E-BANKING, CYBERTHREATS AND DIGITAL FRAUD IN THE NIGERIAN FINANCIAL SECTOR: A LEGAL APPRAISAL OF REGULATORY FRAMEWORKS, INSTITUTIONAL ENFORCEMENT AND REFORM IMPERATIVES

Abstract The electronic banking sector in Nigeria has been beset by cyber threats and digital frauds since its inception, with losses escalating from ₦2.9 billion in 2019 to ₦17.67 billion in 2023 alone. This article undertakes a doctrinal legal appraisal of the legislative and institutional framework designed to govern e-banking security, prevent digital fraud, and provide remedies to victims in the Nigerian finance sector. Drawing on the Deterrence Theory, Routine Activity Theory, and the Fraud Triangle Theory as its theoretical framework, the article examines the adequacy of the principal legislative instruments, including the Cybercrime (Prohibition, Prevention, Etc.) Act 2015 as amended, the Banks and Other Financial Institutions Act 2020, and the Nigeria Data Protection Act 2023 alongside the institutional roles of the Central Bank of Nigeria, the Economic and Financial Crimes Commission, and allied regulatory bodies. The article finds that while Nigeria has constructed a multi-layered regulatory architecture, a systemic enforcement deficit produced by legislative fragmentation, weak institutional coordination, low prosecution rates, and inadequate technical infrastructure leaves e-banking customers structurally exposed to harm. Comparative analysis with the United Kingdom and South Africa identifies concrete legislative models capable of addressing this deficit. The article concludes with targeted recommendations for legislative reform, institutional coordination, and capacity building.