In Nigeria news, seven banks significantly boosted their technology spending in 2024 to meet the surging demand for electronic payments, which surpassed N1 quadrillion. This investment, totalling N325.23 billion, saw a 90.88% increase, with GTCO, Zenith Bank, and UBA leading the charge. However, despite these investments, many customers faced disruptions due to essential core banking system upgrades.
Such upgrades, as noted by industry experts like Adedeji Okowe, are necessary to enhance banking infrastructure and mitigate past issues experienced during the now-defunct Central Bank of Nigeria’s cashless policy. Despite temporary hardships, the shift has proven beneficial, with electronic transaction income for banks like UBA and Zenith significantly rising. Furthermore, increased tech investments are crucial to bolster security, as seen with over 4,718 weekly cyberattacks in Nigeria, according to Abuja news sources such as Check Point Software Technologies.
Key Takeaways:
- Entry of mobile money operators like OPay and PalmPay helped fill service gaps during bank disruptions.
- Investments aim to upgrade electronic infrastructure, meeting the demand surge.
- Security remains a priority as Nigerian banks face high cyberattack rates.
What do you think will be the long-term impacts of these banking transformations on the Nigerian economy? Read more
