Banks income from E-banking rose from 159.52 bn in quarter one 2025 to 177.97bn in quarter one 2026.
KaNo —
Nigerian banks recorded a significant rise in income from electronic banking services in the first quarter of 2026, generating a combined N224.69 billion from digital channels, ATM usage and card-related charges.
The development represents a 12.56 per cent increase compared to the N199.61 billion recorded in the corresponding period of 2025, underscoring the growing importance of digital finance in the country’s banking landscape.
An analysis of the unaudited financial statements of 11 listed lenders shows that the surge in earnings was largely driven by sustained investment in digital banking platforms and the increasing adoption of electronic payment systems by customers.
The trend highlights a structural shift in the banking sector, where non-interest income,particularly from digital services—is becoming a major revenue driver.
Specifically, earnings from electronic banking and e-business activities climbed by 11.57 per cent to N177.97 billion, up from N159.52 billion recorded in the same period last year.
Similarly, ATM and card management fees grew by 16.48 per cent to N46.70 billion, compared to N40.09 billion in Q1 2025.
The increase in digital banking revenue aligns with broader growth in fee-based income across the banking sector.
Total fee and commission earnings for the 11 lenders rose by 13.64 per cent to N984.47 billion, up from N866.30 billion recorded in the first quarter of 2025.
Account maintenance fees also recorded a notable increase of 14.07 per cent, rising to N209.18 billion from N183.37 billion.
Among the banks reviewed, Access Holdings emerged as the top earner from e-banking services, generating N55.71 billion during the period.
United Bank for Africa followed with N46.93 billion, while Ecobank posted N35.53 billion from card management fees. Guaranty Trust Holding Company recorded N21.90 billion in e-business income, closely followed by Zenith Bank with N21.54 billion from electronic product fees.
Other contributors include First Holdco, which generated N20.75 billion, Wema Bank with N6.10 billion, and Fidelity Bank, which recorded a combined N8.81 billion from ATM charges and e-banking commissions.
Stanbic IBTC earned N4.33 billion from card-based commissions and electronic banking fees, while Sterling Financial Holdings reported N2.89 billion in revenue from these sources.
Jaiz Bank recorded the lowest figure among the group, generating N187.05 million.A closer look at growth rates reveals significant disparities among lenders.
Fidelity Bank recorded the strongest expansion in digital banking income, with a remarkable 164.9% increase to N8.81 billion from N3.08 billion in Q1 2025.
The growth was largely driven by a sharp 240.8 per cent surge in ATM charges.Guaranty Trust Holding Company also posted strong growth, with e-business income rising by 68.64 per cent to N21.90 billion.
Stanbic IBTC’s combined card-based commission and electronic banking income increased by 52.8 per cent, while Zenith Bank recorded a 58.91 per cent rise in fees from electronic products.
Sterling Financial Holdings saw a moderate increase of 22.15 per cent, and Access Holdings posted a 15.2 per cent growth in its digital income streams.
However, not all banks recorded gains. Wema Bank experienced the steepest decline, with electronic product fees dropping by 50.68 per cent to N6.10 billion.
Stanbic IBTC’s electronic banking fees also declined by 20.57 per cent, while UBA recorded a marginal decrease of 1.91 per cent.
Ecobank’s card management fees dipped slightly by 1.52 per cent.Despite these variations, digital banking continues to account for a substantial share of total fee income across the sector.
At Access Holdings, e-banking income contributed 27.2 per cent of total fee and commission earnings. Similarly, GTCO derived 27.27 per cent of its fee income from e-business services.
UBA recorded one of the highest dependencies on digital income, with electronic banking contributing 37.82 per cent of its total fee revenue, making it the bank’s largest fee-generating segment.
First Holdco generated 21.59 per cent of its fee income from digital channels, while Zenith Bank recorded a contribution of 25.4 per cent.
Ecobank’s card management fees accounted for 14.94 per cent of its total fee income, while Wema Bank, despite its decline, still derived 35.08 per cent of its fee income from electronic products.
Stanbic IBTC’s digital income represented 5.21 per cent, and Sterling Financial Holdings recorded a contribution of 17.13 per cent.
Nigeria’s private sector showed signs of expansion, reaching a nine-month high in May 2026, with the Stanbic IBTC Purchasing Managers’ Index rising to 54.1 points.
The growth was driven by stronger demand, increased production levels and improved logistics. The trend also reflects ongoing reforms within the financial sector led by the Central Bank of Nigeria.
The apex bank has continued to implement policies aimed at strengthening the banking system, including a recapitalisation programme and efforts to stabilise the foreign exchange market.
These measures are expected to enhance the resilience of banks and position them to support long-term economic growth. Beyond Nigeria, the push for digitalisation of financial services is gaining momentum across Africa.
In its 2026 Africa Economic Outlook report, the African Development Bank highlighted the role of digital payments and electronic banking in driving economic formalisation, financial inclusion and improved government revenue mobilisation.
According to the report, digitalisation reduces the cost of business registration, reporting and payments, making it easier for informal businesses to participate in the formal economy.
Countries with higher adoption of digital public services tend to record stronger domestic revenue mobilisation and lower levels of economic informality.
The bank noted that digital platforms enhance taxpayer registration, improve transaction traceability and strengthen compliance monitoring.
This allows governments to capture previously unregistered economic activities without necessarily increasing tax rates.
In addition, digitalisation improves administrative efficiency, reduces leakages and broadens the tax base, providing a sustainable pathway for strengthening fiscal capacity.
It also promotes financial inclusion by enabling small businesses to access digital payment systems and financial services.
For many small and medium-scale enterprises, digital financial tools provide an opportunity to build transaction histories, reduce information gaps with lenders and gain access to credit, savings and risk management products.
As Nigerian banks continue to expand their digital offerings, analysts believe the contribution of e-banking income will remain on an upward trajectory.
With increasing smartphone penetration, improved internet access and supportive regulatory policies, digital finance is expected to play an even more central role in shaping the future of the banking industry.
The first quarter performance suggests that banks are not only adapting to the digital shift but are also leveraging it as a key growth strategy in an increasingly competitive financial environment.
