E-Financial
Reps Say Banks Evade Taxes in Billions
House of Representatives Committee on Finance, probing tax remittances, tax assessments and payments by banks, has accused some Nigerian banks of inflating their operating costs to reduce their taxes.
The lawmakers said that the banks are making false declarations and distorting information in attempt to mislead or confuse the Committee as balances reported in the published audited accounts of some of them showed huge variation with the figures submitted to the committee.
Abdulmumin Jibrin, Committee chairman said that his committee found out that data submitted to the CBN in the banks’ monthly returns on the same issues were different from what they presented the Committee for investigation.
According to Jibrin Committee was not making unsubstantiated comments, as the documents submitted by the banks were analysed with capacity support from the United Kingdom’s Department for International and Development (DFID), National Assembly Budget and Research Office (NABRO) and reputable professionals in the industry in conducting the investigations.
“Preliminary findings show a poor quality of returns by the banks, discrepancies in data submitted, outright refusal to present documentary evidence, blanket violations of existing laws, self exemption from existing rules, false declaration, manipulation and distortion of information among others” Jibrin added
The Committee chairman said that “These despicable acts of gross misconduct clearly depict the unscrupulous and roguish character of some banks and their Chief Executive Officers. For the Committee on Finance, this is unacceptable.
“For instance, balances reported in the published audited accounts of some banks show huge variance with the figures submitted to the Committee. The data submitted to the CBN in their monthly returns on the same issues were found to be different from what was tendered before the Committee.
“Even more embarrassing are the inconsistencies and huge variances in some data provided in different pages of documents submitted, thus leaving the committee to conclude that many banks blatantly engage in the creative accounting technique of inflating their operating costs to reduce their exposure to taxes.
“Furthermore, some banks have also created exemption rules for themselves in total disregard for the provisions of extant tax laws, particularly violations of the stamp duty, withholding tax and VAT acts.
“Some chief executives deliberately refused to sign the templates, obviously evading presentation of the documents under oath, in line with legislative procedure. Similarly, key information and data were omitted.
“Such data include details of staff PAYE and utilities with tax implications, etc. There are also many cases of late remittances or outright failure to remit money collected on behalf of government.
“Generally, returns made so far by the banks are incomplete, as the order of presentation was contrary to the guidelines provided in the template. Clearly, this is aimed at misleading the committee.
“Documentary evidence requested was also provided in a haphazard manner.”
According to the committee Chairman, of the 21 banks under scrutiny, only six have supplied information requested, though with certain queries to answer.
On the other hand, he said against banks’ tradition of attention to details, 15 banks suddenly found it convenient to provide poor and incomplete documentation.
“It is obvious that over the years, government has lost billions of naira in fraudulent and underhand dealings corruptly designed by some banks to evade tax.
“This is in addition to being massively and callously shortchanged by banks saddled with the responsibility of collecting and remitting taxes,” he noted.
The committee chairman said it should be of concern to Nigerians that the government continues the yearly ritual of domestic borrowing to balance its budget deficit while the deposit banks continue to manipulate the situation to the detriment of the private and real sectors.
His words: “This domestic borrowing has become a bazaar for many banks, which provide such funds at outrageous interest rates and care less about the implication to the private and real sector, both of which continue to struggle to get the crumbs at a very high cost.
“Domestic borrowing by government has denied the private sector access to affordable funds to grow their businesses and in the process generate employment and create wealth.
“Yet again, some reprobate banks are involved in the criminal act of converting the huge funds in dormant accounts into profits, even with known and accessible next of kin.
“Why should they not pay their taxes in full and remit in full and promptly what they collect on behalf of government?”.
Jibrin said at the end of the investigation, the committee intends to examine various extant tax laws, introduce new clauses or make amendments where necessary to strengthen the country’s tax system and block leakages.
“Chief executives of such Banks must sign the templates and complete their outstanding checklists within 48 hours to set the stage for the last round of engagement between the Committee and the banks,” he said, adding: Between September 23 and 27, the chief executive o fficers of the banks must appear in person to defend their templates in a technical session before the committee.”
Ecobank, Pan-African lender, said it is in advanced talks with the Bank of China to set up a direct yuan settlement system by the end of 2026, eliminating the need to use the U.S. dollar as an intermediary in trade with China.
For traders in Lagos, Nairobi or Lomé sourcing goods from China, payments have so far been complex and costly.
Paying a supplier in Guangzhou typically requires converting local currency into dollars, then into yuan.
The two-step process increases banking fees and cuts into margins.
Ecobank aims to remove that constraint.
“We are looking at opportunities for us to settle with, instead of going through the dollar, we do it directly with the Chinese yuan,” Jeremy Awori, chief executive, Ecobank told Reuters.
The move reflects current trade dynamics: China is Africa’s largest trading partner by a wide margin. Chinese exports to Africa rose 26% to $225 billion in 2025, contributing to a record $348 billion in total trade.
Beijing has also expanded its financial footprint, with around $39 billion in new contracts signed in 2025, making it the largest bilateral investor by new flows.
Ecobank’s talks with the Bank of China are part of a broader shift across Africa to reduce reliance on the dollar.
In November, South Africa’s Standard Bank took a similar step by joining China’s Cross-Border Interbank Payment System (CIPS).
Across the continent, governments and financial institutions are seeking alternatives to a currency that has become costly and harder to access. Backed by the African Union, the Pan-African Payment and Settlement System (PAPSS) is already reducing conversion costs for intra-African trade. Some countries are moving further: Tanzania and Zambia have restricted the use of the dollar in domestic transactions, while the Democratic Republic of Congo plans to do the same next year.
The trend is also supported by the growing influence of the BRICS+ bloc, which Egypt and Ethiopia have joined and which is promoting a more multipolar financial system.
China is no longer the only player pursuing this strategy.
A high-stakes contest is emerging with the United Arab Emirates for financial and logistical influence in Africa.
Abu Dhabi is expanding its presence through investments in ports and energy infrastructure, alongside financial initiatives.
The UAE has signed multiple currency swap agreements with countries including Egypt, Ethiopia, Kenya and Nigeria to facilitate transactions in dirhams and local currencies, reducing reliance on the U.S. dollar.
Central Bank of Nigeria (CBN) has warned the public of a fresh cyber hack attempt to access personal accounts, just days after the Corporate Affairs Commission (CAC) confirmed a major cyber attack on its systems.
CBN
In a statement signed by Hakama Sidi‑Ali, acting director of corporate communications, issued Tuesday, April 21, 2026, the apex bank said cybercriminals are circulating fraudulent emails and online messages falsely claiming to originate from the CBN.
The messages reportedly contain suspicious links and false narratives about the bank’s leadership, licensing activities, and policy decisions, with the aim of compromising Nigerians’ personal information and hacking their accounts.
The CBN reiterated that its official website remains www.cbn.gov.ng and urged Nigerians to avoid clicking links or sharing sensitive data via suspicious websites or unknown contacts. It also advised the public to verify all CBN‑related communications through the official portal and recognised media outlets, and to report suspected fraudulent sites or emails to law enforcement.
The warning comes after the CAC confirmed on April 15, 2026, that its information systems were breached by hackers, exposing millions of company documents and triggering an investigation by the Nigeria Data Protection Commission (NDPC).
The CBN said it is strengthening its cybersecurity frameworks in collaboration with relevant agencies to protect the financial system and safeguard users from digital fraud.
PalmPay said that it has surpassed 35 million users, a figure that reflects a broader transition in the sector from rapid customer acquisition to sustained, everyday financial usage.
Chika Nwosu, Managing Director-CEO, PalmPay Nigeria
The consumer payments platform entered Nigeria’s fintech market in 2019 and is today a major player, offering a suite of financial services including transfers, bill payments, and digital insurance to promote financial inclusion.
In a market historically shaped by traditional banks, emerging fintechs, and a strong cash culture, scale alone is no longer the defining benchmark of success.
Instead, attention is shifting to how effectively platforms integrate into the daily financial routines of individuals and businesses.
Central to PalmPay’s growth is its alignment with Nigeria’s payment infrastructure.
The platform has executed live transactions on the National Payment Stack operated by the Nigeria Inter-Bank Settlement System (NIBSS), placing it within an interoperable framework that connects banks, fintechs, and other financial service providers.
Within this ecosystem, industry observers note that competition is increasingly determined by system performance—uptime, transaction success rates, and reliability—rather than product differentiation alone.
However, integration at the infrastructure level does not automatically translate to inclusion. According to data from Enhancing Financial Innovation and Access (EFInA), a significant proportion of Nigerians—particularly in rural and underserved communities—remain outside the formal financial system.
To address this gap, PalmPay has expanded its agent network, mirroring a wider industry approach that combines digital platforms with physical access points.
Through these agents, users can carry out deposits, withdrawals, transfers, and onboarding, effectively bridging the divide between cash-based transactions and digital finance.
This hybrid model has become a cornerstone of financial service delivery in Nigeria, underscoring the importance of distribution alongside technology.
Beyond core payment services, PalmPay has also extended into financial literacy and capacity-building initiatives, targeting underserved groups such as women-led businesses and first-time digital users. The move signals a growing recognition that access alone is insufficient without the knowledge and confidence to participate fully in the financial system.
Overall, PalmPay’s reported scale offers insight into a maturing fintech landscape, where growth is increasingly defined not just by user numbers, but by the extent to which platforms become embedded in the everyday financial lives of Nigerians.
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