inflows through official channels can strengthen foreign exchange liquidity, support the naira and improve transparency in the financial system.

With more fintech firms securing regulatory approvals and investing in payment infrastructure, the long wait times and uncertainty that once affected cross-border transfers are gradually fading.

Despite decades of democratic governance and a vibrant civil society sector, the actual practice of democracy is weak.

The problem isn’t lack of passion or good intentions. The problem is structure or more precisely, the lack of it. This siloed approach creates three fatal weaknesses:

First, the sector suffers from resource fragmentation, where multiple organizations compete for identical donor funds to address the same issues from scattered points.

This dilutes impact, duplicates efforts, and deepens an unsustainable dependency on external funding.

Consequently, this competitive environment breeds knowledge isolation; hard-won lessons, contacts, and operational experience remain trapped within individual organizations rather than evolving into collective wisdom that elevates the entire sector and finally, power diffusion.

Without coordinated action, civil society’s voice reduces to a cacophony of competing interests that politicians can easily ignore or manipulate..

The result? Decades of activism that generate heat but little light.

Silos in Civic-Tech

An obvious gap and where this piece will focus intently, is how we have built or are building civic-tech tools. From civic education platforms to transparency and accountability trackers and election mobilization apps and, more recently, a plethora of AI tools, the innovation pipeline has never been short of ideas.

However, despite this abundance, the civic tech ecosystem has largely grown horizontally rather than vertically, with each organisation building in isolation and creating overlapping tools with limited interoperability.

This siloed approach contrasts sharply with the very spirit of open government that civil society advocates. More importantly, because civic tech is largely driven by civil society organisations, this fragmentation is diluting civil society’s collective voice.

Integration as Strategy

But what if we approached civic technology differently? What if, instead of building in isolation, organizations deliberately designed their tools to connect and amplify each other?

A connected civic tech ecosystem signals an integrated civil society, one that can mobilise citizens at scale, coordinate advocacy efforts, and sustain pressure on government using shared data, technology, and resources.

There are four  interconnected layers of civic infrastructure that amplify each other’s effectiveness.

Foundation Pillar: Civic education infrastructure to build critical thinking skills, interest, and systemic understanding of how our governance works (or should work).

Engagement Pillar: Channels that transform education into sustained action , not just voting, but year-round citizen engagement with representatives and institutions.

Organization Pillar: Political structure that transforms individual citizens into collective power through disciplined, accountable political organizations with a clear theory of change.

Accountability Pillar: Governance oversight mechanisms that ensure transparency, create consequences for behaviour, and reward responsive leadership.

When these layers work together in series, they create exponential rather than additive impact. Educated citizens participate more effectively.

Organised participation creates political pressure. Political pressure enables accountability. Accountability creates space for better governance, which supports more civic education and participation. The flywheel keeps turning.

This is the unlock that we must intentionally build for as an ecosystem. Organisations combining efforts to build interoperable initiatives, interventions, and technology within each pillar as a stack, and each pillar directly feeding each other.

What can this look like?

An integrated civic tech stack envisions a framework where tools are built to complement rather than compete. For instance, a stack could link:

• Citizens engagement platforms that educate voters on candidates 
• Promise tracking systems that monitor campaign commitments 
• Citizen feedback mechanisms that report implementation status 
• Budget dashboards that show fiscal allocations against promises
• Accountability scorecards that rate official performance

Imagine if verified campaign promises automatically integrated into a public policy tracker, which in turn updated from open-budget dashboards that monitor fiscal allocations.

This unified dataset could feed into community feedback forms where citizens report whether promised projects were delivered. The result would be citizens, journalists, and policymakers working with a unified source of civic truth.

Nigeria’s civic ecosystem could start with a civic Data Layer, a shared repository of open, standardised datasets on governance, budgets, and policies.

Above that could sit an  Engagement Layer, where citizens interact with these datasets through apps, chatbots, or SMS. Finally, an Innovation Layer could allow new civic startups to plug in using shared APIs,authentication tools, and analytics systems.

This principle of stacked infrastructure is not new. The fintech ecosystem in Nigeria offers a living model. Before the era of integrated payment systems, mobile banking was impossible. Today, thanks to the Nigeria Inter-Bank Settlement System (NIBSS) and open banking frameworks, users can transfer across banks and fintech apps almost seamlessly.

Civic tech can borrow from this model by creating Civic Interoperability Protocols, standard APIs and data frameworks that enable different platforms to communicate securely.

Globally, India’s Digital Public Infrastructure, notably the India Stack, offers a masterclass in how layered systems can transform public service.

Built around digital identity (Aadhaar), payments (UPI), and data consent layers, India Stack enables private and civic innovators to plug into a national framework, producing exponential outcomes.

Similarly, in Estonia, civic engagement and governance platforms are interconnected through the X-Road, a backbone that links government databases, NGOs, and even businesses under secure, interoperable standards.

How the ecosystem benefits

This structure delivers multiple benefits simultaneously:

For Civil Society: Organizations share verified insights, coordinate campaigns, and can present a united front in demanding transparency, accountability, and reform. Collaboration attracts funders who increasingly prefer systemic investments over one-off projects.

By pooling data and infrastructure, civic tech organisations reduce redundancy, enhance collaboration, and deepen democratic impact.

For Citizens: The same platforms can serve multiple functions. A voter who learns about candidates through the education layer can track their promises through the engagement layer and later report results through the accountability layer, all within a connected ecosystem where information builds progressively. This creates both convenience and  depth..

For Democracy: Sustained, organized pressure on government becomes possible. Individual organizations making individual demands are easy to ignore.

A unified civil society armed with shared data, coordinated messaging, and demonstrated citizen support is far more difficult to dismiss.

For Funders: Rather than funding dozens of parallel initiatives addressing the same problem, donors can invest in shared infrastructure that multiplies the impact of each individual organization. This reduces overhead, improves sustainability, and creates a path to measurable systemic change

Blueprint for the New Generation

Building these stacks requires a fundamental shift in how Nigeria’s emerging civic leaders approach the work. Here’s how we must begin:

1. Impact over Idea: We must be humble enough to accept that individual ideas are always less important than collective impact.
2. Ruthless prioritization: Our work must focus ruthlessly and collectively consolidate on the highest-leverage interventions rather than trying to solve everything at once.
3. Embrace political realism: Civil society cannot remain “above politics” while expecting political outcomes. The new generation must understand that civic education without political organization is an academic exercise, and political organization without accountability mechanisms will become corrupt.
4. Build for local & community ownership: This means developing solutions with the community to enable ownership, this allows inputs such as membership contributions and community investment that ensure improved participation & longer sustainability of interventions.
5. Measure what matters: Move beyond counting workshops held or people reached to tracking concrete policy wins, electoral accountability, and institutional changes.

The path forward requires less ego and more strategy, less noise and more organized power. Philanthropic funders, local incubators, and civil society leaders must invest in shared infrastructure projects such as civic APIs, open data repositories, and joint capacity-building programs.

Just as technology stacks revolutionized finance, civic stacks can revolutionize democratic participation.

Like anything there will be issues to grapple with. Which is why the most critical stack we need to build first is not of technology, but of trust and shared strategy among diverse actors.

Let this be the start of that conversation: How do we govern a shared civic infrastructure? What is the sustainable economic model? How do we design for the rural and city demographics simultaneously?

The future of our democracy depends not on a single perfect solution, but on our collective willingness to engage with these hard questions and build. Iteratively and inclusively, from the ground up.

The new platform, launched in Lagos on Tuesday, is designed to replace legacy systems and consolidate digital payment processes across banks, fintechs, government agencies, and other players within the financial ecosystem. 

Unlike NIBSS Instant Payments (NIP) which was built 14 years ago, the National Payment Stack is a multipurpose, real-time payment framework built from the ground up to meet current and emerging demands.

At the unveiling, NIBSS Managing Director Premier Oiwoh stressed that “It’s a transition to the future. With NPS, we didn’t just build another instant payment solution, we laid the foundation for Nigeria’s financial future,” he said.

The NPS is structured to support both bulk and single payments through one integrated rail. It also incorporates advanced messaging using ISO 20022, a global standard that improves transaction transparency, efficiency, and automation. 

Among other features, the system enables:

• Real-time transfers with instant settlement
• Request-to-Pay and Direct Debit features
• KYC verification through BVN, RC Number, or TIN
• Multi-currency functionality and potential for cross-border payments
• A sandbox environment for fintechs to integrate within 48 hours
• Enhanced fraud management and risk scoring

According to Oiwoh, “The NIBSS Payment Stack reflects our vision to equip Nigeria and Africa with a platform that not only meets global standards but speaks to our unique payment realities. From Request-to-Pay to real-time settlements, automated reconciliation, and advanced dispute management, NPS is designed to deliver smarter, faster, and more transparent payment experiences for all.”

One of the key priorities of the NPS is to strengthen digital and financial inclusion in Nigeria, a goal that aligns with the Central Bank’s financial system stability strategy. 

In enabling secure and low-cost payments, especially in underserved areas, NIBSS says the system will help the country expand its financial reach while strengthening trust across the ecosystem.

Deputy Governor of Financial System Stability at the Central Bank of Nigeria and Chairman of the NIBSS Board, Philip Ikeazor, described the development as a “transformative milestone.” He was represented at the launch by the CBN’s Director of Payment System Policy, Musa Jimoh.

“The NPS lays the foundation for deeper trust, greater inclusion, and the next wave of innovation across the digital payment landscape,” Jimoh said.

The Lagos State Government, a key supporter of fintech development in Nigeria, welcomed the initiative. Governor Babajide Sanwo-Olu, represented by Deputy Chief of Staff Samuel Egube, noted that the partnership between government, banks, and the private sector was critical for growth.

“This kind of strategic partnership adjusts what Nigeria and Africa need to flourish in our ever-evolving digital landscape. As the commercial heart of Nigeria, Lagos is excited to support innovations that make doing business easier, safer, more transparent, and more inclusive,” Egube said.

Created in 1993 and jointly owned by the Central Bank and licensed deposit money banks, NIBSS has consistently taken on projects to modernise Nigeria’s financial infrastructure, including the AfriGO domestic card scheme and instant POS settlement systems.

The launch of the NPS, however, is seen as its biggest move yet, one that could eventually become a model for indigenous digital public infrastructure across Africa.

With Nigeria looking to build a $1 trillion economy within the next eight years, NIBSS appears to be laying the rails, quite literally, for a payment sector that can support that vision.

According to the apex bank, this innovative digital gateway allows Nigerians in the diaspora to obtain a BVN remotely without the need for a physical presence in Nigeria.

The CBN Governor, Mr Yemi Cardoso, described the initiative as a milestone in Nigeria’s financial inclusion journey and a critical bridge connecting the country to its global citizens.

“For too long, many Nigerians abroad have faced difficulties accessing financial services at home due to physical verification requirements.

“The NRBVN changes that. Through secure digital verification and robust Know Your Customer (KYC) processes, Nigerians worldwide should now be able to access financial services more easily and affordably,” he said.

Cardoso described the NRBVN as a dynamic platform.

“It is not the final destination, but it is the beginning of a broader journey.

“Stakeholders across the financial ecosystem, including banks, fintechs, and International Money Transfer Operators (IMTOs) are encouraged to integrate and collaborate in shaping and refining the system as it evolves,” he said.

He said that remittance flows through formal channels increased from 3.3 billion dollars in 2023 to 4.73 billion dollars in 2024, due to recent reforms and policy shifts, including the introduction of the willing buyer, willing seller FX regime.

According to him, with the NRBVN in place, the CBN is optimistic about reaching its one billion dollars monthly remittance target.

“We are building a secure, efficient, and inclusive financial ecosystem for Nigerians globally.

“This platform is not just about financial access, it is about national inclusion, innovation, and shared prosperity,” he said.

Cardoso also reiterated the apex bank’s commitment to reducing the high cost of remittances in Sub-Saharan Africa and ensuring continued engagement with stakeholders to optimise the platform.

In his remarks, Muhammad Abdullahi, CBN’s Deputy Governor, Economic Policy Directorate, said that the NRBVN stood as a transformative tool, meticulously designed to enhance the banking experience for our diaspora community.

Abdullahi said that by providing secure, remote access to financial services, the platform simplifies the process of maintaining robust banking relationships, facilitating meaningful investments in Nigeria, and supporting the seamless flow of remittances.

”It is our firm belief that this initiative will not only strengthen economic ties, it will also foster a sense of pride and belonging among Nigerians worldwide, encouraging them to play an even greater role in our nation’s development,” he said.

The inaugurated also featured a presentation by the Managing Director of NIBSS, Mr Premier Oiwoh, and a panel discussion with key industry stakeholders.

The NRBVN is part of a broader framework that includes the Non-Resident Ordinary Account (NROA) and Non-Resident Nigerian Investment Account (NRNIA).

Together, they enable access to savings, mortgages, insurance, pensions, and investment opportunities in Nigeria’s capital markets.

Under current regulations, Nigerians in the diaspora will retain the flexibility to repatriate the proceeds of their investments.

Importantly, the NRBVN system has been built with global standards in mind, incorporating stringent Anti-Money Laundering (AML) and KYC compliance protocols to ensure the integrity, transparency, and security of Nigeria’s financial system.

Every NRBVN enrollment undergoes comprehensive verification checks to safeguard against illicit financial activity, bolstering international confidence in the platform and the broader financial ecosystem. (NAN)

• Chika Nwosu (PalmPay) – Most Innovative Fintech Company of the Year
• Olugbenga Agboola (Flutterwave) – Most SME-Supportive Fintech of the Year
• Sunil Natraj (JumiaPay) – Most Convenient Online Payment Option of the Year
• Tosin Eniolorunda (Moniepoint) – Financially Inclusive Fintech of the Year
• Dauda Gotring (OPay) – Most Customer-Friendly Fintech Company of the Year
• Dr. Mohammed Olatunji (MoreMonee) – Best Savings Fintech App of the Year

In Nigeria’s competitive fintech industry, recognizing the vision, impact, and leadership of purpose-driven companies is a way to highlight their impact on people’s lives.

This was the guiding ethos behind the 2025 Legit Business Names Awards.

Legit.ng established this prestigious, non-commercial recognition programme to honour the innovators transforming Africa’s financial future.

Now in its second year, the 2025 edition of the Legit Business Names Awards built on the success of its 2024 debut, reaffirming Legit.ng’s commitment to spotlighting transformative leadership in Nigeria’s fintech sector.

Each winner reflected how fintech is improving payments and savings, as well as reshaping how Nigerians build financial security, access opportunity, and participate in a rapidly digitising economy. The stories show what responsible, people-first fintech leadership can look like across the continent.

PalmPay’s Chika Nwosu: Championing Inclusive Digital Finance

Chika Nwosu, Managing Director of PalmPay, was recognised for expanding digital finance to Nigeria’s underserved populations. In 2024, PalmPay launched its *USSD code (861#), a game-changing feature that brought financial services to millions of users without smartphones or internet access. This innovation was central to the company’s mission of deepening financial inclusion, especially in rural and low-connectivity regions.

With its rapid growth across Nigeria, Ghana, and Tanzania, PalmPay is offering cash alternatives and building the infrastructure for a truly inclusive digital economy.

Flutterwave’s Gbenga Agboola: Building for Africa, Scaling Globally

Olugbenga “GB” Agboola, the visionary behind Flutterwave, was honoured for simplifying digital payments for businesses within and beyond Africa. In 2024, under his leadership, Flutterwave secured new payment licenses in Ghana, Uganda, and Malawi, opening up seamless cross-border transactions across these African markets. The company also widened its Money Transmitter License coverage in the United States, growing from 13 to nearly 30 states, making it easier for Africans in the diaspora to send money home.

Agboola also drove the success of Flutterwave’s Send App, a remittance platform that witnessed exponential growth in usage across the UK, US, EU, and Canada. Flutterwave’s core strength in 2024 encompassed tech-driven solutions, advocacy, enabling small businesses, and creating systems that work beyond borders.

JumiaPay’s Sunil Natraj: Expanding Access to Flexible, Everyday Digital Payments

Sunil Natraj, the strategic force behind Jumia Nigeria, was honoured for steering the transformation of JumiaPay into one of Nigeria’s most accessible and consumer-focused payment platforms. Under his leadership, JumiaPay introduced Buy Now, Pay Later (BNPL) options in partnership with credit platforms like EasyBuy and CredPal, empowering Nigerians to shop online with greater flexibility and financial ease.

The platform also rolled out zero-fee payment services for essential utilities like electricity, cable TV, and mobile top-ups, helping users save money while managing their daily expenses seamlessly. These innovations positioned JumiaPay as a go-to tool for digital living in Nigerian homes. His leadership highlighted the power of partnerships with brands, with customers, and with underserved communities.

Moniepoint’s Tosin Eniolorunda: Financing Nigeria’s Informal Economy

Tosin Eniolorunda, CEO of Moniepoint, has been transforming Nigeria’s informal sector. In 2024, Moniepoint processed over $22 billion in transactions, reaching millions of small businesses and market traders who operate outside the traditional banking system. The company’s services have become a lifeline for these entrepreneurs, enabling them to receive payments, access credit, and grow their operations securely.

Under his leadership, Moniepoint also raised $110 million in fresh funding to deepen its reach and invest in infrastructure that supports everyday business owners.

Eniolorunda championed financial literacy through a nationwide campaign and partnered with SMEDAN and the Federal Ministry of Industry, Trade, and Investment to publish Nigeria’s first Informal Economy Report, a groundbreaking study that shed light on the needs and realities of millions of unregistered and underserved businesses.

OPay’s Dauda Gotring: Bridging Fintech and Social Good

When Dauda Gotring took the reins at OPay in 2023, he brought the precision of a former Central Bank director and a people-first mindset that has since reshaped the company’s mission. In 2024 alone, OPay rolled out NightGuard and Large Transaction Shield, two advanced security features that strengthened user protection through biometric verification and smart fraud detection.

Simultaneously, Gotring led the expansion of over 21 physical service centres across Nigeria, combining tech innovation with on-the-ground customer support.

Through its Play4aChild initiative, the company raised ₦30 million to fund scholarships for students at the University of Ibadan and Ahmadu Bello University, benefiting nearly 60,000 youths nationwide.

OPay also partnered with female-led SMEs and rolled out inclusive financial literacy campaigns in underserved areas. By initiating secure transactions and investing in education and gender empowerment, Gotring has repositioned OPay as a fintech catalyst for social good in Nigeria’s digital economy.

MoreMonee’s Dr. MO: Banking for the Next Generation

Dr. Mohammed Olatunji, the youngest Nigerian bank CEO, was recognised for MoreMonee’s explosive rise as the best savings fintech app of the year for impacting the way young Nigerians approach saving and managing money. In 2024 alone, MoreMonee introduced a high-interest savings feature called FutureBox, tailored to help everyday users build wealth sustainably.

It also became one of the first platforms in Nigeria to launch a domestically issued debit card in partnership with the Central Bank of Nigeria, AfriGO, and NIBSS, bringing localised control and cost savings to users.

Apart from digital innovation, MoreMonee launched the “Operation Feed the Nation” initiative, its flagship social impact programme aimed at tackling food insecurity in underserved communities, directly linking financial inclusion to real-world needs.

The Power of Purpose, a Celebration with a Message

The Legit Business Names Awards aims to highlight the impact of these innovators. Each winner has led real, measurable change in how Nigerians access, use, and benefit from financial services. These companies solve problems, improve lives, and accelerate economic inclusion across the country.

Rahaman Abiola, Editor-in-Chief of Legit.ng, remarked:

“What we’re witnessing in Nigeria’s fintech space is indeed innovative. These leaders are building enterprises and designing the future of how we transact, save, invest, and interact with money through the help of technology. The Legit Business Names Awards is our way of telling these stories with intention and shining light on innovations that cater to real human needs. We believe that amplifying these voices will help open doors to more opportunities for growth, impact, and transformation in the sector.”

Adding to this, Felix Imoh, Public Relations Manager at Legit.ng and coordinator of the Awards, shared:

“These impactful stories are a reminder that fintech should be people-focused and mission-driven. As these leaders are building systems that work for everyday Nigerians, we are deeply joyful to give prominence to their successes and impact. We also hope to ignite courage and creativity in the next generation of tech entrepreneurs.”

As Nigeria continues to emerge as a powerhouse of digital innovation, the 2025 Legit Business Names Awards reaffirms a vital truth: the future of finance is being built boldly and brilliantly by Nigerians.

At the heart of this transformation is Legit.ng, using the power of storytelling and tech-driven, ethical journalism to spotlight changemakers, amplify underrepresented voices, and inspire a new generation of entrepreneurs.

This award series is an initiative celebrating success and shaping the story of a continent on the rise.

PAFON 2.0 will be held on Thursday, April 10, 2025 at the Function Room 1, Oriental Hotel, Lekki Road, Lagos by 9am (WAT).

Register here to attend: https://shorturl.at/IPOjA

The keynote speaker alongside the special guest, Uche Uzoebo, the MD/CEO of SANEF, and others lined-up for the Forum, will focus on the theme: “Bridging the Customer Experience Gap for Financial Inclusion Using AI”, which underscores the urgent need to safeguard digital transactions against emerging threats while ensuring seamless financial inclusion and innovation.

Mrs Momoh is leading AfriGO vision to deliver a seamless, secure and efficient payment card scheme which facilitate faster transactions, reduce card operating costs to enhance the overall user experience for stakeholders, partners, and cardholders.

With over 30 years of progressive leadership experience in the Nigerian financial and payment industry, she has a distinguished career marked by strategic vision and a commitment to delivering exceptional results.

She has consistently demonstrated her ability to drive large-scale operations, enhance profit and loss growth, and lead high-performance teams.

Also, Mrs. Uche Uzoebo is a passionate and renowned expert in financial inclusion, digital transformation, inclusive finance and women empowerment in Nigeria.

Under her leadership, SANEF Limited is committed to achieving excellence, greater growth, development and expansion to stakeholders in the ecosystem.

Speaking ahead of PAFON 2.0, Mr. Chike Onwuegbuchi, the co-convener, said that PAFON 2.0 is open to payment service providers, fintech firms, banks, regulatory bodies, cybersecurity experts, and all stakeholders invested in the future of digital transactions in Nigeria.

Attendance

Register to Attend: https://shorturl.at/IPOjA 

With over 200 FinTech startups eyeing the top position for dominance, it would seem like Nigeria’s finance industry has improved significantly.

However, behind the scenes of this thriving industry lies a hidden vulnerability nearly all FinTechs rely on a single entity, the Nigeria Inter-Bank Settlement System (NIBSS), to process transactions.

This dependence on a centralized payment infrastructure raises serious doubts about the reliability, competition, and long-term sustainability of digital payments in Nigeria.

NIBSS, a private company owned by the Central Bank of Nigeria (CBN) and all licensed commercial banks, serves as the backbone of the country’s financial transactions. Its main service, particularly the NIBSS Instant Payment (NIP) platform, is to enable transfers between different banks and bulk payments, making it important to both banks and FinTech companies.

As of today, over 90% of all digital transactions in Nigeria pass through its network. The total volume of transactions processed by NIBSS increased by 47.99% to 5.14 billion in 2022, compared to 3.47 billion in 2021. For FinTechs like Paystack, Flutterwave, Moniepoint, OPay, Paga, Interswitch and Kuda, integrating with NIBSS is not just a choice, it is a necessity. Without access to its platform, these companies would struggle to offer hassle-free financial services.

Although NIBSS has been very reliable lately, its dominance poses a huge risk. If this system fails, it could trigger disruptions and transmit shocks to financial markets, the domestic economy as well as at cross-border levels. Similar situations in the past have resulted in transaction backlogs, leaving many unable to access their funds for hours or days.

Now, if a cyberattack or a major technical failure were to cripple NIBSS, the entire digital payment system could halt, which will expose the dangers of relying on a single point of failure. In an economy where cash usage is declining fast and digital payments are becoming the norm, this level of dependency is alarming.

In February 2022, the Nigeria Inter-Bank Settlement System (NIBSS) experienced significant downtime, leading to widespread transaction failures and delays across the country.

This disruption affected numerous businesses and consumers, highlighting the risks associated with the centralized nature of Nigeria’s payment infrastructure.

For instance, many bank customers reported being unable to complete interbank transfers, causing inconvenience and financial strain.

Such incidents underscore the urgent need for Nigeria to diversify its payment systems and reduce over-reliance on a single entity like NIBSS to ensure a more resilient and efficient financial ecosystem

Beyond the operational risks, the FinTech industry’s reliance on NIBSS hinders innovation. Even though startups compete on user experience and additional features, they remain focused on a payment platform controlled by a single entity. This limits their ability to develop proprietary transaction-processing solutions.

In countries like Kenya and India, alternative payment networks like M-Pesa and the Unified Payments Interface (UPI) have allowed FinTechs to create independent, creative payment models.

In Nigeria, however, any disruption to NIBSS leaves FinTech with no viable alternative, bringing back the need for a more decentralized system.

Regulatory uncertainty further increases the risks. Because NIBSS operates under CBN’s regulatory framework, its policies directly impact FinTech.

The regulatory system is unpredictable, and if the CBN were to introduce stricter control over NIBSS operations, FinTech companies could find themselves constrained in ways they never anticipated.

To reduce over-reliance on NIBSS, Nigeria must embrace a decentralized approach to digital payments by working on alternative payment networks.

Private-sector-led initiatives, such as Verve by Interswitch, could be expanded to provide more transaction-processing options.

Open Banking platforms should also be leveraged to allow the process of direct bank-to-bank transfers without routing everything through NIBSS.

With the rise of Open Banking, FinTechs should be able to process direct payments between bank accounts without relying solely on NIBSS. Countries like the UK (via Open Banking) and Brazil (via Pix) have successfully launched such models.

While NIBSS is an important player in the Nigerian financial industry, Nigeria’s FinTechs must not place all its eggs in one basket. Over-reliance on a single entity is risky, which may expose the industry to risks of disruption, regulatory shocks, and limited innovation.

If Nigeria is to achieve a truly welcoming and creative financial platform, it must prioritize the development of alternative payment solutions that can function independently of NIBSS.

The progress of FinTech in Nigeria depends not just on big names but on creating a payment infrastructure that is decentralized, secure, and adaptable to change.

*Morgan Nwaiku is a digital technology professional. His career spans collaborations with Nigeria’s FinTech unicorns and hubs.

The lobbying, aimed directly at President William Ruto, shows the level of interest Kenya’s financial infrastructure upgrade is receiving lately.

In a letter seen by Techeconomy, Ceva formally requested a meeting with Ruto, proposing to introduce NIBSS as a strategic partner for the project. 

The letter, signed by Ceva’s Managing Director, Yatin Mehta, suggested holding the meeting on 20th or 21st March 2025. “We are writing to formally request a meeting with you at your earliest convenience,” the letter stated. “The purpose of the meeting is to introduce our partner, the Nigerian Interbank Settlement Systems (NIBSS).”

The proposed meeting, including NIBSS CEO Premier Oiwoh, head of Partnerships Yvonne Ige, and Mehta himself, also expected David Kiprono, director of Webmasters Kenya Ltd—the company behind the development of Kenya’s e-Citizen platform.

NIBSS, owned by the Central Bank of Nigeria (CBN) alongside commercial banks, is the backbone of Nigeria’s financial transactions. Ceva, an international payments firm operating in India, Nigeria, Kenya, and Brazil, claims to process $40 billion annually. Their pitch? A solid system designed for Africa, by Africa.

“Our robust infrastructure is developed in Africa, for Africa,” Ceva wrote in its letter. “AfriGo is NIBSS’ answer to Africa having its own card processing, driving our economic independence and efficiency. India has done it with Rupay, China has done it with UnionPay, UAE has done it with Jaywan, Brazil has done it with PIX.”

The bid, however, is being resisted. Local financial heavyweights, including mobile money giant Safaricom and the Kenya Bankers Association (KBA), argue that instead of building a new FPS from scratch, the government should upgrade the existing PesaLink system. 

According to them, a fresh system could cost up to $200 million and take four years to complete, whereas improving PesaLink—a platform handling $8.5 billion annually—would be faster and cheaper.

The Central Bank of Kenya (CBK) has yet to decide on the FPS upgrade, but the competing interests show the high stakes. While NIBSS and Ceva see an opportunity to boost Kenya’s payment sector, others warn of potential disruptions and unnecessary costs.

For now, the ball is in CBK’s court. If the Nigerian-backed proposal gains traction, it could completely change digital transactions in Kenya, enhancing interoperability across banks, SACCOS, mobile money operators like M-Pesa, and fintech firms. 

But if Safaricom and the KBA succeed in their counter-lobbying, Kenya may opt for an upgrade rather than a full-scale overhaul.

The report exposes the wave of financial fraud involving corrupt bank employees and agents who register BVNs for underage individuals, allowing them to open enterprise accounts used for illicit transactions. 

Two significant cases mentioned in the report resulted in losses of over ₦1 billion, with stolen funds moved through multiple accounts to evade detection.

How the Fraud Was Carried Out

In one case, a compromised bank staff registered a BVN for a minor and linked it to an enterprise account. This fraudulent account later received ₦495.3 million, which was quickly withdrawn.

In a similar scheme, a banking agent registered a BVN for another underage individual and used it to open a business account under the guise of a bakery. This account was credited with ₦507 million, which was immediately transferred out before authorities could intervene.

NIBSS confirmed that one of the implicated bank staff members is under investigation, while the agent involved in the second case has been reported to law enforcement for possible prosecution.

Inside Job: The Role of Bank Officials

The report stresses how some financial institution employees played a direct role in facilitating these fraudulent activities. Regulators are currently engaging with the affected bank to assess internal complicity and enforce stricter verification measures to prevent further occurrences.

“BVN was registered for a minor I by compromised bank staff and an enterprise account was opened using the BVN. An estimated ₦495.3 million was later received into the account and drawn down.

“BVN was registered for a minor II by a compromised agent and an enterprise account of a bakery was opened with the BVN. An estimated ₦507 million was transferred into the account and moved out.

“Agent has been reported to LEA for arrest while engagement is ongoing with the bank on the role played by its staff in this fraud,” the report stated.

Surge in Fraud Despite Fewer Reported Cases

While the overall number of reported fraud incidents has dropped by 31% between 2020 and 2024, financial losses from fraudulent activities have skyrocketed by 350% within the same period. The total amount lost to fraud surged from ₦11.61 billion in 2020 to ₦52.26 billion in 2024.

Fraudsters are exploiting weaknesses in regulatory oversight, identity verification processes, and financial service intermediaries to carry out large-scale theft daily

Other Fraudulent Schemes Identified

The NIBSS report also flagged other emerging fraud trends beyond the illegal use of minors’ BVNs. One case involved fraudsters stealing the identities of senior citizens to open bank accounts, funnelling more than ₦400 million through these fraudulent accounts.

In another instance, fraudsters used falsified corporate documents to register an oil and gas company in July 2024. On the day the fraudulent account was opened, it received ₦335 million, which was swiftly transferred to unlicensed Bureau De Change (BDC) operators. Authorities were able to recover the funds following apt intervention by law enforcement.

Again, fraud proceeds are increasingly being laundered through cryptocurrency transactions disguised as gift card purchases, making it harder to track stolen funds.

To curb rising fraud cases, NIBSS has called for strict security protocols, including real-time biometric validation during BVN registration and the enforcement of an Enterprise Fraud Management System to detect and halt suspicious transactions.

The report also recommends permanently blacklisting fraudulent BVNs and ensuring that all newly opened financial accounts are profiled within 24 hours to enhance fraud detection efforts.