Customer complaints to five major Nigerian banks have surged by an alarming 117% year-on-year, with the number of grievances skyrocketing from 3,156,704 in June 2022 to 6,865,217 in June 2023.
This disconcerting data, obtained from the Nigerian Exchange Limited, signals a crisis in the country’s banking sector.
United Bank for Africa (UBA) leads the pack with a jaw-dropping 306.32% increase in customer complaints, rising from 475,121 in 2022 to 1,930,518 in 2023.
The total claims in this category have surged to N125.26bn from a mere N4.39bn in June 2022.
Access Holdings follows closely with a 132.25% spike in complaints, increasing from 1,387,702 to 3,222,907 in the same period. The associated claims rose to N136.75bn from N57.87bn.
Fidelity Bank saw its customer complaints rise by 77.69% to 1,010,586, with claims reaching N55.20bn, a 268% increase.
Zenith Bank, though with fewer complaints, still reported a 12.55% increase in grievances and an associated N8.38bn in claims, a 66% rise from the previous year.
Only Guaranty Trust Holding Company (GTCO) reported a decrease, with complaints dropping by approximately 10%. The associated disputed amount also fell from N1.51bn to N517.67m.
Experts attribute this surge in complaints to the effects of the Naira Redesign policy, which led to an increase in electronic transactions due to a cash crunch.
Talent migration, exacerbated by the ‘Japa’ trend, has also been blamed for the drop in service quality, as the banking sector faces a knowledge gap.
The President of the Bank Customers Association of Nigeria, Dr. Uju Ogubunka, underscored the importance of addressing the knowledge gap, highlighting its impact on the surge in customer complaints.
The banking industry faces a challenging road ahead to restore customer trust and satisfaction.