In Nigeria, bank rewards programs are becoming an important way for financial institutions to retain clients and promote card and digital banking usage. Each time a customer makes purchases with a debit or credit card, pays bills online, or transacts with partner merchants, they earn loyalty points, cashback, or discounts. These benefits can later be redeemed for shopping vouchers, electronics, travel tickets, or bill payments. Leading Nigerian banks such as Access Bank, Zenith Bank, Guaranty Trust Bank (GTCO), United Bank for Africa (UBA), and First Bank of Nigeria have introduced reward systems tailored to local needs. This article explains how these programs function, which banks in Nigeria provide them, and most importantly, where the money comes from to fund these “free gifts.”
How bank rewards programs work
Rewards programs in Nigeria are structured loyalty schemes where customers accumulate points each time they use banking products or services. The logic is simple: more activity translates into more rewards. This keeps clients engaged with the bank while creating new revenue streams for the institution.
The basic structure
For every naira spent through card transactions, customers earn points recorded digitally in banking apps or online portals. These points can then be redeemed for tangible benefits such as travel discounts, gadgets, gift vouchers, or even fee waivers. Some Nigerian banks also offer cashback schemes where a percentage of the amount spent is returned directly to the customer’s account.
Earn points with every purchase or bill payment.
Redeem rewards for products, services, or cashback.
Enjoy exclusive offers from local merchant partners.
Benefit from seasonal campaigns tied to Nigerian festivities.
This model ensures that customers feel appreciated while banks increase transaction volumes and strengthen long-term relationships.
Banks in Nigeria with rewards programs
Several major banks in Nigeria offer loyalty and rewards schemes. While the basic idea is the same, each institution designs its program to stand out, often partnering with local retailers, airlines, and service providers.
Major financial institutions
Access Bank: runs loyalty schemes tied to card usage and digital payments, offering points redeemable for shopping and travel.
Zenith Bank: integrates points and cashback options into card services, often linked to lifestyle benefits.
GTCO (Guaranty Trust Bank): provides reward points and cashback opportunities through its extensive digital banking ecosystem.
UBA (United Bank for Africa): offers loyalty programs integrated into its regional presence, allowing customers to redeem across multiple countries.
First Bank of Nigeria: operates reward schemes tied to its Visa and Mastercard offerings, including discounts and partner deals.
These programs are designed to create a win-win relationship: customers get value for spending, while banks drive up card usage and digital adoption.
The origin of the rewards
A common question Nigerian customers ask is: how do banks afford to give out gadgets, flights, or cashbacks without losing money? The truth is that rewards are not “free gifts” but carefully structured marketing investments funded by multiple revenue sources.
Funding sources
Merchant service charges: every card transaction generates commissions that contribute to the reward pool.
Credit card interest: customers who roll over balances indirectly finance rewards.
Corporate partnerships: Nigerian banks collaborate with airlines, telcos, and supermarkets to co-finance benefits.
Higher transaction volumes: more digital and card usage means higher overall bank revenue, offsetting reward costs.
Thus, rewards programs are not charity but business. Customers get tangible benefits, and banks secure loyalty, brand differentiation, and revenue growth. This explains why such schemes are becoming widespread across Nigeria’s banking landscape.
