E-Financial
UBA, Others Lead as African Banks Make Waves
Ade Ayeyemi’s office in Lomé, the capital of Togo, is a good place to think about crossing borders. Ghana is ten minutes’ drive away.
From his window the boss of Ecobank can watch trucks rumble along the seafront, some bound for Burkina Faso, a day’s journey, or Mali, perhaps another day on. At night, cargo ships twinkle offshore. From here Ecobank’s vision—“to integrate the continent”, Mr Ayeyemi says—is clear. Whether it will be profitable is less obvious.
Ecobank was founded in 1985 by business leaders with backing from the Economic Community of West African States, a regional bloc. It has branches in 33 countries, more than any other African bank (see chart). It is not alone in its ambitions. Nigeria’s United Bank for Africa (UBA) wants to make half its profits elsewhere in the continent by 2022. South Africa’s Standard Bank recently opened in Ivory Coast, its 20th African country. Moroccan banks are trekking across the Sahara.
African bankers have long preached some version of what Tony Elumelu, UBA’s chairman, calls “Africapitalism”: the idea that far-sighted, home-grown businesses can drive development. In Nigeria banking reform in 2005 set off a wave of consolidation. The survivors were heftier and more profitable, with capital to invest abroad. Kenyan banks have used their edge in innovation, such as mobile banking, to push into neighbouring markets.
Regional banks are now filling gaps left by their European and American rivals, which are retreating from a continent they once dominated. Barclays sold a majority stake in its African business last year. Other global giants have also reduced their exposure to African markets, which they judge too small and too risky in an era of tightened regulation. African banks work closer to the ground. “Banking is a relationship game,” says Ugochukwu Nwaghodoh, chief financial officer of UBA. “We have local knowledge.”
The pan-African vision often clashes with the reality of a fragmented continent. Africa’s regional banks earn lower returns and grow more slowly than domestic rivals, calculate consultants at McKinsey. One problem is the wide diversity of regulations and markets. Another is that banks are too small outside their core markets to grow organically, says Olamipo Ogunsanya, an analyst at Renaissance Capital. Some have made risky acquisitions, inheriting loan books with hidden troubles. Most banks, she argues, would do better to focus on a few key countries.
Consider Ecobank. The board ousted a previous boss in 2014 over allegations of mismanagement. In 2016 a recession in Nigeria, its biggest market, resulted in a $131m pre-tax loss. It has shut 74 branches there and laid off 2,000 staff. It has scaled back its ambitions beyond west Africa. Although it has returned to profit, about 10% of its loans are non-performing. Expansion may have been too rapid, Mr Ayeyemi admits.
But regional bankers see two big trends in their favour. The first is new technology, says Mr Ayeyemi, which makes it possible to operate on a continental scale as never before. Ecobank can design products and process data centrally, he notes, providing services even where it lacks physical branches. Is Africa’s diversity a problem? “You don’t ask Unilever the same question,” he replies, likening retail banking to selling consumer goods. Ecobank’s mobile app, which lets people open accounts on their phones, has attracted over 5m users since its launch in 2016.
The other helpful trend is the spread of regional banks’ corporate clients. A recent study by the Boston Consulting Group finds that the top 30 African companies now operate in an average of 16 countries, twice as many as a decade ago. Standard Bank’s clients range from construction firms to airlines, says Sola David-Borha, who heads its operations on the continent outside South Africa. “They are helping to grow our market share, as we use our expertise to support their expansion.”
Regional banks are also using their geographical reach to act as natural conduits for cross-border flows of capital, such as migrants’ remittances. Mr Nwaghodoh argues that UBA’s large footprint reduces the cost of intra-African trade, since the bank can stand at both ends of the transaction. He also cites the example of the aid sector, where donors need a “last-mile” presence to distribute cash or pay workers.
The growth of cross-border banking carries risks, says Amadou Sy of the IMF. Regulators need to patch the holes through which a crisis in one country could leak into another. A supervisory college for Ecobank, comprising regulators from the countries where it operates, first met in 2015. European experience shows that such measures are not always enough, warns Thorsten Beck of Cass Business School in London. “When a bank actually fails,” he says, “then the politics comes in.” Although most African banks hold plenty of capital, problem loans have been rising.
Yet Mr Sy also notes that regional banks can spur competition and export innovation. A study by Mr Beck published in 2015 found that African firms got loans more easily when foreign banks held a larger market share—as long as those banks came from Africa or elsewhere in the developing world. Expansion has not yet paid off for Africa’s banks. But, like the incoming waves beyond Mr Ayeyemi’s window, they have the tide behind them.
This article appeared in the Finance and economics section of the print edition under the headline “Making waves”
Central Bank of Nigeria (CBN) has issued new baseline standards requiring banks and other financial institutions to deploy automated anti-money laundering systems capable of detecting suspicious transactions and financial fraud risks in real time.
The directive, contained in a circular released yesterday, mandates banks, mobile money operators, international money transfer operators and other regulated institutions to implement automated solutions that strengthen monitoring, detection and reporting of suspicious financial activities.
According to the apex bank, the framework establishes minimum technical, governance and operational standards for automated systems used to combat money laundering, terrorism financing and proliferation financing within Nigeria’s financial system.
CBN said the move was necessary as the financial services sector becomes increasingly digital and complex, making manual monitoring methods inadequate for managing evolving financial crime risks.
Under the new framework, deposit money banks (DMBs) are expected to achieve full compliance within 18 months from the date of issuance, while other financial institutions will have 24 months to comply.
Institutions are also required to submit detailed implementation roadmaps to the CBN’s compliance department within three months.
The standards apply to all institutions operating under the CBN’s regulatory purview, although the depth and sophistication of implementation will depend on each institution’s size, transaction volumes, operational complexity and risk exposure.
The framework outlines several minimum capabilities that automated anti-money laundering (AML) systems must possess, including customer identification and verification, sanctions screening, transaction monitoring and case management for suspicious activities.
Financial institutions are also expected to ensure their systems integrate customer data with transaction patterns so that suspicious behaviour can be assessed in the context of a customer’s risk profile.
The CBN said institutions should strengthen identity verification processes by integrating onboarding systems with national databases such as the Bank Verification Number (BVN) and National Identification Number (NIN) platforms to support real-time identity checks.
The framework permits the use of emerging technologies such as artificial intelligence and machine learning to improve the detection of unusual financial patterns.
However, the regulator said such technologies must operate under strict governance frameworks, including independent validation and human oversight.
Institutions deploying AI-based monitoring models will be required to conduct periodic validation to ensure accuracy, reliability and fairness in the detection of suspicious transactions.
The standards also require financial institutions to maintain secure data protection controls, including encryption, role-based access and multi-factor authentication, in compliance with Nigeria’s data protection regulations.
In addition, the systems are to maintain comprehensive audit trails of transactions, alerts, investigations and system activities to support regulatory supervision and forensic investigations.
The CBN said compliance with the framework will be monitored through off-site surveillance, on-site examinations and thematic reviews, warning that institutions that fail to implement the standards may face regulatory sanctions under existing banking and financial crime laws.
The Central Bank of Nigeria (CBN) has directed banks and fintechs to implement automated systems to detect suspicious transactions to strengthen anti-money laundering (AML) and financial crime controls in country’s rapidly growing digital payments sector.
In a circular released on March 10, the apex bank established baseline requirements for AML, fighting terrorist financing, and countering proliferation financing.
The framework applies to deposit banks, mobile money operators, international money transfer operators, payment service providers, and other CBN-supervised entities.
Banks have 18 months to comply, while fintech companies and other financial institutions have 24 months. All affected entities must submit implementation plans within three months.
The new requirements will replace manual monitoring with automated anti-money laundering systems that use artificial intelligence, machine learning, and advanced analytics to spot suspect trends, notify compliance teams, and improve real-time reporting.
Institutions will also be obliged to link these technologies with customer due diligence processes such as Know-Your-Customer and Know-Your-Business checks, sanctions screening, and political risk monitoring.
Nigeria has existing financial crime laws and supervisory organisations. Still, regulators warn that the rapid expansion of electronic payments, valued at hundreds of trillions of naira each year, has outpaced traditional monitoring mechanisms.
Weak financial restrictions have previously enabled crimes. Ramon Abbas, a social media star, was arrested in 2020 for allegedly laundering hundreds of millions of dollars through complicated financial networks.
High-profile corruption cases, including allegations against former oil minister Diezani Alison-Madueke, involved billions in illicit financial flows.
Analysts also highlight the importance of monitoring to track the funding of extremist groups such as Boko Haram and Islamic State West Africa Province.
The CBN said the framework aligns with Financial Action Task Force standards and warned that institutions failing to comply could face sanctions under the Banks and Other Financial Institutions Act.
Federal High Court sitting in Ikoyi, Lagos, has ordered the final forfeiture of N81,108,143.8 stolen from Sterling Bank Plc following a system glitch that befell the financial institution.
Justice Yelim Bogoro gave the order on Monday, March 9, 2026, directing that the funds be forfeited to the Federal Government of Nigeria in favour of the bank.
The ruling followed a motion filed by the Economic and Financial Crimes Commission (EFCC) through Hannatu U. KofarNaisa, its counsel.
The court had earlier granted an interim forfeiture order on October 2, 2025 and directed that the order be published in a national newspaper for anyone with an interest in the funds to appear and show cause why the money should not be permanently forfeited.
Investigations revealed that the funds were part of more than N2.5 billion stolen by some customers of Sterling Bank following a system glitch that allowed unauthorised transfers.
The glitch reportedly enabled customers to exploit the PAYATTITUDE Global Ltd banking platform to move funds from their accounts even when they were not funded.
The anti-graft agency said it began investigating the case after receiving a petition from Sterling Bank on July 18, 2022.
According to Maina Gapani Gyal, EFCC investigator, more than N2.5 billion was fraudulently transferred and converted for personal use by several bank customers and third-party beneficiaries.
The investigation traced part of the stolen funds to accounts linked to Sulaiman Kehinde Ojora, identified as one of the major beneficiaries of the fraud.
Further findings showed that N43 million was concealed in the account of his friend, Taiwo Oluwaseyi Alawode, domiciled in Access Bank.
N122.2 million was hidden in the account of his wife, Aminat Olatanwa Ojora, domiciled in Sterling Bank.
The EFCC said the bank was unable to recover N295.9 million from the stolen funds because the money had already been withdrawn and converted by customers.
However, investigators were able to salvage N81.1 million, which became the subject of the forfeiture proceedings.
The bank also recovered N490.3 million from its internal ledger during the investigation.
The EFCC informed the court that the interim forfeiture order was published in The Punch on February 19, 2026, inviting any interested party to challenge the forfeiture.
After reviewing the motion and supporting documents, Justice Bogoro ruled that the application was valid.
“Having gone through the motion and attachments, I find the application meritorious and the same is accordingly granted,” the judge held.
The court subsequently ordered that the recovered N81,108,143.08 be finally forfeited to the Federal Government in favour of Sterling Bank.
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