Nigeria’s Consumer Awareness and Financial Enlightenment Initiative (CAFEi) had projected a $6 trillion loss by 2030, to cybercrime within and outside Nigeria. 

In 2016, The Guardian reported that Nigeria was losing about N127 billion which is 0.8 percent of the country’s Gross Domestic Product (GDP), to cybercrime yearly. As of 2019, the Newspaper also reported that the country was losing 200 billion annually.  

In Nigeria, there is a growing concern about cybercrime and internet fraud. The use of digital technology and the internet has provided criminals with new opportunities to exploit individuals and businesses for financial gain.

Data from Statista reveals that internet penetration in Nigeria saw an inappreciable increase between the years 2018 and 2022, “going from around 26 percent to over 38 percent.” 

2022 saw an estimated 108 million internet users in the country. 

However, Internet use in Nigeria is expected to grow to approximately 60 percent by 2027.

This of course did not negate the fact that Nigeria is still struggling with poor internet connection. 

As sighted on Businessday, In December 2022, “Nigeria’s broadband penetration stood at 47.36 percent” It is Nigeria’s intention to achieve a 70 percent penetration target by 2025.” This means Nigeria has an additional 22.64 percent in terms of broadband coverage to achieve in the remaining two years. Still, a long way to go. 

Painfully for victims and fortunately for perpetrators, Nigeria is barely ready to combat the rising menace of cybercrime that has crippled millions of small and medium businesses. 

In 2022, BusinessDay reported that Nigeria recorded a 174% increase in cybercrimes in six months.

This rise in cybercrimes over the past few years has been made possible by rapid migration to and reliance on digital business. 

The significance of technology in keeping individuals and organizations connected through telecommuting, remote learning, and other methods, among others, achieved extraordinary adoption as a result of the Covid-19 outbreak and the ensuing lockdowns. 

The epidemic also encouraged businesses to use e-commerce platforms, operationalize an online business continuity strategy, and digitize their goods and services. 

As a result, there are now more individuals online than ever before, as the World Economic Forum estimated a 50% rise in internet traffic since the pandemic began in April 2020. 

Unemployment as a factor

The Nigerian Economic Summit Group (NESG) projected that Nigeria’s unemployment rate would hit 37 percent in 2023. That is 81.77 million people of the country’s 221 million. (Worldometer, 17th, April 2023. 10:45 AM.)

Amongst others, the high rate of unemployment is one of the main causes of cybercrime and internet fraud in Nigeria. Many young people who are unable to find traditional employment are turning to cybercrime as a way to make a living. 

The Nigerian economy has been experiencing high levels of unemployment for many years, and the lack of opportunities has forced many young people to turn to crimes such as internet fraud.

Inadequate Knowledge

Another cause of the trend is the low level of awareness about cybercrime and internet fraud among the general public. Many individuals and businesses are not aware of the risks and dangers associated with the use of the Internet and digital technology. This lack of awareness has made them vulnerable to cyber attacks and online fraud.

Weak Legislation/Mismanagement Issues

In addition to these factors, the lack of strict laws and regulations governing the use of the Internet has also contributed to the increasing trend of cybercrime and internet fraud. 

In 2015, Nigeria, to provide an effective, unified, and comprehensive legal, regulatory, and institutional framework for the prohibition, prevention, detection, prosecution, and punishment of cybercrimes, passed The Cybercrime Act. The country went further to the inaugurate Cybercrime Advisory Council, which is responsible for developing policies and strategies to combat cybercrime in the country.

This made Nigeria the fifth African country and the first in West Africa to enact the cybercrime law

The Central Bank of Nigeria (CBN) had in 2018, set up the cyber-security fund and also instructed the relevant organizations to set aside required levies from online transactions made by Nigerians. However, this Premium Times investigation reveals several loopholes that marred the viability of the crime council. 

The Effects of Cybercrime and Internet Fraud in Nigeria

Individuals have also been affected by cybercrime and internet fraud. Many people have lost their life savings to online scams and have been left with nothing. This has caused a lot of hardship and suffering for many families in Nigeria.

Moreover, the economy of the country has also been affected by the rise of cybercrime and internet fraud as stated at the beginning of this article. The country’s reputation as a business-friendly destination has been tarnished, and foreign investors are hesitant to invest in the country due to security concerns. 

The damage caused by cybercrime and internet fraud is not only financial but also social and political.

More Efforts

The government has collaborated with international organizations such as the United Nations Office on Drugs and Crime (UNODC) to build capacity and develop strategies to combat cybercrime.

In conclusion, the trend of cybercrime and internet fraud in Nigeria is a serious concern that needs to be addressed urgently. The causes of the trend, such as high unemployment rates, lack of awareness, and lack of strict laws and regulations governing the use of the Internet, must be tackled. 

The effects of the trend on businesses, individuals, and the economy are devastating, and measures must be taken to address the issue. 

The government of Nigeria must continue to collaborate with international organizations and implement policies and strategies to combat cybercrime effectively.