Ten of Nigeria’s biggest banks recorded a 58% surge in e-payments income as digital transactions hit a record high in 2024, according to their latest financial statements. The increase, driven by higher transfer volumes, increased reliance on mobile apps, and card usage across retail channels, is reshaping the traditional profit model of banking in Nigeria.
The banks—Access Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, First HoldCo Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Sterling Financial Holdings Company Plc, and Fidelity Bank Plc—saw their combined e-payments revenue rise to ₦674 billion ($419.7 million) from ₦428.6 billion ($266.6million) in 2023.
UBA reported the highest value of ₦236.3 billion ($147.1 million), followed by Access with ₦178.6 billion ($110.9 million).
Zenith, First HoldCo, GTCO, Wema, FCMB, Sterling, Stanbic and Fidelity recorded ₦80.5 billion ($ 50.4million), ₦76.8 billion ($47.9 million), ₦56.6 billion ($35.5million), ₦14.1 billion ($8.73 million), ₦13.7billion ($8.54million), ₦8.16 billion ($5.09 million), ₦4.36 billion ($2.71 million) and ₦4.19 billion ($2.61 million) respectively.
Last year, electronic payment transactions processed through the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) platform reached ₦1.07 quadrillion— the highest ever recorded from N600 trillion in 2023. This means that these banks earned ₦674 billion in processing ₦1.07 quadrillion in transaction volume.
Depending on the channel and bank, charges used to range between ₦10 and ₦50 on transactions between ₦5,000-₦10,000. But on December 1, 2024, the federal government instructed banks and fintech companies to immediately implement a ₦50 deduction on electronic transfers above ₦10,000.
Analysts say banks are increasingly turning to digital channels as a reliable source of non-interest income, and the strategic shift is driven by high inflation and interest rates, which have compressed traditional banking margins and increased loan risks.
“Revenue from e-banking is now proving to be a vital source of income for Nigerian banks, as more people increasingly rely on digital channels,” Israel Odubola, a Lagos-based analyst, said. “What was once a supplementary stream has become a strategic imperative.”
According to Gbolahan Ologunro, portfolio manager at FBNQuest Asset Management, the increase in e-banking revenue is one of the major justifications for the banks to spend more on IT-related infrastructure.
“Providing exceptional customer experiences through banking channels will increase customer transactions on those channels,” he added.
TechCabal reported earlier this month that six major Nigerian banks spent ₦268.7 billion ($171.5 million) on IT infrastructure and tech-related services in 2024, a 74.5% surge from ₦153.8 billion ($98.2 million) in 2023.
Electronic transactions in Nigeria have witnessed significant growth in recent years, driven by factors such as the cashless policy of the central bank, increased internet and mobile phone penetration, and the development of innovative payment platforms like OPay and PalmPay.
According to data from NIBSS, the total volume of NIBSS Instant Payment platform (NIP) transactions also rose to 11.3 billion from 9.7 billion. A further breakdown of the NIBSS data also shows that apart from NIP transactions, Point of Sale (PoS) volume increased to 1.45 billion from 1.39 billion, while its value rose to ₦79.5 trillion from ₦46.9 trillion.
Tajudeen Ibrahim, director of research and strategy at Chapel Hill Denham, said the naira depreciation largely contributed to the increase in transaction value.
“NIBSS is not only for local currency transactions alone. It is an interbank settlement. So, any foreign currency bank settlement would have influenced that number,” he added.
The naira has lost more than 70 percent of its value against the dollar following two sharp devaluations since July 2023. At the official market, the naira depreciated from ₦463.4/$ on June 9, 2023, to ₦1,601.4/$ as of April 15, 2025.
The surge in electronic transactions also contributed to Nigeria recording the steepest decline in cash transactions, surpassing six cash-reliant economies in the last decade, according to a report by global payment processing company Worldpay. From 2014 to 2024, cash transactions in Nigeria fell by 59%.
With ₦674 billion earned from ₦1.07 quadrillion in transactions, Nigerian banks aren’t just adapting to the digital wave—they’re cashing in on it. As cash fades and mobile taps replace physical queues, e-banking has become the new financial frontier.
