NIGERIAN BANKS’ IT INVESTMENTS SURGE TO N178BN AMID RISING CUSTOMER COMPLAINTS
Details:
In the first half of 2024, five major Nigerian banks—Zenith Bank, Access Bank, Guaranty Trust Holding Company (GTCO), Wema Bank, and United Bank for Africa (UBA)—spent a total of N178.77bn on upgrading their information technology (IT) infrastructure. This represents a significant 203% increase from the N58.8bn spent in the same period last year, as the banks ramped up their digital services to remain competitive.
Breakdown of Expenditures:
Zenith Bank spent N23.10bn, marking a 166.54% rise from last year’s N8.67bn.
Access Bank led the pack, investing N111.24bn, a massive 264.55% increase from the previous year’s N30.47bn.
GTCO increased its IT spending by 115.12%, allocating N36.60bn compared to N17.02bn in H1 2023.
Wema Bank spent N1.13bn, a 59.03% rise from the N708m spent last year.
UBA saw the highest growth percentage, with its IT spending rising by 248.20% to N6.70bn from N1.93bn.
Despite these hefty investments, customers have expressed growing dissatisfaction with online banking services. On October 1, Zenith Bank customers, in particular, reported issues with online transactions even after the bank had announced routine maintenance on its systems from September 29 to October 1. As of October 2, many customers were still experiencing outages, highlighting the ongoing challenges faced by Nigerian banks in providing reliable digital services.
This comes amid a broader rise in customer complaints across the banking sector, with over 10 million complaints recorded in 2023, up from 6.12 million the previous year. Banks are under pressure to enhance their IT systems to meet the rising demand for digital banking while managing operational costs.
The increase in IT spending also reflects broader trends in the banking industry, where institutions are investing heavily in technology to strengthen cybersecurity and improve service delivery.
Details:
In the first half of 2024, five major Nigerian banks—Zenith Bank, Access Bank, Guaranty Trust Holding Company (GTCO), Wema Bank, and United Bank for Africa (UBA)—spent a total of N178.77bn on upgrading their information technology (IT) infrastructure. This represents a significant 203% increase from the N58.8bn spent in the same period last year, as the banks ramped up their digital services to remain competitive.
Breakdown of Expenditures:
Zenith Bank spent N23.10bn, marking a 166.54% rise from last year’s N8.67bn.
Access Bank led the pack, investing N111.24bn, a massive 264.55% increase from the previous year’s N30.47bn.
GTCO increased its IT spending by 115.12%, allocating N36.60bn compared to N17.02bn in H1 2023.
Wema Bank spent N1.13bn, a 59.03% rise from the N708m spent last year.
UBA saw the highest growth percentage, with its IT spending rising by 248.20% to N6.70bn from N1.93bn.
Despite these hefty investments, customers have expressed growing dissatisfaction with online banking services. On October 1, Zenith Bank customers, in particular, reported issues with online transactions even after the bank had announced routine maintenance on its systems from September 29 to October 1. As of October 2, many customers were still experiencing outages, highlighting the ongoing challenges faced by Nigerian banks in providing reliable digital services.
This comes amid a broader rise in customer complaints across the banking sector, with over 10 million complaints recorded in 2023, up from 6.12 million the previous year. Banks are under pressure to enhance their IT systems to meet the rising demand for digital banking while managing operational costs.
The increase in IT spending also reflects broader trends in the banking industry, where institutions are investing heavily in technology to strengthen cybersecurity and improve service delivery.