Top Nigerian Banks Earn Over ₦165 Billion from E-Banking in Q1 2025 as Digital Channels Dominate Revenue Streams
Eight of Nigeria’s leading financial institutions, including FBN Holdings Plc and Wema Bank Plc, collectively generated ₦165.27 billion in electronic banking income in the first quarter of 2025, signalling a 22.3% surge from the ₦135.08 billion recorded in Q1 2024. This leap underscores the growing dominance of digital channels in the nation’s banking ecosystem.
Joining FBN Holdings and Wema Bank in this revenue boost are Access Holdings Plc, Zenith Bank Plc, United Bank for Africa Plc (UBA), Stanbic IBTC Holdings Plc, FCMB Group Plc, and Guaranty Trust Holding Company Plc (GTCO), all of which have seen significant traction in e-banking products such as Point-of-Sale (PoS), USSD, ATM services, and internet banking.
Market Disruption: Traditional Banks vs. Fintech Giants
This digital revenue growth occurs amid intensifying competition from agile fintech disruptors like MoMo Payment Service Bank (MTN), Airtel SmartCash, Opay, and Palmpay, which offer zero transfer fees, high-interest savings, and seamless, app-first experiences. These challengers are reshaping customer expectations, forcing traditional banks to ramp up digital innovation and rethink their fee structures.
Despite fintech competition, traditional banks continue to leverage their robust infrastructure and regulatory positioning to drive higher transaction volumes and digital adoption.
Bank-by-Bank Breakdown: Who’s Leading the Pack?
- Access Holdings Plc recorded the highest e-banking income, raking in ₦48.35 billion, a 44.8% increase from ₦33.4 billion in Q1 2024.
- UBA followed closely with ₦47.8 billion, representing an 8% uptick from the ₦44.4 billion recorded in the same period last year.
- GTCO posted a remarkable ₦17.06 billion, showing a 51% year-on-year growth.
- FBN Holdings earned ₦20.14 billion, up 19% from ₦16.9 billion in Q1 2024.
- Wema Bank saw the most dramatic leap, with e-banking revenue surging 259.9% to ₦10.85 billion, from just ₦3.02 billion in Q1 2024.
- Zenith Bank, however, reported a decline to ₦16.17 billion, down 19% from ₦19.97 billion.
- FCMB Group saw a drop to ₦3.8 billion, down 26% from ₦5.09 billion.
- Stanbic IBTC Holdings posted a marginal gain, reporting ₦1.09 billion, up just 1.11% from Q1 2024.
Total Fees and Commissions Skyrocket
Collectively, the eight banks reported ₦643.9 billion in fees and commission income in Q1 2025, a 31% increase from ₦491.72 billion a year earlier. This robust uptick reflects not just transaction growth, but banks’ strategic push to deepen customer engagement across digital and credit ecosystems.
Speaking on the development, Mr. Tajudeen Olayinka, an investment banker and stockbroker, noted:
“The surge in fees and commissions is largely driven by increased transaction velocity across multiple platforms and credit-linked services. Banks are expanding retail and loan portfolios, and this is directly impacting revenue.”
Reintroducing the Commission on Turnover, Quietly
Apart from e-banking, banks also generated ₦73.92 billion in Q1 2025 through current account maintenance charges, up 14.4% from ₦64.64 billion in Q1 2024. This follows the Central Bank of Nigeria’s (CBN) indirect reintroduction of the Commission on Turnover (CoT) in the form of the Current Account Maintenance (CAM) Fee, now capped at ₦1 per ₦1,000.
Although CoT was officially phased out in 2016, the CBN’s recent circular reaffirms that CAM is now permissible for all customer-induced debit transactions, underscoring the regulator’s attempt to balance consumer protection with financial system stability.
Looking Ahead
As Nigeria’s banking landscape evolves, digital banking revenue will likely become an even more critical pillar of profitability. While traditional banks are making headway in adapting to customer preferences, the pace of innovation among fintechs suggests that only the most agile and customer-focused banks will remain ahead of the curve.
The first quarter of 2025 is a powerful reminder that digital-first strategies are no longer optional; they are foundational to future growth and relevance in the financial sector.
