Banks in Nigeria have already lost about USD 247 million (NGN 40 billion) due to a series of online fraud cases in 2013, according to the CBN.

Niyi Ajao, the executive director, said this measure would put NIBBS in position to act as another line of defense for financial institutions against hackers and cybercriminals seeking to exploit possible loopholes in the electronic payment system so as to perpetuate fraud.

Online payments are rising exponentially from USD 314 million in 2010 to USD 488 million in 2012, according to NIBBS. The same report indicates there has been a 10% monthly increase in Pointof-Sale (POS) transactions.
Sophisticated online attacks continue to emerge in view of Nigeria’s growth in internet penetration and as critical sectors of the economy (financial services, oil and gas, telecommunications) continually move data into the cyberspace. The need for more investment in online security becomes even more compelling in the face of absence of appropriate legal framework to prosecute cybercriminals.

Nigeria Inter-Bank Settlement System (NIBSS) was incorporated in 1993 and is owned by all licensed banks including the Central Bank of Nigeria (CBN) and discount houses. NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks, discount houses and card companies in Nigeria.