Multi-Factor Authentication Adoption and Usability Trade-offs in Nigerian Online Banking

Multi-factor authentication is a critical security layer in online banking, yet its implementation in Nigerian banking platforms exhibits wide variation in method, user experience design, and adoption policy. This study empirically examines MFA adoption patterns and usability-security trade-offs experienced by customers across Nigerian tier-1 and tier-2 banks, filling a gap in localised authentication user experience research. A mixed-methods study combines a survey of 200 online banking users across Lagos, Abuja, and Kano with a technical evaluation of MFA implementations at 10 banks using a structured security-usability assessment instrument. Survey data is analysed using regression analysis, measuring the relationship between MFA friction perceptions and banking application abandonment rates. Technical evaluation covers authentication factor types, fallback mechanisms, OTP delivery reliability, and compliance with CBN consumer protection guidelines. Findings show that 35 percent of respondents have abandoned a banking transaction due to MFA friction, with SMS-OTP delivery delays being the most cited cause. Token-based and app-based authenticators receive significantly higher usability scores but face lower adoption rates due to user familiarity barriers. A risk-adaptive MFA model that escalates authentication requirements based on transaction risk level is proposed. Keywords: multi-factor authentication, online banking, Nigeria, usability, security