Nigeria’s five largest banks by market capitalisation are accelerating procurement of technology to safeguard against rising digital competition especially from financial technology (Fintech) firms who are taking away the retail end of the market as well as artificial intelligence (AI).
Zenith Bank Plc, Access Holding Plc, United Bank for Africa (UBA) Plc, Guaranty Trust Holdings (GTCO) Plc, and FirstHoldCo Plc collectively spent N140.17 billion on Technology in the first three months of 2026, which is 49.38 percent higher than 2025’s N93.81 billion, according to data gathered by MoneyCentral.
This expenditure is inevitable given that lenders have a high volume of transactions which are magnifying while maintaining 24/7 service. Of course, rising e-payment transactions exposes them to electronic fraud on a large scale capable of causing insuperable financial loss when not scrutinised.
It appears Information technology spending is gradually paying off. For instance, a recent report by the Nigeria Inter-Bank Settlement System (NIBSS) shows digital payment fraud dropped by 51 percent for Nigeria banks to N52.20 in 2025.
“The most common fraud technique remains social engineering. Within this category, insider abuse is the greatest threat we face. Insider involvement is high, and recent investigations have confirmed this. Services such as SIM swap fraud, account compromise, and phishing continue to evolve. Awareness remains critical, as many victims are still easily deceived,” said Premier Oiwoh, Managing Director/Chief Executive Officer of Nigeria Inter-Bank Settlement System.
Competition from Fintech firms
Nigeria banks are expanding their IT budget as they face intense competition from fintechs (Moniepoint, Opay, Palm Pay and Flutterwave and Co) who have made banking much easier for customers.
For instance, Fintechs have stepped up to develop enhanced propositions across the value chain to address pain points in affordable payments, quick loans, and flexible savings and investments, among others.
The country’s lenders are notorious for epileptic networks that keep customers standing on the queue for several hours. And more frustrating is the extraneously superfluous paperwork to open a new bank account or to collect a new automated teller machine (ATM) card.
It is important to note that one in five Nigerian now owns a Opay, Palmpay, or Moniepoint account as the a youthful population, increasing smartphone penetration, and a focused regulatory drive to increase financial inclusion and cashless payments, are combining to create the perfect recipe for a thriving fintech sector.
Global fintech revenues surpassed $500 billion in 2025, according to the annual report by the Boston Consulting Group (BCG) and FT Partners. This represents a 22 percent increase, with fintech revenues growing four times faster than those of traditional banks.
Between 2014 and 2019, Nigeria’s bustling fintech scene raised more than $600 million in funding, attracting 25 percent ($122 million) of the $491.6 million raised by African tech startups in 2019 alone—second only to Kenya, which attracted $149 million, according to Global Consultancy, McKinsey and Company.
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