E-Financial
E-PPAN, Others Say Judiciary Strategic In Combating Financial Frauds
Stakeholders in the Nigerian financial sector have urged the judiciary not to relent on the fight against financial and other related frauds in a bid to safeguard the economy.
Rising from the 5th e-fraud conference organized by the Electronic Payment Association of Nigeria (E-PPAN) in Lagos, the stakeholders issued a communiqué identifying the judiciary as strategic partners to stem fraud.
The communiqué signed by Mrs Onajite Regha, chief executive officer of E-PPAN read: The criminal justice process in Nigeria in relation to electronic frauds is evolving with relevant laws still being enacted and law enforcement agencies and judicial system still in the process of understanding the technicalities of the issues.
“The entire process is made up of Laws, Institutions and Processes. Participants welcomed the formation of a collaborative strategy between the judiciary, the law enforcement agencies and the financial industry. They offered the industry their full support to strengthen justice and to implement policies and procedures that ensure that all components of the process are effective. All of these measures are necessary in order to successfully combat electronic payment crimes which threaten the entire payment framework”.
The conference participants averred that electronic payment fraud is a threat not only to individuals and corporate organisations but to the entire nation. Its cost implication can be measured through its economic and social impacts.
“It affects job opportunities and reduces standard of living. It diminishes national image, affects consumers’ confidence, ruin big brands and erodes international confidence in the authenticity of our payments systems. They condemned the acts of fraudsters who gladly exploit the anonymity, global reach, speed and cost effectiveness of the electronic payment system to pursue criminal endeavours,” the Communique read.
According to the statistics provided by NIBBS, in the first 9 months of 2014, the industry had lost over Four Billion, Eight Hundred and Ten Million, Two Hundred and Sixty Two Thousand, Two Hundred and Sixty Six Naira, (N4, 810,262,266). Participants agreed to cooperate and do everything to ensure that offenders are brought to justice.
All participants accentuated the urgent need to enhance awareness creation at different levels of the criminal justice chain, which includes staff of financial institutions, the law enforcement agencies and the judiciary.
They decried the situation where the prosecutors and the judiciary are not invited to be part of knowledge event.
To that effect, the industry committed to supporting the judiciary and law enforcement agents with awareness and trainings on trends and techniques of electronic crime.
“The participants recognized the role of the judiciary as strategic partners to stem fraud. The Chief Judge of Lagos State reaffirmed the commitment of the judiciary to the fight against electronic payment crime. She advised investigators and prosecutors to pay great attention to details and be meticulous to ensure investigations stand the scrutiny of the courts since the courts decisions are based on evidence.
“The participants agreed that the role of the judiciary remains unchanged as the resolver of disputes, interpreter of the law and defender of the Constitution. What must change however, are the tools and resources to tackle crimes.
“Participants proposed a practice direction from the judiciary to accept opening statements in cases of electronic fraud to assist the court in understanding the gravity of offences before the court. The advantage of an opening statement is that both attorneys at the earliest opportunity are able to give a brief summary of their case and highlights the evidence they intend to lead in support or defence of the allegation.
“A well planned opening statement serves as a road map of the trial. Participants welcomed the prospect of working on an action plan to improve the knowledge of the judiciary as it relates to types, modus operandi and consequence of electronic fraud.
“The status of the current laws in Nigeria shows that the delay in the cyber crime law has its negative effect in the criminal justice process. There is need for accelerated passage of comprehensive laws on payment system e.g. the Payment System Management Bill and other relevant laws that can support the structure of the payment systems”.
The passage of the Evidence Act of 2011 has improved the opportunities for prosecution of criminals.
However, the deficiency of expertise in digital forensics within the banking sector impairs adequate evidence to prosecute fraudsters that are apprehended and charged to court.
Participants therefore called for an industry wide forensics laboratory and capacity building of experts in digital forensics.
Reiterating their support for E-PPAN, the Economic and Financial Crime Commission (EFCC) requested further cooperation of the financial institutions, ISPs, and telecommunication companies for crime investigators and prosecutors.
They lamented the current information sharing process within the industry.
The participants agreed that all parties involved in the e-Payment ecosystem should carryout due diligence and detailed background checks on employees before employment.
The Electronic Payment Providers Association of Nigeria (E-PPAN) hosted the 5th Annual Payment Systems and Fraud Conference on the 4th of November, 2014 with the theme: “Unbundling the Criminal Justice Process in a Digital Economy”.
Delegations came from thirty four companies to strategize on collaborative opportunities on achieving a smooth and speedy prosecution of financial crimes.
The communiqué acknowledges the push on the critical need for education and awareness within the criminal justice process and the crucial role of collaboration amongst stakeholders in ensuring the success of crime reduction within the cyber space.
The conference participants (Abbey Mortgage Bank, Altech West Africa, Central Bank of Nigeria, Computer Warehouse Group, Economic and Financial Crime Commission, Digital Encode, Eartholeum Networks, E-Payment Providers Association of Nigeria, Enterprise Bank Plc, First City Monument Bank, ITEX Integrated Services, Lagos State Judiciary and Mainstreet Bank Plc.
Others are Money4 Nigeria Services Ltd, Nigeria Inter Bank Settlement Systems, P O. Jimoh- Lasisi and Associates, Socketworks Ltd, Standard Chartered Bank, United Bank for Africa, Unified Payments Services, and VoguePay ) expressed their commitment to the development of a formidable electronic crime justice process.
KudiWave Technologies Limited has raised questions over the transfer of N750,369,439.04 from its account with PalmPay Limited, seeking clarification on the timing, destination and circumstances surrounding the transaction.
In a statement, on Tuesday, KudiWave said the disputed debit was recorded on July 15, 2026, under the narration “Judicial Adjustment”.
The company said it was not notified of, or did not authorise, the transaction.
According to KudiWave, it had already approached the Federal High Court in Lagos to challenge an earlier order affecting its account.Politics News Service
The company said its application, filed on July 3, sought to set aside the June 29 order and stay its execution.
“The motion was heard on July 13 and adjourned for ruling. Two days later, the N750.37 million was transferred out of the account,” the company said.
KudiWave further stated that PalmPay had been served with the application before the July 15 transaction and did not file a counter-affidavit opposing the application.
The company also raised questions about an earlier movement of funds on July 11, which it said became apparent after access to the account was restored.
According to KudiWave, its account records showed that the funds were moved on July 11 and returned the same day before another transfer was recorded on July 15.
“PalmPay moved the money on July 11 and sent it back that same day. They then took it out again on July 15. When the account was opened, we saw how the money had been moved around while the account was frozen and we were not aware of it,” the company said.
The dispute followed an ex parte order obtained by the Inspector General of Police through officers of the Police Special Fraud Unit in Ikoyi, which placed restrictions on accounts belonging to several parties, including KudiWave, pending investigation.
The restriction was subsequently implemented on KudiWave’s account with PalmPay.
Further proceedings were filed under Suit No. FHC/L/CS/795/2026 before Justice Ibrahim Ahmad Kala of the Federal High Court, Lagos Judicial Division, in relation to funds standing to KudiWave’s credit.
KudiWave said the court granted an application on June 29.
The company subsequently challenged the order, arguing that it had not been properly served with the processes leading to the decision and had not been effectively brought before the court when the application was heard.
According to KudiWave, Justice Kala considered the company’s subsequent application on July 22 and set aside, vacated and discharged the June 29 order.
The company said the court also directed that the restrictions placed on its account be removed.
KudiWave further stated that the court examined the circumstances surrounding the purported service of the processes and raised questions about whether leaving documents at a gate, without sufficient indication of the company’s specific address, amounted to effective service.
The company quoted the court as describing the circumstances surrounding the service as “very curious”.
KudiWave also said the ruling recognised the court’s inherent power to set aside its own decision where circumstances justify such intervention.
The July 22 ruling came after the July 15 transfer.
KudiWave, however, said the transaction should be considered in the context of the fact that the June 29 order was already being challenged and that its application had been argued before the court two days earlier.
The company has also questioned the destination of the funds.
According to KudiWave, its understanding of the June 29 order was that the identified funds were to be transferred to a designated Police Recovery Account associated with the Police Special Fraud Unit.
The company said its account records instead indicated that the N750,369,439.04 was transferred to an Access Bank business account.
KudiWave said it wants clarification on the identity of the beneficiary, the instruction that authorised the transfer and the basis for the July 11 movement of funds.
“The issue for us is simple. If the order identified a particular account for the funds, there must be a clear explanation of why our records show the money going elsewhere and who ultimately received it,” the company said.
KudiWave said it was seeking a reconciliation of transactions carried out on its account during the restriction period and was considering further legal and regulatory steps in relation to the disputed transactions.
The company also said that, during earlier efforts to resolve the restriction, Barrister Prince Oko, its Company Secretary, met with officers of the Police Special Fraud Unit.
KudiWave alleged that a request for N50 million was made in connection with efforts to remove the restriction and said the company rejected the request.
The allegation has not been independently established and has not been determined by a court.
KudiWave maintained that its concerns do not relate to compliance with lawful court orders but to whether the transactions involving its funds were carried out in accordance with the terms of the relevant judicial directive.
The company said it wants clarification on the July 11 transactions, the subsequent N750,369,439.04 transfer on July 15, the destination of the funds and the circumstances surrounding the transactions.
Credit demand for house purchases by Nigerian households rose to 9.6 index points in the second quarter of 2026 (Q2 2026), indicating increased borrowing for personal home acquisition.
The Central Bank of Nigeria (CBN) disclosed this in its Credit Conditions Survey Report for Q2 2026, which showed an overall increase in credit availability across secured, unsecured and corporate lending during the period.
The apex bank said lenders also recorded lower default rates across major lending categories.
According to the report, credit demand increased to 15.1 index points for secured lending and 15.2 index points for corporate lending, while demand for unsecured lending remained subdued at -1.2 index points.
Within the household segment, consumer loan demand increased to 11.2 index points, while credit for house purchases rose to 9.6 index points.
Mortgage and re-mortgage lending also increased to 13.3 index points, while demand for small business lending to households climbed to 26.4 index points.
For unsecured household credit, demand for overdrafts and personal loans rose to 7.9 index points, while credit card lending declined to -2.0 index points.
In the corporate sector, credit demand expanded across different business categories.
The report showed that demand rose to 26.5 index points among small businesses, 25.5 index points for medium-sized Private Non-Financial Corporations (PNFCs), and 8.9 index points for large PNFCs.
Credit demand from Other Financial Corporations (OFCs), however, remained unchanged at 0.0 index points.
The CBN further reported that commercial banks observed a broad-based decline in default rates across secured and unsecured loans.
Default rates also declined across corporate borrower categories, including small businesses, medium-sized and large PNFCs, as well as OFCs.
The latest figures indicate stronger household and business appetite for credit during the quarter, particularly for housing, consumer needs and small business activities, amid an overall improvement in lending conditions.
Federal Ministry of Finance has halted enforcement of about N680 million in disputed fees imposed by the National Insurance Commission (NAICOM) on NICON Insurance Limited and Nigeria Reinsurance Corporation (Nig Re) as part of the ongoing insurance industry recapitalisation exercise.
The Ministry also directed NAICOM to suspend its demand that the two companies transfer their entire recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN), pending determination of a petition challenging the legality of the charges and the directive.
The intervention followed a July 27, 2026 petition by NICON and Nig Re over what they described as unlawful fees and regulatory demands arising from the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
In a letter to the Commissioner for Insurance, Raymond Omachi, permanent secretary, Federal Ministry of Finance, on behalf of Taiwo Oyedele, minister of Finance and coordinating minister of the Economy, requested that NAICOM provide a detailed response and legal justification for the disputed requirements.
The Ministry specifically directed the Commission to suspend enforcement of the contested processing and verification fees, the one per cent Capital Injection Fee, and the directive requiring the companies to transfer their full recapitalisation funds to a CBN escrow account.
The dispute centres on NAICOM’s assessment of a one per cent fee on capital injected by operators, alongside additional processing and verification charges prescribed under Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines.
According to the petition, the combined assessments amounted to N305 million for NICON and N375 million for Nig Re, bringing the disputed charges to N680 million.
The companies are also challenging what they described as an unconstitutional requirement to transfer more than the statutory proportion of their recapitalisation funds to the CBN.
They contend that Section 16(3) of NIIRA 2025 provides for a 10 per cent statutory deposit, and not the transfer of the entire capital injection into an escrow account.
The companies told the Ministry that they had already met the July 31, 2026 recapitalisation deadline.
NICON said it injected N420 billion, while Nig Re injected N30 billion into Mudaraba Term Deposit accounts with Lotus Bank Limited. The companies maintained that the amounts exceeded their adjusted recapitalisation requirements of N16 billion and N28 billion, respectively.
They further stated that they had deposited N42.5 billion and N43.5 billion respectively with the CBN, in compliance with the statutory deposit requirement under Section 16(3) of the new law.
The companies also disclosed that they had made initial payments of N480 million and N75 million, respectively, in fees.
The Finance Ministry’s directive effectively places the disputed charges and escrow requirement on hold while NAICOM is expected to justify the legal and regulatory basis for its actions.
The intervention could have wider implications for the insurance industry’s recapitalisation programme, particularly as operators face regulatory deadlines to strengthen their capital base under the new insurance law.
The controversy also raises questions about the extent to which regulatory guidelines can impose additional financial obligations on operators beyond those expressly provided for under the enabling legislation.
NAICOM is now expected to respond to the Ministry’s request and explain the statutory basis for the one per cent capital injection fee, the additional processing and verification charges, and the requirement for the full capital injection to be transferred into a CBN escrow account.
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