ENigeria News has obtained audited financial statements of the Tony Elumelu-led United Bank for Africa (UBA), which exposed how the lender lost a whopping sum of $3.15 million to fraudsters who hacked and diverted the said sum to separate accounts.
In a statement released to ENigeria News on Monday, the Tony Elumelu-led UBA Plc reported a profit after tax of ₦766.6 billion ($493 million), upscaling its 2023 fiscal year earnings of N607.7 billion. However, a deep analysis by this newspaper pointed out that, while the bank concentrated on areas where it performed well, it failed to also explicitly asterisk other key denominators contained in its report to the Nigeria Stock Exchange (NGX).
For instance, according to its latest audited financial report for the year ending 2024, sent to the NGXfiscal, UBA Plc lost ₦4.9 billion ($3.15 million) worth of transactions that were linked to fraudulent activities during the year in view, with 23% translating into actual losses. Electronic fraud accounted for the largest portion, costing the bank ₦805 million ($518,000), while fraudulent transfers led to ₦314 million ($202,000) in losses—88% of the value involved in such cases.
United Bank for Africa (UBA) lost ₦1.14 billion ($744,200) to fraud in 2024, even as the Nigerian lender reported a profit after tax of ₦766.6 billion ($493 million), according to its latest audited financial statements. The losses, primarily from electronic fraud and unauthorized transfers, highlight the ongoing battle Nigerian banks face against rising fraud.
UBA disclosed that ₦4.9 billion ($3.15 million) worth of transactions were linked to fraudulent activities in 2024, with 23% translating into actual losses. Electronic fraud accounted for the largest portion, costing the bank ₦805 million ($518,000), while fraudulent transfers led to ₦314 million ($202,000) in losses—88% of the value involved in such cases.
Its losses highlight how susceptible even the most successful Nigerian banks are to fraud, regardless of the fact that the said sum only makes up a small portion of UBA’s record-breaking yearly profit.
However, while UBA’s post-tax profit of ₦766.6 billion ($493 million) represents a noteworthy 26% rise over 2023’s ₦607.7 billion ($391 million), ENigeria News reports that the reviewed data further confirms that the Tony Elumelu-led bank may be far from an actual breakthrough in its technical drive towards curbing fraudulent activities within the bank, unlike the image it paints to the public.
UBA’s disclosure—the first from the bank since 2012—comes at a time when Nigerian banks are under increased pressure to fight fraud. For instance, according to data released by Fitch, Nigerian banks lost ₦10.1 billion ($6.7 million) to fraud in Q3 2024, a 76.4% decline from the previous quarter, according to a Financial Institutions Training Centre (FITC) report. Yet, the rising sophistication of fraudsters continues to pose a challenge to even the most robust security systems. According to the FITC report, outsider involvement in fraud cases surged by 70.4% between Q2 and Q3 2024, while staff-related fraud increased by 54% during the same period.
“There is no fraud involving management or other employees who could have any significant role in the bank’s internal control,” UBA said in its financial statements.
The rise in fraud incidents comes amid broader financial pressures in Nigeria’s banking sector. In January, the Central Bank of Nigeria directed NIBSS to debit the settlement accounts of commercial banks that receive fraud proceeds, a move aimed at forcing banks to tighten internal controls and curb illicit financial flows.
UBA’s disclosure marks a shift toward transparency in Nigeria’s banking sector, where many institutions still choose to downplay fraud risks for fear of suffering reputational harm. Only 60 of 163 financial institutions in Nigeria reported fraud cases in 2023, according to a Nigeria Inter-Bank Settlement System (NIBSS) report. As financial crime grows more sophisticated, regulators and banks have their work cut out: strengthen controls while maintaining customer trust.
