Six Nigerian Commercial Banks Increased Their Investment on IT Amid Surge in Electronic Transactions
According to reports, six (6) commercial banks in Nigeria ramped up their investment in information and technology (IT) by 44.66 percent, totaling N205.34 billion. This surge in spending corresponds with the increasing number of customers engaging in electronic transactions.
Financial statements from these banks also indicate a significant uptick in income from electronic transactions, rising by 43.73 percent to N331.61 billion. These figures underscore the notable evolution occurring in Nigeria’s payment landscape.
Check Out The Banks Below And The Amount Spent on IT;
Access Holdings Plc spent the most on IT last year, investing the sum of N78.05 billion.
Guaranty Trust Holding Company (GTCO), the owner of GTBank, increased its IT expenses to N50.24 billion, while Zenith Bank spent N33.59 billion.
The United Bank for Africa Plc (UBA) spent N23.19 billion; Stanbic IBTC Holdings Plc, N19.34 billion; and Wema Bank did N1.42 billion.
UBA reported the most electronic banking income of N125.58 billion. Access earned N101.62 billion from electronic transactions; Zenith, N51.82 billion; GTCO, N40.83 billion; Wema, N7.35 billion; and Stanbic, N4.42 billion.
It is interesting to note that electronic payments have experienced a notable surge in Nigeria in recent years. The Nigeria Inter-Bank Settlement System (NIBSS) reported a substantial year-on-year growth of 54.55 percent, with electronic payments reaching N611.06 trillion in 2023, up from N395.38 trillion in 2022. Also, instant payment channels witnessed a remarkable usage volume of 9.67 billion transactions.
The drive towards cashless transactions in Nigeria has been influenced in part by the Central Bank of Nigeria’s (CBN) implementation of a naira redesign policy and withdrawal limits in December 2022.
With the country striving for a cashless future, the CBN’s ‘Payments Vision 2025’ outlines a trajectory where cash usage should diminish significantly by the target year. This shift anticipates a majority of online transactions being handled by both traditional banks and fintech companies.
