Top Nigerian Banks Make N165.27b From e-Banking In Q1 2025 Amid Fintech Competition

Eight leading Nigerian banks, including Zenith, Access, and UBA, recorded a combined electronic banking income of N165.27 billion in the first quarter of 2025, maintaining growth despite increasing competition from fintech firms.

The banks—Access Holdings Plc, United Bank for Africa Plc (UBA), Zenith Bank Plc, FBN Holdings Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Wema Bank Plc, and GTCO Plc—posted a 22.3 per cent increase in e-banking income compared to the N135.08 billion generated in Q1 2024.

This growth was driven by transactions across Point of Sales (PoS), Unstructured Supplementary Service Data (USSD), Automated Teller Machine (ATM), and Internet banking platforms. The expanding customer base contributed to higher fees and commissions.

The rise in income comes as fintech companies such as MoMo Payment Service Bank (MoMo PSB), Airtel SmartCash, Opay, and Palmpay continue to offer zero charges on cash deposits and fund transfers, challenging traditional banking revenue streams.

Investment Banker and Stockbroker Tajudeen Olayinka commented, “Banks gain traction on income from these lines as they extend retail and loan offerings. These banks witnessed increased transactions in Q1 2025, and it is expected to impact their fees and commissions.”

Among the banks, Access Holdings reported N48.35 billion in e-banking income, a 44.8 per cent increase from N33.4 billion in Q1 2024. UBA earned N47.8 billion, rising nearly eight per cent from N44.4 billion in the previous year’s quarter. GTCO also recorded growth with N17.06 billion, up 51 per cent from N11.3 billion.

Conversely, Zenith Bank’s e-banking income declined by 19 per cent to N16.17 billion from N19.97 billion in Q1 2024, while FCMB Group posted a 26 per cent decrease to N3.8 billion from N5.09 billion.

Wema Bank saw a significant increase of 259.9 per cent in e-banking income to N10.85 billion, up from N3.02 billion the previous year. First Holdco and Stanbic IBTC Holdings posted moderate increases of 19 per cent and 1.11 per cent, respectively.

In addition to e-banking income, the banks reported a combined N643.9 billion in fees and commission income in Q1 2025, a 31 per cent increase from N491.72 billion in Q1 2024.

Aside from income from transactions, the banks also generated N73.92 billion from current account maintenance fees, a 14.4 per cent rise from N64.64 billion in the same period last year. This follows the Central Bank of Nigeria’s (CBN) reintroduction of a negotiable Current Account Maintenance (CAM) fee capped at N1 per N1,000 debit transactions, replacing the phased-out Commission on Turnover (CoT) fee.

The CBN circular noted, “The revised guide to bank charges, which came into effect on April 1, 2013, provides for a phased elimination of the COT charges in the Nigerian banking industry… In the interest of the stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer-induced debit transactions.”

Some financial market analysts observed that prior management in some banks lacked alternative strategies to generate fees and commissions, leading to increased charges on customers. They also noted the CBN’s limited enforcement actions against banks for high fees.

The growing pressure from fintechs offering cheaper and simpler digital financial services remains a key factor shaping the competitive landscape, prompting banks to innovate and diversify their income sources.