CBN To Deploy AI In Fight Against Payment Fraud

The Central Bank of Nigeria (CBN) has unveiled plans to deploy Artificial Intelligence (AI) to strengthen fraud prevention and enhance the efficiency of the country’s digital payments ecosystem as part of its Nigeria Payments System Vision (PSV) 2028.

The initiative, contained in the apex bank’s newly released PSV 2028 document, positions AI as a key technology in Nigeria’s efforts to build a more secure, inclusive and globally competitive payments landscape.

According to the CBN, the adoption of AI forms part of its guiding principle of “Innovation with Purpose,” which seeks to leverage emerging technologies to improve convenience, efficiency and competitiveness across the financial system.

The bank noted that while digital payments have grown significantly in recent years, fraud and cyber threats continue to pose serious challenges to consumer confidence and financial inclusion.

The document highlighted persistent exposure to fraud, cyber-attacks, identity theft, phishing schemes and unauthorised transactions as major risks facing the payments ecosystem. These threats, it said, have undermined trust in digital financial services and constrained efforts to expand access to formal financial systems.

To address these concerns, the CBN said PSV 2028 would place greater emphasis on cybersecurity, fraud management, and the deployment of advanced technologies to detect and prevent financial crimes.

Under the vision’s innovation and emerging technologies pillar, the apex bank disclosed plans to explore AI, blockchain and programmable payment solutions as part of broader efforts to modernise Nigeria’s payments infrastructure.

The CBN also revealed plans to establish stronger fraud monitoring mechanisms, including an industry-wide Security Operations Centre and a national fraud intelligence-sharing platform designed to improve threat detection and response across the financial sector.

According to the document, authorities will facilitate the development of shared infrastructure for fraud detection, risk intelligence and regulatory compliance while introducing industry-wide cyber performance monitoring frameworks.

The bank noted that AI is already transforming payment systems globally and is increasingly being deployed through chatbots, self-service platforms, robotic process automation and other digital tools that enhance customer experience and operational efficiency.

Beyond fraud prevention, the CBN said AI-driven technologies are expected to improve transaction monitoring, strengthen compliance processes and support more efficient service delivery across payment platforms.

The apex bank further stated that Nigeria aims to become a leader in technology-driven regulation by 2028, with ambitions to advance RegTech, SupTech and AI-powered compliance systems while exporting locally developed digital payment frameworks and solutions to international markets.

The broader objective of PSV 2028, according to the CBN, is to build a secure, innovative and resilient payments ecosystem that supports economic growth, deepens financial inclusion, strengthens consumer protection and improves cross-border payment capabilities.

With electronic payment transactions already surpassing N1.2 quadrillion in 2025, the CBN’s decision to integrate AI into its payments strategy underscores a growing commitment to technology-driven fraud management and the long-term development of Nigeria’s digital economy.