E-Financial
CBN and NIBSS Raise over Rising Internet Fraud
Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS) have expressed worry over the growing menace of Internet fraud in the financial services sector.
They wondered why people who use mobile lines and bank accounts to defraud others could not be swiftly apprehended and prosecuted despite the mandatory NIN-SIM linkage introduced by the Federal Government.
They therefore stressed the need for all stakeholders, especially the banks, Nigeria Communications Commission and security agencies, to do more to address the problem.
Speaking at the weekend at a webinar organised by the Committee of e-Banking Industry Heads, with the theme ‘Digital Fraud and the need for a national Intelligence programme’, Musa Jimoh , director of Payments System at the CBN, , stated that the rate of frauds in the sector had expanded and that the perpetrators were exploiting new channels to compromise the system.
The Ministry of Communications had in 2017 disclosed that Nigeria loses about N127bn yearly to cases of Internet frauds across all the sectors of the economy. It added that the majority of the frauds were perpetrated on foreign domain names but had become popular among Nigeria’s millions of Internet users.
However, Jimoh gave an assurance that the apex bank was closely monitoring the financial services space to ensure that the activities of the fraudsters were brought to an end.
He stated, “The rate and incidence of fraud have actually expanded. More frauds are being committed. Once you open a new channel, people study it and they begin to penetrate. Once the CBN issues a regulation around the payments system, the next thing they do is to see where the compromises are.
“That is why I like the theme of this event to enable us to seek national collaboration to fight cybercriminals in this country and across the world.”
He noted however that it would be diversionary to think frauds were committed by external persons only. “We also look at banks; we are not going to deceive ourselves that fraud is only committed by the customers,” he said. “We believe that frauds could happen within the banks, which was why we introduced the dual authorisation process whereby a transaction cannot start and end with one person.
“We also ask banks to provide security and protection mechanisms around the information of their customers in their possession. The Payment Card Industry Data Security Standard, known as PCI DSS, was also made mandatory, in which case every bank has to secure the data its customers provided in a way that they cannot be stolen.”
Jimoh, who pointed out that most of the information used by the fraudsters to defraud customers were due to the leakages in the banks, narrated how some persons attempted to defraud him by sending him a text message that he needed to replace his ATM card and that he should send some information if he wanted it fixed.
“What struck me was that, in the message, they put another (phone) number I could call if I wanted it resolved,” he noted. “The number that sent the message and the one the person asked me to call are available and these are active numbers. I tried (calling) the numbers and they connected.
“My question is, what do we do to these people? By today’s configuration, no line can be active without the National Identification Number and if that phone is active within the banking industry, it has a million targets. So, we should know the owners of those lines and the need for collaboration has become very mandatory between the police, other security agencies and the Nigerian Financial Intelligence Unit.
“The NCC also has to come in because every SIM has biometric data attached to it and should be identified. We need to collaborate so we can take these monsters out of the system. I do not see any reason why somebody should use a phone to commit an offence and that person’s phone or account information is still active within the system.”
He said people who commit infractions in the banking system were being placed on a watchlist and they would be made “miserable” within the financial services system.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
Securities and Exchange Commission (SEC) has directed all public companies and Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred”, especially those dating from before the enactment of the Finance Act 2020.
The directive reaffirms the provisions of Section 60 of the Finance Act, which mandates that dividends unclaimed for over six years be transferred to the Unclaimed Funds Trust Fund (UFTF), where they remain accessible to shareholders pending claims.
The Commission said that shareholders are entitled to continue to claim their dividends that are not statute-barred (that is not above 12 years) before December 31, 2020 “when the Finance Act 2020, came into effect.”
According to the SEC in a Circular, “The attention of the Securities and Exchange Commission has been drawn to the fact that paying companies and their Registrars have continued to treat unclaimed dividends of public companies that are older than 12 years as being “statute-barred” without recourse to the provisions of the Finance Act 2020.
“In response to various inquiries on the subject, the Commission hereby clarifies as follows: The import of the provisions of Section 60 of the Finance Act 2020 (December 31, 2020), is that, where dividends declared by a public company quoted on the Nigerian Exchange Limited remained unclaimed for a period of six years or more, such dividends are expected to be transferred to the Unclaimed Funds Trust Fund (UFTF) to be held in trust and managed pending when the shareholder presents a claim for such unclaimed dividends.
“Pending the setting up and operationalisation of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020”.
The Commission therefore directed public companies and Registrars to effect immediate compliance with the directive and submit periodic reports on same in the manner prescribed in the Commission’s Rules and Regulations.
Federal Inland Revenue Service (FIRS) has revised its Standard Operating Procedure (SOP) as part of efforts to improve consistency, transparency, and service delivery in tax administration across the country.
According to a statement on Monday in Abuja by Mr. Collins Omokaro, Special Adviser on Communication Strategy and Advocacy to the Executive Chairman of FIRS, the revised SOP offers a unified framework for core tax processes including registration, payment, audit, and enforcement.
“This is about people, experience, and impact. It’s a step toward a tax system that supports voluntary compliance and national development,” Omokaro said.
He explained that while FIRS field offices have long operated with good intentions, inconsistent methods across different locations often created confusion for taxpayers.
The revised SOP, he said, is designed to eliminate such disparities by providing a single, clear roadmap for operations in all of the Service’s over 300 offices nationwide.
More than just a procedural manual, the new SOP is described as a statement of institutional direction, reflecting values that define the future of the Service.
Omokaro quoted Dr. Zacch Adedeji, executive chairman of FIRS, as saying that “This SOP is not just a technical document—it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people.”
The SOP update is one component of a broader reform agenda underway at FIRS, which aims to transform the agency into a fully service-oriented institution.
The changes are also aligned with the ongoing digital transformation within the agency, which is intended to harmonize human and technological systems for faster, more reliable, and taxpayer-friendly service delivery.
Internally, the SOP is expected to enhance operational efficiency and provide a foundation for improved staff training, clearer guidance, and stronger evaluation systems. Omokaro noted that every FIRS employee is expected to study, implement, and embody the procedures outlined in the new document.
“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” he said.
The SOP reform is being introduced as part of the Service’s broader mission to reposition itself as a modern tax authority grounded in accountability, consistency, and a shared sense of national purpose.
The move comes as the FIRS continues to modernize its processes, improve tax collection efficiency, and foster a culture of voluntary compliance—all aimed at strengthening revenue mobilization to support Nigeria’s development agenda.
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