Banking complaints in Nigeria have surged by 117% year-on-year, reaching 6,865,217 in June 2023. Financial claims skyrocketed to N326.11 billion, raising concerns over service quality. Customer grievances against five major banks have seen a staggering 117% increase, totaling 6,865,217 complaints in June 2023, compared to 3,156,704 during the same period in 2022. These figures highlight growing dissatisfaction with banking services in Nigeria.
The surge in complaints was accompanied by a substantial rise in financial claims. The total value of claims reached N326.11 billion, marking a staggering 289% increase from N83.78 billion in claims in June 2022. The data was sourced from reports by key Nigerian banks, including United Bank for Africa, Fidelity Bank, Access Holdings, Zenith Bank Plc, and Guaranty Trust Holding Company. Among the reviewed banks, United Bank for Africa (UBA) experienced the highest increase in customer complaints, surging by 306.32%. Access Holdings also witnessed a substantial uptick in complaints, with a 132.25% increase.Â
Fidelity Bank recorded a 77.69% increase in customer complaints, with 1,010,586 complaints in June 2023, up from 568,738 in June 2022. Zenith Bank Plc observed a more modest increase of 12.55% in complaints, receiving 247,685 complaints in June 2023, compared to 220,067 in June 2022.Â
In contrast, Guaranty Trust Holding Company (GTCO) was the only bank that experienced a decrease in customer complaints, signaling a 10% improvement. Complaints dropped from 505,076 in H1 2022 to 453,575 in H1 2023, with disputed amounts decreasing from N1.51 billion to N517.67 million.
The surge in customer complaints is attributed to several factors, including the Central Bank of Nigeria’s Naira Redesign policy, which led to an increase in electronic transactions due to a cash crunch. The Naira Redesign policy significantly impacted the banking sector, leading to a substantial rise in electronic transactions, according to the Nigeria Inter-bank Settlement System.
Additionally, talent migration, often referred to as the ‘Japa’ trend, has contributed to the decline in service quality in the banking sector. Skilled individuals leaving the country for better opportunities have left knowledge gaps in the industry, resulting in poorer customer service.
The Banking Customers Association of Nigeria and experts in the field have pointed to a lack of proper training, inexperience, and inadequate knowledge as key reasons for the surge in customer complaints. Inconsistent policies by banks and a lack of customer awareness and understanding of digital platforms have also added to the major problem. Despite the challenges, experts believe that addressing these issues and investing in the training and development of banking staff can lead to improved services and a brighter future for Nigerian banking customers.
Source: [Punch]
