Nigerian banks generated N224.69bn from electronic banking services and ATM/card-related charges in the first quarter of 2026, representing a 12.56 per cent increase from N199.61bn recorded in the corresponding period of 2025, an analysis of the unaudited financial statements of 11 listed lenders has shown.

The increase came as banks continued to deepen digital banking adoption and electronic payment services, with income from e-banking channels accounting for a significant share of non-interest revenue during the period under review.

Findings by The PUNCH showed that electronic banking and ATM/card management fee income rose by N25.06bn year-on-year, from N199.61bn in Q1 2025 to N224.67bn in Q1 2026. A breakdown showed that income from electronic banking and e-business activities increased by 11.57 per cent to N177.97bn from N159.52bn recorded a year earlier.

Similarly, earnings from ATM and card management fees climbed by 16.48 per cent to N46.70bn from N40.09bn in Q1 2025.

The growth in digital banking revenue coincided with a broader increase in banking sector fee income. The PUNCH earlier reported that the total fee and commission earnings of the 11 lenders rose by 13.64 per cent to N984.47bn from N866.30bn. Also, account maintenance fee income increased by 14.07 per cent to N209.18bn from N183.37bn.

Among the lenders reviewed, Access Holdings recorded the highest earnings from e-banking services, generating N55.71bn in Q1 2026. UBA followed with N46.93bn, while Ecobank earned N35.53bn from card management fees. GTCO posted N21.90bn in e-business income, and Zenith Bank generated N21.54bn from electronic product fees.

Other notable contributors included First Holdco with N20.75bn, Wema Bank with N6.10bn, Fidelity Bank with a combined N8.81bn from ATM charges and e-banking commissions, Stanbic IBTC with N4.33bn from card-based commissions and electronic banking fees, Sterling Financial Holdings with N2.89bn, and Jaiz Bank with N187.05m.

An analysis of growth rates showed that Fidelity Bank recorded the strongest expansion in digital banking-related income. The lender’s combined ATM charges and e-banking commissions rose by 164.9 per cent to N8.81bn from N3.08bn in the corresponding period of 2025, driven largely by a 240.8 per cent jump in ATM charges.

GTCO followed with a 68.64 per cent increase in e-business income to N21.90bn from N12.99bn. Stanbic IBTC’s combined card-based commission and electronic banking income rose 52.8 per cent to N4.33bn, while Zenith Bank’s fees on electronic products increased by 58.91 per cent to N21.54bn.

Sterling Financial Holdings recorded a 22.15 per cent increase in e-business commissions and fees, while Access Holdings posted a 15.2 per cent rise in channels and e-business income to N55.71bn.

However, some lenders recorded declines in digital banking-related income. Wema Bank posted the sharpest decline, with fees on electronic products dropping by 50.68 per cent to N6.10bn from N12.37bn.

Stanbic IBTC’s electronic banking fees declined by 20.57 per cent to N865m, while UBA’s electronic banking income slipped marginally by 1.91 per cent to N46.93bn. Ecobank’s card management fees also declined slightly by 1.52 per cent to N35.53bn.

Further analysis showed that digital banking channels accounted for a significant portion of banks’ fee income. At Access Holdings, e-banking income contributed 27.2 per cent of total fee and commission earnings of N205.03bn. GTCO derived 27.27 per cent of its fee income from e-business services, generating N21.90bn out of N80.31bn total fee income.

UBA’s electronic banking income represented 37.82 per cent of its N124.07bn fee and commission revenue, making it the bank’s largest fee-generating line item. First Holdco generated 21.59 per cent of its fee income from electronic banking services, while Zenith Bank earned 25.4 per cent of its fee and commission income from electronic product fees.

Ecobank’s card management fees accounted for 14.94 per cent of total fee income, while Wema Bank’s electronic product fees contributed 35.08 per cent despite the sharp decline recorded during the quarter.

Stanbic IBTC’s combined card-based commission and electronic banking income represented 5.21 per cent of total fee income, while Sterling Financial Holdings generated 17.13 per cent of fee income from e-business commissions and fees.

The strong performance of digital banking income comes amid signs of improving economic activity, according to analysts.  Nigeria’s private sector expanded to a nine-month high in May 2026, with the Stanbic IBTC Purchasing Managers’ Index rising to 54.1 points on the back of stronger demand, increased output and improved logistics.

The growth also aligns with ongoing reforms in the banking sector. Earlier this year, the Central Bank of Nigeria said financial-sector reforms, including the recapitalisation programme and efforts to stabilise the foreign exchange market, were strengthening the foundations of the economy and positioning banks to support long-term growth.

Payment digitalisation drive

Digitalisation of financial services has also become a major policy conversation across Africa, with development institutions increasingly linking digital payments and electronic banking adoption to economic formalisation, financial inclusion and government revenue mobilisation.

In its Africa Economic Outlook 2026 report, the African Development Bank said digitalisation was helping countries lower the cost of business registration, reporting and payments, making it easier for firms and individuals operating outside the formal economy to participate in regulated financial systems.

The report noted that countries with higher usage of digital public administration services tend to record stronger domestic revenue mobilisation and lower levels of informality.

According to the AfDB, digital platforms improve taxpayer registration, enhance transaction traceability and strengthen compliance monitoring, enabling governments to capture previously unregistered economic activities without increasing tax rates.

The bank stated that digitalisation also improves administrative efficiency, reduces leakages and broadens the tax base, creating a sustainable pathway for strengthening domestic resource mobilisation and fiscal capacity.

Beyond revenue generation, the AfDB said digitalisation promotes economic and financial inclusion by providing informal businesses with access to digital payment platforms and financial services.

The report stated that digital financial tools enable small businesses to build transaction histories, reduce information gaps with lenders and gain access to savings, credit and risk-management products.

The AfDB explained that these developments help improve the resilience and productivity of micro, small and medium-sized enterprises while encouraging gradual migration from the informal to the formal economy.

The growing contribution of e-banking, card services and other digital channels to banks’ fee income reflects the broader shift toward digital finance across Africa, as consumers and businesses increasingly rely on electronic payment systems for everyday transactions.