Business
Japa: How mass exit of specialised workers has exposed Nigerian banks
Also, rising network glitches and weaker digital channels have exposed banks to increasing activities of hackers.
Mr James Emeka worked in the marketing departments of three commercial banks for nine years before he finally left Nigeria for United Kingdom in search of greener pastures.
Five years after, he speaks on the worrisome japa syndrome, the term used to explain the mass exit of Nigerians in the country who are seeking better life in other countries.
He says, “Unfortunately, we that have acquired the training and work experience on the field know how it is out there, we are all leaving the country because of the bad economy and experiences without passing the baton of experience to the new entrants.
“What you learn in school is totally different from what you learn when you are working, that is what is called experience.”
Recruiting new people will change of lot of things in banking operations, he says.
Emeka identifies japa as one of the reasons for the huge non-performing loans in the banking sector.
Speaking on major effects, he says, “It is going to change a lot of things. We have poor customer service, we have poor foreign exchange policies, there is no training because we did not handover to anybody; the banking sector is going backward. I spent over nine years in the banking sector, I left without giving the knowledge to people that were coming because I needed to go; nobody could stop me.
“Most of my customers complain they are no longer getting the best they used to get from me. For instance, I used to tell them ahead if there was going to be a change in forex policy, I let them know they need to do this and that. New workers coming in don’t really do that.
“Many of my customers were complaining that there was nobody to help them with loans. If you take a loan, I am not just going to leave you like that; I am still going to research into the business you want to invest in. You will be truthful to me because I am your banker, and I need to know that business you want to invest in. I will go the extra mile to research into the business you want to invest in and tell you these are my findings, the benefits and the challenges.”
According to him, 97 per cent of those he helped to secure loans repaid successfully because he was passionate about helping them to succeed, and helping the bank to make profit.
He says, “I was doing most of the ground works for them, but now, most of the people just want to borrow money without researching about the investment. The banks are not building strong customer relationship and confidence; they just want the loans out there and get their profits. That is why you see that at the end of the day, most of the loans end up going bad.”
Nigerian banks’ non-performing loans hit N1.32tn as of the end of April 2023, according to figures obtained from the Central Bank of Nigeria.
The CBN, in 2020 released the GSI guideline to reduce non-performing loans in the banking sector and monitor consistent loan defaulters among others.
According to the CBN, the GSI allows the banks to recover the outstanding principal and interest upon default from any account maintained by the debtor across all financial institutions in Nigeria.
The banking regulator says the non-performing loans were reduced due to the enforcement of GSI, and the writing off of some bad loans in the banks’ financial records.
However, it has been increasingly observed that the continuous exit of competent hands and specialised workers in the banking sector is affecting all areas of banking operations including IT services.
Failed transactions
Many bank depositors have continued to lose their hard-earned funds to failed transactions. Unfortunately, these funds are often not refunded after several complaints to the banks.
A trader, Tosin Ayoade, says, “I made an online payment worth N43,500 with my debit card; my account was debited but the merchant said the payment was not received. Again, I used my debit card to pay for N10,000 fuel through a PoS at the petrol station, I was debited but the petrol station printed a failed transaction receipt for me.
“On these transactions, I have called my bank several times, and went to two different branches of the bank to lodge complaints but the monies were not reversed. I escalated the complaint to the Central Bank of Nigeria’s complaint channel but I still did not get a refund.”
Speaking on challenges of failed transactions and scams in the banking sector, Julius Ohai, a former banker now in the United States of America, attributed huge failed transactions in the banking sector to high staff turnover in the IT department.
He says, “Many of the staff in the IT sector don’t stay on the job for a long time. As the banking sector in Nigeria seeks to grow and emulate what other countries are doing, the mass exodus of key IT staff is a major downside.”
While only a few displeased bank customers with large amounts take the extra step to approach the banking sector’s tribunal for redress, most customers are being cheated because they are not willing to go through the long path to get justice.
No fewer than 2,281 displeased banks’ customers lodged complaints to the Ethics and Governance Directorate of the Chartered Institute of Bankers of Nigeria, claiming N377.6bn and $428.7m refunds, respectively, since the inception of the directorate till the end of 2022, according to figures obtained from the institute.
The CIBN notes that as of the end of 2022 financial period, 2,241 complaints had been resolved, while N34.12bn and $19.48m refunds were awarded on resolved claims since the inception of the sub-committee.
A former bank worker, Charity Balogun, worked in the IT and audit departments of a commercial bank for 16 years before she relocated to Canada.
“Many complaints are not responded to because most of the experience hands have exited the banks, especially those in the IT departments, so the applications are left in the hands of people doing trial and error,” she says.
Hackers
The Director of Payment Systems Management of the Central Bank of Nigeria, Musa Jimoh, who is also the chairman of Nigeria Electronic Fraud Forum, said the banking sector recorded N9.5bn electronic fraud during the first six months of 2023.
A bank customer, Dupe Babatunde, says, “My online banking app was not working again so I went to my bank to complain. I was given a form to fill which I did. When I got back home, I got an email which I thought was from the bank and responded to it because I just came back from the bank.
“Later, a call came and I responded. The person asked me many questions that I should not have responded to but I did because I just left the bank. Unfortunately, my money was cleared from my account and the bank denied any involvement. But, why did the mail come after I left the bank,” she queries.
She is just one of many bank customers whose accounts have been hacked by fraudsters. While many customers have been able to outsmart hackers, several others have become sceptical about using the banks’ epayment channels.
For instance, a former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, says, “These boys outside the banks who are involved in IT are very clever; they are busy every now and then, trying to break into the banks’ systems because they have learnt so much. I also see that some of the banks’ staff members are part of it.”
Speaking further, he says, “I don’t use ATMs. The reason is that I went to collect a debit card from a bank on a Friday. I had not yet activated it, I planned to activate it on Monday. Before I got home, I started getting emails asking me for my details.
“I did not respond to the emails, but I went back to the bank on Monday. When I told the bank manager about all the emails I received, he was glad I did not respond to them because according to him, the emails were not from the bank. But how did the hackers know that I just left the bank?”
According to a former bank worker, Kazeem Ibrahim, the banking sector is breeding many disgruntled workers who readily compromise customers’ accounts.
He says, “Back in the days when I was in the banking sector, most of us were permanent staff. As a permanent staff, there are a lot of entitlements that we get so because of that, we kept the oath of secrecy of customers. But now, if you notice in the banking sector, contract staff are on the rise.
“Most of the bankers are contract agents who are often paid meagre salaries. So, these workers are the ones giving customers’ details to hackers.”
According to him, contract staff are not treated well and, as such, become very easy to compromise on the job.
Ibrahim says, “Banks have contracted most of these jobs to third-party companies. Can you imagine somebody working in a bank in Nigeria and getting a salary of N50,000 or N40,000 at the end of the month? They would not care to do anything they can to make extra money. So, they are the ones giving customers’ details to hackers. So, they connive with hackers to defraud bank customers.”
He says he left the banking sector 10 years ago, when full-time workers were prevalent in the banks.
“Then, we were well paid, we tried to protect our work, when people approach you, you say no. But now, even if you spend 20 years there, you are not entitled to anything, you just go. You will be ready to accommodate any fraudulent means to make more cash.”
Though he was well remunerated when he was still in Nigeria’s banking industry, he adds, he had to leave the country because of several challenges, especially the deteriorating economy and rising insecurity.
According to him, “The best decision I have made in my life is relocating to the UK because things are better now. They appreciate my value compared to the uncertainty you get at work in Nigeria, not knowing what is going to happen next.
“I left around 2013 and I was earning around N750,000 per month. Hearing now that some bankers are being paid N50,000 in 2023 is worrisome. I can tell you now that I am earning about 10 to 20 of that; more so, I am doing something that I like doing. I work in the engineering sector now and I am working from home. I only go to work once in a while, in short, it is the best decision that I have ever made.”
A market check on Tuesday showed that NNPCL outlets in Abuja and nearby areas adjusted their petrol price from N1,155 per litre to N1,270 per litre.
The latest adjustment represents an increase of N115 per litre by the state-owned oil company.
The new price change follows recent increases by depot owners and petroleum marketers, who have adjusted their rates twice within a week.
The latest development also comes days after Dangote Refinery resumed the sale of refined petroleum products in dollars, a move that has raised concerns among industry players over the direction of fuel pricing in the country.
The Federal Government has disclosed that 13 of the 50 oil and gas blocks offered in the 2025 Licensing Round will be returned to the licensing basket after failing to attract bids from prospective investors.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, disclosed this on Tuesday at the 2025 Commercial Bid Conference in Abuja.
Eyesan said that although 50 blocks were initially put up for bidding, prospective investors showed interest in only 37.
“At the end of the exercise, we had 50 blocks on offer, but we only had representation for 37 of those 50 blocks. Thirteen of those blocks will be returning back to the basket,” she said.
She further disclosed that 143 companies participated in the commercial bid process, submitting about 200 bids for the available oil and gas assets.
“We have a total of 143 companies showing interest for 200 bids. That, for us, was remarkable, and I must say thank you,” Eyesan stated.
According to her, nearly 300 companies initially expressed interest in the licensing round, which she described as a sign of renewed investor confidence in Nigeria’s upstream petroleum sector.
“When we started the journey, we got interest from almost 300 companies. I repeat, almost 300 companies. That, in my view, was an indication that the tide has turned for Nigeria,” she said.
She explained that the number of interested companies was reduced to 196 following the prequalification stage, before the process moved to the technical and commercial evaluation phases.
“From the almost 300 interests that we got, we moved to the pre-qualification stage, and that number was pruned down to 196,” she added.
The 2025 Licensing Round was launched on November 11, 2025, in accordance with the Petroleum Industry Act 2021, with 50 oil and gas blocks put up for bidding across seven sedimentary basins.
The assets comprise 16 Niger Delta onshore blocks, 18 shallow-water blocks, one deep offshore block, three blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin and four in the Benue Trough.
The bid portal opened on December 1, 2025, while a pre-bid conference was held in Lagos on January 14, 2026, to provide prospective investors with guidance on the bidding requirements.
Registration and prequalification submissions closed on February 27, 2026, with the prequalification process completed on March 16.
The NUPRC said winning bids are being determined through a weighted evaluation that considers signature bonus commitments, proposed work programmes and performance security. The process combines technical and commercial scores rather than relying solely on financial offers.
The framework is aimed at ensuring that Nigeria’s petroleum assets are awarded to investors with the financial capacity, technical expertise and operational strength required to accelerate exploration and production in the country’s upstream sector.
The new pricing template, which took effect on July 13, 2026, also pegs Automotive Gas Oil (diesel) at $1.087 per litre and Aviation Turbine Kerosene (ATK) at $0.942 per litre, while coastal deliveries of PMS have been fixed at $1,044.62 per metric tonne.
The development marks the end of naira payments for refined petroleum products, a policy introduced after the commencement of the Federal Government’s naira-for-crude initiative on October 1, 2024.
In a notice issued to petroleum marketers and customers, the refinery announced that all previously issued naira-denominated Proforma Invoices and Deal Recaps for both gantry and coastal transactions had become invalid.
The notice, signed by the refinery’s Group Commercial Operations, directed customers not to make payments against the cancelled invoices, stating that all transactions would now be conducted in United States dollars.
Under the revised pricing schedule, petrol supplied through the gantry will sell for $0.779 per litre, diesel for $1.087 per litre, aviation fuel for $0.942 per litre, while coastal PMS supplies will cost $1,044.62 per metric tonne.
The refinery, however, clarified that the transition does not affect Liquefied Petroleum Gas (LPG), which will continue under its existing payment arrangement.
Industry sources said the decision followed a growing imbalance between the currency used to procure crude oil and that used to sell refined products.
According to the sources, the refinery now receives a larger share of its crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated supply arrangements, while a significant volume of its refined products had continued to be sold locally in naira.
The resulting mismatch, coupled with exchange-rate volatility and fluctuations in global crude oil prices, reportedly increased the refinery’s foreign exchange exposure and prompted the adoption of a uniform dollar-based pricing framework.
A source familiar with the development explained that the shift became necessary as the volume of naira-denominated crude supplies declined relative to dollar-based crude cargoes.
“The refinery is receiving fewer naira-denominated crude cargoes while a larger proportion of its refined products has continued to be sold in naira. That imbalance, combined with foreign exchange volatility, made the transition to dollar pricing inevitable,” the source said.
The decision is expected to have significant implications for petroleum marketers who source products directly from the refinery for nationwide distribution. It could also influence retail pump prices, depending on movements in the exchange rate, international crude oil prices, logistics costs and marketers’ operating expenses.
The Federal Government had introduced the naira-for-crude policy to encourage domestic refining, reduce pressure on foreign exchange demand and stabilise fuel prices. However, industry stakeholders have recently reported implementation challenges, noting that a growing proportion of crude supplies to local refiners has reverted to dollar-based transactions.
Analysts believe the latest development underscores the continued foreign exchange challenges facing Nigeria’s downstream petroleum sector despite efforts to deepen local refining and reduce dependence on imported fuel.
Independent petroleum marketers on Monday pushed for the restoration of importation rights and projected that the pump price of Premium Motor Spirit, popularly called petrol, could fall below N800 per litre as the Federal Government intensified efforts to force down the cost of petrol.
The development came as the Federal Government met with major operators in the downstream petroleum sector, including representatives of the Dangote Petroleum Refinery, over what it described as the disconnect between falling global crude oil prices and the relatively high pump prices of petrol in the domestic market.
The stakeholders’ meeting on cost-reflective pricing of PMS, held at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, brought together the Federal Competition and Consumer Protection Commission, the Independent Petroleum Marketers Association of Nigeria, the Major Energy Marketers Association of Nigeria, the Depot and Petroleum Products Retailers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, the Nigerian Association of Road Transport Owners, and other major operators in the sector.
Also in attendance were chief executives and representatives of TotalEnergies, Eterna Plc, Matrix Energy Group, officials of the NMDPRA, and delegates from the Dangote refinery.
Petrol prices have remained a major source of hardship for households and businesses in Nigeria, with pump prices surging following the spike in global crude oil prices triggered by tensions in the Middle East, particularly between Iran and the United States.
Although crude prices have moderated after diplomatic efforts eased the tensions, the reduction has yet to be fully reflected in domestic petrol prices, prompting the Federal Government to convene a stakeholders’ meeting aimed at driving a fair reduction in pump prices.
The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, urged the government to permit independent marketers to import petroleum products directly, saying greater competition would ultimately reduce prices.
Maigandi also called for support for local refineries, particularly the Dangote Petroleum Refinery, while stressing the need to allow marketers to import products whenever necessary.
“Our major concern is that if products are to be distributed, let IPMAN buy products directly from the Dangote refinery and then, if we request importation, let IPMAN import by themselves. What we are trying to encourage is our local refinery. Let the government allow the local refinery to function properly and assist those who intend to refine products too,” he said.
The IPMAN president assured Nigerians that independent marketers were prepared to slash petrol prices significantly and projected that pump prices could fall below N800 per litre under the right market conditions.
“The price of the product is coming down bit by bit. Even when the price was increased, it was not increased at the same time. Likewise, now, as the price is coming down, we too are bringing the price down. If you check prices all over the country, you will see that independent petroleum marketers are reducing their prices gradually. Presently, we have reduced by N125 per litre nationwide,” he stated.
Miagandi added, “At any time when there is a reduction in price, we are ready to reduce the price to even below N800 per litre, not even N900. It depends on the way we buy the product from the private depot owners and the Dangote refinery.
“I thank God that the Dangote refinery has accepted independent petroleum marketers to start purchasing products directly. It is a plus, and very soon the populace will see the change in terms of price.”
The renewed push for importation comes amid an intense pricing battle in the downstream sector following the commencement of large-scale production at the Dangote refinery and the deregulation of the petrol market.
Speaking to journalists after a closed-door session with the stakeholders, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government remained concerned that current petrol prices were not reflective of prevailing crude oil prices in the international market.
According to him, the government had engaged marketers in frank discussions aimed at ensuring that the reduction in global crude prices translates into lower pump prices for Nigerians.
Lokpobiri said, “The engagements are ongoing. We had very fruitful and frank discussions with the marketers and the leaders of the downstream sector of the petroleum industry with a view to driving down the price of PMS.
“My own opinion is that the petrol prices are not cost-reflective; they are not reflective of the cost of crude oil. But the marketers are also saying that crude oil prices are still high.
“In fact, somebody told us right there that the crude oil price for a month is still over $90 per barrel. But we are saying that when Brent crude was over $118 per barrel, the price was rapidly going up. Now that the price has come down drastically, why has petrol not come down correspondingly? That is a worry.”
The minister said the government had communicated the concerns of consumers to operators and directed them to return with practical measures that would lead to lower petrol prices.
“We have said that these are the issues of concern to the government. They have also said they will go back and think about what they can put together with a view to addressing the issue of the high cost of PMS that is not reflective of the price of crude in the market.
“We told them the concern of the Nigerian consumer, and they have also said they will go back and think of what concrete steps can be taken with a view to ensuring that the price drops,” he stated.
On when Nigerians should expect a reduction in petrol prices, Lokpobiri said discussions were still ongoing and declined to give a deadline. “As we called you today, we will call you as soon as possible. But the important thing is that discussions are ongoing,” he added.
Before the closed-door meeting, Lokpobiri warned petroleum marketers against using profits from previously acquired expensive fuel inventories as justification for maintaining high petrol prices, insisting that the benefits of lower replacement costs must be passed on to consumers.
The government said the continued disconnect between falling international crude oil prices and domestic petrol prices had become a source of concern, warning petroleum marketers against sustaining high pump prices of Premium Motor Spirit despite declining global crude prices and insisting that Nigerians should enjoy the benefits of lower replacement costs in a deregulated market.
The Dangote Petroleum Refinery exported about 466,000 metric tonnes of jet fuel to Europe in June, valued at an estimated ₦757 billion, surpassing shipments from the United States and becoming Europe’s largest supplier during the month.
According to an S&P Global Commodity Insights market report, Nigeria’s jet fuel exports to Europe rose sharply from 232,000 metric tonnes in May to 466,000 metric tonnes in June—the highest monthly volume since the country became a net exporter of aviation fuel in 2024 following the commencement of production at the Dangote refinery.
The June shipment is equivalent to about 582.5 million litres of aviation fuel. At an estimated domestic value of ₦1,300 per litre, the exports are worth approximately ₦757.25 billion.
In contrast, US jet fuel exports to Europe declined significantly, dropping from a record 818,000 metric tonnes in April to 560,000 metric tonnes in May, before falling further to 399,000 metric tonnes in June, leaving Nigeria as the continent’s biggest supplier during the period.
A trader attributed the oversupply in the European market to increased shipments from both Dangote and the US.
“Jet fuel is oversupplied because of high local refinery production. Refineries delayed maintenance to benefit from high prices. The US and Dangote also shipped large volumes. Some flows are also resuming through the Suez Canal from the UAE,” the trader said.
The report noted that the European jet fuel market turned increasingly bearish after prices retreated sharply from the highs recorded during the recent Middle East conflict.
According to Platts, part of S&P Global Commodity Insights, the Northwest Europe jet CIF cargo assessment for July fell to $981.75 per metric tonne on June 30, down from a record $1,694.25 per metric tonne recorded on March 30. The August contract also declined from $1,507.50 to $968.25 per metric tonne over the same period.
Analysts said Europe could receive even more jet fuel supplies in the coming months as the East-West arbitrage remains favourable, encouraging exporters in the Middle East and India to ship cargoes westward.
Although no jet fuel shipments arrived from the United Arab Emirates and Kuwait in June, exports from Saudi Arabia increased to about 106,000 metric tonnes, up from 7,000 metric tonnes in May. Exports from India also rose from 129,000 metric tonnes to 197,000 metric tonnes.
Despite the current oversupply, traders told Platts that market conditions would largely depend on developments in the Strait of Hormuz, the recovery of Middle Eastern refineries affected by recent conflicts, stronger summer travel demand, and refiners’ decisions to prioritise diesel production over jet fuel.
Meanwhile, data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that the Dangote refinery exported about 1.66 billion litres of refined petroleum products in April 2026.
The exports included 513 million litres of petrol, 534 million litres of diesel, and 615 million litres of aviation fuel, highlighting the refinery’s growing role in supplying both domestic and international markets.
Dangote Refinery remains Nigeria’s only major refinery currently producing refined petroleum products at volumes sufficient for local consumption and export. Rising output has also made Nigeria a net exporter of petrol for the first time in decades, reinforcing the country’s emergence as a major refining and petroleum export hub in Africa.
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