By Boluwatife Oshadiya | June 26, 2026
Key Points
- Four of Nigeria’s largest banks spent N119.03 billion on technology in the first quarter of 2026, up 43.2% year-on-year
- Zenith Bank recorded the highest technology expenditure, while UBA posted the fastest growth in digital investment
- Banks continue to ramp up spending on software, cybersecurity and digital infrastructure as electronic transactions accelerate
Main Story
Nigeria’s leading commercial banks significantly increased investment in technology during the first quarter of 2026, spending a combined N119.03 billion on software, digital infrastructure, cybersecurity and information technology services as the industry continues its rapid 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 their combined technology expenditure rose from N83.15 billion in the corresponding period of 2025 to N119.03 billion, representing a 43.2 per cent year-on-year increase.
Zenith Bank emerged as the biggest technology investor during the quarter, spending N43.83 billion, nearly double the N21.93 billion recorded a year earlier. UBA posted the fastest growth, with technology-related expenses surging 257 per cent to N22.07 billion from N6.18 billion in the same period last year.
GTCO recorded technology spending of N16.40 billion, reflecting continued investment in software acquisitions and digital service infrastructure. The financial group increased software purchases to N7.89 billion, compared with N4.68 billion recorded in the first quarter of 2025.
Access Bank remained one of the sector’s largest technology investors despite reporting the only year-on-year decline among the four lenders. The bank spent N36.73 billion on IT and e-business operations during the quarter, down from N41.85 billion in the corresponding period of 2025.
The sustained investment trend reflects growing competition among Nigerian banks to strengthen digital banking platforms, improve cybersecurity, automate operations and enhance customer experience as electronic payments continue to dominate financial transactions across the country.
What’s Being Said
“Nigeria’s financial ecosystem is processing far more digital transactions today than it did a few years ago. Banks are responding to a structural shift in customer behaviour, where about 90 per cent of retail banking transactions are now completed through digital channels rather than inside banking halls,” Bobola Ojo-Ami, Co-founder, Recital Finance.
Ojo-Ami added that increasing transaction volumes, payment complexity, cross-border trade and new payment infrastructure make sustained investment in digital technology essential for banks seeking to remain competitive while maintaining operational resilience and security.
What’s Next
- Nigerian banks are expected to continue expanding investment in digital banking, cybersecurity and artificial intelligence as competition intensifies across the financial services sector.
- The industry’s technology spending is likely to remain elevated throughout 2026 as lenders support regulatory reforms, payment innovation and increasing digital transaction volumes.
- Analysts will closely monitor upcoming half-year financial results to assess whether technology investments translate into stronger digital revenues, improved operational efficiency and enhanced customer experience.
Bottom Line
The Bottom Line: Technology is no longer a support function for Nigerian banks—it has become a strategic driver of growth, competitiveness and customer retention. As digital transactions continue to outpace traditional banking, sustained investment in technology infrastructure will increasingly determine which lenders lead the next phase of Nigeria’s financial services evolution.
