Customer Complaints Spell Significant Losses for Nigeria’s Top Banks

Nigeria’s top banks have paid out over N113 billion in refunds to customers over the past year, as they grapple with a rising tide of complaints.

According to financial reports filed with the Nigerian Stock Exchange, six deposit banks in the country received a total of 4,595,628 complaints from customers over the course of 2022.

The complaints were separate from those carried forward from the previous year, with over four million new complaints registered.

The banks covered in the analysis include Guaranty Trust Holding Company Plc, Wema Bank Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Zenith Bank Plc, and the FCMB Group Plc.

The complaints covered a wide range of issues, including dispense errors, failed bill payments, excess charges, and more.

Compared to the total amount claimed by customers – which reached N137.62bn – the six financial institutions refunded N113.33bn in the year under review.

GTCO reported 1,006,380 complaints in the year, with N2.158bn in claimed amount, while Wema Bank reported 404, 179 complaints with N924m in claimed amount involved.

In its 2022 financial statement, Union Bank said it received a total of 673,709 complaints with N30.27bn involved. United Bank for Africa reported 1,408,062 complaints, and N54.61bn was recorded as the claimed amount.

Zenith Bank recorded 475,499 complaints, with N17.57bn in dispute, while FCMB recorded 627,799 complaints, with N152.81m as the claimed amount.

Despite the significant amount of refunds paid out, many complaints remain unresolved. GTCO reported 9,248 outstanding complaints, while Wema Bank had 13,642.

The rising tide of customer complaints is a cause for concern among industry experts, who warn that unresolved complaints could pose a threat to the bottom line of Nigeria’s largest banks. As such, they are urging banks to enhance their customer complaint resolution strategies to minimize losses and maintain customer loyalty.