In 2024, United Bank for Africa (UBA) reported a profit after tax of ₦766.6 billion ($493 million) but also disclosed losses of ₦1.14 billion ($744,200) due to fraud. The losses were primarily attributed to electronic fraud and unauthorized transfers, emphasizing the ongoing challenge faced by Nigerian banks in combating fraud.
UBA revealed that fraudulent activities accounted for ₦4.9 billion ($3.15 million) in transactions in 2024, with 23% resulting in actual losses. Electronic fraud led to losses of ₦805 million ($518,000), while fraudulent transfers caused ₦314 million ($202,000) in losses.
Despite the relatively small portion of its profits lost to fraud, UBA’s experience underscores the susceptibility of even highly profitable financial institutions to fraudulent activities. The bank’s profit after tax showed a notable 26% increase from the previous year.
Fraud incidents in Nigerian banks have been a growing concern, with increasing sophistication among fraudsters posing significant challenges to security systems. UBA’s acknowledgment of fraud instances in its financial statements signals a step towards transparency in the banking sector.
Regulators and banks in Nigeria are under pressure to enhance controls and maintain customer trust amidst the evolving landscape of financial crime. The sector is witnessing efforts to tighten internal controls and combat illicit financial flows, as demonstrated by recent directives from the Central Bank of Nigeria.