System upgrades, service disruptions and Nigerian banks’ heavy investment in IT

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Nigeria's independent online newspaper

The Nigerian banking sector has witnessed a remarkable transformation in recent years, driven by the increasing adoption of digital payment methods and the need for enhanced information technology infrastructure.

In August, Sterling Bank began an upgrade that lasted until September. The bank not only carried out an upgrade but also moved from the Switzerland-based Temenos T24 system to an Indigenous solution provider, SeaBaaS, developed by Peerless.During the transition, Sterling Bank’s customers suffered service disruption with many unable to carry out any transaction on their digital banking channels.

Customers complained about their inability to transfer funds to other banks, and those using GTBank ATMs reported problems with POS transactions. Many customers’ accounts were debited in cases of incomplete transactions, with their money left hanging in the balance for several days. In the first half of 2024, five major Nigerian banks collectively invested N178.77 billion in enhancing their IT infrastructure. This represents a 203% increase from N58.8 billion during the same period last year.The banks that made significant investments in IT upgrades include Access Bank, which made a staggering N111.24 billion investment in IT. This represents a 264.55% increase from N30.47 billion in H1 2023.

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