Banks Turn to AI as Nigeria’s Fraud Losses Hit ₦52bn

Nigeria’s finance sector is facing an escalating compliance challenge, as fraud losses skyrocketed to over ₦52.26 billion in 2024. That figure marks a nearly 200% jump from ₦17.67 billion in 2023, according to the latest NIBSS Fraud Report. With regulatory pressure mounting, banks and fintech firms are seeking new tools to rebuild trust—fast.

At the heart of this effort is Pastel, a Lagos-based AI-driven enterprise solutions firm. Partnering with FintechNGR, the company recently hosted a high-level Breakfast Meeting at The Civic Centre, Lagos. Themed “Technology for Trust: Reinventing Compliance in the Age of Artificial Intelligence”, the event brought together top players from Nigeria’s banking and digital finance space. The discussions tackled an uncomfortable truth—manual processes and outdated systems can no longer protect financial institutions in a fast-evolving digital economy.

Sigma and the Push for Smarter Compliance

The event’s spotlight fell on Sigma, Pastel’s flagship AI-powered compliance platform, which promises to transform how banks monitor risk, report incidents, and protect customer trust. Designed with African data and CBN regulations in mind, the platform delivers real-time transaction monitoring, AML detection, and automated audits.

“Sigma is not a Western system retrofitted for Africa,” said Abuzar Royesh, CEO of Pastel. “We’re enabling institutions to scale trust and efficiency simultaneously.”

Experts at the event didn’t mince words about the cost of falling behind. Anthony Amodu, Chief Revenue Officer at Pastel, stressed that reliance on spreadsheets and fragmented data systems is no longer sustainable. Banks need clarity, not chaos—and Sigma, he argued, provides just that.

In a keynote delivered by Seun Folorunsho, speaking for FintechNGR President Stanley Jacob, the global urgency for AI in compliance was underscored. “Non-compliance is extremely costly,” he warned. “Institutions worldwide spend over $200 billion annually on AI-driven regulatory tools. Nigeria must not be left behind.”

Building a Trust-First Future with AI

The panels at the meeting covered ground beyond technology, diving into AI ethics, user experience, and governance. Speakers from Interswitch, Zest Payments, Coronation Merchant Bank, and Sabi emphasised the need for transparency in AI systems. If users can’t understand the tech, they won’t trust it.

“Artificial intelligence should enhance, not just automate compliance,” noted Babafemi Ogungbamila of Interswitch.

“Compliance should make life easier, not harder,” added Ifeoluwa Adekunle Yusuf of Zest Payments.

Pastel’s Yeyetunde Caxton-Martins wrapped up the event with a challenge for the entire industry: “Sigma is not just a product—it’s a response to an urgent need for systemic clarity, accountability, and performance.”