Nigeria’s biggest lenders spent more than N119 billion on technology infrastructure, software and digital banking systems in the first quarter of 2026, reflecting an industry-wide push to strengthen digital capabilities and improve customer experience.
An analysis of the first-quarter financial statements of four tier-one banks – GTCO, Zenith Bank, UBA and Access Bank – showed their combined technology expenditure rose to N119.03 billion in the three months to March 31, 2026, from N83.15 billion in the corresponding period of 2025, representing a 43.2 per cent increase year-on-year.
Zenith Bank emerged as the largest spender, committing N43.83 billion to technology-related investments during the period, almost double the N21.93 billion recorded a year earlier. The amount accounts for nearly half of the N91.92 billion the lender spent on technology throughout 2025, indicating an acceleration in its digital expansion plans.
GTCO reported total technology spending of about N16.4 billion, comprising N8.5 billion in technological and service-related expenses and N7.89 billion invested in software acquisitions. This represents a 24.3 per cent increase from the estimated N13.19 billion spent in the first quarter of 2025, while software purchases alone rose by 68.6 per cent.
UBA recorded the fastest growth in technology expenditure among the lenders reviewed. The bank’s IT support and related expenses climbed to N22.07 billion from N6.18 billion in the corresponding period of last year, marking a 257 per cent increase and more than tripling its spending within a year.
Access Bank, however, was the only lender to report a decline in technology spending. Its IT and e-business expenses fell to N36.73 billion in the first quarter from N41.85 billion in the same period of 2025, representing a 12.2 per cent reduction.
Co-founder of Recital Finance, Bobola Ojo-Ami, said the rise in technology investments was unsurprising given the rapid growth in digital transactions across the financial sector. He noted that about 90 per cent of retail banking transactions are now conducted through digital channels rather than physical branches.
According to him, increasing transaction volumes, renewed international card usage, expansion of payment infrastructure and deeper participation in regional and domestic markets have made sustained investment in technology essential for growth, operational resilience, cybersecurity and competitiveness within the banking industry.
