*All Deposits In Nigerian Banks Safe, CBN Assures
Nigerian bank customers are set to experience more service disruptions in the coming weeks as financial institutions across the country embark on major system upgrades. These upgrades aim to improve operational efficiency and enhance customer experience, but they come with temporary inconveniences.
Several major banks have already begun their migration processes. Sterling Bank recently switched from T24 to SEABaaS, a locally developed core banking application. GTBank migrated from Basis/Banks software to Finacle, while Zenith Bank is in the process of moving from Phoenix to Oracle’s Flexcube.
An industry source, speaking on condition of anonymity, revealed that another tier-1 bank is preparing for a similar migration, which is expected to affect millions of customers.
The upgrades are driven by multiple factors, including enhanced security to combat increasing cybersecurity threats, improved operational flexibility, and cost reduction. A bank IT professional explained, “Most top banks in Nigeria use software from India, and it costs them a lot of forex annually. Banks are looking for ways to cut these costs.”
However, the migration process is complex and time-consuming. A backend developer at a tier-1 bank stated, “Migrating to a new core banking system may take two weeks to one month because it involves the movement of customer biodata.”
While banks acknowledge the inconvenience to customers, they view it as a necessary step for long-term improvements. An industry source commented, “The service disruptions are a bitter pill that the customers would have to swallow. But we must do what we have to do to improve the experience for the customers.”
As more Nigerian banks prepare to upgrade their systems, customers should anticipate potential service interruptions. However, these upgrades are expected to result in more secure, efficient, and cost-effective banking services in the long run.
Meanwhile, the Chartered Institute of Bankers of Nigeria (CIBN) and the Body of Banks Chief Executive Officers (CEOs) have expressed concern over the increasing social media attacks targeting Nigerian banks.
They noted that these attacks, often spreading false information and unverified claims, are damaging the reputation of financial institutions and undermining public trust in the banking system.
This is just as the Central Bank of Nigeria (CBN) has reassured the banking public that all deposits in Nigerian banks are secure.
The CIBN and bank CEOs emphasised the importance of safeguarding the integrity of the sector and called for responsible use of social media, urging the public to verify information before sharing. They reaffirmed their commitment to transparency, improved services and maintaining the stability of the financial system.
In a joint statement signed by Dr Oliver Alawuba, Chairman, Body of Banks CEOs in Nigeria and Professor Pius Deji Olanrewaju, President, CIBN, they clarified that Nigerian banks are staffed with globally competitive and certified professionals, regulated by both national and international bodies.
“These professionals, coupled with partnerships with globally recognsed service providers and investments in cutting-edge technologies, elevate Nigerian banks to global standards in every market they operate,” the statement read in part.
The joint statement titled, ‘The Critical Role of Nigerian Banks in Nation Building,’ the CIBN and the Body of Banks CEOs in Nigeria expressed concern over the persistent social media criticisms targeted at Nigerian banks. They highlighted the significance and contributions of the banking sector, which remains one of the most regulated and integral parts of Nigeria’s economy.
The Nigerian banking industry, according to the statement, is governed by rigorous regulations issued by the CBN, its primary regulator and other direct and indirect regulatory bodies.
“A large number of these banks are publicly listed and adhere to the highest standards of transparency and compliance as required by domestic and international investors and regulatory agencies.
“In addition to the CBN, regulatory bodies like the Nigerian Exchange Group (NGX), Securities and Exchange Commission (SEC), Financial Reporting Council (FRC) and Nigeria Deposit Insurance Corporation (NDIC), play pivotal roles in maintaining transparency, integrity and accountability within the sector.
“Internationally renowned auditing firms, rating agencies and other independent bodies routinely evaluate the operations, financial records and compliance of Nigerian banks. These rigorous assessments ensure that the banks align with global best practices, reflecting their commitment to delivering trustworthy and quality services to the public. As a result, Nigerian banks consistently receive high ratings both individually and collectively,” the statement added.
The bankers emphasised that investor confidence in Nigerian banks is evident, with the sector being a top choice for retail and institutional investors alike. The resilience and dynamism of the banking industry are built on the trust of its customers, demonstrating that the sector is a cornerstone of economic growth and development in Nigeria. Rather than being criticised, the bankers noted that the continued strength of this sector should be a source of national pride.