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Three major Nigerian banks, GTCO, Access Holdings, and Fidelity Bank, are planning to allocate a combined total of N186 billion ($244 million) from their recent public offerings to enhance their IT infrastructure.
This decision is in response to the Central Bank of Nigeria’s (CBN) new recapitalisation requirements.
The banks aim to strengthen their cybersecurity frameworks and acquire new software licences due to the rise in electronic transactions and online fraud in Nigeria.
GTCO Plc is leading the initiative by setting aside 26.6% of its expected N400.5 billion ($526 million) in public offer proceeds equivalent to N98.5 billion ($129 million) for technology upgrades.
Access Holdings plans to invest N68.6 billion ($90 million), or 20% of its anticipated N343 billion ($451 million) proceeds in IT infrastructure.
Fidelity Bank is dedicating 20% of its N95 billion ($125 million) in proceeds, approximately N19 billion ($25 million), to similar initiatives, with a focus on enhanced cybersecurity solutions, data analytics, and cloud services.
Specifically, GTCO plans to spend N70 billion ($92 million) on its core banking application, N15 billion ($20 million) on information security and fraud prevention software.
It will also allocate N6 billion ($8 million) on upgrading digital channels such as mobile and internet banking, and N7.5 billion ($10 million) on enterprise management solutions, with completion expected within 12 to 24 months.
Access Holdings intends to invest N41.1 billion ($54 million), representing 12% of its offer proceeds, in network infrastructure, and N27.4 billion ($36 million) in cybersecurity over 36 months.
Fidelity Bank’s detailed investment breakdown was not provided in the original text.
