Nigeria’s top banks ramped up their investments in technology infrastructure in 2024, collectively spending N518.5 billion to modernize their operations.
This marks a 109% increase compared to the N248 billion they spent in 2023, according to the audited financial statements of eight banks.
From sweeping core banking software upgrades to rolling out AI-powered platforms and improving mobile apps, the surge in spending reflects a strategic shift: digital banking is no longer a feature; it’s the backbone of financial services.
The top spenders
Among the biggest spenders was Access Holdings, which splashed a staggering N193.5 billion on IT in 2024, up 148% from N78 billion in 2023.
While the bank did not announce a major core banking overhaul like some of its peers, it quietly executed multiple system upgrades over weekends to avoid service disruptions.
The scale of its spending points to aggressive investment in digital infrastructure to support its pan-African ambitions and growing retail footprint.
- GTCO also made a major move, investing N88 billion in IT last year, up 48.4% from N59.3 billion in 2023.
- A key part of this investment was its migration from the Jordanian/UK-developed Basis/Banks software to Finnacle, a core banking platform built by Indian tech firm Infosys.
- Zenith Bank, not far behind, spent N67.3 billion in 2024, almost double the N33.5 billion it committed the previous year.
- This jump followed its transition from Finastra’s Phoenix core banking system to Oracle’s Flexcube, a move aimed at bolstering its digital capacity and user experience across platforms.
Other banks
Fidelity Bank made one of the most dramatic leaps in percentage terms, growing its IT spend by 239% from N16.5 billion in 2023 to N56 billion in 2024.
The sharp increase signals a major digital shift for the tier-2 lender, likely in pursuit of a stronger position in Nigeria’s increasingly tech-driven banking landscape.
- UBA also doubled its investment, spending N48 billion on IT in 2024, an increase of 106.9% from N23.2 billion in the prior year.
- The bank, which boasts a large presence across Africa, has been upgrading its digital channels and mobile banking apps to better serve its rapidly expanding customer base.
- Stanbic IBTC spent N33.4 billion on IT in 2024, a 73.1% rise from N19.9 billion in 2023. The bank’s investment supports its strategy of maintaining agile, scalable platforms that complement its focus on retail banking and wealth management.
- FCMB followed with an IT spend of N26.8 billion last year, representing a 58.6% increase from N16.9 billion in 2023.
Meanwhile, Wema Bank, while posting the smallest overall figure at N5.5 billion, recorded the highest percentage growth at 292.9%, a significant jump from the N1.4 billion it spent in 2023.
Although First Bank Holdings has also published its 2024 financials, the company did not disclose IT-related expenditures. Sterling Bank, which also implemented a migration to a new core banking application last year, has yet to release its financial results as of the time of filing this report.
Why banks are spending more on IT
The wave of tech investment comes as traditional banks face heightened pressure from agile fintech competitors like OPay, PalmPay, and Moniepoint. These platforms have carved out market share by offering faster transactions, lower fees, and superior user experiences.
According to the Chief Executive Officer of Clane, a mobile payment company, Mr. Dipo Alabede, the banks have realized that investment in digital infrastructure is the only way to remain ahead of the curve in the highly competitive digital payment space.
But for him, the current spending may not just be enough, as the increasing adoption of digital payments means that “the banks should also expect a rise in cyber threats, including phishing attacks, ransomware, and data breaches, thus investing in cybersecurity is imperative.”
“While the banks are already seeing growth in digital transactions and revenue, the financial industry is rapidly evolving with the advent of fintech companies and new technologies like blockchain and artificial intelligence. They have to increase their investment in IT infrastructure to adapt to these changes, integrate new technologies, and stay competitive,” he said while justifying the need for more investments.
Also speaking with Nairametrics, the Chief Technology Officer at Onafriq, Mr Tayo Ogunlade, concurred that increase in digital payments comes with increase in cybersecurity threats for the banks.
For him, beyond investment in IT infrastructure and cybersecurity, Nigerian banks would need to collaborate to strengthen the digital payment system and minimize risks.
