Nigerian Banks’ Record Profits Propel Tech Fund Contributions to N34.3 Billion in 2024

In 2024, Nigeria’s banking sector witnessed a significant surge in profitability, leading to a substantial increase in contributions to the Nigeria Information Technology Development Fund (NITDEF). 

Six major banks collectively contributed N34.3 billion to the fund, marking a 57% rise from the N21.8 billion recorded in 2023.​

Banks’ Contributions Reflect Profit Growth

The six banks – Zenith Bank Plc, Guaranty Trust Holding Company Plc (GTCO), United Bank for Africa Plc (UBA), Fidelity Bank Plc, Stanbic IBTC Holdings Plc, and Wema Bank Plc – reported impressive profits in 2024, which directly influenced their NITDEF contributions. Under the NITDA Act of 2007, companies with annual turnovers exceeding N100 million must remit 1% of their profit before tax to NITDEF.​

• Zenith Bank: With a profit before tax of N1.3 trillion, Zenith Bank contributed N11.4 billion to NITDEF, a 70% increase from its 2023 contribution.​

• GTCO: Reporting a profit before tax of N1.26 trillion, GTCO’s contribution rose to N10 billion, up from N4.7 billion in the previous year.​

• UBA: Despite a profit before tax of N803.7 billion, UBA’s contribution decreased to N4.67 billion from N6.7 billion in 2023.​

• Stanbic IBTC: The bank’s contribution increased to N3.2 billion, reflecting its profit before tax of N303.7 billion.​

• Fidelity Bank: With a profit before tax of N385.2 billion, Fidelity Bank contributed N3.9 billion to the fund.​

• Wema Bank: Reporting a profit before tax of N102.51 billion, Wema Bank’s contribution stood at N1 billion.​

Broader Context and Compliance Challenges

The NITDEF is designed to support Nigeria’s technological advancement, focusing on digital literacy, innovation, and infrastructure development. However, compliance with the mandatory levy has been inconsistent across sectors. While the banking sector has shown significant contributions, many companies, especially in telecommunications and other non-IT sectors, have lagged in compliance.​

The National Information Technology Development Agency (NITDA) has expressed concerns over non-compliance and is working to enhance awareness and enforcement. The agency emphasizes the fund’s importance in achieving national digital objectives, including implementing the Nigeria Startup Act and the National Digital Skills Strategy.​

Utilization of NITDEF

According to NITDA, the fund is pivotal in executing various initiatives to bolster Nigeria’s digital economy. These include:​

• Digital Literacy: Aiming to ensure that 95% of Nigerians are digitally literate by 2030.​

• Innovation and Entrepreneurship: Supporting the establishment of the National Digital Innovation and Entrepreneurship Centre.​

• Data Strategy: Implementing the National Data Strategy to enhance data management and security.​

• Blockchain Technology: Promoting the adoption and integration of blockchain technology in various sectors.​

Future Outlook

The significant increase in NITDEF contributions from the banking sector underscores the potential of leveraging corporate profits for national development. As more companies comply with the levy, the fund is expected to play an increasingly vital role in advancing Nigeria’s technological landscape.