5 of Nigeria’s lenders, led by Zenith and GTCO, collectively poured N126.8 billion into info know-how (IT) within the first half of 2025 in an aggressive push to strengthen digital banking infrastructure and enhance cybersecurity.
The 5 banks, together with Stanbic IBTC, UBA, and Wema Bank, elevated their IT spending, whereas some greater than doubled their funding in know-how within the interval underneath evaluation.
Whereas most of the banks had launched into core banking platform upgrades in the direction of the tip of final yr, the IT capability enhancements proceed into this yr, with most of the banks periodically asserting service disruptions for ‘upkeep’.
Zenith Bank takes the lead
A breakdown of the numbers exhibits Zenith Bank main the pack with N49.88 billion, greater than double its N23.09 billion outlay in the identical interval final yr.
GTCO adopted with N37.76 billion, barely increased than its N36.60 billion spend in H1 2024, whereas Stanbic IBTC dedicated N23.74 billion in contrast with N15.86 billion final yr.
- United Bank for Africa (UBA) maintained near-flat spending at N6.72 billion versus N6.70 billion within the prior interval.
- The standout performer was Wema Bank, which invested N8.65 billion, an enormous leap from simply N1.13 billion final yr, highlighting its heavy guess on digital banking by its ALAT platform.
- Whereas Entry Holdings was the general greatest spender on IT in full yr 2024, the bank has but to launch its half-year 2025 monetary outcomes as of the time of submitting this report.
- In the meantime, First HoldCo and Sterling Holdings, two different monetary establishments which have launched their outcomes, didn’t disclose their IT spending for the interval.
Why banks are ramping up IT investments
The surge in banks’ IT spending lately has largely been fueled by the speedy progress of cashless transactions, a pattern accelerated by the Central Bank of Nigeria’s (CBN) naira redesign coverage and the withdrawal limits launched in December 2022.
In 2024, Nigerian banks elevated their IT spending by 109% as they dedicated a complete of N518.5 billion to modernize their operations in contrast with the N248 billion they spent in 2023.
Past the e-payment growth, business analysts say the lenders are additionally ramping up IT investments to streamline operations, enhance customer expertise, and strengthen safety.
These outlays cowl superior software program options and digital instruments designed to spice up effectivity, improve service supply, and safeguard transactions.
With the Central Bank of Nigeria (CBN) encouraging digital innovation and monetary inclusion, and with fintechs intensifying competitors in funds and lending, banks are additionally underneath stress to modernize operations and roll out quicker, safer platforms.
The necessity for extra investments in tech
Regardless of the present degree of investments by the banks, business stakeholders say Nigerian banks nonetheless want to take a position extra, particularly within the space of cybersecurity, as cybercrime actors proceed to empty billions from the sector.
Based on a report by the Nigeria Inter-Bank Settlement System (NIBSS), monetary establishments in Nigeria misplaced N52.26 billion to fraud in 2024, and that represents a 195% improve in loss in contrast with N17.-67 billion recorded in 2023.
Govt Director of Bitscape, Mr. Nonso Magulike, famous that whereas some banks are at the moment doing their finest when it comes to investments, so much nonetheless must be achieved to satisfy up with the tempo of sophistication within the risk panorama.
“The evolution of cloud and AI is transferring in a short time. Which means unhealthy actors can do issues at a price that’s fairly excessive. So, banks must maintain investing,” he mentioned.
- Whereas noting that the Nigerian monetary business is at the moment transferring in the precise path, going by the present degree of funding and the regulatory oversights, he mentioned each enterprise should be additional vigilant.
- Equally, the Chief Govt Officer of Clane, a cellular fee firm, Mr. Dipo Alabede, famous that Nigerian banks have realized that funding in digital infrastructure is the one option to stay forward of the curve within the extremely aggressive digital fee area.
Nevertheless, he mentioned the present spending could not simply be sufficient, because the rising adoption of digital funds implies that “the banks also needs to anticipate an increase in cyber threats, together with phishing assaults, ransomware, and knowledge breaches, thus investing in cybersecurity is crucial.”
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