Nigerian banking customers may face further service disruptions in the coming weeks as banks work to overhaul their core systems.
Financial institutions across the country are racing to transition to more secure, cost-effective software—a shift that has already caused transaction delays and system outages for some banks.
Dr. Uju Ogubunka, President of the Bank Customers Association of Nigeria (BCAN) and former Registrar of the Chartered Institute of Bankers of Nigeria (CIBN), voiced concerns over banks’ communication efforts, criticising them for failing to adequately inform customers about these potential disruptions.
“The ultimate aim is to improve the system and services to customers, but whether all these upgrades should happen simultaneously is debatable, as it’s causing major disruptions. Additionally, many banks failed to give enough notice to their customers, leaving them unprepared,” Ogubunka noted in an interview with THISDAY.
The lack of preparation and clear communication has heightened the frustration among customers, especially those less comfortable with digital technology.
Ogubunka stressed the importance of better outreach and perhaps even basic training to assist customers through the transition.
“Not every customer is technology-compliant. Banks need to take time to explain these changes and even provide some training to help customers adjust. The lack of preparation is making things worse,” he added.
Meanwhile, an anonymous source within the banking industry hinted that these disruptions might be far from over.
According to the source, many banks are still in the process of migrating, with further outages expected as institutions move to address escalating security risks and high operational costs.
“The banks pay in dollars for every account held, along with the cost of additional services. With the naira’s decline, these expenses have become unsustainable. That is why banks are looking for cheaper alternatives, whether local or foreign,” the source explained.
This currency depreciation has rendered these expenses unsustainable, prompting institutions to seek more affordable software alternatives.
The transition has already impacted several major banks. Sterling Bank was among the first to undergo service issues after migrating from the T24 platform to SEABaaS, a locally developed system, in September.
Customers experienced days of transaction failures during this process.
Similarly, GTBank recently announced plans to transition from its Jordanian/UK software provider, ICS Financial Services, to Finacle, an Indian platform.
Zenith Bank also encountered a significant service disruption on October 1 while switching from Phoenix (by UK-based Finastra) to Oracle’s Flexcube system.
Access Bank, which had planned its upgrade, postponed it but promised to inform customers of a new migration date.
A major driver behind this shift is the surge in cyberattacks targeting financial institutions. Banks need to enhance security, and part of this strategy involves migrating to platforms with stronger protections against these threats, according to the industry source.
However, the speed at which these migrations are taking place across multiple banks is causing industry-wide disruptions, with additional banks anticipated to follow suit.
This has led Ogubunka and other observers to call for a more gradual, customer-centric approach.
“Yes, the goal is to improve service quality, but banks should not rush the process and neglect the needs of their customers. Without adequate preparation and communication, we will continue to see more disruptions, and the frustrations will only deepen,” Ogubunka pointed out.
In closing, Ogubunka urged banks to focus on clear customer communication and smoother transition processes to minimise further interruptions for users, ultimately making these upgrades as seamless as possible.
