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Bank -Bank Nigeria has significantly increased their expenses in various operational sectors in 2024, with the highest expenditure directed at advertising, security, and stationery/printing, Ripplesmetric findings from the financial bank statement have been shown.
According to 2024 Top Bank’s financial statements, First Bank leads the package in advertising expenditure, while the access bank takes the top position in security costs and stationery.
The surge in advertising expenditure
In 2024, Nigerian banks spent a total of 235.36 billion for advertising, highlighting fierce competition in the banking sector. The largest commercial bank in the country, First Bank, emerged as the top waste, with ₦ 75.93 billion shocking dedicated to marketing campaigns. This figure sets a high standard for other financial institutions in the country, marks a significant encouragement to increase brand visibility and attract new customers.
Following a fairly large first bank expenditure, UBA (United Bank for Africa) and Fidelity Bank also make significant investments in advertising. Uba spent ₦ 46.51 billion, while Fidelity’s marketing budget reached ₦ 35.12 billion. These figures are an indication of the aggressive marketing strategy used by these banks because they compete for market share in a very competitive industry.
Conversely, Zenith Bank and Access Bank spent ₦ 30.89 billion and ₦ 20.35 billion, respectively. Although their ad budget is lower than the 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 small players such as Stanbic IBTC and FCMB invested relatively smaller numbers -₦ 2.30 billion and ₦ 48.26 million, respectively.
Security expenditure
When it comes to security, bank access once again leads, expenditure ₦ 14.84 billion. Increased focus on security can reflect concerns that develop in maintaining physical and digital assets, priority for banks that operate in an more easily volatile environment.
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Zenith Bank, the main player in the Nigerian banking sector, is allocated ₦ 11.01 billion for security, while Uba is followed by ₦ 6.59 billion. The emphasis on security expenditure is also reflected in other banks, with the expenditure of Fidelity Bank ₦ 3.43 billion and investment of Bank Wema ₦ 557.54 million.
Interestingly, Stanbic IBTC, known for a conservative approach to expenditure, reports the lowest security expenditure only at 12.30 million, raises questions about the security protocol or maybe the scale of operations in Nigeria.
Stationery and printing costs
Expenditures for stationery and printing by banks in 2024 also experienced a significant increase. Bank access once again dominates, with reported expenses ₦ 6.92 billion. Because banks increasingly rely on documents and printed materials for internal operations, marketing, and customer service.
Zenith Bank and Uba followed behind, expenditure ₦ 6.42 billion and ₦ 5.14 billion for stationery and printing. This investment is likely to be related to the need for banks to produce materials for customer transactions, marketing guarantees, and internal documentation.
Other banks such as First Bank and GTBank spent ₦ 4.23 billion and ₦ 3.53 billion, each, while Fidelity Bank spent ₦ 1.78 billion. Small banks, including Wema and Stanbic IBTC, reported much lower numbers at ₦ 719.98 million and 89 million.
Data from 2024 shows a clear bank trend significantly increases their expenses for the main operational areas such as advertising, security, and stationery. First Bank stands out in advertising, reflecting aggressive encouragement for customer acquisitions. On the other hand, the leading position of Bank Access in security and stationery indicates its focus on securing asset and maintaining operational infrastructure.
When the Bank -Bank Nigeria navigated competitive landscapes, sustainable investment in these fields showed a strategic encouragement to not only maintain customer confidence and brand presence but also to overcome operational challenges and internal security. This data shows that the banking sector is increasingly investing in operational strategies facing customers and internal to secure its position in a very competitive environment. These figures reflect a strategic and responsive approach by these banks to not only strengthen their brand but also to protect their assets and streamline their operations in 2024.
By: James Odunayo
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