By Elvis Eromosele

The financial sector is the backbone of any economy, driving transactions, investment, and growth. In Nigeria, the financial sector is under siege.

The recent report from the Financial Institutions Training Centre (FITC) confirms this. The report reveals a shocking escalation in fraudulent activities, leaving banks and customers vulnerable in the first nine months of 2024.

This rising tide of financial fraud raises critical questions: Why is fraud surging, and what can be done to stem the tide?

The FITC Fraud and Forgery Report for Q3 2024 paints a grim picture. Fraud cases reported by Nigerian banks jumped by an alarming 65 per cent from 11,532 in Q2 to 19,007 in Q3. The monetary figures are equally disturbing. In Q3, fraudsters attempted to steal an eye-watering N115.9 billion—more than double the N56.6 billion recorded in the previous quarter.

While the actual losses in Q3 were curbed at N10.1 billion—a significant drop from N42.8 billion in Q2—this still marks a troubling year. In the first nine months of 2024, Nigerian banks lost an estimated N53.4 billion to fraud, a steep increase from the N9.4 billion lost in the entire 2023.

The report attributes this surge to the increasing digitisation of financial transactions, which, while enhancing convenience, has also provided fraudsters with a wider playing field. It is now clear that as banks race to adopt advanced technologies, they must contend with an evolving landscape of cyber threats.

We’ll need to look closer to understand the numbers. For instance, despite the surge in fraudulent attempts, the losses incurred have decreased significantly in Q3, indicating improved detection and prevention mechanisms by banks.

In addition, the N53.4 billion lost so far in 2024 dwarfs the N9.4 billion lost in 2023, underscoring an urgent need for strengthened fraud prevention strategies.

Besides, the report indicates that fraud is escalating across all platforms, with digital transactions emerging as a significant area of concern. This is not surprising, for as more Nigerians adopt online banking, the potential for cybercrime has grown exponentially.

This trend is driven by several factors. Many banks lack advanced cybersecurity measures capable of countering sophisticated fraud schemes.

Internal collusion remains a significant issue, with some bank employees aiding fraudsters. Moreover, a lack of public awareness about basic cybersecurity practices makes customers vulnerable to scams like phishing. Regulatory gaps further compound the problem, as the speed at which fraud tactics evolve often outpaces existing measures.

Notwithstanding the challenges, there is a glimmer of hope. The reduction in losses in Q3 suggests that banks are improving their detection and prevention mechanisms. However, this progress needs to be scaled up and sustained. Addressing the fraud epidemic will require concerted efforts from all stakeholders, including financial institutions, regulators, and customers.

First, banks must strengthen their cybersecurity infrastructure. Advanced fraud detection systems powered by artificial intelligence and machine learning can help identify unusual transaction patterns and flag them before significant losses occur.

Second, employee training and accountability must be prioritised. Bank staff should be regularly trained on fraud prevention techniques, while stricter penalties and internal monitoring systems can help deter insider threats.

Third, public awareness campaigns are essential. Customers need to be educated about protecting their financial information and recognising potential scams. Simple actions, such as not sharing sensitive banking details or ignoring unsolicited messages, can make a significant difference.

Furthermore, collaboration is another key element. Banks and regulatory bodies should share data on emerging fraud trends, creating a unified database to help institutions stay ahead of criminal tactics. Regulatory frameworks also need to evolve, ensuring stricter penalties for fraud and keeping pace with technological advancements.

The FITC report serves as a wake-up call for stakeholders in Nigeria’s financial sector. While commendable progress has been made in reducing actual losses, the overall increase in fraud attempts underscores the need for a more proactive approach. This is not just a banking issue—it is a national economic threat.

It is clear that Nigeria can turn the tide against financial fraud by prioritising cybersecurity, fostering collaboration, and empowering citizens with knowledge. For banks, customers, and regulators alike, the message is clear: the time to act is now.

Eromosele, a corporate communication professional writes via: [email protected]

By Elvis Eromosele

The Nigerian banking system, once celebrated as the backbone of the nation’s economy, is facing a glaring paradox. Customers walk into bank branches daily to access their funds, only to be told that cash is scarce.

The situation, which began following the Naira redesign exercise under former President Muhammadu Buhari, has become a troubling norm. Bank tellers now ration cash withdrawals, often imposing arbitrary limits like N20,000 per person, without detailed explanations. This raises an unsettling question: is there a hidden liquidity crisis in the Nigerian banking system?

The central function of a bank is to provide customers with seamless access to their deposits, yet this appears to be failing.

The scarcity of cash at bank branches stands in sharp contrast to the availability of cash through Point of Sale (POS) operators, who always seem to have more than enough to meet demand. This discrepancy is baffling and has fueled widespread speculation about the health of the banking system.

When customers encounter these restrictions, the frustration is palpable. Imagine the indignity of being denied access to your funds, with no clear justification. Attempts to probe deeper are met with shrugs or vague statements about system limitations.

This state of affairs is unacceptable in a modern economy. A teller in a bank branch told me last week, “People don’t deposit cash like they used to.”

The Central Bank of Nigeria (CBN) introduced the Naira redesign exercise with lofty objectives: reducing inflation, tackling corruption, and promoting a cashless economy.

However, its implementation was riddled with missteps, creating chaos across the financial landscape. Banks struggled to replace old notes with redesigned ones, leading to widespread shortages that have yet to abate 24 months later.

One of the most curious aspects of the crisis is the role of POS operators. While banks ration cash, these operators maintain steady supplies, albeit at exorbitant rates. Are they benefiting from a parallel system of cash distribution? Or are they simply more agile at navigating the inefficiencies in the formal banking system? Either way, their dominance underscores the inability of banks to fulfil their basic responsibilities.

Many have written extensively about this problem, but the Central Bank of Nigeria appears powerless to resolve it. As the regulator, the CBN’s primary responsibility is to ensure the stability and liquidity of the financial system. Yet, the persistent cash shortages suggest either an unwillingness or inability to act decisively.

If the issue is systemic—a result of poor monetary policy, weak oversight, or strained interbank liquidity—then the CBN’s inaction becomes even more concerning. A regulator that cannot enforce its mandate risks eroding public trust, not just in the banking sector but in the economy as a whole.

Yes, Nigerians should be deeply concerned. A liquidity crisis, if left unchecked, could spiral into a full-blown financial crisis. When people lose confidence in banks’ ability to provide cash, they may resort to hoarding or bypassing the formal banking system altogether. This would undermine financial inclusion, destabilise the economy, and make it harder for businesses to thrive. These are already all manifesting.

The current state of affairs also raises broader questions about accountability. Who will hold banks responsible for their failure to serve customers? And who will ensure that the CBN fulfils its duty to oversee and stabilise the financial system?

Several critical steps must be taken immediately to address this crisis. First, banks must ensure cash is available for customers who need it. Where there is a shortage, they must equally prioritize transparency by providing clear explanations and implementing consistent policies to reassure their customers. Without this openness, trust in the system will continue to erode.

The Central Bank of Nigeria (CBN) also needs to enhance its regulatory oversight to ensure that banks maintain adequate liquidity to meet withdrawal demands. This would require stricter monitoring and enforcement to prevent the recurrence of such issues.

Furthermore, POS operators’ activities warrant closer scrutiny. Their ability to consistently access cash while banks struggle raises questions that demand a thorough investigation.

Understanding their role in the cash distribution ecosystem is essential to resolving the crisis.

Equally important is public communication. The CBN must take proactive steps to engage with the public, offering clear updates on the measures implemented to resolve the crisis. Effective communication will be key to rebuilding public trust and confidence in the system.

Finally, the banking sector requires long-term reforms to address systemic inefficiencies. These reforms should aim to modernise operations, enhance overall efficiency, and prevent similar challenges in the future. Only through these measures can the ongoing crisis be resolved and the Nigerian banking system restored to stability. The National Assembly must step up to the plate here.

The persistent cash shortages in Nigerian banks may point to deeper structural issues that require urgent attention. I don’t know, whether it is a hidden liquidity crisis or a symptom of broader inefficiencies, but the situation is untenable. Nigerians should not have to wonder whether their money is safe or accessible.

Eromosele, a corporate communication professional writes via: [email protected]

Cheta Nwanze, Founder of SBM Intelligence says Nigerians (individuals and businesses) should expect Naira to Dollar exchange rate of N2000 to $1 in 2025.

Nwanze made the projection in an interview with Semafor Africa on his expectation for the Nigerian economy in 2025

“I expect the economy to grow by 3.5%, driven by services. I also expect inflation to remain high, around 28%, and the Naira may depreciate to above $1 to ₦2000. That combination is likely to fuel social unrest.”

Polaris Bank, in partnership with key stakeholders, has reaffirmed its commitment to combating the alarming rate of out-of-school children in Nigeria.

Through its targeted interventions, the Bank has ensured continuous education for over 15,000 students, providing them with the opportunity to learn, thrive, and contribute to a better future.

While the initiative primarily focuses on empowering the girl child, male students in the targeted schools were not left out reflecting the project’s inclusive approach.

Polaris Bank’s collaboration with strategic partners has further strengthened its efforts to combat the scourge of out-of-school children in Nigeria. Since 2020, these collaborative efforts have ensured continuous education for 16,000 students, showcasing the transformative impact of teamwork in fostering positive societal change.

The initiative which includes empowering young learners with brain training techniques and emotional intelligence education alongside making and distributing school essentials (bags, uniforms, sandals, books, and pens) aligns with the United Nations (UN) Sustainable Development Goals (SDG) 4 which ensures inclusive and equitable quality education for all, is targeted at Nigeria’s most vulnerable communities, where over 20 million children lack access to basic education, according to UNESCO.

This phase of the initiative targeted schools across diverse regions of the country, providing needed school essentials such as; school bags, sandals, uniforms, books, and pens to students. Research has shown that the lack of one or two of these basic school essentials has been a significant barrier to school enrolment, contributing to the alarming number of the scourge of out-of-school children in Nigeria.

Polaris Bank’s Managing Director/CEO, Kayode Lawal speaking on the education initiative charged students to embrace opportunities that education offers saying that the intervention is in line with the Bank’s ongoing sustainability efforts aimed at reducing Nigeria’s current out-of-school children population and increasing access to quality education, especially for the girl-child.

As part of its broader mission, Polaris Bank between November and December 2024 visited eight schools across various states, including Opebi Junior Grammar School in Lagos, National High School Arondizuogu; Iheme Memorial Secondary School; Akokwa High School in Imo State, Government Girls Secondary School, Kundila in Kano, Fortune Secondary School in Kogi, and Government Day Junior Secondary School, Maitama in Abuja, with that of Gbaja Junior and Secondary School, both in Surulere, Lagos moved to mid-January 2025.

The program aims to support 50,000 students by 2028, building on its current impact of 16,000 students across nine states.

Beyond the provision of school essentials to indigent students of public schools, the initiative also embeds the Brighter Minds Programme, a transformative project bringing innovative brain-training techniques and emotional intelligence education to young learners.

This program has achieved remarkable milestones, expanding access to a holistic learning approach that builds resilience, focus, and confidence in students.

Each pilot group represents a new step in the journey of empowering young minds with life skills, made possible by the unwavering support of Polaris Bank, partners like EvolveCSR, schools, and parents.

Complementing this educational intervention, is the Inspire Teachers Training Program, a 3-day value-based education initiative aimed at equipping teachers with critical soft skills and alternative teaching methodologies.

This program explores topics such as heartful teaching, facilitation techniques, heterogeneous learning strategies, effective communication, heart-centered education, self-connection, and moral skill development.

Teachers who complete the program receive certificates and are encouraged to share their knowledge by training peers, fostering a ripple effect that promotes a soft-skills-driven approach to education.

While the initiative has made significant strides, the final batch of schools to be visited—Gbaja Girls Junior and High Secondary School, Surulere, Lagos — has been postponed to January 2025. This adjustment highlights the Bank’s commitment to ensuring no child is left behind in its drive to provide access to quality education.

Polaris Bank remains resolute in its mission to bridge educational gaps, ensuring a brighter future for Nigeria’s youth through impactful and sustained interventions.

By empowering students and supporting educators, the Bank continues to lead efforts to transform the lives of Nigeria’s future leaders.

In a significant development for individuals looking to acquire new automobiles this season, Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, has partnered with CIG Motors, the powerhouse behind popular automobile brand, GAC Motors.

The partnership, formally signed at the GAC G-Style showroom, aims to simplify the rigorous process of owning a brand-new vehicle, with a flexi-repayment structure, and a 10 per cent discount rate on all vehicles purchased within 12 months.

As part of this collaboration, CIG Motors is also giving a five (5) year warranty on all its GAC vehicle models. The partnership will also provide incentives to customers purchasing through the Stanbic IBTC Vehicle and Asset Finance (VAF) product. This initiative comes at a time when many individuals and families are seeking affordable ways to own cars.

Jubril Arogundade, Executive Director, CIG Motors, expressed delight at the partnership stating that “Through this partnership, Nigerians are guaranteed to experience a premium and hassle-free process in owning brand new vehicles that suit their taste.”

CIG Motors’ expertise in the automobile sector, enhanced by Stanbic IBTC Bank’s Vehicle and Asset Finance (VAF) scheme, will allow equal opportunity for customers to own cars without stress or worry”, He added.

CIG Motors is a renowned automobile company known for cutting-edge designs and reliable automobile brand. The scheme is open to individual Nigerians (including the self-employed), and businesses seeking to expand their fleets.

During the event, Olu Delano, Executive Director, Personal & Private Banking, Stanbic IBTC Bank, emphasised that, “The collaboration enhances the purchasing power of our customers, enabling them to access a broad range of brand-new vehicles under CIG Motors. It also highlights our commitment to fostering economic growth in the communities we serve.

“Stanbic IBTC Bank and CIG Motors’ collaboration illustrates a broader trend of growth between financial institutions and automobile manufacturers,” he added.

As the automotive market expands, collaborations like Stanbic IBTC Bank and CIG Motors are crucial for promoting customer satisfaction and fostering loyalty. The combination of quality vehicles and favourable financial solutions is set to transform the car-buying experience, making it efficient and enjoyable.

Sterling Financial Holdings Company PLC has achieved another milestone with the approval of the Central Bank of Nigeria (CBN) recognising an additional ₦75 billion in its capital raise.

This approval represents the final leg of the capital injection that was achieved through a private placement in September 2024.

Building on the private placement’s success, Sterling launched a Rights Issue in October

2024, structured to provide existing shareholders the exclusive opportunity to deepen their stakes in the company and share in its growth story.

The Rights Issue received significant interest and participation, highlighting the confidence and trust the company has cultivated among its shareholders over the years. Regulatory approval for the process is currently underway, marking another significant step in the recapitalisation journey.

The public is eagerly awaiting Sterling’s Public Offer, which will present an exciting opportunity for individuals to invest in the company. It is anticipated that the recapitalisation process will be completed with a Public Offer early next year, allowing wider participation from the public and further strengthening its commitment to shared value creation.

Group Chief Executive, Yemi Odubiyi described the capital injection and the approval as a validation of the company’s strategic direction and operational excellence.

“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond. Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value to all stakeholders and drive impact across critical sectors of the Nigerian economy,” he stated.

Odubiyi emphasised the company’s evolution from its origins as a merchant bank to its current status as a diversified financial holdings company. Powered by cutting-edge technology and a flexible operational model, the company has consistently demonstrated its ability to navigate market difficulties and seize growth opportunities.

Reflecting on Sterling’s accomplishments, Odubiyi acknowledged the instrumental role of stakeholders, including regulators, investors, and customers. “We are grateful for the unwavering support and trust in our strategy, which has been pivotal to our journey. This recapitalisation strengthens our ability to unlock new opportunities, create value, and drive economic growth,” he added.

The capital boost follows a year marked by robust financial performance and significant strategic achievements for Sterling. As at the last week in December 2024, Sterling witnessed a 19% surge in stock price, contributing to a remarkable three-year growth of 287.42%. In the first half of 2024, the company recorded a 51% increase in profit before tax compared to the same period in 2023 and achieved a 20% growth in total assets.

These results demonstrate Sterling’s resilience and ability to deliver superior outcomes despite the complexities of Nigeria’s economic landscape, marked by high inflation and currency volatility.

As Sterling looks ahead, its focus remains firmly on innovation, sustainability, and value creation. With a fortified capital structure, the company is well-positioned to execute its ambitious growth plans, deepen its impact across critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry.

This latest milestone marks a transformative chapter for Sterling Financial Holdings Company Plc as it continues to redefine the future of financial services in Nigeria and beyond.