Following a report by the Central Bank of Nigeria (CBN) indicating that Non-Performing Loans (NPLs) have risen to seven percent—surpassing the five percent regulatory benchmark—technology firm Alluvium has called on Nigerian banks to urgently overhaul their internal operations and compliance frameworks.
The CBN’s 2025 macroeconomic outlook raised concerns over asset quality, balance sheet stability, and the robustness of operational controls across the industry. The report highlighted that the expiration of regulatory forbearance measures has left financial institutions facing heightened supervisory scrutiny and stricter enforcement of consumer protection laws.
Stakeholders noted that the uptick in NPLs has strained bank operations, particularly in governance, service delivery, and regulatory compliance.
Reacting to the development, Alluvium, a global technology firm, attributed these operational hurdles to “siloed” internal systems. In an advisory issued by its Chief Executive Officer, Taiwo Ojo, the firm noted that many banks still operate with fragmented departments—where customer service, compliance, IT, and legal teams fail to integrate effectively.
“This lack of integration often results in delays in resolving customer complaints, breaches of regulatory timelines, and increased exposure to sanctions,” Ojo stated. He warned that these gaps expose banks to significant reputational and regulatory risks at a time when consumer protection rules are being rigorously enforced.
To mitigate these risks, Alluvium proposed a unified operational framework built around an expanded “Atlassian Service Collection.” The firm explained that such a system enables automated tracking of Service Level Agreements (SLAs), seamless audit documentation, and the use of Artificial Intelligence (AI) to shorten resolution timelines.
Ojo added that an integrated approach would allow banks to link customer complaints directly to specific systems, enhancing documentation and preventing recurring failures through automated change controls.
“Strengthening internal operations will boost staff efficiency, improve customer experience, and significantly reduce the risk of regulatory breaches,” Ojo said.
Alluvium maintained that banks aligning their technology infrastructure with evolving regulatory expectations would be better positioned to rebuild public trust. The firm noted its experience supporting financial institutions across Africa, Europe, the Americas, and Asia as a blueprint for helping Nigerian banks improve resilience and compliance.
