By Monsurat Abisoye
Nigeria’s four leading banks spent more than N119 billion on information technology and digital infrastructure in the first quarter of 2026, highlighting the sector’s increasing focus on digital transformation.
An analysis of the first-quarter financial statements of Guaranty Trust Holding Company (GTCO), Zenith Bank, United Bank for Africa (UBA), and Access Bank showed that their combined technology expenditure rose to N119.03 billion as of 31 March 2026, up from N83.15 billion recorded during the same period in 2025.
The increase of N35.88 billion represents a 43.2 per cent year-on-year rise, driven by investments in software, digital banking platforms, cybersecurity, IT support services, and other technology infrastructure.
Zenith Bank emerged as the biggest spender, while UBA recorded the fastest growth in technology expenditure. Access Bank was the only lender to report a decline.
GTCO spent approximately N16.40 billion on technology-related investments during the period. This included N8.50 billion in technological and service-related expenses and N7.89 billion on software acquisitions, compared with N4.68 billion spent on software purchases in the first quarter of 2025. The group’s overall technology spending increased by 24.3 per cent from about N13.19 billion recorded a year earlier, while software investment rose by 68.6 per cent.
Zenith Bank spent N43.83 billion on technology in the first quarter, nearly double the N21.93 billion spent in the corresponding period of 2025. The amount also represented almost half of the N91.92 billion the bank spent on technology throughout 2025, indicating an acceleration in digital investments.
UBA posted the fastest growth, with IT support and related expenses rising from N6.18 billion in the first quarter of 2025 to N22.07 billion in the same period of 2026. The N15.89 billion increase translates to approximately 257 per cent growth.
Access Bank spent N36.73 billion on IT and e-business expenses during the review period. However, this was lower than the N41.85 billion spent in the first quarter of 2025, representing a decline of about N5.11 billion or 12.2 per cent.
Despite Access Bank’s reduction in spending, the overall trend among Nigeria’s largest lenders points to increased investment in technology to strengthen digital capabilities, automate operations, improve cybersecurity, and enhance customer experience.
Commenting on the trend, Co-founder of Recital Finance, Bobola Ojo-Ami, said the scale of investment was unsurprising, noting that Nigeria’s financial ecosystem is processing significantly more digital transactions than in previous years. He said around 90 per cent of retail banking transactions are now completed through digital channels rather than in banking halls.
According to him, the growth of digital payments, the return of international card transactions, the rollout of the Nigeria Inter-Bank Settlement System’s National Payment Stack, increased cross-border African trade, the Pan-African Payment and Settlement System, and deeper capital market participation have created a more connected and transaction-intensive economy.
He added that as transaction volumes, customer expectations, payment complexity, and operational demands such as reconciliation, settlement, and compliance continue to increase, sustained investment in digital infrastructure remains critical to growth, resilience, security, and competitiveness.