Nigerian Banks Profits Customer Complaints: Record 2024 Earnings vs. Service Issues

Lagos – Six major Nigerian banks announced record earnings for the 2024 financial year, highlighting the growing public discussion around Nigerian banks profits customer complaints. The institutions reported a combined profit after tax of N3.41 trillion, marking a significant 62.38% increase from N2.1 trillion in 2023.

Financial Performance Soars

Despite difficult economic conditions, all six banks – Zenith Bank, GTCO, UBA, Fidelity Bank, Stanbic IBTC, and Wema Bank – achieved substantial growth. Gross earnings increased across these banks. Their combined pre-tax profits climbed by 42.7% to N4.1 trillion. The banks cited returns to equity holders and non-controlling interests as contributing factors, alongside higher earnings per share.

Following these strong financial results, some banks raised their dividend payouts. GTCO increased its total dividend to N8.03 per share. Zenith Bank and UBA also announced higher distributions for their shareholders. However, this financial success contrasts sharply with the service experiences reported by many customers.

Customer Dissatisfaction Remains High

Millions of complaints were lodged against these banks during the year. GTCO faced over 941,000 complaints; while it resolved the majority, nearly 8,000 cases remained open. UBA received over 3.2 million complaints, with more than one million still unresolved. Zenith Bank and Wema Bank also reported significant backlogs of pending customer issues.

Customers voiced considerable frustration, especially regarding unresolved failed transactions. “GTB debited me in about four different transactions that I did, but up till now, they did not reverse any of these monies,” shared customer Catherine Itoha, who reported waiting almost a year for a refund. Augustine Ode, another customer, urged the Central Bank of Nigeria (CBN) to address excessive bank charges, arguing that banks often prioritize earnings over fair treatment.

Calls for Stronger Regulatory Action

Financial analysts are calling for increased oversight from the Central Bank of Nigeria. “The CBN needs to really monitor and supervise the banks to ensure that they are not overcharging the customers,” stated Professor Uche Uwaleke. He noted that high lending rates, without corresponding increases in savings rates, contributed significantly to the banks’ large profits. The relationship between Nigerian banks profits customer complaints is drawing increasing scrutiny from experts and the public.

Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria (CIBN), accused banks of applying “illegal charges.” He commented, “Banks charge all sorts, even illegal charges, and if customers complain, they won’t respond because they feel the amount is small.” Unegbu encouraged consumers to challenge unfair fees and called for consumer advocacy groups to increase pressure on financial institutions for accountability.

(Source: Analysis incorporates data reported by NAN and bank financial statements)