Nigeria’s largest lenders spent more than N119bn on information technology, software, and related digital infrastructure in the first three months of 2026, indicating the growing importance of technology investments as banks deepen digital transformation efforts.
An analysis of the first-quarter financial statements of four tier-one lenders—Guaranty Trust Holding Company Plc, Zenith Bank Plc, United Bank for Africa Plc and Access Bank Plc—by The PUNCH showed that their combined spending on technology rose to about N119.03bn in the period ended March 31, 2026, from N83.15bn in the corresponding period of 2025.
The increase of N35.88bn represents a 43.2 per cent year-on-year rise in technology spending, reflecting growing investments in software, digital banking platforms, cybersecurity, IT support services, and other technology infrastructure.
The spending pattern, however, varied across the lenders, with Zenith Bank emerging as the biggest spender, UBA recording the fastest growth in technology expenditure, while Access Bank was the only lender to report a decline.
GTCO, a prominent multinational financial services group headquartered in Victoria Island, Lagos, recorded total technology-related spending of approximately N16.4bn during the first quarter of 2026.
According to its financial statements for the period ended March 31, 2026, the Group, which includes GTBank Nigeria and other subsidiaries, recorded N8.50bn under “technological and service-related expenses” during the three-month period.
In addition, GTCO invested N7.89bn in purchasing software classified as additions to intangible assets, compared with N4.68bn spent on software acquisitions in the corresponding period of 2025.
Combined, the bank’s operational and capital technology expenditure amounted to N16.40bn, representing an increase of about 24.3 per cent from an estimated N13.19bn spent in the first quarter of 2025. The software investment alone rose by 68.6 per cent year-on-year.
Zenith Bank Plc, a multinational financial services institution and one of Nigeria’s largest banks by tier-one capital, spent N43.83bn on technology in the first quarter, making it the highest spender among the four lenders reviewed.
The bank’s unaudited interim financial statements showed that technology spending rose sharply from N21.93bn recorded in the corresponding period of 2025, representing an increase of almost 100 per cent.
The first-quarter spending accounted for nearly half of the N91.92bn Zenith spent on technology throughout 2025, suggesting an acceleration in digital investments this year.
United Bank for Africa Group, the leading sub-Saharan African bank with more than 45 million customers, over 20,000 employees, and about 1,000 branches across 20 African countries, recorded the fastest increase in technology expenditure among the lenders.
The bank’s interim unaudited consolidated financial statements showed that IT support and related expenses rose to N22.07bn in the first quarter of 2026 from N6.18bn in the same period last year.
The increase of N15.89bn represents a year-on-year growth of approximately 257 per cent, more than tripling the bank’s technology spending over the period.
Access Bank Plc, the largest bank in Nigeria and Africa’s leading financial institution by customer base, with more than 60 million customers across three continents, spent N36.73bn on IT and e-business expenses during the first quarter of 2026.
However, unlike its peers, Access Bank recorded a decline in technology spending. The bank’s unaudited consolidated and separate financial statements showed that IT and e-business expenses fell from N41.85bn in the corresponding period of 2025.
The decline of about N5.11bn translates to a 12.2 per cent reduction year-on-year, making Access Bank the only one among the four lenders to report lower technology spending during the review period.
Despite the decline recorded by Access Bank, the broader trend among Nigeria’s largest banks points to increased technology investments as lenders strengthen digital capabilities, automate operations, improve cybersecurity systems, and enhance customer experience through digital channels.
The Co-founder of Recital Finance, Bobola Ojo-Ami, told The PUNCH that the scale of these investments should not come as a surprise. “Nigeria’s financial ecosystem is processing far more digital transactions today than it did last year and a few years ago, with electronic payment volumes and digital banking revenues continuing to grow year after year.
“Banks are responding to a structural shift in customer behaviour, where about 90 per cent of retail banking transactions are now completed through digital channels rather than inside banking halls,” the executive stated.
He said that beyond traditional banking, the broader financial ecosystem was expanding, driven by growth in digital payments, the return of international card transactions, the rollout of the Nigeria Inter-Bank Settlement System National Payment Stack, new payment infrastructure, increasing cross-border African trade, the Pan-African Payment and Settlement System, and deeper participation in capital markets, all of which pointed to a more connected and transaction-intensive economy.
According to him, these developments, taken together, explained why sustained investment in technology infrastructure was essential. The executive noted that as transaction volumes, customer expectations, payment complexity, and operational demands such as reconciliation, settlement, and compliance continued to rise, sustained investment in digital infrastructure remained central to growth, resilience, security, and competitiveness.
