Nigerian banks generated a remarkable ₦224.69 billion from electronic banking services and ATM/card-related charges during the first quarter of 2026, highlighting the growing role of digital transactions in the country’s financial sector.
The figure, compiled from the unaudited financial statements of 11 listed banks, represents a 12.56 percent increase from the ₦199.61 billion recorded during the same period in 2025. The surge reflects the continued expansion of digital banking services and the increasing reliance of customers on electronic payment channels for everyday transactions.
Revenue from electronic banking activities accounted for the largest share of earnings, rising by 11.57 percent year-on-year to ₦177.97 billion. Meanwhile, income generated from ATM usage and card management fees grew even faster, climbing 16.48 percent to ₦46.70 billion.
These revenues were derived from a variety of banking charges, including electronic fund transfers, debit card maintenance fees, ATM withdrawal charges, SMS alert fees, and other digital transaction-related services. As more Nigerians embrace cashless payments, banks are increasingly benefiting from the steady stream of fees generated through digital banking platforms.
Among the financial institutions surveyed, Access Holdings emerged as the highest earner from electronic banking services, generating ₦55.71 billion during the quarter. United Bank for Africa followed closely with ₦46.93 billion in e-banking income, while Ecobank recorded ₦35.53 billion from card management-related fees.
Fidelity Bank recorded one of the most notable performances, posting a significant year-on-year increase of 164.9 percent in combined electronic banking and ATM-related income. The growth underscores the increasing importance of digital services as a major contributor to banks’ non-interest revenue streams.
The rising earnings come at a time when many bank customers have expressed concerns about the growing number of charges associated with digital transactions. Fees for ATM withdrawals, card renewals, electronic transfers, and account maintenance have become increasingly noticeable as financial institutions continue to expand their digital offerings.
In March 2025, the Central Bank of Nigeria introduced revised ATM withdrawal charges, including a ₦100 fee on every ₦20,000 withdrawn from certain automated teller machines. The policy generated public debate, with many customers calling for measures to reduce the cost of accessing banking services.
Responding to concerns about transaction costs, the apex bank has proposed a new framework aimed at capping electronic transfer charges. Under the proposal, transfers below ₦5,000 would remain free, while transfers between ₦5,000 and ₦50,000 would attract a maximum fee of ₦10. Transactions above ₦50,000 would be capped at ₦50.
In addition, customers continue to pay a 7.5 percent Value Added Tax (VAT) on various electronic banking service charges, including mobile transfers, Point of Sale (POS) transactions, and other digital banking activities.
Despite ongoing discussions around transaction fees, the growth in digital banking revenue reflects the broader transformation taking place within Nigeria’s financial ecosystem. With increased smartphone adoption, improved internet penetration, and the rapid growth of fintech solutions, digital payments have become a central part of daily economic activity.
Industry estimates suggest that Nigeria’s fintech and mobile payments market is now valued at approximately $1.5 billion, positioning the country as one of Africa’s leading digital finance hubs. This expansion has created new opportunities for banks to diversify their income sources while offering customers greater convenience and access to financial services.
As digital banking continues to gain momentum, financial institutions are expected to maintain strong earnings from electronic transactions. However, regulators are likely to remain focused on balancing innovation and profitability with consumer protection, ensuring that banking services remain affordable and accessible for millions of Nigerians.
The latest figures demonstrate how digital transformation is reshaping the banking industry, with electronic banking revenues increasingly becoming a critical pillar of financial performance for Nigeria’s leading lenders.
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