It’s a Tuesday afternoon, and you receive a call from someone claiming to be from your bank or an investment manager. They have just enough of your details to sound credible. They inform you of a problem with your account or present a “once-in-a-lifetime” investment opportunity that is about to expire. Feeling panicked or excited, you log into your app and transfer ₦500,000 to the account they provided.
Minutes later, the call disconnects. You realise you’ve been scammed. At the bank, they tell you there’s nothing they can do because you authorised the transaction.
However, change may be coming. The Central Bank of Nigeria (CBN) has proposed a new guideline to hold banks accountable for these “authorised” scams. Released as a Draft Guideline in December 2025, this rule is generating a lot of discussion in the financial sector. Here’s what you need to know in straightforward terms.
What is “APP Fraud”?
To understand the rule, you have to understand the specific type of crime the CBN is targeting. They call it Authorised Push Payment (APP) Fraud.
Unlike someone hacking your password and stealing your money (which is unauthorised fraud), APP fraud is when you are the one who presses the “send” button.
- The Trick: You are manipulated, tricked, or coerced into sending money to a criminal.
- The Old Rule: Banks used to say, “Since you pressed send, it’s your fault.”
- The New Reality: The CBN is arguing that banks have a duty to spot these tricks before they happen. If they don’t, they might have to pay you back.
The “48-Hour Refund” (With a Catch)
The headlines are screaming “48-Hour Refund,” but the whole story is slightly more detailed. It’s not an automatic instant refund; it’s a process. Think of it as a 16-day journey with a 48-hour destination.
The Clock Starts (0 – 72 Hours):
- If you get scammed, you have a strict deadline. You must report it to your bank within 72 hours (3 days). If you wait too long, you might lose your right to a refund.
- The Investigation (Day 1 – 14):
- Once you report it, the bank can’t just ignore you. They have to acknowledge your complaint immediately. Then they have up to 14 working days to investigate.
- What are they looking for? They are checking whether you were truly scammed or if you were “grossly negligent” (e.g., giving your PIN to a stranger at a market).
- The Twist: If the fraud involves multiple banks (e.g., you sent money from GTBank to a criminal’s OPay account), the first bank must notify the second bank within 30 minutes. They have to work together to track the money.
The Payday (The 48-Hour Rule):
- This is where the new headline comes from. Once the investigation is concluded (after those 14 days), if the bank finds that you were indeed a victim and not negligent, they must refund your money within 48 hours.
- Total Time: So, in reality, it’s a maximum of roughly 16 working days from the moment you cry for help to the moment you get your alert.
Why the Banks are nervous
This proposal puts a lot of pressure on the banks. The CBN isn’t just saying “refund the money”; they are saying “prevent the fraud.”
- Early Warning Systems (EWS): Banks are now required to have technology that spots “red flags.” For example, if a grandmother who usually spends ₦5,000 on groceries suddenly tries to transfer ₦2 million to a crypto wallet at 2 AM, the bank’s system should flag the transfer and stop it. If they don’t stop it, they are liable.
- The “Watchlist”: Banks must document suspicious accounts. If an account has a history of receiving sudden large inflows followed by immediate withdrawals (a classic sign of a “money mule”), it must be restricted.
- Boardroom Responsibility: This isn’t just for the customer service team anymore. The CBN is making the Board of Directors at every bank personally responsible for fraud management. If the bank keeps losing customers’ money, the top bosses have to answer for it.
Are you covered?
This is a draft guideline, meaning it is still a proposal as of late 2025, but it signals where the law is heading. However, you are not covered if:
- You are fraudulent: Obviously, if you try to fake a scam to get free money, you won’t get paid (and might get arrested).
- Gross Negligence: This is the tricky part. If the bank can prove you were extremely careless (like writing your password on your ATM card), they might deny your claim.
Why this matters right now
The statistics are frightening. In the first quarter of 2025 alone, fraud losses reportedly jumped by over 600% according to some reports. The old system wasn’t working. Scammers were winning because once the money left your account, it was gone forever.
This new rule changes the game theory. If banks know they have to refund the money, they will fight much harder to stop the scammers from getting it in the first place. It turns the banks from “passive observers” into “active protectors.”
Summary Timeline for You:
- Scam Happens.
- You Report: Immediately (Max 72 hours).
- Bank Investigates: Max 14 Working Days.
- Refund Decision: If valid, money drops into your account within 48 hours.
This is a massive shift for Nigerian banking. It moves us from a “buyer beware” system to a “banker beware” system.
