Nigerian fintech business PalmPay will work with the Nigerian Financial Intelligence Unit (NFIU) and other government agencies to combat financial fraud and use technology to fortify the nation’s digital financial ecosystem, a statement by the fintech company said on Friday.

The commitment was made during a courtesy visit by Chika Nwosu, PalmPay’s the Managing Director, and his management team at the Nigerian Financial Intelligence Unit (NFIU) headquarters in Abuja.

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PalmPay’s commitment to assist Nigeria’s anti-fraud efforts 

PalmPay explained that the partnership demonstrated the company’s commitment to supporting Nigeria’s anti-money laundering and anti-fraud efforts.

Bwosu stressed the importance of a safe financial environment to the development of a robust digital economy.

“At PalmPay, we believe that a secure financial ecosystem is the foundation for a thriving digital economy. Our partnership with the NFIU underscores our dedication to supporting Nigeria’s anti-fraud and AML efforts. Together, we aim to ensure a safer digital experience for all Nigerians,” he stated.

Challenges with e-payment transactions

Nwosu addressed the new difficulties that the banking sector was facing as a result of the exponential rise in electronic payment activities throughout Nigeria, while highlighting the need for aggressive and creative counter-measures.

PalmPay plans to work closely with the NFIU on training programs, knowledge-sharing, and developing creative solutions to fight digital financial fraud.

Nigeria has the highest fraud rate in Africa

Sumsub, a global full-cycle verification platform, in its 2024 report said that Nigeria had the highest average fraud rate in Africa, at 5.91 percent, which doubled from the year before.

However, a report by the Nigeria Inter-Bank Settlement System indicated a slight decrease in fraud cases and losses in 2023.

According to the Nigeria Inter-Bank Settlement System’s annual fraud landscape report for 2023, the number of frauds and real losses in 2023 decreased by six percent from the previous year.

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NFIU’s CEO commend PalmPay 

Hafsat Bakari, the NFIU’s CEO, responded by praising PalmPay for its proactive commitment to financial security and compliance with both domestic and international regulatory standards.

She emphasised how important private-sector collaborations are to strengthening government initiatives to fight financial crimes.

“Collaboration between private sector players and government institutions is vital to creating a financial system that is resilient, secure, and transparent,” Bakari said.

She praised PalmPay’s creative actions and dedication to creating a financial ecosystem where security and trust fuel expansion.

Bakari underlined the necessity of ongoing cooperation in order to stay up with the constantly changing strategies used by scammers.