Nigerian Banks Deepen Digital Push with N126.8bn IT Investment in H1 2025

Nigeria’s top lenders have stepped up their digital transformation drive, channeling a combined N126.8 billion into information technology (IT) in the first half of 2025. The surge in spending underscores banks’ determination to strengthen digital platforms, bolster cybersecurity, and counter mounting competition from fintech players.

Figures from half-year financial statements reveal that Zenith Bank, Guaranty Trust Holding Company (GTCO), Stanbic IBTC, United Bank for Africa (UBA), and Wema Bank made significant technology outlays, in some cases more than doubling investments year-on-year.

• Zenith Bank led the pack, investing N49.88 billion, more than double the N23.09 billion spent in the same period last year.

• GTCO followed with N37.76 billion, slightly higher than the N36.60 billion recorded in H1 2024.

• Stanbic IBTC committed N23.74 billion, up from N15.86 billion a year earlier.

• UBA maintained flat expenditure at N6.72 billion, compared to N6.70 billion in H1 2024.

• Wema Bank stood out with a leap to N8.65 billion, from just N1.13 billion last year, reflecting its aggressive digital strategy anchored on its ALAT platform.

Access Holdings — the sector’s biggest spender in 2024 — is yet to release its half-year results, while First HoldCo and Sterling Holdings did not provide IT spending disclosures.

The latest figures build on a sector-wide surge in 2024, when banks collectively spent N518.5 billion on technology upgrades — a 109 per cent increase from N248 billion in 2023. Analysts link this aggressive investment trend to the rise in electronic payments, spurred by the Central Bank of Nigeria’s (CBN) naira redesign policy and cash withdrawal limits introduced in late 2022.

Despite the outlays, cyber threats remain a growing concern. Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that banks lost N52.26 billion to fraud in 2024, a 195 per cent jump from N17.67 billion in 2023.

Industry experts warn that without matching cybersecurity investment, banks’ digital gains could be undermined.

“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. The financial industry is moving in the right direction, but vigilance is critical,” said Nonso Magulike, Executive Director at Bitscape.

Similarly, Dipo Alabede, CEO of Clane, stressed that digital investment is no longer optional:

“Banks now understand that robust digital infrastructure is the only way to stay ahead in Nigeria’s competitive payments space. But spending levels may still fall short. As adoption of digital channels grows, so too will phishing, ransomware, and data breaches — making cybersecurity a strategic imperative.”

With banks scaling up IT spending, analysts suggest that the next phase will hinge not just on digital expansion, but on embedding resilience against the fast-evolving landscape of cyber risks.