In the first half of 2025, five major Nigerian banks—Zenith Bank, Guaranty Trust Holding Company (GTCO), Stanbic IBTC, United Bank for Africa (UBA), and Wema Bank—collectively invested N126.8 billion in information technology (IT). This significant expenditure reflects their commitment to enhancing digital banking infrastructure and fortifying cybersecurity measures to meet the demands of a rapidly evolving financial landscape.
Zenith Bank and GTCO Spearhead IT Spending
Zenith Bank led the group, allocating N49.88 billion to IT initiatives, a substantial increase from N23.09 billion in the same period of 2024. GTCO followed closely, investing N37.76 billion, up marginally from N36.60 billion the previous year. Stanbic IBTC also ramped up its IT budget, spending N23.74 billion compared to N15.86 billion in H1 2024. UBA maintained steady investment at N6.72 billion, nearly unchanged from N6.70 billion in the prior period. Wema Bank stood out with a remarkable increase, spending N8.65 billion, a sharp rise from N1.13 billion, driven by its focus on expanding its ALAT digital banking platform.
Factors Fueling IT Investments
The surge in IT spending is largely driven by the growing prevalence of cashless transactions, spurred by the Central Bank of Nigeria’s (CBN) naira redesign policy and cash withdrawal limits introduced in December 2022. In 2024, Nigerian banks collectively spent N518.5 billion on IT, a 109% increase from N248 billion in 2023, as they modernized operations to support the digital payment boom.
Beyond facilitating e-payments, banks are investing in advanced software and digital tools to streamline operations, enhance customer experiences, and strengthen transaction security. The competitive pressure from fintech companies in the payments and lending sectors, coupled with the CBN’s push for digital innovation and financial inclusion, has further compelled banks to upgrade their technological infrastructure.
Cybersecurity: A Growing Concern
Despite these investments, industry experts emphasize that Nigerian banks must further bolster their cybersecurity efforts to counter escalating cyber threats. According to the Nigeria Inter-Bank Settlement System (NIBSS), financial institutions lost N52.26 billion to fraud in 2024, a 195% increase from N17.67 billion in 2023. Phishing attacks, ransomware, and data breaches are becoming more sophisticated, necessitating robust defenses.
Nonso Magulike, Executive Director of Bitscape, acknowledged the progress in the financial sector’s IT investments but stressed the need for continuous vigilance. “The rapid evolution of cloud and AI technologies enables cybercriminals to act swiftly. Banks must keep pace with these advancements through sustained investments,” he said.
Dipo Alabede, CEO of Clane, a mobile payment company, echoed this sentiment, noting that the rise in digital payment adoption increases the risk of cyber threats. “Investment in cybersecurity is no longer optional—it’s critical for banks to stay competitive and secure in the digital payment space,” he said.
Ongoing Upgrades and Challenges
Many banks initiated core banking platform upgrades in late 2024, with maintenance-related service disruptions continuing into 2025. While Access Holdings led IT spending in 2024, its H1 2025 financial results were unavailable at the time of this report. Similarly, First HoldCo and Sterling Holdings did not disclose their IT expenditures for the period.
As Nigerian banks navigate a dynamic financial ecosystem, their substantial IT investments signal a proactive approach to digital transformation. However, with cyber threats on the rise, industry stakeholders urge even greater focus on cybersecurity to protect customers and maintain trust in the banking sector.
