Ten of Nigeria’s greatest banks recorded a 58% surge in e-payments earnings as digital transactions hit a file excessive in 2024, based on their newest monetary statements. The rise, pushed by increased switch volumes, elevated reliance on cell apps, and card utilization throughout retail channels, is reshaping the standard revenue mannequin of banking in Nigeria.
The banks—Entry Holdings Plc, Warranty Belief Holding Firm (GTCO) Plc, United Financial institution for Africa (UBA) Plc, Zenith Financial institution Plc, First HoldCo Plc, Wema Financial institution Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Sterling Monetary Holdings Firm Plc, and Constancy Financial institution Plc—noticed their mixed e-payments income rise to ₦674 billion ($419.7 million) from ₦428.6 billion ($266.6million) in 2023.
UBA reported the very best worth of ₦236.3 billion ($147.1 million), adopted by Entry with ₦178.6 billion ($110.9 million).
Final yr, digital fee transactions processed via the Nigeria Inter-Financial institution Settlement System (NIBSS) On the spot Fee (NIP) platform reached ₦1.07 quadrillion— the very best ever recorded from N600 trillion in 2023. Which means these banks earned ₦674 billion in processing ₦1.07 quadrillion in transaction quantity.
Relying on the channel and financial institution, expenses used to vary between ₦10 and ₦50 on transactions between ₦5,000-₦10,000. However on December 1, 2024, the federal authorities instructed banks and fintech corporations to instantly implement a ₦50 deduction on digital transfers above ₦10,000.
Analysts say banks are more and more turning to digital channels as a dependable supply of non-interest earnings, and the strategic shift is pushed by excessive inflation and rates of interest, which have compressed conventional banking margins and elevated mortgage dangers.
“Income from e-banking is now proving to be an important supply of earnings for Nigerian banks, as extra individuals more and more depend on digital channels,” Israel Odubola, a Lagos-based analyst, stated. “What was as soon as a supplementary stream has develop into a strategic crucial.”
In accordance with Gbolahan Ologunro, portfolio supervisor at FBNQuest Asset Administration, the rise in e-banking income is among the main justifications for the banks to spend extra on IT-related infrastructure.
“Offering distinctive buyer experiences via banking channels will enhance buyer transactions on these channels,” he added.
TechCabal reported earlier this month that six main Nigerian banks spent ₦268.7 billion ($171.5 million) on IT infrastructure and tech-related companies in 2024, a 74.5% surge from ₦153.8 billion ($98.2 million) in 2023.
Digital transactions in Nigeria have witnessed important development in recent times, pushed by components such because the cashless coverage of the central financial institution, elevated web and cell phone penetration, and the event of modern fee platforms like OPay and PalmPay.
In accordance with information from NIBSS, the full quantity of NIBSS On the spot Fee platform (NIP) transactions additionally rose to 11.3 billion from 9.7 billion. An additional breakdown of the NIBSS information additionally exhibits that aside from NIP transactions, Level of Sale (PoS) quantity elevated to 1.45 billion from 1.39 billion, whereas its worth rose to ₦79.5 trillion from ₦46.9 trillion.
Tajudeen Ibrahim, director of analysis and technique at Chapel Hill Denham, stated the naira depreciation largely contributed to the rise in transaction worth.
“NIBSS is just not just for native forex transactions alone. It’s an interbank settlement. So, any overseas forex financial institution settlement would have influenced that quantity,” he added.
The naira has misplaced greater than 70 p.c of its worth towards the greenback following two sharp devaluations since July 2023. On the official market, the naira depreciated from ₦463.4/$ on June 9, 2023, to ₦1,601.4/$ as of April 15, 2025.
The surge in digital transactions additionally contributed to Nigeria recording the steepest decline in money transactions, surpassing six cash-reliant economies within the final decade, based on a report by world fee processing firm Worldpay. From 2014 to 2024, money transactions in Nigeria fell by 59%.
With ₦674 billion earned from ₦1.07 quadrillion in transactions, Nigerian banks aren’t simply adapting to the digital wave—they’re cashing in on it. As money fades and cell faucets substitute bodily queues, e-banking has develop into the brand new monetary frontier.
