Understanding bank fraud recovery in Nigeria

Bank fraud recovery in Nigeria is a growing concern for companies that depend on smooth banking operations to fund imports, manage supplier payments, and handle export proceeds. From unauthorized transfers to compromised online banking credentials and fake payment instructions, fraud can quickly disrupt cash flow and delay critical shipments.

For businesses involved in import/export, FMCG distribution, and logistics, even a short-term loss of funds can affect inventory planning, supplier relationships, and delivery schedules. Knowing how bank fraud recovery in Nigeria works – and how to respond – is essential to safeguarding your operations.

Common types of bank fraud affecting Nigerian businesses

1. Unauthorized electronic transfers

Many companies experience fraudulent withdrawals via internet banking, mobile apps, or USSD. Fraudsters often gain access through:

• Phishing emails and fake login pages

• Compromised devices or weak passwords

• Insider collusion or leaked credentials

These incidents can drain working capital that was meant for purchasing stock, paying customs charges, or settling freight bills.

2. Business email compromise and fake payment instructions

In trade and wholesale distribution, large payments are routinely made to suppliers and logistics providers. Fraudsters may:

• Hack or spoof a supplier’s email

• Send falsified invoices or new “bank details”

• Redirect payments to fraudulent accounts

If undetected, companies may lose funds meant for genuine suppliers and still need to pay their real obligations, creating serious cash pressure.

3. Card fraud and POS-related incidents

Corporate debit or credit cards used for travel, small procurement, or local expenses can be cloned or misused. Unrecognized POS or ATM transactions can accumulate quickly, especially in businesses with multiple branches or field teams.

How bank fraud recovery in Nigeria typically works

Reporting quickly increases chances of recovery

In Nigeria, time is critical in bank fraud recovery. Once suspicious activity is detected, businesses should immediately:

1. Contact their bank’s fraud or customer service desk

2. Request instant freezing of affected accounts or channels

3. Obtain a formal complaint reference or incident number

Prompt reporting gives banks a better chance of placing a Post No Debit (PND) on recipient accounts and tracing the movement of funds.

Interbank investigations and fund tracing

When fraudulent transfers involve other banks, the victim’s bank will usually:

• Notify the beneficiary bank(s)

• Request a hold on suspect funds

• Begin an internal investigation and documentation process

Recovery is more likely if the funds remain within the banking system and have not been quickly withdrawn or layered through multiple accounts.

Regulatory and law enforcement escalation

In more complex cases or where large amounts are involved, businesses may need to:

• File a formal report with the Nigerian Police or relevant cybercrime unit

• Provide statements, system logs, or supporting documentation

• Escalate complaints to the Central Bank of Nigeria (CBN) or the bank’s ombudsman channels if responses are slow

While processes can be lengthy, having complete, well-organized documentation strengthens the chances of a favorable outcome.

Practical steps to improve bank fraud recovery in Nigeria

Strengthen internal controls and approval workflows

Fraud recovery is easier when a company can clearly show:

• Who approved each transaction

• Which channel was used

• What checks were conducted on beneficiary details

For import/export and FMCG operations, this may mean:

• Dual or multi-level approvals for large transfers

• Segregation of duties between initiators and approvers

• Centralized control of bank access, rather than ad-hoc branch-level access

Standardize supplier and beneficiary verification

To reduce business email compromise, companies should:

• Use verified contact channels (phone or secure portals) to confirm any change in bank details

• Maintain an approved vendor list with validated account information

• Train finance and procurement teams to be suspicious of urgent, last-minute payment changes

This process can prevent fraud before recovery even becomes necessary.

Maintain clear records for faster dispute handling

Accurate records of payments, invoices, and approvals allow banks and regulators to quickly understand what happened. Keep:

• Transaction logs and payment advices

• Email trails for payment instructions

• Signed contracts or purchase orders

These documents support your claim during bank fraud recovery in Nigeria and can speed up investigations.

Where Wigmore Trading can support

For companies trading into and within Africa, including Nigeria, operational resilience goes beyond sourcing and delivery. Wigmore Trading works with clients to structure supply chains and payment processes that reduce exposure to fraud-related disruption, for example:

• Planning payment schedules that align with shipment timelines

• Diversifying sourcing and payment routes to reduce single-point failures

• Coordinating logistics so that goods are not dispatched until secure payment confirmation is obtained

While banks and regulators handle the formal fraud recovery process, a partner like Wigmore Trading can help keep stock moving, manage alternative suppliers, and adjust distribution plans when cash flow is temporarily affected.

Building a fraud-resilient trade and distribution operation

Bank fraud cannot be fully eliminated, but its impact on your supply chain can be managed. By understanding how bank fraud recovery in Nigeria works, strengthening internal controls, and aligning payment processes with logistics and sourcing, businesses can protect both cash flow and customer service levels.

For importers, exporters, wholesalers, and FMCG distributors, having trusted partners is part of this resilience. Wigmore Trading can work alongside your internal teams and financial institutions to design supply chains that remain robust, even when fraud incidents occur.

Wigmore Trading can help. Contact Wigmore Trading today to streamline your sourcing and strengthen your trade operations.