The number of customer complaints submitted to five major Nigerian banks has spiked by 117% year-on-year, totaling 6,865,217 by June 2023, compared to 3,156,704 in the same period in 2022. Data from the Nigerian Exchange Limited has revealed a notable increase in customer grievances, including concerns related to service quality and transaction disputes.
The breakdown of these complaints among the banks is as follows:
United Bank for Africa (UBA): UBA experienced the most substantial increase, with customer complaints soaring by 306.32%, rising to 1,930,518 in June 2023, up from 475,121 in June 2022. The value of disputes associated with these complaints reached N125.26 billion, a significant rise from N4.39 billion in 2022.
Access Holdings: Customer complaints at Access Holdings increased by 132.25%, surging from 1,387,702 to 3,222,907 between June 2022 and June 2023. The total amount in dispute rose to N136.75 billion, up from N57.87 billion.
Fidelity Bank: Fidelity Bank witnessed a 77.69% uptick in customer complaints, totaling 1,010,586, compared to 568,738 in June 2022. The monetary value associated with these complaints stood at N55.20 billion, marking a 268% increase.
Zenith Bank Plc: Zenith Bank reported a 12.55% increase in received complaints, reaching 247,685 in June 2023, up from 220,067 in June 2022. The total amount involved in these complaints amounted to N8.38 billion, reflecting a 66% rise from the N5.04 billion reported in 2022.
Guaranty Trust Holding Company (GTCO): GTCO was the only bank that experienced a decrease in customer complaints, marking about a 10% improvement, reducing from 505,076 in H1 2022 to 453,575 in H1 2023. The disputed amount also decreased to N517.67 million from N1.51 billion.
This surge in customer complaints coincided with a period of adjustment for the Nigerian banking sector due to the Naira Redesign policy initiated by the Central Bank of Nigeria. The policy led to a higher volume of electronic transactions, combined with a cash crunch.
Experts have attributed the increase in customer grievances to factors such as the “Japa” trend, where skilled Nigerians emigrate in search of better opportunities abroad, causing a talent drain in the sector. Other contributing factors include a knowledge gap within the financial industry, where banks hire inexperienced staff without providing adequate training. Sudden policy changes by banks and regulatory authorities, difficulties in using IT platforms, and challenges in adapting to new policies have all been identified as significant issues leading to customer complaints.
To address this challenge, experts recommend improving staff training, filling knowledge gaps, and ensuring that customers are well-informed about policy changes to enhance service quality and reduce grievances.