THE CENTRAL Bank of Nigeria has released the Exposure Draft of the Guidelines for Handling Authorised Push Payment (APP) Fraud).
It is a major step toward protecting Nigerians from one of the fastest-growing types of digital scams.
This piece by Lawpadi breaks it down in clear, simple language: what APP fraud is, what the new rules say, and the rights you now gain as a bank customer.
What is APP Fraud?
APP fraud happens when you authorise a transfer yourself, but only because you were deceived, pressured, or tricked.
Examples include:
- fake calls from “your bank” asking for BVN or account upgrade,
- investment scams and job scams,
- romance scams,
- buying something online and the seller disappears,
- “your account will be blocked” threats.
It is now one of the most common ways Nigerians lose money. Until now, banks mostly told victims:
“You authorised the transfer, we can’t help you.”
These new draft rules change that completely.
1. You Must Report Quickly
Victims are expected to report fraud within 24 hours, but the rules also allow up to 48 additional hours where necessary.
Therefore, this gives you up to 72 hours total to report an APP fraud incident. Reporting fast greatly increases your chance of recovering your money.
2. Banks Must Investigate Immediately
Once you report fraud, your bank must begin a formal investigation right away. No more “come back next week”.
Your bank must gather details such as:
- the date and amount of the transaction,
- the recipient’s account details,
- screenshots and any supporting evidence.
3. You May Be Eligible for Reimbursement
Victims of APP fraud must be reimbursed if certain conditions are met, including:
- you were deceived by another person,
- you reported the incident within the allowed time,
- there is no evidence that you acted negligently,
- the bank failed to detect warning signs,
- the bank’s staff were complicit,
- the fraudster’s account showed suspicious activity the bank should have caught.
After the bank concludes its investigation, reimbursement must be made within 48 hours. This is the first time Nigerian rules clearly support repayment for victims of APP-related scams.
4. Potential Shared Liability
Many APP scams involve two or more institutions – the sending bank and the receiving bank. If it is unclear which bank is at fault, but of you are eligible for reimbursement, both banks must jointly refund you. This stops the common situation where banks blame each other while customers suffer.
5. Vulnerable People
If the victim is elderly, ill, disabled, or otherwise vulnerable, banks must apply a higher duty of care. This means vulnerable customers cannot simply be blamed for falling for sophisticated tricks.
This new approach by the CBN is not entirely novel, it is actually world best practice. For instance, in the UK, since October 2024, banks have been required to reimburse victims of APP fraud in almost all cases, unless the customer was “grossly negligent.” The burden of protection sits firmly with banks and payment providers.
In Nigeria, this is a largely welcome development. IF implemented properly, APP fraud is rising because scammers now focus on manipulating people rather than hacking systems.
These new guidelines shift the responsibility back onto banks and give Nigerians stronger rights than ever before.
If the guideline is adopted, it will become one of Nigeria’s most important consumer-protection measures – ensuring fair treatment, faster investigations, and, for many victims, a real chance of getting their money back.
