Despite a record 193.5 million investment in technology and digital infrastructure, in 2024, visiting banks recorded $1.64 billion in fraudsters.
Nigeria News Nalin Access Holdings plc, the parent company of Access Bank, reportedly reported that fraud-related losses were 1.64 billion ($1 million) in fraud-related losses this year, despite investing a record 193.5 million ($120.5 million) in technology and digital infrastructure.
Although this loss is significantly lower than the 6.15 billion (US$3.8 million) reported in 2023, it highlights the ongoing threat of cyber fraud in Nigeria’s rapidly digitizing the banking industry. According to the recently released full-year financial statements, the group’s fraud-related losses fell 73% year-on-year, with an analyst attributed it to its aggressive push for cybersecurity and core system upgrades.
Access Holdings’ record technology investment rose 147% from the previous year, the highest among Nigerian financial institutions and surpassed its competitors. A large portion of this expenditure goes to core banking software upgrades, cybersecurity enhancement, and expansion into new markets such as Hong Kong, Namibia and Tanzania.
Industry experts believe these investments have paid off in reducing fraud exposure. “I suspect the group invests in cybersecurity infrastructure, especially given the sharp drop in losses,” said Mobifoluwa Adesina, investment research analyst at Afrinvest West Invary.
Still, fraud remains a key issue for Nigerian banks. Despite significant improvements in access holdings, other banks also had different results.
The wider Nigerian financial system has also seen an increase in fraud. According to the Nigerian Interbank Settlement System (NIBSS), financial fraud cases surged 112% between 2019 and 2023, with a loss of 496% to US$17.67 billion (US$11.1 million). Mobile and online platforms remain the main channels for fraudsters to exploit.
While Access Holtings continues to invest in technology to secure its digital ecosystem, analysts warn that ongoing vigilance, regulatory collaboration and employee training are critical to maintaining the evolving threat of fraud.
The company has not disclosed its 2025 technology budget, but reiterated its commitment to building internal capabilities and modernizing systems to protect the trust of its assets and customers.
