Nigerian Banks Ramp Up IT Investments
In the first half of 2025, five leading Nigerian banks collectively invested N126.8 billion in information technology (IT), reflecting an aggressive push to strengthen digital banking infrastructure and cybersecurity.
The banks, Zenith Bank, GTCO, Stanbic IBTC, UBA, and Wema Bank—significantly increased their tech budgets, with some more than doubling their investment compared to the same period in 2024. This surge comes as Nigerian banks adapt to the growth of cashless transactions, new regulatory policies, and rising competition from fintechs.
Zenith Bank Takes the Lead
A breakdown of the figures shows Zenith Bank leading with N49.88 billion in IT spending—more than double its N23.09 billion outlay during H1 2024.
- GTCO followed with N37.76 billion, a slight increase from N36.60 billion last year.
- Stanbic IBTC invested N23.74 billion, up from N15.86 billion.
- UBA recorded a flat spend at N6.72 billion, nearly identical to its N6.70 billion in H1 2024.
- Wema Bank was the standout, boosting IT investments to N8.65 billion from just N1.13 billion last year—underscoring its push through the ALAT digital platform.
While Access Holdings was the biggest spender in full-year 2024, its H1 2025 results were yet to be released at the time of reporting. Other institutions like First HoldCo and Sterling Holdings did not disclose their IT expenditure.
Why Banks Are Ramping Up IT Spending
The surge in IT budgets is driven by multiple factors:
- Cashless transactions growth accelerated by the Central Bank of Nigeria’s (CBN) naira redesign policy and withdrawal limits introduced in 2022.
- Operational upgrades as banks modernise core platforms and streamline services.
- Cybersecurity demands amid rising fraud and digital threats.
In 2024, Nigerian banks collectively spent N518.5 billion on IT—a 109% increase from the N248 billion recorded in 2023.
Cybersecurity: A Growing Concern
Despite record IT investments, cybersecurity remains a pressing challenge. According to the Nigeria Inter-Bank Settlement System (NIBSS), financial institutions lost N52.26 billion to fraud in 2024, a 195% increase compared with N17.67 billion in 2023.
Industry experts stress the need for even greater spending:
- Nonso Magulike, Executive Director at Bitscape, said rapid advances in cloud and AI technologies are making cyberattacks more sophisticated, urging banks to keep pace.
- Dipo Alabede, CEO of Clane, highlighted that while banks are investing heavily in digital infrastructure, the rising adoption of digital payments means cyber threats such as phishing, ransomware, and data breaches will only grow.
The Road Ahead
With the CBN pushing for digital innovation and financial inclusion, Nigerian banks have little choice but to modernise aggressively. While investments in IT are rising, analysts believe continued focus on cybersecurity will be critical to protect customer trust and safeguard billions in transactions.
As fintechs intensify competition, traditional banks must continue balancing digital growth with robust security frameworks to remain competitive in Nigeria’s rapidly evolving financial landscape.
