3 Banks Spend N214.29bn On ICT In 9 Months

As customers continue to grapple with the after effects of the system upgrade done by some major banks in the country, three banks have so far spent N214.294 billion on boosting their technology, a 264.4 per cent boost compared to N56.924 billion they spent last year.

At the end of the nine months period for the 2024 financial year, Zenith Bank, Access Corporation and Guaranty Trust Holding increased their spending on ICT considerably.

Last month, many customers had been stranded and left in limbo as they could not access their funds as at when needed due to the disruptions caused by the upgrade of banking software of their various banks. The efforts by financial institutions to upgrade core banking systems, intended to modernize infrastructure and boost efficiency, have instead left many customers struggling to access essential services.

From Sterling Bank to Guaranty Trust Bank (GTB) and Zenith Bank, millions of customers have experienced delays, transaction failures, missing funds, unsolicited transfers and reversals as well as complete service outages. Social media channels are awash with complaints from customers unable to log into apps, make payments, or transfer funds.

According to the nine months financials posted by Access, spending on technology rose drastically from N22.383 billion which it spent in the nine months period of 2023, to N131.424 billion in 2024, a 487 spike in spending. The bank which earlier scheduled its upgrade for last month, had postponed it following outcry from customers.

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Zenith Bank, in the 2024 nine month period spent N43.517 billion, a 225.9 per cent increase compared to N13.354 billion it spent in the comparable period of 2023. GTCO also spent N39.353 billion in 2024 compared to N21.187 billion it spent in the comparable period of 2023.

Electronic payments in the country surged by 84.37 per cent in the first seven months of 2024, reaching N572.63 trillion. This exponential growth, spurred by the Central Bank of Nigeria’s (CBN) push towards a cashless economy, has exposed significant gaps in banking infrastructure.

As one customer lamented during Zenith Bank’s October 1 outage: ‘I couldn’t make any payments for 72 hours—imagine being stuck in an emergency situation with no access to your funds.’

GTB, which announced its upgrade to the Finacle suite, acknowledged that it would cause temporary disruptions but aimed to enhance security and efficiency in the long term. However, the cost of these disruptions to customers, who rely on digital services for daily transactions, cannot be overlooked.

Most branches of GTB had remained closed on Monday October 14, 2024 as the upgrade disruption which was meant to last only for about 24 hours extended beyond the weekend, leaving customers stranded and frustrated.