NIGERIA BANKS
Nigerian banks are earning more than ever from digital banking services as customers increasingly embrace electronic transactions and cashless payment channels. Fresh financial data from 11 listed lenders show that income generated from electronic banking services and ATM-related charges rose significantly in the first quarter of 2026, underlining the growing importance of digital finance in the country’s banking sector.
According to unaudited financial statements released by the banks, the industry generated a combined ₦224.69 billion from e-banking activities and ATM-related fees between January and March 2026. The figure represents a 12.56 per cent increase from the ₦199.61 billion recorded during the same period in 2025.
The growth highlights the rapid adoption of mobile banking, internet banking, electronic transfers, card services, and other digital payment solutions, which have become key sources of non-interest income for financial institutions. Revenue from e-business activities climbed by 11.57 per cent to ₦177.97 billion, while ATM and card management fees increased by 16.48 per cent to ₦46.70 billion.
Among the lenders, Access Holdings emerged as the biggest earner from electronic banking services, generating ₦55.71 billion during the period. UBA followed with ₦46.93 billion, while Ecobank recorded ₦35.53 billion from card management fees. GTCO generated ₦21.90 billion in e-business income, ahead of Zenith Bank’s ₦21.54 billion and First Holdco’s ₦20.75 billion. Other contributors included Fidelity Bank with ₦8.81 billion, Wema Bank with ₦6.10 billion, Stanbic IBTC with ₦4.33 billion, Sterling Financial Holdings with ₦2.89 billion, and Jaiz Bank with ₦187 million.
While most banks recorded growth in digital banking income, some institutions stood out for their exceptional performance. Fidelity Bank posted the strongest expansion, with earnings from ATM charges and e-banking commissions surging by 164.9 per cent year-on-year. GTCO also recorded impressive growth of 68.64 per cent, while Zenith Bank’s electronic banking revenue rose by nearly 59 per cent.
Not every lender shared in the growth story, however. Wema Bank reported a 50.68 per cent decline in electronic product fees, while Stanbic IBTC’s e-banking income fell by 20.57 per cent. UBA also recorded a slight drop of 1.91 per cent in electronic banking revenue compared to the previous year.
The figures further demonstrate how digital banking has become a major revenue driver for Nigerian banks. At UBA, electronic banking contributed 37.82 per cent of total fee income, while Access Holdings generated 27.2 per cent of its fee revenue from digital channels. GTCO recorded a similar contribution of 27.27 per cent, while electronic product fees accounted for 25.4 per cent of Zenith Bank’s total fee earnings.
Industry analysts attribute the strong performance to improving economic conditions and increased transaction volumes across the financial system. Recent data from the Stanbic IBTC Purchasing Managers’ Index showed that Nigeria’s private sector expanded to a nine-month high in May, driven by stronger customer demand and improved business logistics.
The trend is also being supported by reforms introduced by the Central Bank of Nigeria, including ongoing banking sector recapitalisation and efforts to stabilise the foreign exchange market. These measures are helping to strengthen confidence in the financial system while encouraging greater adoption of digital financial services.
Beyond Nigeria, digitalisation continues to reshape financial services across Africa. The African Development Bank has identified digital platforms as a critical tool for expanding financial inclusion, boosting government revenue collection, and supporting small businesses. According to the bank, digital financial systems help reduce informality, improve taxpayer registration, expand the tax base, and provide entrepreneurs with easier access to savings, credit, and risk-management services.
As Nigerians increasingly rely on electronic payment channels for everyday transactions, the latest earnings figures suggest that digital banking is no longer just a convenience but a major pillar of growth for the country’s banking industry.
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