The biggest finance leaks in Nigerian businesses, and how to stop them

Most businesses don't lose money in one large event. They lose it in small amounts, every week: a POS settlement that came in short, a transfer alert that was never real, a WHT credit nobody claimed, a suspense account that grew quietly until it was millions. Each shows up in the gap between the bank statement and the ledger. The fix is to reconcile that gap often, with an owner for everything left open.

This guide, for owners and MDs, sets out seven common leaks, how to spot each one and how often to check.

What leaks cost

The ACFE's Occupational Fraud 2026: A Report to the Nations estimates that organisations lose 5% of revenue a year to fraud, and the typical scheme ran for 12 months before it was found, as reported by Accounting Today (checked November 2026). Not every leak is fraud. Many are errors, or money nobody chased. A timely reconciliation shows both.

1. POS settlements short or missing

How it happens. A terminal settles less than its sales, a fee is higher than agreed, a day's settlement never arrives, or a terminal pays into an account nobody checks.

How to spot it. Match each day's card sales to the bank credit. The CBN Guidelines on Operations of Electronic Payment Channels (2020) require T+1 settlement to merchants, so a monthly check finds problems far too late.

Example figures: one terminal records ₦1,250,000 of card sales on Monday. On Tuesday the bank shows ₦1,180,000. Fees at the agreed 1.5% explain ₦18,750. The other ₦51,250 is a short settlement to chase.

2. Fake transfer alerts

How it happens. A customer shows an SMS or a screenshot, staff release the goods, and the money never reaches the bank.

How to spot it. Confirm every credit on the bank statement or app before releasing goods, never the SMS. Our guide to detecting fake bank alerts gives the steps for counter staff.

3. Bank charges and stamp duty never booked

How it happens. Banks deduct charges, SMS fees and stamp duty line by line, and nobody books them. From 1 January 2026, the ₦50 EMTL was replaced by a ₦50 stamp duty paid by the sender on transfers of ₦10,000 and above, according to Nairametrics and PwC Tax Summaries (checked November 2026).

How to spot it. Total the charges and duty on each statement every month and compare them with the ledger. See bank charges, stamp duty and the transfer levy. Confirm the rules that apply to you with your tax adviser.

4. WHT credits lost

How it happens. Customers deduct WHT before paying you, the short payment is written off as a discount, and the credit is never claimed. Since the move to Rev360, a Templars client alert (May 2026) advises taxpayers to review their migrated WHT credits.

How to spot it. Each month, look for receipts short of the invoice by a WHT rate, and check that each has a certificate. See lost WHT credits on Rev360. Confirm the rules that apply to you with your tax adviser.

5. Duplicate supplier payments

How it happens. An invoice arrives by email and by hand and is paid twice, or a payment fails to show on the supplier's side and is made again.

How to spot it. Reconcile supplier statements to your ledger monthly. A duplicate shows as a credit balance, or a payment the supplier can't match to an invoice.

6. Differences and suspense balances left to grow

How it happens. A difference is carried forward "to be investigated", then carried again. Unidentified receipts go to suspense "for now". A year later the balance is one number nobody can break down.

How to spot it. Ask for the item list behind every open difference and every suspense and clearing balance, each with a date and an owner. If there isn't one, that is the leak.

7. Journals nobody reviewed

How it happens. Manual journals go in at weekends, in round amounts, described as "adjustment", and are approved by the person who posted them.

How to spot it. Each month, have someone other than the poster review manual journals against simple rules.

How Brillrec helps

Brillrec is the finance operations platform for Nigerian businesses, with three products on one record: Reconciliation, Internal Control Automation and Financial Close Management. Here is how each leak is caught.

• POS and settlements. Brillrec checks that each settlement's gross, less fees, VAT and deductions, equals what reached the bank. Fees are recomputed against published prices for Paystack, Flutterwave, Monnify and Squad, and against your agreed rate for any other processor once you enter it, and overcharges are listed by month. For bank POS, Brillrec checks that each day's net amount reached the bank. Daily reconciliations are on Essential and above, and a payout calendar that marks late processor payouts is on Professional and above. See POS money.
• Fake alerts. Ledger receipts are matched to bank lines by NIP session ID, reference, amount and date. A receipt with no credit stays open until someone explains it.
• Charges. Bank charges, stamp duty (including the old EMTL) and NIP charges are found and explained in one step and sent to the journal export.
• WHT (Essential and above). The tracker flags short receipts at the rates your accountant confirms, requests certificates by secure link, and matches the Rev360 credits listing (Excel, CSV or PDF) to your certificates.
• Supplier statements (Essential and above). Matched by e-invoice IRN, invoice number, then amount and date, with each difference named.
• Open items and suspense. Each open item is classed as timing, fee, missing entry, duplicate, reversal or suspicious. Every open item gets an owner and a due date by its kind (7 days for a missing settlement, 30 for an uncleared deposit, 180 for an unpresented cheque, 60 otherwise); owners get a weekly overdue email, and anything still open past its date is escalated once to the account's reviewer. Sign-off carries open items forward and locks the reconciliation: reopening needs a reason and is logged. On Professional and above, clearing, suspense and control accounts sign off only when they net to nil or every item is explained.
• Journals (Essential and above). Rules flag weekend and holiday postings, round amounts, rarely used accounts, self-approval, posting after close, quick reversals and vague descriptions. Someone other than the poster reviews each flag. See Internal Control Automation.

For the owner, the month-end report arrives when the close is done: cash by account, money found, reconciliations signed off and tax due next month.

Reported by clients: 99% of clients' bank and ledger lines matched automatically in a month; 70% less month-end close time; 50% less audit preparation time; 2.5x finance team productivity. Results depend on your records and how your team works. See client results.

Plans with all three products start at ₦75,000 a month plus VAT (Essential). See pricing.

Frequently asked questions

How much do businesses lose to fraud?

The ACFE's 2026 report estimates 5% of revenue a year, with a median loss per case of $104,000, as Accounting Today reported (checked November 2026).

How can I tell if my business is leaking money?

Look at the gap between your bank statements and your ledger. Short POS settlements, unbooked charges, receipts short by a WHT rate and growing suspense balances are the usual signs.

Who pays the ₦50 stamp duty on transfers in 2026?

From 1 January 2026, the sender pays ₦50 on electronic transfers of ₦10,000 and above, replacing the old ₦50 EMTL. Confirm the rules that apply to you with your tax adviser.

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