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Barclays to Cut 5,000 Jobs by 2026 in AI Efficiency Drive

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British banking giant Barclays has announced plans to cut approximately 5,000 jobs globally by the end of 2026 as part of efforts to improve operational efficiency through artificial intelligence (AI) and technological transformation.

The proposed job cuts represent about five per cent of the bank’s global workforce, with approximately 60 per cent of the affected positions expected to come from support functions, including software development roles.

Barclays disclosed the plan in an earnings presentation released on Thursday, explaining that the restructuring was aimed at simplifying its organisational structure and improving productivity through technology.

The bank said the initiative involved “organisational simplification and technology change efficiency driven by AI”.

It added that about 60 per cent of the job losses would affect support functions, including a reduction in the number of developers as artificial intelligence makes employees more productive.

The announcement highlights the growing influence of AI on employment in the financial services industry, as banks increasingly adopt automated systems and advanced technologies to streamline operations and reduce costs.

Barclays Reports 13% Profit Growth
The job-cut announcement came alongside the bank’s third-quarter financial results, which showed a 13 per cent increase in profit after tax.

Barclays recorded a profit of £1.65 billion in the third quarter, compared with £1.46 billion during the corresponding period of the previous year.

The bank attributed its performance partly to strong earnings from its equities division, which recorded a significant increase in revenue.

Revenue from equities rose by 47 per cent year-on-year, while total group income increased by three per cent to £7.37 billion during the quarter.

Barclays Chief Executive Officer, C. S. Venkatakrishnan, welcomed the bank’s operational and financial performance, highlighting the investment bank’s strong showing in equities.

He pointed to the “ongoing momentum of… operational and financial performance” and said the investment banking division had “delivered strong equities performance”.

Despite the profit growth, the bank’s latest financial update drew mixed reactions from investors, with concerns about rising costs and potential regulatory and tax pressures weighing on sentiment.

Investors Face Concerns Over Costs and Tax Changes
Investment director at AJ Bell, Russ Mould, said the bank’s announcement came at a time when its third-quarter performance had failed to meet market expectations.

According to Mould, the announcement of a share buyback programme had not completely eased investors’ disappointment over the results.

He also noted that rising costs across the group remained a concern for shareholders.

Mould identified two major uncertainties facing the bank: the possibility of an increase in taxes on the banking sector in the United Kingdom’s upcoming budget and a reported investigation into the possible misrepresentation of risks in Barclays’ private credit portfolio.

The potential tax changes could increase pressure on the banking industry, while the reported investigation presents another issue for investors to monitor.

Barclays’ share price edged higher following the earnings update and job-cut announcement.
AI Reshapes Banking Employment.

Barclays’ planned workforce reduction reflects a broader shift in the banking sector, where financial institutions are increasingly investing in artificial intelligence and other technologies to improve productivity.

Banks are exploring AI applications across several areas, including software development, customer services, risk management and administrative operations.

While these technologies can help financial institutions process information faster and reduce operating costs, their adoption has also raised concerns about the future of jobs traditionally performed by human workers.

At Barclays, the planned reduction in developer positions and other support roles illustrates how AI-driven productivity improvements could influence workforce requirements.

The bank’s latest announcement comes as it continues to pursue operational improvements while seeking to maintain profitability amid changing market conditions.

The proposed cuts are expected to be implemented by the end of 2026.

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EFCC Recovers N114m From Cyber Fraud Suspect, Returns Money to Microfinance Bank

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The Economic and Financial Crimes Commission (EFCC) has recovered and returned N114 million stolen from a microfinance bank through a cyber fraud scheme.

The commission disclosed this in a post on its official X handle on Friday, stating that the recovered funds were handed over to the financial institution on Thursday.

According to the EFCC, the Acting Zonal Director of its Benin Zonal Directorate, Deputy Commander Sa’ad Hanafi Sa’ad, presented a bank draft worth N114 million to a senior official of the bank, Samuel Ikechukwu.

The recovery followed a petition filed by Ikechukwu in August 2024, after the financial institution discovered that one of its customers’ accounts had been fraudulently hacked and funds withdrawn without authorisation.

The recovery followed a petition filed by Ikechukwu in August 2024, after the financial institution discovered that one of its customers’ accounts had been fraudulently hacked and funds withdrawn without authorisation.

The commission said its investigators traced the stolen money to several suspects, leading to the arrest of one of them, identified as Obumneme Bright.

It added that N114 million was recovered from Bright following his arrest and subsequently returned to the affected financial institution.

The EFCC, however, disclosed that efforts were ongoing to track down and apprehend other suspects allegedly connected to the cyber fraud.

The recovery highlights the commission’s ongoing efforts to investigate financial crimes, recover illicit funds and return stolen assets to their rightful owners.

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Tinubu Seeks Senate Approval for $20.52bn, €1.05bn External Loans

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President Bola Tinubu has asked the Senate to approve the Federal Government’s 2026–2027 Supplementary External Borrowing Plan, seeking loans of $20.52bn and €1.05bn to finance infrastructure and development projects across Nigeria.

The request was transmitted to the National Assembly and read by Senate President Godswill Akpabio during Tuesday’s plenary.

In the letter, Tinubu urged lawmakers to consider and approve the borrowing plan promptly, saying the proposed funds would support critical projects and programmes across infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.

The proposed borrowing amounts to $20,517,755,901 and €1,045,083,643, respectively.

The President said the external financing was necessary to address Nigeria’s infrastructure deficit and bridge the funding gap affecting the implementation of development projects.

“I submit the attached Federal Government 2026–2027 Supplementary External Borrowing Plan for consideration and early approval of the National Assembly to ensure prompt implementation of our projects,” he stated.

Tinubu explained that the projects and programmes were selected following technical and economic evaluations, with emphasis on their expected contributions to Nigeria’s socioeconomic development.

According to him, the initiatives are designed to generate employment, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security.

“These initiatives aim to generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty and enhance food security, all of which improve the livelihood of the Nigerian child,” the President said.

He added that most of the projects would be implemented across Nigeria’s 36 states and the Federal Capital Territory, highlighting the nationwide scope of the proposed investments.

Tinubu Cites Infrastructure Funding Gap
The President maintained that the scale of Nigeria’s infrastructure needs required additional financing, arguing that external borrowing would help bridge the gap between available resources and the funding required to deliver critical projects.

“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue prudent external borrowings to close the financing shortfall,” Tinubu stated.

He said the funds would primarily support critical infrastructure, particularly in the power, transportation and healthcare sectors.

Tinubu urged the Senate leadership and the wider National Assembly to approve the proposal without delay, arguing that timely approval would facilitate fund disbursement and accelerate project implementation.

However, the request is expected to undergo scrutiny by the relevant Senate committees, including an examination of its scope and relationship with the Federal Government’s existing borrowing arrangements.

Akpabio Says Borrowing Plan Was Previously Approved
Reacting after the presidential letter was read, Akpabio said the borrowing plan had featured in previous government borrowing and budgetary arrangements, although he expressed uncertainty about the exact period covered by the earlier approval.

“The borrowing plan is attached, but of course, this was even earlier approved in our budget, and also the external borrowing plan was approved as far back as 2025 to 2027, I think to 2028 or thereabout,” the Senate President said.

Akpabio announced that the request would be referred to the Senate Committee on Local and Foreign Debts for consideration, with possible contributions from the Committees on Appropriations and Finance.

“However, this request will be looked at by the Committee on Local and Foreign Debts, probably in collaboration with Appropriations and Finance, but mainly by the Committee on Local and Foreign Debts,” he stated.

The Senate President also referenced Senator Haruna Manu in connection with the committee’s leadership.

The committee’s review is expected to examine the details of the proposed financing and determine how the supplementary borrowing plan relates to previously approved arrangements before the Senate decides on the next legislative steps.

The proposal would add to the Federal Government’s external financing commitments if approved.

Its consideration is also likely to bring attention to the terms of the proposed loans, the projects to be financed, repayment obligations and the expected economic benefits of the investments.

The Senate has yet to make a final decision on the request, which is to undergo committee consideration.

The alternative expresses the approximate combined value in US-dollar terms only if an exchange rate is specified and applied. The original headline is safer and more precise.

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Nigeria’s Revenue Falls N20.74tn Short of 2026 Budget Target Despite Oil Boom

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statutory revenue between January and October 2026, despite a sharp rise in international crude oil prices following the United States-Iran conflict.

Figures from the Federation Account income distribution report of the Office of the Accountant-General of the Federation showed that statutory revenue stood at N26.14tn during the 10-month period, against a budget projection of N46.87tn.

The shortfall represented 44.24 per cent of the projected revenue, raising questions about the country’s ability to translate higher global oil prices into increased government earnings.

The figures were analysed by The PUNCH from documents associated with the Federation Account Allocation Committee’s September meeting, held at the Federal Ministry of Finance headquarters in Abuja, to consider the August 2026 accounts.

The technical sub-committee’s report, dated October 14, was obtained by the newspaper on Monday.

Despite improved receipts in some months, the government failed to meet its statutory revenue target throughout the period under review.

Oil Price Surge Fails to Close Revenue Gap
The revenue shortfall occurred amid elevated international crude oil prices following the escalation of hostilities involving the United States, Israel and Iran.

The conflict, which began on February 28, disrupted shipping through the Strait of Hormuz, a major route for global oil and gas supplies, contributing to uncertainty in international energy markets.

Nigeria, as a crude oil-producing country, was expected to benefit from the increase in global oil prices through higher export earnings and government oil receipts.

On October 22, the price of Nigeria’s flagship crude grade was quoted at $123.97 per barrel, representing an increase of $59.12, or 91.16 per cent, above the Federal Government’s 2026 budget benchmark of $64.85 per barrel.

A separate report on October 24 quoted Bonny Light at approximately $115 per barrel, significantly above the budget benchmark.

However, the revenue figures showed that higher crude prices did not translate into sufficient statutory receipts to meet the government’s monthly budget projections.

The figures alone do not establish how much additional revenue Nigeria generated directly from the oil price increase.

Actual government earnings also depend on crude oil production volumes, export performance, exchange rates, collection efficiency and other revenue sources.

Monthly Revenue Performance Remains Below Target
The government’s monthly statutory revenue benchmark remained at N4.687tn throughout the 10-month period, while actual receipts fluctuated considerably.

In January, statutory revenue stood at N1.63tn, leaving a shortfall of N3.06tn, or 65.19 per cent below the target.

Revenue increasedto N1.96tn in February, representing a month-on-month rise of N325.35bn, or 19.94 per cent. However, the figure remained N2.73tn below the budget projection.

 

The improvement was reversed in March, when receipts fell to N1.56tn, a decline of N395.14bn, or 20.19 per cent, compared with February.

March recorded the weakest performance of the first quarter, with revenue missing the monthly target by N3.13tn, representing a 66.68 per cent shortfall.

In April, receipts recovered to N1.70tn, an increase of N137.91bn, or 8.83 per cent. Nevertheless, the figure remained N2.99tn below the monthly target.

The recovery gathered pace in May, when statutory revenue increased to N2.38tn from N1.70tn in April. The N678.22bn rise represented a 39.90 per cent month-on-month improvement.

Revenue climbed further to N2.65tn in June, an increase of N273.62bn, or 11.51 per cent, although receipts remained N2.04tn below the target.

Revenue Peaks in August Before September Decline
The strongest monthly improvement occurred in July, when statutory revenue, including a N250bn augmentation, reached N3.95tn.

The figure represented an increase of N1.30tn, or 48.99 per cent, compared with June. However, July’s receipts still fell N736.50bn short of the monthly target.

Revenue rose further to N4.36tn in August, the highest monthly figure recorded during the period.

The August receipts represented an increase of N408.09bn, or 10.33 per cent, from July and came closest to the monthly budget projection.

The shortfall narrowed to N328.41bn, equivalent to 7.01 per cent of the target.
However, the improvement was not sustained.

Statutory revenue dropped to N2.85tn in September from N4.36tn in August, representing a decline of N1.51tn, or 34.61 per cent.

September’s receipts were N1.84tn below the monthly target, leaving a shortfall of 39.19 per cent.

Revenue recovered modestly in October to N3.10tn, an increase of N246.38bn, or 8.64 per cent, compared with September.

Despite the recovery, October’s revenue remained N1.59tn below the monthly target, representing a deficit of 33.94 per cent.

The October figure was approximately 89.77 per cent higher than January’s N1.63tn. However, the increase in monthly receipts was insufficient to bridge the gap between actual collections and budget projections.

Second-Half Receipts Exceed First-Half Total
The report also showed a significant difference between revenue collected in the first six months of the year and receipts recorded from July to October.

Between January and June, statutory revenue totalled N11.88tn.

From July to October, receipts rose to N14.26tn, including the N250bn augmentation recorded in July.

The four-month total was therefore N2.38tn higher than the revenue recorded during the first six months of the year, despite covering a shorter period.

The stronger performance from July coincided with elevated international oil prices, suggesting that improved oil receipts may have contributed to the increase.

However, the figures do not establish the precise contribution of higher crude prices to the additional revenue.

The subsequent decline in September and the incomplete recovery in October also demonstrated that the improvement was not sustained consistently.

Revenue Shortfall Raises Budget Implementation Concerns
The persistent revenue gap has implications for the Federal Government, state governments and local government councils that depend on Federation Account allocations to finance public services and development projects.

When actual revenue falls below budget projections, governments may face pressure to adjust spending plans, delay capital projects or seek alternative sources of financing.

The extent of the impact depends on the structure of each government’s budget, expenditure commitments and available financing options.

Although higher crude oil prices can increase government earnings, the benefits depend on Nigeria’s capacity to produce and export crude oil, collect the proceeds due to the Federation and convert additional earnings into distributable revenue.

The report also recorded N39.91bn in shared Electronic Money Transfer Levy proceeds in January, with no further amounts shown under that column from February to October.

The levy was listed separately from the statutory revenue figures used in the monthly budget comparison.

Oyedele Admits Revenue Projections Have Been Unrealistic
The revenue shortfall comes amid concerns over the assumptions underpinning Nigeria’s annual budgets.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently acknowledged that government budgets had often relied on overly optimistic revenue projections, resulting in actual collections falling below expectations.

Speaking at Chatham House in London, Oyedele said Nigeria needed to improve the way it prepared its budgets by basing revenue estimates on realistic assessments of the country’s earning capacity.

“We haven’t been doing the budget right. We do projections that are sometimes based on faith and hope. You don’t run a country based on faith,” he said.

His comments highlight the importance of aligning government expenditure plans with credible revenue estimates, particularly in an economy where oil prices, production levels and other revenue sources can fluctuate.

Outlook
Nigeria’s N20.74tn statutory revenue shortfall during the first 10 months of 2026 highlights the gap between budget expectations and actual government receipts.

Although revenue improved significantly between May and August, the subsequent decline showed that the gains were not sufficient to put collections on track to meet the period’s target.

The figures do not mean Nigeria received no benefit from higher international crude oil prices. Rather, they show that total statutory revenue remained substantially below the amount projected in the budget.

Closing the gap will require more reliable revenue forecasting, stronger collection performance and sustained efforts to improve the contribution of oil and non-oil revenue sources to government finances.

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