Top Nigerian Banks Spend N119bn on Technology in Q1 as Digital Transformation Accelerates
Nigeria's leading banks increased their investment in technology and digital infrastructure in the first quarter of 2026, spending a combined N119.03 billion to strengthen digital banking services, cybersecurity, software systems and operational efficiency. An analysis of the first-quarter financial statements of Guaranty Trust Holding Company, Zenith Bank, United Bank for Africa and Access Bank showed that their combined technology expenditure rose from N83.15 billion in the corresponding period of 2025, representing a 43.2 per cent year-on-year increase. Among the lenders reviewed, Zenith Bank emerged as the largest technology spender, committing N43.83 billion during the quarter. The figure nearly doubled the N21.93 billion recorded in the same period last year and accounted for almost half of the bank’s total technology spending for 2025. UBA recorded the fastest growth in technology investment. The bank's IT support and related expenses climbed to N22.07 billion from N6.18 billion a year earlier, marking a rise of approximately 257 per cent. GTCO reported total technology-related spending of N16.4 billion, comprising N8.50 billion in technology and service-related expenses and N7.89 billion invested in software acquisitions. The group's software spending increased significantly from N4.68 billion recorded in the first quarter of 2025.
Access Bank spent N36.73 billion on IT and e-business operations. However, it was the only lender among the four to report a decline in technology expenditure, with spending falling by 12.2 per cent from N41.85 billion in the corresponding period last year. Despite the drop recorded by Access Bank, the broader industry trend points to rising investments in digital infrastructure as banks continue to automate operations, strengthen cybersecurity frameworks and improve customer experience across digital channels. Commenting on the development, Recital Finance co-founder, Bobola Ojo-Ami, said the increase reflects the rapid growth of digital banking and electronic transactions across Nigeria's financial system. According to him, the majority of retail banking transactions are now completed through digital channels, prompting banks to invest heavily in technology to meet customer expectations and support growing transaction volumes. He added that developments such as expanding digital payment systems, the return of international card transactions, new payment infrastructure, increasing cross-border trade and deeper participation in capital markets have made sustained investment in technology essential for growth, efficiency, security and competitiveness.
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