Nigeria's leading banks significantly increased their technology investments in the first quarter of 2026, spending more than N119 billion on information technology, software, cybersecurity, and digital infrastructure as they continue to accelerate digital transformation initiatives.

An analysis of the financial reports of four major lenders—Guaranty Trust Holding Company, Zenith Bank, United Bank for Africa, and Access Bank—showed that their combined technology-related expenditure rose to approximately N119.03 billion between January and March 2026, up from N83.15 billion during the same period in 2025.

This increase of N35.88 billion represents a 43.2 percent year-on-year growth, highlighting the banking sector's commitment to strengthening digital banking platforms, cybersecurity systems, IT support services, and other technology infrastructure.

Among the institutions reviewed, Zenith Bank recorded the highest technology spending at N43.83 billion, nearly double its expenditure of N21.93 billion in the first quarter of 2025. The sharp increase suggests a strong push toward expanding the bank's digital capabilities.

United Bank for Africa posted the fastest growth rate, with technology and IT support expenses climbing to N22.07 billion from N6.18 billion a year earlier. The increase of about 257 percent more than tripled the bank's technology investment within a year.

GTCO spent a total of N16.4 billion on technology during the quarter. This included N8.5 billion in technology and service-related operational expenses and N7.89 billion invested in software acquisitions. The group's total technology spending rose by about 24.3 percent compared to the same period in 2025, while software investment alone increased by nearly 69 percent.

Access Bank spent N36.73 billion on IT and e-business operations. However, it was the only lender among the four to record a decline in technology expenditure, with spending falling by 12.2 percent from N41.85 billion in the corresponding quarter of 2025.

Despite Access Bank's reduction, the overall trend points to growing investment in technology across Nigeria's banking sector as financial institutions seek to automate operations, strengthen security, improve efficiency, and deliver better digital experiences to customers.

According to Recital Finance co-founder, Bobola Ojo-Ami, the surge in technology spending reflects the rapid growth of digital transactions and changing customer preferences. He noted that around 90 percent of retail banking transactions are now conducted through digital channels rather than physical branches.

He further explained that developments such as increasing electronic payment volumes, the return of international card transactions, new payment infrastructure, the expansion of cross-border African trade, and greater participation in capital markets have made continued investment in technology essential. As transaction volumes and operational demands continue to grow, robust digital infrastructure remains critical for competitiveness, security, efficiency, and long-term growth.