Ten commercial banks spent N81.92bn on communications as well as Information Technology services in the first half of 2022.
According to the financial reports of the banks, this was a 58.69 per cent increase from the N51.62bn spent by the banks on the same services in the corresponding period of 2021.
In the period under review, Access Bank had the highest communication and IT expenditure among the banks. It spent N26.83bn on communication expenses, IT, and e-business expenses in the first six months of 2022.
Sterling Bank had the least expense of the banks. It spent N961m on communication costs in the period under review
The analysis of data on the other banks showed that Guaranty Trust Holding Company and subsidiary companies spent N9.33bn on communications, technological-related expenses, and administrative expenses.
GTCO also stated that the fee included administrative fee paid to SIT for the management of the shares held by the scheme.
Zenith Bank Plc spent N19.94bn on telephone, postages, communication charges, and information technology expenses. First Bank Nigeria Holding Plc grouped its communication, light, and power expense, reporting its total expenditure on them at N7.58bn for the period.
The United Bank for Africa spent N4.73bn on communication, IT support and related expenses.
Wema Bank spent N1.19bn on technology and alternative channels, as well as transport and communications.
Fidelity Bank spent N1.01bn on telephone and computer expenses, while Stanbic IBTC Holdings Plc spent N6.78bn on information technology and communication expenses. Union Bank of Nigeria spent N3.56bn on software.
According to experts, the increasing adoption of technology by banks was not only driving growth for the banks but also costing them.
An ICT expert and Senior Partner of e86 Limited, Olugbenga Odeyemi, said, “A recent report on the Nigerian banking sector shows an increase in the adoption and use of electronic banking platforms over the same period you mentioned.
“More usage is expected to increase both expenses and revenue on the side of the platform owners. So, it is a good thing. There is also the angle of implementing more security features and expanding into new markets, I think the growth is good for both the banking and tech sectors.”
According to Odeyemi, banks were not only spending on technology but also on mitigating tech talent attrition.
He stated, “The ongoing mass exodus from the country is also affecting the banking sector. Most of their good and reliable hands have left the country for opportunities in other countries. This is true, especially for tech hires within the banking sector.
“So, the need to spend more is not just about spending more on the latest technologies, it’s also important to review their staff welfare, especially those within their tech spaces and those managing their electronic platforms.”
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