RipplesMetrics: How Nigerian banks allocated funds for advertising, security, stationery in 2024

Nigerian banks have significantly increased their spending across various operational sectors in 2024, with the highest expenditures directed toward advertising, security, and stationery/printing, RipplesMetric findings from financial banks’ statements have shown.

According to the 2024 financial statements of top banks, First Bank led the pack in advertising spend, while Access Bank took the top spot in both security and stationery costs.

Advertising Expenditures Surge

In 2024, Nigerian banks spent a collective total of ₦235.36 billion on advertising, highlighting the fierce competition in the banking sector. The country’s largest commercial bank, First Bank, emerged as the top spender, with a staggering ₦75.93 billion dedicated to marketing campaigns. This figure sets a high bar for other financial institutions in the country, marking a significant push towards enhancing brand visibility and attracting new customers.

Following First Bank’s considerable spend, UBA (United Bank for Africa) and Fidelity Bank also made significant investments in advertising. UBA spent ₦46.51 billion, while Fidelity’s marketing budget reached ₦35.12 billion. These figures are indicative of the aggressive marketing strategies employed by these banks as they vie for market share in a highly competitive industry.

In contrast, Zenith Bank and Access Bank spent ₦30.89 billion and ₦20.35 billion, respectively. Despite their lower advertising budgets compared to First Bank, these banks continue to position themselves strongly in the market. Guaranty Bank and Wema spent ₦17.42 billion and ₦6.84 billion, while smaller players such as Stanbic IBTC and FCMB invested relatively smaller amounts—₦2.30 billion and ₦48.26 million, respectively.

Security expenditures

When it came to security, Access Bank once again led the way, spending ₦14.84 billion. The increased focus on security could reflect a growing concern on safeguarding both physical and digital assets, a priority for banks operating in an increasingly volatile environment.

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Zenith Bank, a major player in Nigeria’s banking sector, allocated ₦11.01 billion to security, while UBA followed with ₦6.59 billion. The emphasis on security expenditure is also reflected in other banks, with Fidelity Bank spending ₦3.43 billion and Wema Bank investing ₦557.54 million.

Interestingly, Stanbic IBTC, which is known for a conservative approach to spending, reported the lowest security expenditure at just ₦12.30 million, raising questions about its security protocols or perhaps the scale of its operations in Nigeria.

Stationery and Printing Costs

Expenditures on stationery and printing by banks in 2024 also saw significant increases. Access Bank once again dominated, with a reported spend of ₦6.92 billion. As banks increasingly rely on paperwork and print materials for internal operations, marketing, and customer service.

Zenith Bank and UBA followed closely behind, spending ₦6.42 billion and ₦5.14 billion on stationery and printing. These investments are likely tied to the banks’ need to produce materials for customer transactions, marketing collateral, and internal documentation.

Other banks such as First Bank and GTBank spent ₦4.23 billion and ₦3.53 billion, respectively, while Fidelity Bank spent ₦1.78 billion. Smaller banks, including Wema and Stanbic IBTC, reported much lower figures at ₦719.98 million and ₦89 million, respectively.

The data from 2024 demonstrates a clear trend of banks significantly ramping up their spending on key operational areas such as advertising, security, and stationery. First Bank stands out in advertising, reflecting an aggressive push for customer acquisition. On the other hand, Access Bank’s leading positions in both security and stationery spending signal its focus on both safeguarding assets and maintaining operational infrastructure.

As Nigerian banks navigate a competitive landscape, the continued investment in these areas suggests a strategic push to not only maintain customer trust and brand presence but also to address internal operational and security challenges. This data shows that the banking sector is increasingly investing in both customer-facing and internal operational strategies to secure its position in a highly competitive environment. The numbers reflect a strategic and responsive approach by these banks to not only strengthen their brands but also to safeguard their assets and streamline their operations in 2024.

By: James Odunayo

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