Key points
- Four leading Nigerian banks spent over N119 billion on technology and digital infrastructure in the first quarter of 2026, representing a 43.2 per cent increase from the same period in 2025.
- Zenith Bank emerged as the highest spender, while United Bank for Africa (UBA) recorded the fastest growth in technology expenditure.
- Industry experts say rising digital transaction volumes, cybersecurity demands and evolving customer expectations are driving sustained investments in technology.
Main story
Nigeria’s leading banks significantly increased investments in technology and digital infrastructure during the first quarter of 2026, underscoring the growing importance of digital transformation in the country’s financial services sector.
An analysis of the first-quarter financial statements of four tier-one lenders—Guaranty Trust Holding Company (GTCO), Zenith Bank, United Bank for Africa (UBA), and Access Bank—shows that their combined spending on information technology, software, digital platforms and related infrastructure rose to N119.03 billion in the three months ended March 31, 2026.
The figure represents an increase of N35.88 billion or 43.2 per cent from the N83.15 billion recorded during the corresponding period in 2025.
The surge in expenditure reflects growing investments in software acquisition, digital banking infrastructure, cybersecurity systems, IT support services, automation and customer-facing digital solutions.
Among the banks reviewed, Zenith Bank emerged as the largest technology investor, spending N43.83 billion during the period. The lender’s technology expenditure nearly doubled from N21.93 billion recorded in the first quarter of 2025, representing an increase of approximately 100 per cent.
The bank’s first-quarter spending accounted for almost half of the N91.92 billion it spent on technology throughout the entire 2025 financial year, indicating an accelerated pace of digital investment.
GTCO recorded total technology-related spending of N16.40 billion, comprising N8.50 billion in technology and service-related operational expenses and N7.89 billion invested in software acquisitions classified as intangible assets.
The group’s technology spending rose by 24.3 per cent from approximately N13.19 billion recorded during the same period last year. Software investments alone increased by 68.6 per cent year-on-year.
United Bank for Africa posted the fastest growth among the lenders reviewed. The bank’s expenditure on IT support and related services rose sharply to N22.07 billion from N6.18 billion in the first quarter of 2025.
The increase of N15.89 billion represents a remarkable 257 per cent growth, more than tripling the bank’s technology spending within a year.
Access Bank, Africa’s largest bank by customer base, spent N36.73 billion on IT and e-business operations during the review period.
However, unlike its peers, Access Bank recorded a decline in technology expenditure. The bank’s spending fell from N41.85 billion recorded during the first quarter of 2025, translating to a decrease of approximately 12.2 per cent.
Despite Access Bank’s reduction, the overall industry trend points to increased digital investments as financial institutions seek to strengthen operational efficiency, improve cybersecurity resilience, automate processes and enhance customer experiences through digital channels.
The issues
Nigeria’s banking sector is undergoing rapid digital transformation driven by changing customer behaviour, increased adoption of electronic payment systems and the growing demand for seamless digital banking services.
Banks are also facing heightened cybersecurity threats, increasing regulatory requirements and growing competition from fintech companies, all of which require sustained investment in technology infrastructure.
As transaction volumes continue to grow, financial institutions are under pressure to maintain reliable, secure and scalable digital platforms capable of supporting millions of customers.
What’s being said
Co-founder of Recital Finance, Bobola Ojo-Ami, said the increase in technology spending reflects structural changes in Nigeria’s financial ecosystem.
According to him, electronic payment volumes and digital banking revenues have continued to grow significantly, with an estimated 90 per cent of retail banking transactions now conducted through digital channels rather than physical banking halls.
He noted that the expansion of digital payments, the reintroduction of international card transactions, the Nigeria Inter-Bank Settlement System (NIBSS) National Payment Stack, the Pan-African Payment and Settlement System (PAPSS), and increased cross-border trade activities have further intensified demand for robust technology infrastructure.
Ojo-Ami stressed that continuous investment in digital systems remains critical for ensuring growth, operational resilience, security, compliance and competitiveness within the evolving financial landscape.
What’s next
Industry analysts expect technology spending among Nigerian banks to remain elevated throughout 2026 as lenders continue modernising core banking systems, expanding digital channels and strengthening cybersecurity frameworks.
Banks are also likely to increase investments in artificial intelligence, data analytics, cloud computing, automation and digital payment infrastructure to support future growth and enhance customer engagement.
As digital banking adoption accelerates across Africa, financial institutions will continue to prioritise technology as a key driver of efficiency, innovation and long-term profitability.
Bottom line
The 43 per cent rise in technology spending by Nigeria’s top banks highlights the sector’s growing commitment to digital transformation. With customer transactions increasingly shifting online and financial ecosystems becoming more interconnected, technology is no longer a support function but a strategic necessity for growth, security and competitiveness in modern banking.
