United Bank for Africa lost N1.14 billion (£744,200) in fraud in 2024. The Nigerian lender reported a net profit of N766.6 billion (£493 million). According to its latest audited Financial StatementsThe losses, which are primarily due to electronic fraud and unauthorised transfer, highlight the ongoing battle Nigerian bankers face against fraud. UBA revealed that in 2024 N4.9 billion ($3.15million) worth of transactions would be linked to fraud, with 23% resulting in actual losses. Electronic fraud cost the bank N805 millions ($518,000), whereas fraudulent transfers resulted in N314million ($202,000) of losses. This is 88% of the total value involved.
While its losses are a small portion of UBA’s record breaking annual profit, they highlight the vulnerability of even the largest financial institutions to fraud. UBA’s profit of N766.6 billion (493 million dollars) is a 26% increase over the N607.7 million ($391million) it made in 2023. UBA’s disclosure — the first since 2012 — comes at a time of increased pressure on Nigerian banks to fight fraud. Nigerian banks Financial Institutions Training Centre report shows that in Q3 2024, fraud losses were N10.1 billion (6.7 million dollars). This is a 76.4% decrease from the previous quarter. The sophistication of fraudsters is a constant challenge for even the most robust security system. According to the FITC Report, fraud involving outsiders increased by 70.4% from Q2 to Q3 2024. Staff-related fraud also increased by 54%. UBA’s financial statements stated that “there is no fraud involving any management or employees who could play a significant role in the internal control of the bank.”
The rise of fraud incidents is a result of broader financial pressures on Nigeria’s banking industry. In January, the Central Bank of Nigeria instructed NIBSS debit the settlement account of commercial banks who receive fraud proceeds. This was done to force banks to tighten their internal controls and stop illicit financial flows. UBA’s disclosure marks an important shift in the Nigerian banking sector. Many institutions continue to downplay fraud risk for fear of reputational damage. According to the Nigeria Inter-Bank Settlement System, only 60 out of 163 Nigerian financial institutions reported fraud cases in 2023. NIBSS reportFinancial crime is becoming more sophisticated. Banks and regulators must work harder to maintain customer trust while strengthening controls.
