Business

Banks Lose N9.5bn to E-fraud In 2023

Published

1 month ago

August 19, 2023

Editor

The banking industry has so far lost N9.5 billion to electronic fraud in 2023.

Meanwhile the Nigeria Electronic Fraud Forum, NeFF, has called for new measures and increased collaboration to curb the rising trend in electronic fraud.

Consequently, the forum, chaired by the Central Bank of Nigeria, at its third quarter general meeting held in Lagos yesterday focussed on, “New Strategies for Combating e-Fraud in a Cashless Environment”.

Speaking at the meeting Managing Director of Nigeria Inter-Bank Settlement System (NIBSS), Premier Oiwoh highlighted the disturbing trend in e-fraud in the country especially through betting platforms.

Represented by the Chief Risk Officer NIBBS, Temidayo Adekanye, he said: “Recently, we had the cashless policies from CBN, which was incurring a dramatic increase in the volume of transactions in the industry which variably as the impact of the volume of fraud in the industry itself. Now, the increased efficiency has also meant that fraud has dramatically increased across industry. For Q1 2023, the total fraud reported through the industry forum portal was at N5.1 billion.

“For fraud trends over the last five years, in 2019, we’re looking at about N3 billion and currently 2023, we are looking at about N9.5 billion to date. Fraud losses have increased dramatically over the last five years.

“So, as you can see also from the current perspective, from January to July 2023, there has been a slight jump between June and July, a 39 per cent increase with 8,649 with the actual fraud losses in July 2023, we’re looking at N1.2 billion which is a 54 per cent increase over the period. Now as you can see from January in general, we recorded about N2.7 billion in actual fraud losses.”

He said: “What we see most is the fact that the primary channels are the betting platforms. So once the money hits the betting platform or a wallet account or in some cases POS agents once it’s cashed out, it is a black hole.

“There is no way you can recover that money. We’re talking about potentially five per cent recovery rates across the industry. So we all have to identify those betting and wallets accounts, POS agents, cryptocurrency accounts, and in some cases purchases.”

Speaking on efforts to achieve zero fraud in the industry, NeFF Chairman and Director, Payment Systems Management of the Central Bank of Nigeria (CBN), Musa Jimoh, said: “Today, we are here to continue that conversation to look at new strategies by which we can combat E-fraud. If we don’t combat the cyber criminals, they will weigh us down and disrupt the entire system. So, we all need to work together to see how we can make life extremely difficult for cybercriminals. We need to look at new ways, new techniques, and more efficient manners by which we can improve and guard against the banking and payment infrastructure and educate ourselves on how we can safeguard our bank credentials or tokens and all the information that the banks have provided to us to safeguard.

“The more information we have about what they’re doing, the more we are protected.”

“The objective is to have zero fraud but you know, this is a gradual process because as you’re building techniques, they’re also exploiting other areas. As more people come into the financial sector as more transactions happen, people are vulnerable and so enlightenment education, we would continue to push it which is why it’s going to be a very long journey.”

“But I know that with the kind of enlightenment and the push by the bankers’ committee, and other stakeholders a lot of Nigerians will be well educated to know that they have to be have to keep all the accounting details very secret and therefore we anticipate that the incidence of fraud we taper down almost to zero.”
VANGUARD

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Business

Bank Customers Pay N154bn Fees For E-banking Services

Published

5 hours ago

September 28, 2023

Editor

Customers of nine leading commercial banks paid N154 billion fee for using electronic banking services in the first half of the year (H1’23).

Details of the banks’ financial statements for H1’23 showed that the fee represents a 16.7 percent year-on-year (YoY) rise when compared to N131.97 billion paid in H1’22.

The banks are Guaranty Trust Bank which raked in N21.2 billion from the customers, Access Bank (N43.9), Zenith Bank (N22.27 billion), United Bank for Africa Plc (N51.07 billion), Stanbic IBTC (N2.14 billion), First City Monument Bank (N7.4 billion), Unity Bank (N1.96 billion), Fidelity Bank (N1.85 billion) and Wema Bank (N3.13 billion).

Electronic Banking is a service that enables banking transactions through electronic payment channels like internet banking, mobile banking, Automated Teller Machines (ATMs), Point of Sale (PoS) among others.

The rise in electronic banking fees and commission indicates that Nigerians’ adoption of electronic payment channels has continued to increase.

According to the Nigerian Interbank Settlement System (NIBSS) e-payment data for Q1’23 the volume of e-payment transactions grew YoY by 209 percent to 4.7 billion from 1.52 billion in Q1’22.

The value of e-payment transactions increased YoY by 48 percent to N137.52 trillion in Q1’23 from N92.85 trillion in Q1’22.

Meanwhile, in H1 ’23, the nine banks earned N66.7 billion from account maintenance fees and commission income, representing a 14.7 percent YoY rise when compared to N57.5 billion recorded in the corresponding period of 2022, H1’22.

In terms of highest account maintenance fees and commission income, Zenith Bank had the highest (N21.02 billion), followed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), United Bank of Africa, UBA, (N9.6 billion), First City Monument Bank, FCMB, (N3.85 billion), Fidelity Bank (N3.4 billion), Stanbic IBTC (N2.64 billion), Wema Bank (N1.63 billion) and Unity Bank ( N742.6 million).

However, in terms of growth, UBA had the highest YoY growth of 47.6 percent at N9.6 billion in H1’23 from N6.5 billion in H1’22.

The cumulative net fees and commission income for the banks grew YoY by 20.7 percent to N448.47 billion in H1’23 from N371.43 billion in H1’22.

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Business

Edo, GIZ Strengthen Partnership To Enhance Ease Of Doing Business

Published

3 days ago

September 25, 2023

Editor

L-R: Representative of the Head of Component, Policy and Strategy, Mr. Omoware Akinropo; Managing Director, Edo State Investment Promotion Office (ESIPO), Mr. Kelvin Uwaibi, and Access to Finance Policy Advisor, GIZ-SEDIN, Akinwande Pearse, after a meeting in Benin City.

As part of reforms to boost ease of doing business in Edo State, the state government has strengthened partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

Addressing journalists after the meeting with the representatives from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) at the Edo State Investment Promotion Office (ESIPO), in Benin City, the Managing Director of ESIPO, Mr. Kelvin Uwaibi, said the primary objective of the meeting was to evaluate the outcomes of prior collaborations and chart a more robust path, aimed at elevating Edo’s standing in the Presidential Enabling Business Environment Council (PEBEC) ratings.

He noted that GIZ has been a steadfast partner to Edo State over the years, offering invaluable support in the state’s mission to enhance the Ease of Doing Business.

He added, “This partnership has yielded noteworthy successes, and the recent meeting provided an opportunity to assess the tangible achievements and strategise for the future.

“One of the top priorities identified during the meeting was the enhancement of EODB for Micro, Small and Medium Enterprises (MSMEs). Both parties were committed to ensuring that these businesses encounter fewer obstacles and experience a more streamlined process.

“A key area of focus was simplifying business-related processes and reducing bureaucratic complexities. Streamlining these procedures can significantly enhance the overall EODB environment.

“Recognising the importance of reducing the cost of doing business, both parties underscored the need to implement measures that make it more affordable for enterprises, particularly small and medium-sized ones.”

Representative of the Head of Component, Policy and Strategy, Mr. Omoware Akinropo, and Access to Finance Policy Advisor, GIZ, Mr. Pearse Akinwande, reiterated GIZ’s unwavering commitment to supporting Edo State in its EoDB initiatives.

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Business

Naira To Dollar: Edo Businessman Wants FG To Intervene

Published

3 days ago

September 25, 2023

Editor

An Edo State businessman, Mr. Osazee Gift Osazuwa, has called on the Federal Government to wade in and tackle the falling rate of the naira against the dollar.

He made the call in Benin while addressing Journalists as regards the current exchange rate of the naira against the dollar.

Osazuwa said on Saturday, the naira was sold for 1,000/$ at the black market, a trend he described as “very worrisome.”

He said the falling strengthen of the naira against the dollar is not helping them in the electronics business as they have to spend more to buy goods due to the exchange rate.

Osazuwa said if the naira keeps falling without any action from the Federal Government to salvage the situation, it might get worse and thereafter push them out of business.

Osazuwa, while expressing confidence on President Bola Tinubu’s ability to revamp the nation’s moribund economy, said those of them in the electronics business still have hope that he has the magic wands to turn it around.

He called on the Federal Government to arrest the situation before it gets out of hands.

He said if the government can check the falling rate, stem the tide and restore the dignity of the naira against the dollar, the country will be better for it.

Also speaking, Mr. Matthew Oshodin, decried the high cost of living in the country which is made worse by the fuel subsidy removal.

He said Nigerians are currently finding it difficult to cope rising from the high cost of fuel that has robbed off on every other aspect of the economy.

Oshodin further used the medium to call on the federal government to fix up the nation’s moribund refineries rather than sharing N5 billion as palliatives to states.

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