Digital Banking fees generated N224.7bn for Nigerian banks in Q1 2026, driven by rising electronic payment and card usage

Nigerian banks generated N224.69bn from electronic banking services and ATM/card-related charges in the first quarter of 2026, representing a 12.56 per cent increase from the N199.61bn recorded in the corresponding period of 2025.

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An analysis of the unaudited financial statements of 11 listed lenders showed that the growth was driven by increasing adoption of digital banking channels and electronic payment services, which continued to contribute significantly to non-interest revenue across the sector.

The report showed that income from electronic banking and e-business activities rose by 11.57 per cent to N177.97bn, up from N159.52bn recorded in the first quarter of 2025.

Similarly, earnings from ATM and card management fees increased by 16.48 per cent to N46.70bn from N40.09bn during the same period.

The rise in Digital Banking Fees coincided with broader growth in banks’ non-interest income streams.

Total fee and commission earnings among the lenders increased by 13.64 per cent to N984.47bn from N866.30bn, while account maintenance fee income climbed by 14.07 per cent to N209.18bn.

Among the banks reviewed, Access Holdings emerged as the largest earner from digital banking channels, generating N55.71bn in the first quarter.

United Bank for Africa followed with N46.93bn in electronic banking income, while Ecobank Transnational Incorporated earned N35.53bn from card management fees.

Guaranty Trust Holding Company posted N21.90bn in e-business income, while Zenith Bank Plc generated N21.54bn from electronic product fees.

Other contributors included First HoldCo Plc with N20.75bn, Wema Bank Plc with N6.10bn, and Fidelity Bank Plc with a combined N8.81bn from ATM charges and e-banking commissions.

Further down the list, Stanbic IBTC Holdings Plc earned N4.33bn from card-based commissions and electronic banking fees, while Sterling Financial Holdings Company Plc generated N2.89bn and Jaiz Bank Plc posted N187.05m.

A breakdown of growth rates showed that Fidelity Bank recorded the strongest expansion in digital banking-related revenue.

The lender’s combined ATM charges and e-banking commissions surged by 164.9 per cent to N8.81bn from N3.08bn, supported by a 240.8 per cent increase in ATM-related earnings.

GTCO followed with a 68.64 per cent rise in e-business income, while Stanbic IBTC recorded a 52.8 per cent increase in combined digital banking and card-related income.

Zenith Bank also posted strong growth, with fees from electronic products increasing by 58.91 per cent year-on-year.

Despite the sector-wide gains, some lenders reported declines. Wema Bank recorded the sharpest drop, with electronic product fees falling by 50.68 per cent to N6.10bn from N12.37bn.

UBA’s electronic banking income declined slightly by 1.91 per cent, while Ecobank’s card management fee income fell by 1.52 per cent.

Analysis of individual banks’ earnings showed that Digital Banking Fees accounted for a substantial share of total fee and commission income.

At Access Holdings, digital banking channels contributed 27.2 per cent of total fee income, while GTCO generated more than 27 per cent of its fee revenue from e-business services.

UBA recorded one of the highest dependencies on digital channels, with electronic banking income accounting for 37.82 per cent of its fee and commission earnings during the quarter.

The strong performance of digital banking revenue comes amid signs of improving economic activity.

Nigeria’s private sector expanded to a nine-month high in May 2026, supported by stronger demand, increased business output and improved logistics conditions.

The trend also aligns with ongoing reforms within the financial sector.

The Central Bank of Nigeria has maintained that banking sector recapitalisation and foreign exchange market reforms are strengthening the industry’s capacity to support long-term economic growth.

Beyond Nigeria, digitalisation continues to shape financial systems across Africa.

In its Africa Economic Outlook 2026 report, the African Development Bank highlighted the role of digital finance in promoting financial inclusion, improving tax administration and encouraging the formalisation of economic activities.

According to the report, wider adoption of digital payment platforms and electronic financial services enables businesses to build transaction histories, gain access to credit and improve productivity.

Also read: Top Nigerian banks cut loans by 25% amid economic pressure

The growing contribution of e-banking services, card transactions and digital payment platforms to banks’ earnings underscores a broader transformation in the financial sector as consumers and businesses increasingly embrace electronic channels for everyday transactions.