KEY POINTS
- Four tier-one banks spent over N119bn on technology in Q1 2026, up 43.2 percent.
- Zenith Bank led with N43.83bn, while UBA recorded the fastest growth.
- Access Bank was the only lender to cut technology spending, down 12.2 percent.
Nigeria’s largest lenders spent more than N119 billion on information technology, software and related digital infrastructure in the first three months of 2026, underscoring the growing weight of technology in their digital transformation drive. An analysis of the first-quarter statements of four tier-one lenders showed that their combined technology spending rose to about N119.03 billion, up from N83.15 billion a year earlier.
Banks technology spending jumps to 43 percent
The increase of N35.88 billion represents a 43.2 percent year-on-year rise, reflecting heavier investment in software, digital banking platforms, cybersecurity and IT support. However, the pattern varied across the lenders. Zenith Bank emerged as the biggest spender, UBA recorded the fastest growth, and Access Bank stood out as the only lender to cut spending.
According to its statements, GTCO recorded total technology-related spending of about N16.4 billion, which included N8.50 billion in technology and service-related expenses and N7.89 billion on software. Consequently, its combined technology outlay rose about 24.3 percent year-on-year, while its software investment alone climbed 68.6 percent.
Moreover, Zenith Bank spent N43.83 billion on technology, nearly double the N21.93 billion it spent a year earlier. That single quarter accounted for nearly half of the N91.92 billion the bank spent across all of 2025, which signals an acceleration in 2026.
Diverging strategies
Furthermore, UBA posted the sharpest rise, as its IT support and related expenses jumped to N22.07 billion from N6.18 billion, a growth of roughly 257 percent. In contrast, Access Bank spent N36.73 billion on IT and e-business, down 12.2 percent from N41.85 billion a year earlier, making it the only lender to reduce spending.
Despite that decline, the broader trend points firmly toward heavier investment as banks strengthen digital capabilities and cybersecurity. According to the Co-founder of Recital Finance, Bobola Ojo-Ami, the scale should surprise no one, because the financial system now processes far more digital transactions than before. “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,” he said.
Ultimately, Ojo-Ami tied the spending to a more connected economy, citing growth in digital payments, the NIBSS National Payment Stack, the Pan-African Payment and Settlement System and rising cross-border trade. Therefore, he argued, sustained investment in digital infrastructure remains central to growth, resilience, security and competitiveness.
