Nigerian SMEs Embrace E-commerce Amid Rising Fraud Risks

As online shopping becomes more prevalent in Nigeria, with 100% of surveyed Nigerian SMEs recognizing digital payments as essential for growth, consumers must navigate the risks associated with this shift. A report indicated that 42% of SMEs accept online payments, and 57% operate both online and offline.

However, the rise in e-commerce has also seen a 56% increase in scam-related website fraud in 2024, alongside a 121% rise in financial losses from scams. Despite a reported 51% decrease in digital-payment fraud losses to ₦25.85 billion in 2025, e-commerce and internet banking remain vulnerable.

The number of fraud incidents fell from 123,918 in 2021 to 67,518 in 2025. Consumers are urged to check merchant websites and contact details, seek independent reviews, and be wary of unusually cheap offers or pressure to pay immediately.