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Nigerian Banks and the Culture of Concealment: How Financial Results Are Being Cooked to Hide Losses

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In Nigeria’s banking industry, profit has become more a press release than a performance. Every results season, the same storyline plays out with record profits, rising assets, and promises of “strong fundamentals.” Yet, beneath the eye-catching headlines lies a quiet deception of a pattern of accounting charades aimed at repressing the true picture of reality and skyrocketing success.

An analysis of the 2025 half-year results from ten leading financial institutions like Zenith Bank, GTCO, UBA, First HoldCo, Access Holdings, Stanbic IBTC, Wema Bank, FCMB Group, Sterling HoldCo, and Jaiz Bank exposed a pervasive culture of concealment. What the market is celebrating as a season of extraordinary profitability is, in truth, a story of concealed losses, revalued deceptions, and selective disclosure.

Zenith Bank reported a pre-tax profit of N625.6 billion, yet its trading gains fell by N328 billion and credit impairments jumped 83 percent. GTCO, the self-proclaimed profit leader, showed N900.8 billion in pre-tax earnings, but once last year’s N523 billion one-off fair-value gain is removed, actual profit declined by 26 percent. UBA’s earnings were flattered by revaluations, while its interest expenses exploded from N328.9 billion to N560.6 billion. Its trading desk flipped from a N98 billion gain to a N10 billion loss, forcing a drastic cut in interim dividends.

First Bank HoldCo’s books told their own story that despite higher revenues, pre-tax profit fell due to a N486 billion collapse in trading income from a N432 billion gain in 2024 to a N53.7 billion loss in 2025. Impairments doubled to N185 billion as the bank exited CBN’s forbearance regime, revealing losses long deferred. Access Holdings reported N2.5 trillion in gross earnings, but its statement of comprehensive income disclosed a N62.4 billion loss to shareholders driven by N155.9 billion in forex translation losses and N74.4 billion in fair-value write-downs. Profit at the top, destruction of value at the bottom.

Stanbic IBTC’s growth was buoyed by asset sales, not sustainable income. Wema Bank’s celebrated 229 percent profit surge rested on a fragile base: interest expenses rose 34 percent, while impairment charges remained suspiciously light at just N532 million. FCMB Group’s digital-era optimism could not hide the 35 percent slump in non-interest income following the loss of revaluation gains, or the N36.2 billion impairment that followed once regulatory leniency expired. Sterling HoldCo trumpeted a 157 percent jump in profit, which looks less impressive when you realise it was achieved in the shadow of a N100 billion recapitalization. The group admits it still needs N53 billion more to meet regulatory capital. Meanwhile, its cost-to-income ratio remains a heavy 64.5 percent, and non-performing loans hover above the 5 percent prudential threshold.

Jaiz Bank, meanwhile, announced N14.45 billion in profit, but its total assets shrank by N100 billion, and its operational cash flow swung from a N428 billion inflow to a N119 billion outflow with profit on paper and erosion in practice.

Behind the curtain of impressive numbers, a silent manipulation is taking place. Creative accounting, selective disclosures, and reclassification tricks have become tools in the bankers’ art of survival.

Insiders in the banking sector admit, off the record, that “results management” has become a normalised practice. The strategy is simple as in where the true numbers would reveal losses or mounting risk, the presentation is massaged to reflect strength. Loss-making subsidiaries are quietly merged into group accounts where their poor performance is diluted. Bad loans are reclassified as “restructured assets” or shifted into special-purpose vehicles that sit conveniently off the parent bank’s main balance sheet.

The Central Bank of Nigeria (CBN) bears part of the responsibility. In recent years, its supervision appears more reactive than proactive. While the apex bank routinely sanctions banks for minor customer-service infractions, it has been slow to demand full disclosure on FX exposures, hidden losses, or aggressive revaluations. Transparency is not a threat to stability; it is its foundation. A banking system that hides its weaknesses under glossy financial statements is like a house built on borrowed sand.

The real problem facing Nigerian banking today is not liquidity or profitability; it is credibility. When numbers are manipulated, when press releases are crafted to deceive, and when regulators turn a blind eye, the trust that underpins the entire financial system begins to erode. Depositors no longer believe in transparency. Investors no longer trust the data. Even genuine success stories are viewed with suspicion.

For too long, the industry has mistaken perception for progress. Banks inflate interest income in a high-rate environment, then bury the cost of risk in footnotes. They celebrate foreign-exchange gains in one year and quietly dismiss translation losses the next. They rely on regulatory forbearance to delay recognition of bad loans, then call the resulting impairments “non-recurring.”

Dividends are weaponised to signal confidence even when retained earnings are flat. Capital raises are packaged as expansion plays when, in reality, they are patchwork efforts to maintain solvency. And nowhere in these results, not even in the glossy CEO quotes, did we find a serious discussion of declining cash generation or sustainability of earnings once interest rates normalise. None of these manoeuvres strengthens the banking system; they only postpone accountability.

The way forward begins with truth. Banks must be compelled to present their financials in full, not selective highlights crafted for headlines. The CBN must demand clearer disclosures on FX positions, loan restructuring, and the sources of non-interest income, while requesting that banks disclose core operating profit separate from one-off gains and trading income; front-load cash-flow data; publish detailed impairment breakdowns that show exposures by sector and vintage; explain capital raises transparently; and align dividends with free cash flow, not cosmetic accounting profits.

Auditors must rediscover their professional conscience and not rubber-stamp whatever management wants. Journalists and analysts must drill into the notes of the accounts, asking why interest income is rising while impairment and non-performing loans are rising too. The health of the financial system depends not on who can publish the biggest profit figure, but on who can prove that the profit is real, repeatable, and resilient.

Until then, the public is advised to read every “record result” with skepticism. Because in Nigerian banking today, what the headlines celebrate, the balance sheets quietly contradict.

If the current trend continues, the supposed “profits” of today may soon be revealed as the losses of tomorrow.

A bank’s greatest asset is not capital; it is credibility. And once that is lost, no amount of cooked numbers can restore it.

Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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NIS Warns Nigerians against Fraudulent Passport Payment Platforms

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Nigeria Immigration Service (NIS) has warned Nigerians against patronising fraudulent platforms for passport payments, while dismissing claims of third-party involvement in its application process.

NIS Warns Nigerians against Fraudulent Passport Payment Platforms

This was disclosed in a statement by NIS on Monday. It described it as false and misleading, suggesting that a religious organisation was linked to its payment system.

The NIS maintained that its passport application process remained secure, transparent and fully government-approved and was accessible only through its official portal: http://passport.immigration.gov.ng.

It stressed that the portal was the sole authorised platform for all passport-related payments and processing for Nigerians both within the country and in the diaspora.

“The service has not authorised any religious body, private organisation or individual to act as an intermediary or receive payments on its behalf.

“The claims that a religious organisation appears in our payment process are entirely false and do not reflect the structure, integrity or processes of the NIS,” the NIS said.

The statement added that a simple verification of the NIS official portal would confirm the authenticity and transparency of its system.

It cautioned that any third-party links or platforms claiming to process passport payments for the NIS were fraudulent and should be avoided.

The statement disclosed that the NIS had commenced an investigation into the source of the allegations, noting that preliminary findings suggested the involvement of individuals attempting to mislead the public or damage the service’s reputation.

It assured that appropriate sanctions would be applied against those found culpable and reiterated that NIS operates strictly in line with government financial regulations and works only with licensed and accredited payment service providers clearly indicated on its official platform.

NIS warned that payments made outside the approved channels were at the payer’s risk, adding that it would not be responsible for any loss or inconvenience arising from such transactions.

It urged Nigerians to exercise caution, use only its official portal, and avoid unauthorised agents, websites and third-party platforms.

“The service does not recognise or provide any alternative payment options for passport applications or related services,” it said.

NIS assured the public of its commitment to safeguarding trust by strengthening its systems and monitoring processes to prevent fraud, misuse and misrepresentation.

“For further enquiries or assistance, we advise the public to contact NIS via its verified communication channels, including its social media handles on X (Twitter), Instagram and Facebook (@nigimmigration).

“Other contact centre numbers are 09121900655, 09121556359, and 09121477092, available 24/7, and WhatsApp lines 0916087800 and 09117717772,” it said.


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Why 9 African Countries Are Looking to Nigeria for Data Protection Lessons

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Nigeria Data Protection Commission (NDPC) has hosted delegates from nine African countries for a cross-regional peer exchange visit aimed at strengthening collaboration on data protection, privacy, and digital governance across the continent.

Why 9 African Countries Are Looking to Nigeria for Data Protection Lessons

NDPC

The peer exchange programme was organised by the NDPC in partnership with the World Bank and Smart Africa as part of ongoing efforts to deepen institutional capacity and harmonise data protection frameworks in Africa.

Speaking during the opening session, National Commissioner and Chief Executive Officer of NDPC, Dr Vincent Olatunji, commended the World Bank and Smart Africa for their sustained commitment to advancing data protection and privacy across the continent.

Olatunji said the exchange was timely, particularly as African countries continue to accelerate digital transformation and expand cross-border data flows requiring stronger governance frameworks.

He noted that the programme provides Data Protection Authorities (DPAs) across Africa with an opportunity to share experiences, learn from one another, and develop coordinated regulatory approaches.

According to him, collaboration among African countries is critical to ensuring that data controllers and processors comply with their obligations while protecting the rights of data subjects.

“The peer exchange offers us an opportunity to collectively examine our progress, identify common challenges, and strengthen institutional cooperation around data governance on the continent,” he said.

Drawing lessons from Europe’s experience with harmonised privacy laws, Olatunji highlighted the benefits of aligning data protection regulations across Africa to improve trust, facilitate digital trade, and strengthen cybersecurity resilience.

He urged participating countries to work towards developing practical and enforceable regulations that respond to the realities of Africa’s digital economy.

The NDPC boss also advised data protection regulators to collaborate closely with government institutions and the private sector in their respective countries to ensure effective implementation of privacy laws and digital governance frameworks.

He stressed the need for greater public awareness on data rights, noting that educating citizens remains essential to building a culture of accountability and privacy protection.

Countries participating in the peer exchange include Burundi, Ethiopia, The Gambia, Kenya, Liberia, Malawi, Sierra Leone, Somalia, and Zambia.

Also participating are representatives from regional organisations, including the Economic Community of West African States (ECOWAS), the Economic and Monetary Community of Central Africa (CEMAC), and the Intergovernmental Authority on Development (IGAD).

The initiative builds on NDPC’s previous regional engagements in 2025, when the commission hosted Data Protection Authorities from Botswana, Eswatini, Mozambique, Sierra Leone, Tanzania, and The Gambia for a Data Governance Study Trip organised in partnership with the African Union and the European Union.

According to NDPC, the latest engagement reinforces the importance of cross-border collaboration in strengthening Africa’s data governance ecosystem amid rising concerns around cybersecurity, digital trust, and privacy compliance.

The commission said the programme also aligns with President Bola Tinubu’s broader vision of expanding Nigeria’s cooperation with other nations in the digital age while positioning the country as a leading voice in Africa’s evolving digital policy landscape.


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Konga Launches Tech Month Campaign with Exclusive Offers

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Nigeria’s leading composite e-commerce platform, Konga, has officially announced the launch of its highly anticipated Konga Tech Month. Konga Tech Month is a month-long campaign dedicated to delivering exceptional value across the technology category.

Konga Launches Tech Month Campaign with Exclusive Offers

Konga Tech Month Campaign

It runs from May 1 to May 31, 2026, and presents one of the most compelling opportunities for consumers, SMEs and corporates to acquire premium technology products at jaw-dropping discounts of up to 50% across a wide range of products.

Tech Month is designed to meet the growing demand for genuine, reliable, high-performance technology solutions in Nigeria’s rapidly evolving digital economy. Through strategic collaborations with global technology leaders such as Samsung, LG, ASUS, HP, and Starlink, Konga is reinforcing its commitment to technological democratization as the global economy increasingly pivots toward a digital-first future.

From smartphones and laptops to televisions, refrigerators, and cutting-edge accessories, the campaign delivers a comprehensive suite of technology solutions tailored to both personal and professional needs. Whether consumers are upgrading their home entertainment systems or equipping their workspaces for enhanced productivity, Konga Tech Month provides a one-stop destination for quality, affordability, and convenience.

A key highlight of this year’s campaign is the prominent participation of Starlink as a focal partner. In a significant development for Nigeria’s connectivity landscape, Starlink has designated Konga as its authorized support centre, enabling customers to access in-person assistance at select Konga retail stores nationwide.

This means that beyond enjoying exclusive discounts on Starlink kits during special campaign phases, customers can now receive expert guidance on purchase decisions, installation, and troubleshooting, bridging the gap between advanced global technology and local accessibility. This initiative reinforces Konga’s commitment to delivering not just products, but end-to-end customer experience and support.

Konga Tech Month is further enhanced by a range of value-driven incentives designed to improve convenience and drive customer satisfaction. Shoppers who purchase from the official stores of Samsung and LG on Konga will enjoy free delivery, reinforcing the platform’s promise of affordability without hidden costs.

In addition, Konga’s same-day delivery service, KongaNow, ensures that customers can receive their orders within hours, eliminating the delays typically associated with e-commerce transactions. This capability is particularly beneficial for urgent purchases, enabling users to access essential tech products exactly when they need them.

To maximise the benefits of the campaign, customers are encouraged to download the Konga mobile app, available on both the Google Play Store and Apple App Store. App users gain access to exclusive app-only deals, including free shipping on select offers, as well as early notifications on flash sales and limited-time promotions.

Beyond the immediate consumer benefits, Konga Tech Month plays a strategic role in advancing digital adoption across Nigeria. As businesses and individuals increasingly rely on technology for communication, education, and productivity, access to affordable and reliable devices becomes essential.

By partnering directly with original equipment manufacturers (OEMs), Konga ensures that customers receive 100% authentic products, eliminating concerns around quality and reliability. This direct sourcing model not only strengthens consumer trust but also supports long-term brand loyalty.

Furthermore, the campaign aligns with broader economic goals by facilitating access to tools that drive efficiency, innovation, and competitiveness in various sectors. From small businesses seeking to digitise operations to students investing in learning tools, Tech Month provides practical solutions that empower users to thrive in a technology-driven world.

To fully capitalise on the opportunities presented by Konga Tech Month, customers are advised to stay actively engaged with the platform. Following Konga’s official social media channels and enabling notifications ensures real-time access to flash sales and exclusive discount phases.

As the campaign unfolds throughout May, shoppers can expect continuous updates, surprise deals, and enhanced offerings designed to deliver maximum value.

Konga Tech Month is more than a promotional event; it is a strategic initiative that underscores Konga’s leadership in Nigeria’s e-commerce and technology retail space. By combining competitive pricing, global brand partnerships, seamless logistics, and customer-centric innovations, Konga continues to redefine how Nigerians access and experience technology.

As the digital economy expands, initiatives like Tech Month serve as critical enablers, ensuring that consumers are not only connected but also equipped with the tools needed to succeed.

For shoppers across the country, the message is clear: this May, the smartest way to upgrade your digital life is through Konga Tech Month.


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