Five of Nigeria’s lenders, led by Zenith and GTCO, collectively poured N126.8 billion into information technology (IT) in the first half of 2025 in an aggressive push to strengthen digital banking infrastructure and boost cybersecurity.
The five banks, including Stanbic IBTC, UBA, and Wema Bank, increased their IT spending, while some more than doubled their investment in technology in the period under review.
While many of the banks had embarked on core banking platform upgrades towards the end of last year, the IT capacity enhancements continue into this year, with many of the banks periodically announcing service disruptions for ‘maintenance’.
Zenith Bank takes the lead
A breakdown of the numbers shows Zenith Bank leading the pack with N49.88 billion, more than double its N23.09 billion outlay in the same period last year.
GTCO followed with N37.76 billion, slightly higher than its N36.60 billion spend in H1 2024, while Stanbic IBTC committed N23.74 billion compared with N15.86 billion last year.
- United Bank for Africa (UBA) maintained near-flat spending at N6.72 billion versus N6.70 billion in the prior period.
- The standout performer was Wema Bank, which invested N8.65 billion, a huge leap from just N1.13 billion last year, highlighting its heavy bet on digital banking through its ALAT platform.
- While Access Holdings was the overall biggest spender on IT in full year 2024, the bank has yet to release its half-year 2025 financial results as of the time of filing this report.
- Meanwhile, First HoldCo and Sterling Holdings, two other financial institutions that have released their results, did not disclose their IT spending for the period.
Why banks are ramping up IT investments
The surge in banks’ IT spending in recent years has largely been fueled by the rapid growth of cashless transactions, a trend accelerated by the Central Bank of Nigeria’s (CBN) naira redesign policy and the withdrawal limits introduced in December 2022.
In 2024, Nigerian banks increased their IT spending by 109% as they committed a total of N518.5 billion to modernize their operations compared with the N248 billion they spent in 2023.
Beyond the e-payment boom, industry analysts say the lenders are also ramping up IT investments to streamline operations, improve customer experience, and strengthen security.
These outlays cover advanced software solutions and digital tools designed to boost efficiency, enhance service delivery, and safeguard transactions.
With the Central Bank of Nigeria (CBN) encouraging digital innovation and financial inclusion, and with fintechs intensifying competition in payments and lending, banks are also under pressure to modernize operations and roll out faster, more secure platforms.
The need for more investments in tech
Despite the current level of investments by the banks, industry stakeholders say Nigerian banks still need to invest more, especially in the area of cybersecurity, as cybercrime actors continue to drain billions from the sector.
According to a report by the Nigeria Inter-Bank Settlement System (NIBSS), financial institutions in Nigeria lost N52.26 billion to fraud in 2024, and that represents a 195% increase in loss compared with N17.-67 billion recorded in 2023.
Executive Director of Bitscape, Mr. Nonso Magulike, noted that while some banks are currently doing their best in terms of investments, a lot still needs to be done to meet up with the pace of sophistication in the threat landscape.
“The evolution of cloud and AI is moving very quickly. This means that bad actors can do things at a rate that is quite high. So, banks need to keep investing,” he said.
- While noting that the Nigerian financial industry is currently moving in the right direction, going by the current level of investment and the regulatory oversights, he said every business must be extra vigilant.
- Similarly, the Chief Executive Officer of Clane, a mobile payment company, Mr. Dipo Alabede, noted that Nigerian banks have realized that investment in digital infrastructure is the only way to remain ahead of the curve in the highly competitive digital payment space.
However, he said the current spending may not just be enough, as the increasing adoption of digital payments means that “the banks should also expect a rise in cyber threats, including phishing attacks, ransomware, and data breaches, thus investing in cybersecurity is imperative.”