By Efe Onodjae

Following the CBN report of a rise in Non Performing Loans to about seven percent, exceeding the five percent prudential benchmark set for the banking sector, a technology firm Alluvium has called on Nigerian banks to strengthen their internal operations and compliance frameworks in response to the tightening regulatory environment.

The apex bank’s 2025 macroeconomic outlook raised fresh concerns about asset quality, balance sheet stability and operational controls within Nigerian banks cm as the regulatory forbearance measures earlier granted to banks have fully expired, placing institutions under increased supervisory scrutiny and stricter enforcement of consumer protection and compliance rules.

Industry operators say the rising NPL ratio has added pressure on bank operations, especially in areas relating to internal governance, service delivery and regulatory compliance.

Alluvium, One of the fastest growing Tech Firm in Africa therefore made a call in a white paper authored by its Chief Executive Officer, Otunba Taiwo Ojo, and published on its official website, stating that many operational failures in the banking sector stem from fragmented internal systems where customer service, compliance, information technology and legal units operate independently, leading to delays in complaint resolution and breaches of regulatory timelines.

According to the firm, such internal gaps have continued to expose banks to sanctions and reputational risks, particularly as consumer protection rules are now being enforced more strictly by regulators.

The white paper proposed the adoption of a unified operational framework built around the expanded Atlassian Service Collection, which integrates customer service management, technical operations and compliance monitoring into a single workflow.

Alluvium explained that the framework allows for automated Service Level Agreement tracking, audit documentation and artificial intelligence driven processes aimed at reducing resolution timelines and improving regulatory readiness.

Ojo said the approach would enable banks to link customer complaints to specific systems, improve documentation and prevent recurring operational failures through automated change controls.

He noted that stronger internal operations would also enhance staff efficiency and improve customer experience while reducing the risk of regulatory breaches.

The Central Bank of Nigeria has earlier warned that sustained growth in Non Performing Loans could pose systemic risks to the financial system if not properly managed.

Alluvium said banks that align their operational processes and technology infrastructure with current regulatory expectations would be better positioned to restore public trust and strengthen governance.

The company added that its experience supporting financial institutions across Africa, Europe, America and Asia places it in a position to assist Nigerian banks in improving operational visibility and resilience.

Ojo stated that early adoption of integrated operational systems would help banks adapt more effectively to regulatory demands and reduce long term operational strain.