Non-interest banks in Nigeria are Jaiz Bank, Lotus Bank, TAJ Bank and the alternative Bank.

The warning comes at a time when non-interest financial institutions are increasingly relying on digital platforms, mobile banking systems, fintech integrations, cloud infrastructure, and automated financial services to drive growth and reach underserved customers.

According to reports from THISDAY, the apex bank expressed concerns that while the sector continues to record growth, many institutions remain exposed to rising operational and technology-related risks that could threaten stability if not properly managed.

The development reflects a broader shift occurring across the financial services industry, where banks and financial institutions are becoming more technology-driven, but also more vulnerable to cyberattacks, data breaches, system failures, insider abuse, and weak digital governance structures.

Industry analysts note that non-interest finance institutions, many of which are expanding digital services aggressively, now face the same cybersecurity and operational risks confronting conventional banks globally.

The concerns are also emerging amid growing global attention on financial sector cyber resilience.

The International Monetary Fund recently warned that advances in artificial intelligence could significantly increase cyber threats facing financial institutions worldwide, particularly through faster discovery and exploitation of software vulnerabilities.

Technology experts say Nigeria’s non-interest banking ecosystem is becoming increasingly dependent on:

• digital onboarding systems,
• online payment infrastructure,
• API-driven fintech partnerships,
• cloud-based services,
• mobile banking applications,
• and data analytics platforms.

While these technologies improve financial inclusion and operational efficiency, they also expand the attack surface for cybercriminals.

The CBN’s concerns highlight the growing importance of:

• stronger cybersecurity frameworks,
• board-level technology governance,
• data protection compliance,
• digital risk management,
• and improved IT oversight within financial institutions.

Experts also warn that governance failures in digital finance environments can create reputational damage, customer distrust, regulatory penalties, and operational disruptions capable of affecting broader financial stability.

The warning signals that regulators are increasingly paying attention not only to capital adequacy and liquidity levels, but also to the technological resilience of financial institutions as Nigeria’s banking ecosystem becomes more digitally interconnected.

Analysts believe the next phase of banking regulation in Nigeria will likely place stronger emphasis on cyber resilience, AI governance, operational technology risk management, and secure digital transformation across both conventional and non-interest financial institutions.

The post CBN Raises Alarm over Technology Risks Facing Non-Interest Banks appeared first on Tech | Business | Economy.

According to the bank, the incident occurred on July 20, 2024, after a “rollback fix” on its e-payment system triggered a glitch that allowed 718 customers to make unauthorised withdrawals and transfers from accounts with insufficient balances.

The funds, Lotus Bank said, were moved into accounts across 45 financial institutions, now joined as defendants in the suit.

The listed defendants include;

1. PalmPay,
2. Moniepoint,
3. OPay,
4. GTBank,
5. Access Bank,
6. Zenith Bank,
7. Wema Bank,
8. UBA,
9. Kuda Bank,
10. FairMoney,
11. Sterling Bank,
12. First Bank,
13. Stellas Digital Bank,
14. Renmoney,
15. Unity Bank,
16. FCMB,
17. Jaiz Bank,
18. Polaris Bank,
19. Keystone Bank,
20. Stanbic IBTC,
21. Fidelity Bank,
22. Providus Bank,
23. TAJ Bank,
24. Union Bank,
25. Ecobank,
26. Sparkle,
27. Kredi Money,
28. Alternative Bank,
29. Paystack, and
30. Momo Payment Settlement System.

Lotus Bank’s suit, filed pursuant to Order 3 Rules 1, 6, and 9 of the Federal High Court (Civil Procedure) Rules, 2019, seeks the court’s interpretation of CBN guidelines and circulars (BPS/FIRGEN/CIR/02/004 – 2015; BPS/FIRGEN/CIR/05/011 – 2018) on whether the defendant banks are obligated to place a lien on accounts that received the disputed funds and refund such monies.

The bank also urged the court to declare that the 45 banks have a statutory duty to protect the financial system from fraud and take swift remedial action when anomalies are detected.

In its application, supported by a 19-paragraph affidavit deposed to by Gbenga Ojerinde, a Fraud Investigation Officer at Lotus Bank, the lender explained that the glitch enabled customers to carry out multiple transfers without debits reflecting in their accounts.

“It is in the interest of justice, equity, and fairness that the reliefs sought by the plaintiff are granted,” Ojerinde stated.

He added that the matter was promptly reported to the Nigeria Inter-Bank Settlement System Plc (NIBSS) to coordinate interbank resolutions and prevent further loss.

Some of the defendant banks have filed their responses, while Justice Daniel Osiagor adjourned the case to December 2025 for further hearing.

The post Lotus Bank Drags 45 Banks to Court Over ₦1.13bn e-Payment Glitch appeared first on Tech | Business | Economy.

But then, billions still don’t trust the systems built for their benefit. As the World Bank’s Global Findex 2025 shows, usage continues to lag behind access. In Nigeria, the paradox is especially obvious, despite digital advances, old fears, cultural divides, and gender gaps keep many out of the system.

Techeconomy sat down with Akinlabi G. Adegoke, chief digital officer at Lotus Bank, to go beyond the numbers. With decades of experience in digital banking, from his pioneering work at ALAT to his current role at Lotus, Adegoke doesn’t just talk technology; he talks about human habits, values, and the trust deficit stalling progress.

In this wide-ranging conversation, he dissects the illusion of inclusion, exposes why savings habits remain informal, and challenges banks and regulators to rethink how they design products, build resilience, and reach the underserved, particularly women and the disconnected poor.

What follows isn’t just a reflection on digital banking, but a blueprint for building a financial system that people actually believe in and use.

TE: The World Bank’s Global Findex 2025 reveals commendable progress in digital financial inclusion globally. However, it also exposes deep-rooted challenges in trust, savings habits, and gender inclusion, especially in regions like Sub-Saharan Africa. From your perspective as a digital leader in Nigeria’s banking space, what stood out to you most in the report?

Akinlabi: What struck me is the paradox behind the progress. It’s impressive that nearly 80% of adults worldwide now have some form of account access. Yet beyond those headlines, the report highlights that simply having an account isn’t the same as really using or benefiting from it.

There’s still a trust and usage gap. Many people remain sceptical about formal finance, don’t save in their accounts, or limit activity due to fears and habits. The persistent gender divide also stood out. Women are still being left behind in many markets, which means we’re not fully tapping our potential.

For me, the big message is that the next real challenge isn’t expanding access, it’s building trust and inclusion. We have to ensure digital financial tools translate into genuine, everyday usage that improves people’s lives.

TE: Despite account ownership rising to 79 percent globally and 75% in low and middle-income countries, over 1.3 billion adults still lack financial accounts. In your view, why does adoption lag behind access in Nigeria, and how can banks like Lotus bridge the trust gap?

Akinlabi: In Nigeria, access is no longer the main barrier. Banks have expanded reach through agents, mobile apps, and digital accounts, but usage lags because trust hasn’t caught up. Many people still hold on to past experiences or hearsay.

They’re unsure if fees are hidden or if their money is truly safe. To bridge that gap, banks need to show up differently. At Lotus, we focus on transparency, zero hidden fees, and stability. We also build solutions that reflect people’s values. As an ethical bank, our approach appeals to people who want alternatives to traditional interest-based models.

Most importantly, we meet people where they are through education, community presence, and consistent service. If people experience banking that works and feels fair, trust begins to build, and with that, usage follows.

TE: The report shows that 40% of adults in Sub-Saharan Africa now have a mobile money account, up from 27% in 2021. Yet only about half of these users in the region secure their phones with passwords. What role should banks and regulators play in digital literacy and consumer protection as mobile finance grows?

Akinlabi: The growth is great, but it’s a red flag that many users still don’t secure their phones. That’s like leaving your wallet open on a park bench. Banks and regulators have to take a more hands-on role in digital literacy and security.

At Lotus, we design our mobile platforms to require authentication, PINs, biometrics, and two-factor prompts. We also run in-app prompts and SMS nudges to encourage safe habits. But we can’t do it alone. Regulators need to set minimum safety standards and run coordinated public education drives. We should normalize conversations around digital safety the same way we do around fraud alerts.

As mobile finance grows, security can’t be optional. It has to be built into every level of the ecosystem, from onboarding to the interface to the policy side.

TE: With formal saving increasing by 16% points globally to 40% between 2021 and 2024, how is Lotus Bank leveraging mobile platforms and ethical finance to nudge informal savers, especially in rural Nigeria, into the formal financial system?

Akinlabi: A lot of Nigerians still save in cash or with informal groups because it’s what they know. We bring formality to them in a way that feels familiar and safe. Through our USSD and mobile platforms, people can open an account in minutes, even on a basic phone. Then we layer in features like auto-save or savings pockets that feel like traditional thrift savings, but safer and more accessible.

What helps us stand out is our ethical banking model. We don’t pay or charge interest, which resonates with people whose beliefs or culture may keep them away from conventional banks. Instead, we focus on profit-sharing models or fixed charges.

That builds trust. So, in short, we use tech to remove friction and values to build confidence. Over time, that draws informal savers into formal banking without forcing them to change who they are.

TE: Sub-Saharan Africa has the largest gender gap in smartphone ownership and mobile money use. Over 300 million women globally still lack mobile phones. How can digital banks like Lotus design inclusive solutions that empower female users without reinforcing digital inequalities?

Akinlabi: It starts with acknowledging that access and usage are different for women. Many don’t own phones or have full control over them. So we build services that work on basic phones, through USSD and SMS. We also recruit and train female agents within communities. That way, women can bank through someone they trust, in a space that feels comfortable.

On the design side, we simplify interfaces and add voice support features to help people who are not fully literate. Most importantly, we take feedback directly from female users and cooperatives to understand what actually works for them. Inclusion has to be deliberate. It’s not just about putting a product out. It’s about designing the right product and ensuring women feel seen, safe, and supported when they use it.

TE: According to the Findex data, 31% of unbanked adults in low and middle-income economies, including half of those in Sub-Saharan Africa, also lack a mobile phone. How can the financial sector ensure inclusivity in such digitally disconnected demographics, especially where affordability remains the biggest barrier?

Akinlabi: When someone doesn’t even own a phone, we have to go back to basics. That’s where agent banking comes in. We work with local agents, people already well-known in the community, to serve as the access point for banking.

They can help open accounts, manage deposits, and initiate transfers. It’s face-to-face, but powered by tech behind the scenes. On top of that, we need partnerships that make phones more affordable. Subsidizing low-cost devices, bundling basic data access with banking, or working with telcos to roll out shared community phones are ways we can close the gap.

Digital banking doesn’t have to mean everyone has a smartphone. It can mean everyone has access to someone who does, until they can afford their own. That’s how we start.

 TE: Only 56% of adults in low and middle-income countries are financially resilient enough to access emergency funds within 30 days. How is Lotus Bank thinking about financial health, not just access, especially in designing savings, insurance, and credit products that promote resilience?

Akinlabi: At Lotus, we see access as step one. Step two is helping customers build the habits and buffers that protect them during tough times. One example is our Save-As-You-Earn feature. Every time money comes into your account, a portion can go directly into a savings pocket. It’s automatic and low-effort, which makes it more likely to stick.

We’re also building micro-insurance offerings, low-cost coverage for health or emergencies, and ethical credit products with transparent repayment terms. Because we don’t charge interest, there’s no compounding debt. It gives people room to breathe.

We also use simple nudges, reminders to save, prompts to set financial goals, and educational messages that explain why small actions today matter tomorrow. Our goal is not just to grow balances, but to help people feel secure and prepared.

TE: Given your previous work at ALAT by Wema and now at Lotus Bank, what innovations or policies do you believe are urgently needed to transition Nigeria’s cash-heavy informal economy into a robust digital ecosystem that people actually trust and use regularly?

Akinlabi: It comes down to three things: trust, ease, and relevance. We need digital tools that work as smoothly as cash but come with more benefits. For example, standardizing QR payments and making wallets truly interoperable would go a long way. We also need to keep designs simple and intuitive. Not every user is tech-savvy, but everyone wants to transact fast and without hassle.

From a policy angle, the government should support infrastructure upgrades and enforce consumer protection. Nothing damages trust faster than a failed transaction or unresolved dispute. Agent networks should be expanded, not just in rural areas, but across markets and informal zones where cash dominates. Lastly, we need more collaboration.

Banks, fintechs, and telcos need to share infrastructure and data safely so we can offer connected services that fit into people’s real lives. If we make digital banking feel safer, faster, and more useful than cash, people will adopt it, not because we told them to, but because it simply works better for them.

The post “Digital Access Isn’t Enough”: Lotus Bank’s Akinlabi Adegoke on Trust and Real Inclusion appeared first on Tech | Business | Economy.

This was made known at the 2024 International Women’s Day celebration organized by ImpactHER, a foremost non-profit organization with a mandate for empowering African female entrepreneurs by bridging the gender business financing gap so as to help them realize their full economic potentials in partnership with the African Union, ToolUp, BRAVE Women, GIZ and Lotus Bank.

The training had in attendance over 400 female entrepreneurs.

In her remarks, Efe Ukala, founder, ImpactHER, urged the women to forge a strong bond of unity, pull resources together and serve as a torch bearer in their various business enterprises. She explained that ImpactHER is an inclusion platform that seeks to help female entrepreneurs become the best version of themselves.

She said:

“Inspiring inclusion is more than just a theme for International Women’s Day. It is a guiding light for us all, especially the vibrant community of African women entrepreneurs. It means creating spaces where every woman’s voice can echo with strength, where her ideas can flourish without boundaries and where her dreams are nurtured by the collective support of a community that sees no limit to what she can achieve. It means each of us committing to lift as we climb ensuring that our success is not a solitary journey but a shared voyage that paves the way for more women to step into their power”.

“For this training, we had a slot for 250 women, but today, we have over 400 women in attendance. These women came from all parts of Lagos, Ibadan, Ogun State and even Benin Republic to learn. This shows that women across Nigeria and even Africa, truly need platforms like this where they can learn, network and receive guidance for sustainable business progression.

“Generally, ImpactHER helps even the most marginalized women to get free resources that allows them to build a more structured and sustainable business. For example, we provide free business registration service, book keeping and accounting so that they can access the finance needed to build their businesses.

“All these, we believe will help foster inclusion to help bridge the gender gap. During the event, we organized a market place with over forty vendors to showcase and sell their items. We appreciate all our sponsors for making this event very successful”.

While delivering her training on the topic- Inspire Inclusion- Unlocking opportunities in exports and empowering African women to conquer the global market, Florence Okafor, Chief Trade Promotion Officer, Nigerian Export Promotion Council urged the women to invest in quality packaging, acquisition of international licences, have an excellent knowledge of the laws guiding imports in various countries and international trade terms.

Another facilitator, Olanrewaju Oniyitan, founder/CEO, W-Holistic Business Solutions who spoke on the topic Growing Wealth: Growing an investable company as a woman founder hinted that people, a wonderful business model, track record of business growth, financial viability, scalability and risk management are some of the pointers needed for female entrepreneurs to become successful in their business.

She said:

“I urge you women to have a rich portfolio of your work and be deliberate about ensuring that you seek the right information always. Regulatory compliance is also very important in accessing finance. You need to be conversant with the tax laws, PAYEE and many more. On a final note, I want you all to know that innovation doesn’t mean you have to go digital or online. Innovation means, you can look at your process, refine it, add something to your product to make it unique and different and you have already innovated. You do not need an app to innovate. Continuous research and development can set your business on the path of innovation”.

In a special message from the U.S. Consulate in Lagos, who was represented by Brittany Orange, to the women, she lamented the low representation of women in the country’s political and economic space and urged the government to provide a level playing field for more women to be active in politics and business.

The post IWD2024: Experts identify Strategies on Inclusion for Female Entrepreneurs in Nigeria appeared first on Tech | Business | Economy.

Islamic banking’s influence has grown globally and taken root in Nigeria, particularly after the Central Bank of Nigeria sanctioned the operation of Jaiz Bank in the country.

This unique banking system diverges from conventional practices due to its alignment with Islamic Sharia principles that prohibit interest-based lending.

Here, you will find 10 facts on Islamic banking in Nigeria:

1. Landmark Achievement

 Islamic banking made its debut in Nigeria in 2012 when the Central Bank authorized Jaiz Bank, the nation’s pioneer Islamic bank.

2. Exclusive Providers

As of now, Jaiz Bank, TAJ Bank, and Lotus Bank stand as the sources of Islamic banking in Nigeria.

3. Unconventional Operating Strategy

Islamic banks operate on the principle of equity participation. Rather than collecting interest on loans, they accumulate funds through depositor accounts, channeling them to entrepreneurial ventures.

Borrowers share profits instead of paying interest, adhering to the equity participation system share risks and rewards with entrepreneurs borrowing funds.

4. Diverse Financing Modes

Islamic financing in Nigeria encompasses two main modes:

• Profit and Loss Sharing (PLS) modes such as Musharakah and Mudarabah
• Fixed Return Modes including Murabaha and Leasing (ijarah).

5. Nigeria’s Islamic Banking Landscape

The introduction of Islamic banking has significantly impacted Nigeria’s economic landscape. With the Central Bank’s approval in 2012, Jaiz Bank pioneered this transformative approach, adhering to Sharia principles.

This Economic framework caters to both Muslims and non-Muslims, offering interest-free and ethical solutions. Jaiz Bank’s establishment signaled a departure from conventional banking practices, promoting responsible financial behavior and encouraging ethical investments.

This innovative sector has opened avenues for diverse businesses, stimulating economic growth and providing an alternative financial framework aligned with societal values.

6. Sharia-Compliant Principles

As previously mentioned, the Sharia-compliant tenets of Islamic banking in Nigeria form an integral foundation. These principles, guided by Islamic ethics, strictly forbid predetermined interest rates and prioritize profit-and-loss sharing (PLS) mechanisms.

Embracing these ethical principles, Islamic banking institutions in Nigeria create a financial environment that resonates with the values of the Muslim populace.

By adhering to these Sharia-compliant principles, Islamic banks establish a unique framework that nurtures financial inclusion, ethical practices, and shared prosperity, shaping a progressive financial landscape aligned with both Islamic teachings and societal well-being.

7. Ethical Banking Focus

Islamic banking in Nigeria emphasizes ethical financial practices, catering to the values of the Muslim population.

8. Economic Impact

With over 80 million Muslims in Nigeria, the growth of Islamic banking is projected to stimulate the nation’s economy and possibly reduce loan interest rates.

9. Two Modes of Financing

Islamic banks in Nigeria operate through two modes: the core mode, centered on profit and loss sharing (PLS), and the marginal mode, which doesn’t adhere to PLS principles.

10. Shared Prosperity

This lies at the core of Islamic banking in Nigeria, distinguishing it from conventional financial systems.

The approach encourages equitable distribution and cooperative growth among entrepreneurs, depositors, and the bank. Through adherence to Sharia principles, it promotes ethical financial practices while catering to the values of both Muslim and non-Muslim individuals.

[Featured Image Source]

The post 10 Facts about Islamic Banking in Nigeria appeared first on Tech | Business | Economy.

The bank has rapidly transformed the financial landscape in Nigeria through innovative solutions and customer-centric services.

Since its inception, Lotus Bank has strived to provide a banking experience that goes beyond traditional norms, emphasizing ethical practices and financial inclusion for all.

With a vision to drive positive change in society, the bank has been dedicated to making a lasting impact on the communities it serves.

The Founder and Chairperson of Lotus Bank, Hajara Adeola, expressed her gratitude for the bank’s achievements and recognition over the past two years.

She highlighted the institution’s privilege to contribute to the well-being of the environment and the communities it serves.

Lotus Bank has embraced digital solutions, leveraging rapid advancements in technology to ensure the utmost convenience for its valued customers.

By adopting innovative products and customer-centric services, the bank aims to enhance financial access and convenience while upholding its ethical principles.

The Managing Director of Lotus Bank, Mrs. Kafilat Araoye, credited the bank’s success to its customers, who have placed their trust in the institution.

In just two years of operations, Lotus Bank has received commendations for its ethical banking practices, commitment to financial inclusion, and significant contributions to Nigeria’s economic growth.

In 2022, the bank was honored with the Leadership Bank of the Year award for its exceptional efforts toward economic growth and the pursuit of ethical banking practices. This recognition reinforces Lotus Bank’s position as a leader in the Nigerian financial industry.

Furthermore, Lotus Bank has maintained a strong culture of promoting environmental sustainability and creating value for society. The institution actively supports businesses and educational institutions, fosters job opportunities, and champions environmental conservation initiatives.

By prioritizing social responsibility alongside financial success, Lotus Bank demonstrates its dedication to creating a positive impact on society.

As Lotus Bank celebrates its second anniversary, it remains committed to expanding its reach and providing financial access to underserved populations.

With a current strength of 40 branches across the country, the bank aims to broaden its presence and make a difference in the lives of more individuals and communities.

Lotus Bank’s journey over the past two years reflects its dedication to ethical banking, financial inclusion, and societal impact.

Through innovative solutions, customer-centric services, and a strong commitment to environmental sustainability, the bank is well-positioned to continue its positive trajectory in the Nigerian financial industry

The post Lotus Bank Celebrates Two Years of Ethical Banking appeared first on Tech | Business | Economy.