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.

On April 24, 2026, at the Lagos Polo Club in Ikoyi, CardForté Limited marked its 5th anniversary by gathering the titans of the Nigerian payments industry to address this reality.

The event underscored a critical shift in the ecosystem: local card manufacturing is no longer just a patriotic alternative. It is the strategic backbone of Nigeria’s digital economy.

The exclusive Leadership Breakfast, hosted by Gbenga Aborowa, convened executives from tier-1 banks, leading fintechs, domestic and regional card schemes.

The gathering moved beyond celebratory remarks to tackle the hard questions facing the industry through three high-impact panel sessions, a football tournament among industry teams, and an evening anniversary dinner.

The morning opened with the “Local vs. Global: The Battle for the Nigerian Wallet” panel, moderated by Unyime Tommy, Managing Partner at Assurdly.

The discussion tackled the tension between domestic schemes and international giants. Grace Adeniyi, Divisional Head of Governance and Regional Operations at Verve International, and Ugo Obasi, E.D/Chief Commercial Officer of AfriGOPay, articulated the strategic necessity of local schemes in mitigating foreign exchange exposure for issuing banks.

They were joined by Celestina Appeal, Head of Card Business and Solutions at Zenith Bank, who provided the issuer’s perspective on balancing the national mandate for domestic cards with the consumer demand for global acceptance. A key consensus emerged: with over 95 percent of transactions occurring domestically, the economic argument for local card issuance is undeniable.

The conversation then pivoted to the last mile of financial access in the “Financial Inclusion and Agency Banking” session, moderated by Dr. Stanley Jacob, CEO of Zest Payments and Chairman of FinTechNGR. Femi Davies, Senior Vice President of Cards at Moniepoint and Bode Oyegoke, General Manager of Payments and Ecosystems at MTN Group, debated the unit economics of agency banking and the evolution of the agent network from basic cash-in/cash-out services to comprehensive financial touchpoints.

Temitope AkinFadeyi joined the discussion, and the panelists explored how agency banking has brought millions of Nigerians into the financial system, while acknowledging the challenges of fraud prevention, agent liquidity, and consumer protection that come with rapid scale.

The final panel, “Beyond the Card,” moderated by Jimmy Banjoko, Head of Acquiring and Channels Management at GTBank, explored the future form factors of payments. Nnamdi Azodo, Group Head of Card Business at Sterling Bank, Lanre Ogundare, Head of Card Business and Solutions at Providus Bank, and Wale Sogeyinbo, Head of Payment Processing and Acquiring at Wema Bank, dissected the slow adoption of tokenization and TapToPay in Nigeria.

The panelists acknowledged that while digital and contactless payments are the future, the physical card remains an absolute imperative for the present, primarily driven by issuer costs and infrastructure readiness.

The celebration extended well beyond the panel sessions. Teams from Sterling Bank, Providus Bank, Verve International, PalmPay, and Card Centre Nigeria Limited (CCNL) participated in a competitive football tournament. PalmPay took home the trophy, reinforcing the spirit of partnership and camaraderie that has defined CardForté’s relationships across the industry.

Beyond the high-level discourse, the event highlighted CardForté’s quiet but massive impact on the sector. Tunde Aka-Bashorun, Executive Director at CardForté, revealed that since its inception in April 2021, the company has manufactured over 27 million cards for more than 150 clients, serving as the critical launch partner for numerous fintechs and first-time issuers.

“Our graduate trainee programme has seen us absorb approximately 45 percent of our personnel from the NYSC level to full staff. CardForté maintains 100 percent local staff. Rather than hire foreign talent, we send our people to acquire knowledge, return, and transmit it internally,” Aka-Bashorun stated.

Seun Lawal, Co-Founder and Chief Executive Officer of CardForté, closed the event by framing the company’s mission within the broader context of national sovereignty.

“One of the biggest values we have created is local capability,” Lawal noted. “For a long time, there was a mindset that if something is high-value, technical, or security-sensitive, it must come from outside Nigeria. We have challenged that thinking by showing that local manufacturing, when done to the right standard, can deliver quality, reliability, and innovation. It means shorter turnaround times, less dependence on imports, and greater data sovereignty because critical parts of the card ecosystem are handled locally.”

The evening anniversary dinner brought together CardForté’s shareholders, including Deji Onyinlola, Olumide Soyombo (Co-Founder of Bluechip Technologies and Founder of Voltron Capital), and Gbenga Ajayi (Partner and Head of Africa and Middle East at QED Investors), alongside board members, staff and their families. Industry partners also joined the celebration, including representatives from Providus Bank, Moniepoint, Fidelity Bank, Taj Bank, Payaza, Watchdata, Kalabash, ECP (Aegis Cards), Stanbic IBTC, Zojatech, Winich Farms, and Greychapel Legal.

The breadth of attendance was a testament not only to CardForte’s relationships across banking, technology, agriculture, and professional services, but also to the strength of the family that has been built within the company over five years.

As Nigeria’s payment landscape continues to mature, CardForte’s five-year trajectory offers a powerful blueprint: sustainable scale requires indigenous infrastructure.

By replacing imported plastic with locally manufactured smart cards, CardForte is not just supplying the fintech boom. It is securing it.

As commerce increasingly transcends national borders, the demand for seamless, reliable cross-border transactions has intensified.

In response, Verve has launched a deliberate continental expansion under its Destination Campaign, positioning itself not merely as a domestic card scheme, but as a pan-African payments enabler.

With over 100 million cards issued, Verve has achieved significant scale within domestic markets. The next phase focuses on enhancing interoperability across African corridors, with East Africa, particularly Kenya and Uganda, serving as the primary testing ground for this African Expansion Drive.

Vincent Ogbunude, managing director of Verve International, emphasized the strategic importance of African-owned payment infrastructure in facilitating cross-border commerce and reinforcing economic resilience:

“Africa’s economic potential depends on payments infrastructure that is designed for its unique realities. Verve’s expansion into East Africa goes beyond issuing cards, it is about creating a network of payment infrastructure that is secure, reliable, and purpose-built for the continent. By enabling entrepreneurs, SMEs, corporates, and everyday travellers to transact seamlessly across borders, we are ensuring that value remains within African markets, fostering economic integration, and demonstrating that Africa can build world-class financial systems from within.”

The choice of East Africa is highly strategic. The region’s mature digital banking ecosystem, robust regulatory frameworks, and vibrant commercial networks provide an ideal environment to validate cross-border acceptance and infrastructure integration.

Verve’s expansion model leverages a hybrid advantage, combining the reliability and local alignment of a domestic scheme with growing cross-border capabilities.

This approach allows African markets to transact regionally without excessive reliance on external settlement systems.

Significant progress has already been achieved. Key issuing partners, including FCMB, Union Bank, Jaiz Bank, Taj Bank, and Access Bank, have enabled cardholders to use Verve cards confidently beyond Nigeria.

On the acquiring side, partnerships with KCB, Equity Bank and others are embedding acceptance across East Africa’s merchant ecosystem, strengthening the practical infrastructure required for seamless regional payments.

Cherry Eromosele, executive vice president, group marketing and Corporate Communications at Interswitch Group, highlighted the tangible benefits this expansion brings to consumers, businesses, and regional trade:

“Our vision is to contextualise payments for African realities. By extending Verve’s trusted domestic infrastructure into East Africa, we are enabling consumers and businesses to transact across borders with the same convenience and security they enjoy at home. This expansion is not simply about issuing cards; it is about facilitating transactions and exchange of value, supporting regional commerce, and strengthening financial connectivity across the continent.”

Significantly, Verve has extended its reach beyond financial institutions to secure real-world merchant acceptance. Cardholders can now transact seamlessly at Kenya Commercial Bank ATMs and POS, prominent lifestyle and hospitality destinations, including The Carnivore Restaurant, Tamarind Hotels, Tamarind Dhow, Roast by Carnivore, Kengeles, and Social House.

These channels and venues serve as strategic touchpoints within the continent’s business and tourism ecosystems.

By ensuring acceptance in high-traffic, high-visibility locations, Verve transforms payment infrastructure into a seamless, lived experience.

This expansion is not about scale for its own sake, it is about relevance, adaptability, and reinforcing Africa’s internal economic connectivity.

As trade corridors deepen and mobility across the continent grows, interoperable payments are becoming indispensable infrastructure.

Through its East Africa rollout, Verve demonstrates that Africa’s financial future can be powered by solutions designed and built from within for African realities and scaled to meet continental ambitions.

The convicts; Abdulrasheed Dayyabu, Abdulrahman Salim, Abubakar Ali Uba, Ishaq Haruna, Muhammad Faisal, Muhammad Sani Ahmed, and Hassan Umar, pled guilty to charges including impersonation, unauthorized transfers, money laundering, and retention of illicit proceeds.

The Economic and Financial Crimes Commission (EFCC) secured their convictions following TAJBank’s petition, according to PM News Nigeria.

During court proceedings led by Justice R.M. Aikawa of the Federal High Court, the perpetrators admitted manipulating a software vulnerability in TAJBank’s internal system to divert funds into various fintech and banking platforms.

One additional suspect, Falalu Tanko, was separately charged for handling proceeds from criminal activity equivalent to USD 3,000.

Sentences varied by individual:

Dayyabu, among others, received four years in prison or a fine of ₦100,000. In addition, ₦300,000, the proceeds from criminal conduct, was forfeited to the federal government.

Dayyabu, Uba, Salim, Haruna, Faisal, Ahmed and Umar were arrested following a petition from TajBank, Dele Oyewale, the spokesperson for EFCC said in a statement on Friday.

They were arraigned by EFCC before Justice R.M.Aikawa of the Federal High Court, sitting in Kaduna alongside one Falalu Tanko who was arrested in Babar Saura area of Kaduna State, following credible intelligence that exposed his fraudulent internet activities.

The charge against Dayyabu reads: ” That you, Abudulrasheed Dayyabu, sometime in the year 2024, at Kaduna, within the jurisdiction of the Federal High Court of Nigeria, did aid one Buhari to commit an offence, to wit: retention of proceeds of criminal conduct and thereby committed an offence contrary to Section 21(a) of the Money Laundering (Prevention & Prohibition) Act, 2022 and punishable under Section 20(b) of the same Act.”

The charge against Tanko reads: “That you Falalu Tanko, sometime in June, 2025 in Kaduna within the jurisdiction of this Honourable Court retained the total sum of $3000.00 USD (Three Thousand United States Dollars) which you knew that such fund forms part of proceeds of an unlawful act and thereby committed an offence contrary to Section 18(2) (d) of the Money Laundering (Prevention $ Prohibition) Act, 2022 and Punishable under Section 18(3) of the same Act.”

They all pleaded “guilty” to their charges, following which prosecution counsel, Fortune Amina Iminabo Asemebo prayed the court to convict and sentence them accordingly.

Justice Aikawa convicted and sentenced Dayyabu to four years imprisonment or to pay N100,000.00 (One Hundred Thousand Naira) fine. In addition, he forfeited the sum of N300,000. (Three Hundred Thousand Naira), being the proceeds of his crime to the federal government.

He convicted and sentenced Uba, Salim, Haruna, Faisal, Ahmed and Umar to four years imprisonment, each or to pay the sum of N200,000 (Two Hundred Thousand Naira) fine, respectively.

In addition, Uba forfeited N500,000 (Five Hundred Thousand Naira), Salim forfeited N720,000 (Seven Hundred and Twenty Thousand Naira), Haruna forfeited N200,000 (Two Hundred Thousand Naira), Faisal forfeited N1,100,000 (One Million, One Hundred Thousand Naira), Ahmed forfeit N1,200,000 (One Million Two Hundred Thousand Naira) and Umar forfeited N170,000 (One Hundred and Seventy Thousand Naira). All the forfeitures, being the proceeds of their crimes, are to the federal government.

The judge convicted and sentenced Tanko to three years imprisonment or to pay N300,000 (Three Hundred Thousand Naira) fine. In addition, he forfeited his BMW car 3 series, 2008 model and his iPhone 13pro, being the proceeds and tools of his crime to the federal government.

The conviction of these tech-savvy perpetrators exposes a critical gap in Nigeria’s fintech regulation, highlighting the urgent need for robust audit trails, anomaly detection, and governance standards.

As digital finance accelerates, every fintech actor, banks, neobanks, regulators, and platform developers, must recognize that system trust is now as important as innovation itself.

According to emerging reports, the glitch exposed vulnerabilities in the bank’s internal controls, allowing several customers to withdraw far more than they had in their accounts.

The incident, which occurred recently, has triggered internal investigations and efforts to trace the missing funds.

Sources familiar with the situation claim that the issue was first noticed when abnormal withdrawals were flagged by the bank’s monitoring systems. Further checks allegedly revealed that some customers exploited the downtime to carry out unauthorized withdrawals amounting to hundreds of millions of naira.

TAJ Bank has not issued an official statement at the time of filing this report. However, insiders say that disciplinary actions are already underway, with some staff members suspended or under review as part of the investigation.

This incident raises fresh concerns about cybersecurity, internal control systems, and digital infrastructure in Nigeria’s growing fintech and banking sectors.

Customers are advised to monitor their accounts and await official communication from the bank regarding the next steps.

More details on TAJ Bank’s cyber incidence, check here.

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.

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