Business analyst Chika Mbonu has said the new Memorandum of Understanding (MoU) between the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) is a critical step toward tackling fraud in Nigeria’s digital banking system.
Speaking during an interview on ARISE News on Tuesday, Mbonu explained that the agreement directly addresses long-standing vulnerabilities tied to mobile banking, particularly SIM swap fraud.
“This MoU didn’t come from nowhere… it’s a response to real systemic, persistent problems.”
He noted that Nigeria’s banking system has evolved into a mobile-first ecosystem, where phone numbers now serve as both identity and access to financial services.
“Your phone number is equal to your identity plus your access to your money.”
According to him, this structure has made SIM cards a major weak point, exposing users to fraud and unauthorized access.
“The SIM card becomes a single point of vulnerability.”
Mbonu highlighted how fraudsters exploit these gaps, sharing a personal experience where his SIM was illegally swapped and used to withdraw money across multiple locations.
“Somebody has already swapped my SIM card… they withdrew money from my account.”
He said the lack of coordination between banks and telecom operators has worsened the situation, with both sides often shifting blame while customers bear the losses.
“Banks will blame the telcos… the telcos say it’s the bank.”
Under the new MoU, Mbonu explained that real-time data sharing will allow banks to instantly verify the status of phone numbers, including whether a SIM has been swapped or flagged for fraud.
“Banks can now see… if a number was swapped, recycled, inactive, or flagged for fraud.”
He added that this shift moves the system from reactive to preventive, stopping fraudulent transactions before they occur.
“Fraud can be stopped now before it happens.”
The agreement also introduces clearer accountability and faster resolution processes, reducing delays that previously left customers stranded.
“Before, nobody was taking responsibility… it’s the customer that suffers.”
Mbonu concluded that strengthening collaboration between regulators will improve trust and security in Nigeria’s digital financial system.
“This will give further confidence and strengthen the digital financial system.”
By Ojo Triumph
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