A group of Nigeria’s largest banks saw a 58% surge in electronic payment revenues in 2024, as digital transactions reached an all-time high, according to their latest financial reports. The jump reflects the growing reliance on mobile apps, card usage, and digital transfer channels, signaling a major shift in how Nigerian banks are making money.
Collectively, 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 raked in ₦674 billion ($419.7 million) from e-payment services, up from ₦428.6 billion ($266.6 million) the year before.
UBA led the pack, generating ₦236.3 billion ($147.1 million), followed by Access Bank with ₦178.6 billion ($110.9 million).
As more Nigerians embrace digital banking, these numbers reflect a changing tide in the industry where the future of profitability may no longer lie in loans and traditional banking, but in fast, seamless digital experiences.
In 2024, electronic payment transactions processed through the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) platform soared to ₦1.07 quadrillion, up from ₦600 trillion in 2023, a record-breaking surge that reflects just how rapidly Nigeria is going digital. From that massive volume, banks earned ₦674 billion in fees and charges tied to e-payments.
Depending on the bank and transaction channel, fees previously ranged between ₦10 and ₦50 for transfers between ₦5,000 and ₦10,000. But as of December 1, 2024, a government directive set a standard ₦50 charge on all electronic transfers above ₦10,000, a move that further boosted bank revenues from digital transactions.
Analysts say the pivot toward digital banking is no longer optional, it’s survival.
“Revenue from e-banking is now proving to be a vital source of income for Nigerian banks, as more people increasingly rely on digital channels,” said Israel Odubola, a Lagos-based economist. “What was once a supplementary stream has become a strategic imperative.”
Behind the scenes, banks are making major infrastructure investments to support this shift. According to Gbolahan Ologunro, portfolio manager at FBNQuest Asset Management, the surge in e-banking income justifies growing spending on tech.
“Providing exceptional customer experiences through banking channels will increase customer transactions on those channels,” Ologunro said.
That bet is already in motion. Research has it that six of Nigeria’s major banks collectively spent ₦268.7 billion ($171.5 million) on IT infrastructure and technology in 2024 a 74.5% increase from ₦153.8 billion in 2023.
Several trends are fueling Nigeria’s e-payment boom: the Central Bank’s push for a cashless economy, wider mobile and internet penetration, and the rise of innovative payment platforms like OPay and PalmPay.
NIBSS data shows that transaction volume on its NIP platform jumped to 11.3 billion in 2024, from 9.7 billion the year before. Point of Sale (PoS) transactions also climbed, volume rose to 1.45 billion, while value skyrocketed to ₦79.5 trillion, up from ₦46.9 trillion.
But not all of that growth is tied to activity alone, currency depreciation played a major role too.
“NIBSS handles more than just naira transactions,” said Tajudeen Ibrahim, Director of Research at Chapel Hill Denham. “Any interbank settlement involving foreign currencies would have pushed those numbers up.”
Since July 2023, the naira has lost more than 70% of its value, plunging from ₦463.4/$ to ₦1,601.4/$ by April 15, 2025.
Still, digital is clearly winning. According to a Worldpay report, Nigeria recorded the steepest decline in cash usage among six cash-heavy economies between 2014 and 2024. Cash transactions fell by 59% over the decade.
With ₦674 billion earned from ₦1.07 quadrillion in e-payments, Nigerian banks aren’t just adapting to a digital future, they’re thriving in it. As queues fade and mobile taps replace physical cash, e-banking is no longer the future. It’s the now.