Access Holdings Plc, the parent company of Access Bank, has set a new industry benchmark by spending an unprecedented ₦193.5 billion ($120.5 million) on technology infrastructure and electronic business operations in 2024—more than double what any other bank in Nigeria spent during the same period.
The figure represents a staggering 147% increase from the company’s 2023 tech spend and underscores the bank’s aggressive digital transformation strategy. Despite Nigeria’s tough macroeconomic environment, marked by inflation and exchange rate volatility, Access Holdings said the investment was necessary to support its expanding digital footprint and defend market share from rising fintech challengers like Opay, PalmPay, and Moniepoint.
“This spend reflects a deliberate balance between capital investments in new capabilities and operating expenses that support existing systems,” the company stated, citing core banking software upgrades, cybersecurity enhancements, and international expansion into Tanzania, Namibia, and Hong Kong as major contributors.
A breakdown of the expenditure reveals that 80% of operational IT costs were vendor-related—largely tied to software licensing—while 15% went to support services, and the remainder to consultancy and niche expertise.
The bank’s bold investment appears to be yielding results. According to its recently released financial statement, fraud-related losses dropped by 73%, from ₦6.15 billion ($3.8 million) in 2023 to ₦1.64 billion ($1 million) in 2024.
“I suspect that the group invested in some serious cybersecurity infrastructure, given how significantly the amount lost to fraud has dropped,” noted Mobifoluwa Adesina, investment research analyst at Afrinvest West Africa.
Nabila Mohammed, a research analyst with Chapel Hill Denham, agreed, stating, “Enhanced IT systems reduce fraud risks and improve customer confidence, which in turn drives transaction volume and boosts fee income.”
Access Holdings’ spending eclipsed that of its peers. Guaranty Trust Holding Company (GTCO) Plc spent ₦88 billion ($56.8 million), up 48% from the previous year; Zenith Bank’s tech budget rose 100% to ₦67.3 billion ($43 million); and United Bank for Africa (UBA) grew its IT spending by 107% to ₦48 billion ($30.5 million).
However, not all banks have recorded the same fraud loss improvements. While GTCO reduced its fraud losses marginally to ₦159.1 million ($99,421), Zenith saw a dramatic spike from ₦383.4 million ($238,914) in 2023 to ₦5.26 billion ($3.3 million) in 2024, pointing to an urgent need for stronger cybersecurity measures.
The explosion in digital payments across Nigeria has brought both convenience and challenges. According to the Nigeria Inter-Bank Settlement System (NIBSS), fraud incidents soared by 112% between 2019 and 2023, while the value of fraud-related losses jumped 496% to ₦17.67 billion ($11.1 million). PoS, mobile, and computer-based fraud were the most common.
A separate report by the Financial Institutions Training Centre (FITC) showed that fraud-related losses in the third quarter of 2024 rose to ₦10.1 billion across 19,007 cases—up significantly from ₦1.18 billion and 12,066 cases in the same quarter of 2023. Nonetheless, the figure fell sharply from ₦42.8 billion recorded in Q2 2024, suggesting recent security investments may be having a positive impact.
With a current market capitalisation of ₦1.15 trillion, Access Holdings has yet to announce its tech budget for 2025. However, the group says it plans to double down on internal capacity building, particularly in advanced tech skills, to reduce dependency on foreign vendors and manage forex-driven costs.
“We will continue to invest in modernization, innovation, and customer experience, while ensuring that our tech spending aligns with global financial standards,” the company said.
As digital competition intensifies, analysts believe Access Holdings’ forward-thinking approach could serve as a model for other financial institutions navigating Nigeria’s evolving digital economy.
