By Anthony Otaru, Abuja
The Central Bank of Nigeria ( CBN) and the National Communications Commission ( NCC) are working in collaboration to curb prevalence of electronic financial fraud associated with the digital payment system by improving consumer protection .
CBN Governor, Olayemi Cardoso and Executive Vice Chairman of NCC Dr. Aminu Maida signed a Memorandum of Understanding ( MoU) on Data Sharing and Information Management yesterday in Abuja.
The MoU among other objectives, seeks to enhance effective transaction monitoring and functional fraud reporting channels .
Following claims by the Nigeria Inter-Bank Settlement System( NISS), Nigerian financial institutions lost N52.26 billion to digital payment fraud in 2024, marking a significant 196 per cent surge in losses compared to 2023.
These losses primarily occurred through web, mobile, and POS channels, with 2024 serving as a peak year for fraudulent activities before a reported decline in 2025.
Tackling the rise in digital payment fraud requires developing innovative ways from the two regulators in the banking sector( CBN) and telecom sector ( NCC)
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Speaking at the signing ceremony which was held in Abuja, Cardoso said the rise in digital adoption has attracted sophisticated fraud schemes.
However, he added that the scale and complexity of today’s digital financial ecosystem require a more comprehensive, forward-looking, and enduring framework.
“This MoU provides that framework.
First, we are reinforcing the stability and integrity of Nigeria’s payment system. As we deepen instant payments, expand QR-based payments, and advance open banking and API interoperability,
it is essential that infrastructure across both sectors is aligned—so that transactions are reliable, services scale smoothly, and consumers enjoy safe and seamless experiences.
Through this MoU, we will strengthen coordination on approvals, technical standards, and innovation trials, including sandbox testing that supports market-led solutions while safeguarding stability.
Secondly , we are strengthening our collective response to electronic fraud and improving consumer protection.
The rise in digital adoption has also attracted increasingly sophisticated fraud schemes. Addressing these threats requires joined-up action—shared intelligence, clearer escalation paths, stronger operational readiness across regulated entities, and consistent public education.
Thirdly, this MoU supports the implementation of the Telecom Identity Risk Management Portal (TIRMP)—a secure, regulatory-backed data-sharing platform designed to help prevent fraud linked to churned, swapped, or blacklisted mobile numbers”.
Cardoso further explained that ability to verify mobile number status in real time across banks, fintechs, and other digital platforms was a critical layer of protection for consumers and for the financial system.
“ Importantly, we will ensure that the use of this capability is governed by clear standard operating guidelines and strict compliance with Nigeria’s data protection requirements, including appropriate safeguards, encryption, and consent protocols”, CBN governor said.
However , to translate commitments into results, the MoU establishes joint governance through two Joint Committees- the Joint Committee on Payment System and Consumer Protection; and the Joint Committee on TIRMP. These committees, according to Cardoso , will provide structured coordination, resolve operational frictions, recommend improvements, and report progress—so that this partnership delivers measurable outcomes, not just good intentions.
Under this MoU, he said, CBN will support measures such as strengthened authentication for higher-risk transactions, effective transaction monitoring, functional fraud reporting channels, and a harmonised consumer sensitisation programme—particularly for underserved segments and MSMEs who are often most exposed to these risks”
The Governor referenced the existing relationship between CBN and NCC, describing it as a history of constructive engagement—on matters such as short code governance for payment service providers, coordination to support cross-platform stability, and the resolution of challenges around USSD payments.
In a remark, NCC Executive Vice Chairman Dr.Aminu Maida said institutions – CBN and NCC must work together in the best interest of the Nigerian consumer.
“ The MoU also reflects our shared commitment to building a stronger digital economy—one that is trusted not only by the Nigerian people, but also by the global business community.Our collaboration with the Central Bank is not new. Over the years, our two institutions have demonstrated the value of close regulatory coordination.
‘’A notable and recent example is our collective effort in resolving the long-standing USSD debt impasse—an intervention that restored confidence, preserved service continuity, and safeguarded the interests of consumers, telecom operators, and financial institutions alike,’’ he said.
‘’That experience reaffirmed a simple truth: that complex, cross-sector challenges are best addressed through structured collaboration. Collaboration between our two institutions is not optional; it is imperative.
‘’The sectors we regulate—communications and financial services—have become deeply interdependent, collectively shaping virtually every aspect of our lives”, NCC boss added.
For the NCC, he said MoU speaks directly to one of the critical pillars of our strategic focus: leveraging cross-sectoral innovation to deliver a safe, resilient, inclusive and trusted digital ecosystem.
“As mobile numbers increasingly underpin identity, authentication, and financial access, collaboration with the CBN is essential to ensuring that innovation is matched with strong governance, system stability, and consumer safeguards.
‘’Permit me to spotlight just two of the many critical areas that this collaboration is designed to address. First is the prevention of electronic fraud, which has become increasingly pervasive, with significant implications for the integrity of our digital economys
‘’Through the Telecom Identity Risk Management System (TIRMS) Portal—which aggregates data on churned (recycled) phone numbers, as well as numbers flagged within your sector—the Financial Services Industry will now have enhanced visibility into the status of phone numbers, one of the most widely utilized resources in your sector, although regulated by the NCC”, the CBN boss explained.
Earlier in a preliminary remark, Mrs Yusuf Rakiya Opeyemi said digital payment system depends on resilient telecommunication network said,
“Across Nigeria, our citizens and businesses increasingly depend on digital channels to save, pay, trade, access credit, and build livelihoods. Those channels, in turn, depend on resilient telecommunications networks, trusted identity systems, and secure data flows. Put simply: when the communications sector is strong, the financial system is more inclusive and more efficient; and when the financial system is sound, investment and innovation in the digital economy can thrive. That is why this MoU is not merely an administrative document—it is a practical statement of national interest”, she said.
