The Central Bank of Nigeria (CBN) has issued a critical new directive aimed at curbing the rising tide of financial fraud, placing a strict 72-hour deadline on customers to report unauthorized transactions.
New CBN Framework Targets Escalating APP Fraud
On November 26, 2025, the CBN released draft guidelines for handling Authorised Push Payment (APP) fraud. The circular, signed by Rita Sike, Director of the Financial Policy and Regulation Department, outlines a structured framework for prevention and management. The guidelines are a direct response to an alarming surge in fraud cases, with data from the Financial Institutions Training Centre (FICT) indicating a 600% increase in reported bank fraud incidents in the first quarter of 2025 alone.
The CBN's move seeks to repair a digital banking landscape where stories of unauthorized debits and suspicious transfers have become weekly occurrences for many Nigerians. The core mandate requires all financial institutions—including banks, fintechs, and wallet providers—to implement stronger preventive measures and clear procedures for fraud mitigation.
Understanding the 72-Hour Reporting Window
The headline change is the introduction of a 72-hour window for customers to act. According to the draft, while victims are expected to report an APP fraud incident within 24 hours, they shall have up to an additional 48 hours to make such a report to their financial institution through designated channels.
This three-day deadline is designed to solve a common problem where customers delay reporting, hoping an issue will resolve itself. The CBN emphasizes that timing is now crucial; delays significantly weaken the chances of recovering stolen funds. The rule aims to give banks and fintechs a fighting chance to trace and freeze funds before they are moved through multiple accounts and withdrawn.
Strict Timelines for Financial Institutions
The new guidelines also impose rigorous obligations on financial service providers, creating a clear chain of responsibility:
- Acknowledge Complaints in 24 Hours: Institutions must provide an official response confirming receipt of a fraud report.
- Freeze Traceable Funds Immediately: Any stolen money still identifiable in a receiving account must be restricted promptly to prevent further movement.
- Notify Other Institutions in 30 Minutes: If the fraudulent transfer involves accounts at other banks or fintechs, they must be alerted within half an hour to foster cross-institutional cooperation.
- Complete Investigations in 16 Days: The entire fraud investigation and eligible refund processing must be finalized within 16 working days, addressing the protracted delays victims currently face.
Who Qualifies for a Refund?
The framework specifies conditions for refund eligibility. Customers may get their money back if they report the suspicious transfer within the 72-hour window, there is no evidence of customer negligence, the transaction was clearly unauthorized, and the customer did not share sensitive details like PINs or OTPs.
The CBN explicitly notes that negligence can affect eligibility. Actions such as releasing your OTP to a caller, entering your PIN in public, or clicking on suspicious links can compromise a refund claim. The rules are designed to protect vigilant customers who are victimized despite taking proper personal security measures.
Practical Steps for Nigerians to Stay Protected
While the new rules enhance institutional accountability, personal vigilance remains the first line of defense. Nigerians are advised to:
- Monitor bank accounts and transaction alerts daily.
- Never share PINs, passwords, or OTPs with anyone.
- Use strong authentication methods like two-factor authentication.
- Keep banking and payment apps updated to the latest versions.
- Report any unusual account activity immediately using verified channels and insist on a case reference number.
If finalized, these guidelines could transform Nigeria's digital banking security, standardizing fraud response across the sector and building greater trust in the financial ecosystem. The CBN's message is clear: in the fight against fraud, speed is essential, and your chance of recovering your money depends on how quickly you act.
