Nigeria reported a 50% decrease in digital payment fraud losses to N25.85 billion in 2025, down from N52.26 billion the previous year. However, a new industry report by Adhere warns that this decline masks rising risks, as fraud attacks become more sophisticated and expensive due to artificial intelligence. While the number of reported incidents has fallen by approximately 31%, total losses remain elevated, and AI-enabled fraud is now 4.5 times more profitable than traditional methods. Experts and law enforcement cite significant challenges, including a major cybersecurity workforce gap, insider threats, and the need for stronger regulatory architecture. The Central Bank of Nigeria continues to tighten oversight, issuing 17 regulatory actions in 14 months to address vulnerabilities in the digital payments ecosystem.