Banks report 117% surge in customer complaints, totalling N326.11bn in claims
Business

Banks report 117% surge in customer complaints, totalling N326.11bn in claims

Customer complaints to five major Nigerian banks have surged by 117% year-on-year to reach 6,865,217 by June 2023, compared to 3,156,704 complaints during the same period in 2022.

This significant increase in complaints was reported in the reviewed Lenders’ reports, which include United Bank for Africa (UBA), Fidelity Bank, Access Holdings, Zenith Bank Plc, and Guaranty Trust Holding Company.

Among these banks, UBA witnessed the highest increase in customer complaints, rising by 306.32% to 1,930,518 complaints in June 2023 compared to 475,121 complaints in June 2022.

The amount involved in these complaints also substantially rose to N125.26bn from N4.39bn in June 2022.

Access Holdings followed suit with a 132.25% increase in complaints, reaching 3,222,907 complaints in June 2023, up from 1,387,702 in June 2022. The disputed amount also increased to N136.75bn from N57.87bn.

Fidelity Bank reported a 77.69% increase in complaints, totaling 1,010,586 in June 2023, up from 568,738 in June 2022. The amount being claimed stood at N55.20bn, marking a 268% increment.

Zenith Bank Plc had a relatively modest increase of 12.55% in complaints, reaching 247,685 in June 2023 from 220,067 in June 2022.

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The disputed amount was N8.38bn, representing a 66% increase compared to the H1 2022 figure of N5.04bn.

Guaranty Trust Holding Company (GTCO) was the only bank in the review to experience a decline in customer complaints.

Complaints dropped by about 10% from 505,076 in H1 2022 to 453,575 in H1 2023. The disputed amount also reduced to N517.67m from N1.51bn.

These figures show a considerable increase in customer complaints and financial claims in the Nigerian banking sector in 2023.

The banking industry had to contend with the effects of the Central Bank of Nigeria’s Naira Redesign policy, which led to a surge in electronic transactions due to a cash crunch.

Industry experts attribute the rise in complaints to factors like a talent drain from the financial sector, inexperience of bank staff, sudden policy changes, and the ‘Japa’ trend, which has seen skilled Nigerians emigrating to seek better opportunities abroad.