Ten of Nigeria’s leading commercial banks recorded a substantial 58% year-on-year increase in revenue from electronic payments in 2024, reflecting the continued surge in digital banking adoption. The combined earnings from e-payment channels reached ₦674 billion ($419.7 million), up from ₦428.6 billion ($266.6 million) in 2023, according to the banks’ published financial statements.
The impressive growth is attributed to increased transfer volumes, widespread use of mobile banking apps, and higher card transaction activity across retail outlets. This shift signals a growing reliance on non-interest income sources as banks adapt to evolving customer preferences and tighter macroeconomic conditions.
The banks contributing to this record include 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
UBA led the group with ₦236.3 billion ($147.1 million) in e-payment revenue, followed by Access Bank, which earned ₦178.6 billion ($110.9 million).
These earnings stem from a sharp increase in digital payment volumes. In 2024, transactions processed via the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) platform rose to ₦1.07 quadrillion, up from ₦600 trillion in 2023, marking the highest transaction value ever recorded.
Following regulatory changes, charges on electronic transfers were adjusted. As of December 1, 2024, banks and fintechs began implementing a ₦50 fee on transfers above ₦10,000, contributing to increased revenues.
Financial analysts say banks are increasingly investing in digital banking as a strategic response to high inflation, rising interest rates, and shrinking traditional profit margins. “Revenue from e-banking is now proving to be a vital source of income for Nigerian banks,” said Israel Odubola, a Lagos-based economist. “What was once a supplementary stream has become a strategic imperative.”
According to Gbolahan Ologunro, a portfolio manager at FBNQuest Asset Management, the growth in digital revenue justifies ongoing investment in IT infrastructure. “Enhancing customer experience across digital platforms will ultimately increase user activity on those channels,” Ologunro added.
In support of this shift, six top Nigerian banks reportedly spent ₦268.7 billion ($171.5 million) on tech infrastructure and services in 2024, a 74.5% increase from ₦153.8 billion ($98.2 million) in the previous year.
Beyond bank-specific data, broader payment trends are also accelerating. According to NIBSS, Instant Payment (NIP) transaction volumes grew to 11.3 billion in 2024, up from 9.7 billion in 2023. Similarly, Point of Sale (PoS) transaction volumes rose to 1.45 billion, with their value increasing to ₦79.5 trillion from ₦46.9 trillion.
The depreciation of the naira has also contributed to the rise in transaction values. “NIBSS transactions include both naira and foreign currency settlements, so the exchange rate has a significant impact,” explained Tajudeen Ibrahim, Director of Research and Strategy at Chapel Hill Denham.
Since July 2023, the naira has lost over 70% of its value against the dollar, plunging from ₦463.4/$ in June 2023 to ₦1,601.4/$ as of April 15, 2025.
The shift to digital banking is also driving down cash usage. Between 2014 and 2024, Nigeria recorded a 59% drop in cash transactions, the sharpest decline among six traditionally cash-heavy economies, according to Worldpay, a global payment processing firm.
As banks adapt and evolve, their digital revenue performance underscores one truth: Nigeria’s financial future is being shaped by clicks, not cash.
