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Banks earn N225bn from ATM, e-banking charges

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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.

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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.

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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.

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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.

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Ondo artisans beg FG for inclusion in empowerment programmes

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Artisans and skilled workers in Ondo State have appealed to the Federal Government to include them in various empowerment programmes under President Bola Tinubu’s Renewed Hope Agenda.

The artisans, under the aegis of the Artisan Defender and Empowerment Foundation, said over 25,000 members of the group had been neglected despite their support for the re-election of the President.

This was contained in a statement issued on Friday by the Chairman and General Secretary of the association, Engr. Ogundipe James and Adebayo Olugbenga, respectively.

According to the statement, the group was founded and registered with the Federal Government to promote the interests of Niger Delta artisans and skilled workers, adding that its members needed government support through empowerment initiatives.

The statement read, “It was evident, the neglect of the welfare and empowerment of over 25,000 artisans that this organisation controls, for which we are advocating better welfare, skills and vocational training, empowerment, workshops and recognition of political strength and weight the coalition commands in the voting structure.

“The deteriorating situation of artisan welfare, particularly in Ondo State, is why the body is seeking immediate attention, mostly empowerment and skills upgrading from the primary concerned government agencies—the Federal Ministry of Trade and Investment, Directorate of the Office of Humanitarian Affairs and Poverty Reduction, Small and Medium Enterprises Development Agency of Nigeria, Presidential Amnesty Programme, among others.

“The neglect of this very important organisation, which plays a vital role in employment and the growth of the national economy, will cause disagreement and affect political support that comes from this coalition group.”

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The statement urged the concerned Federal Government agencies to consider the proposals earlier submitted by the group to enhance the support of its members for the President’s administration.

The group stated, “We call on the agencies mentioned above, demanding immediate attention to the proposals that have earlier been sent to this parastatal.

“This is a public warning and general awareness that failure to listen to Niger Delta Artisan Forum’s demands will lead to a national protest and have huge political support consequences for the continuation of the Renewed Hope Agenda of President Bola Ahmed Tinubu come the 2027 election, if attention is not immediately given to the demands.”

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RMAFC gives NUPRC 48 hours to dissolve host community trust

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The Revenue Mobilisation Allocation and Fiscal Commission has directed the Nigerian Upstream Petroleum Regulatory Commission to dissolve a disputed Host Community Development Trust within 48 hours over concerns about its constitution and representation of affected oil-producing communities.

The directive was contained in a statement issued by the commission on Friday and signed by the Head of Information and Public Relations Unit, Maryam Umar-Yusuf, following an investigative hearing into the operations of Sterling Oil Exploration and Energy Production Company and the implementation of the Host Community Development Trust provisions of the Petroleum Industry Act.

According to the statement, the ultimatum was issued during the hearing of the commission’s Investment Monitoring Committee after concerns were raised over the establishment of the trust for affected host communities.

The Chairman of the RMAFC, Mohammed Shehu, reaffirmed the commission’s commitment to protecting the interests of oil-producing host communities, saying it would continue to strengthen the oversight of operators and institutions responsible for ensuring that communities receive benefits due to them under the law.

Shehu, who spoke at the investigative hearing held at the commission’s headquarters on Thursday, described the exercise as “an important national service and a critical national responsibility.”

He commended the committee for its diligence and urged members to remain resolute, stressing that the commission’s constitutional mandate required “firm oversight, transparency and accountability in the management of national revenue assets.”

According to the statement, he expressed confidence that the investigation would strengthen trust in the petroleum sector and ensure that host communities received the full benefits guaranteed under the Petroleum Industry Act.

Leading the hearing, the Chairman of the Investment Monitoring Committee and Federal Commissioner representing Anambra State, Ekene Enefe, conducted an extensive investigation into SEEPCO’s compliance with the statutory provisions governing Host Community Development Trusts.

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He maintained that host communities should no longer bear the environmental and social consequences of oil exploration without corresponding development, adding that the commission would ensure operators and regulatory institutions discharged their statutory obligations.

The committee also criticised SEEPCO for repeatedly failing to honour invitations to appear before it despite previous engagements.

Addressing officials of the NUPRC during the hearing, Enefe said the commission would hold every institution in the petroleum value chain accountable for the effective discharge of its responsibilities.

He consequently ordered the regulator to address concerns surrounding the trust established for the affected communities, declaring, “We are going to give you 48 hours to dissolve that host community development trust.”

The committee chairman also faulted SEEPCO over what he described as its failure to meet obligations owed to host communities.

“We are going to write them and we are going to give them an ultimatum to pay up what is owed the host communities,” Enefe said.

He added that the committee would conclude its investigation and submit its findings to the appropriate authorities, insisting that the commission would carry out its constitutional oversight responsibilities “without fear or favour.”

Earlier, the NUPRC delegation, led by the Director of Host Communities, Ufondu Ejiro, defended the implementation of the Host Community Development Trust established under the Petroleum Industry Act.

According to the statement, Ejiro told the committee that the trust had been duly incorporated, funded and structured in accordance with the law.

She said the commission had processed documents relating to community consultations, governance structures, funding arrangements and Community Development Plans, while also presenting records of statutory contributions made into the trust.

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The NUPRC maintained that it discharged its responsibilities within the framework of the Petroleum Industry Act and the Host Community Development Regulations.

However, counsel representing the affected host communities, Peter Chukwudi, rejected the regulator’s submissions, insisting that several persons recognised as community representatives were not accepted by the communities.

He also argued that adequate consultations were not conducted before the Host Community Development Trust was constituted and questioned the level of development recorded in the affected communities despite years of oil production.

Chukwudi urged the committee to ensure that the grievances raised by the communities were thoroughly investigated.

Also speaking, the Anambra State Commissioner for Petroleum and Mineral Resources, Professor Charles Ofoegbu, called for stronger collaboration between the NUPRC and the state government in verifying community representation and monitoring compliance with statutory obligations.

He advocated greater transparency in calculating statutory contributions, operational expenditure and the execution of community development projects, stressing that the state government had a responsibility to protect the interests of its oil-producing communities.

Other members of the commission also raised concerns during the hearing.

The Federal Commissioner representing Rivers State, Desmond Akawor, said there appeared to be a disconnect between the regulator and affected state governments, adding that closer collaboration and direct engagement with operators were necessary for effective oversight.

He also criticised SEEPCO for failing to attend the hearing and urged all parties to cooperate with the investigation.

The Federal Commissioner representing Kogi State, Abdulazeez Idris-King, questioned the effectiveness of the NUPRC’s verification process, saying reliance solely on documents submitted by operators might not sufficiently establish that genuine consultations had taken place with host communities.

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Similarly, the Federal Commissioner representing Jigawa State, Hauwa Umar-Aliyu, stressed the need for regulators to uphold professionalism and impartiality, saying public confidence would only be strengthened if the interests of host communities received equal attention alongside those of operators.

According to the statement, the hearing forms part of the commission’s ongoing oversight initiative aimed at promoting transparency, strengthening accountability and ensuring that host communities derive the benefits guaranteed under the Petroleum Industry Act.

The PUNCH reports that The HCDT was created under the Petroleum Industry Act 2021 as a new framework for ensuring that communities where oil and gas operations take place receive direct and sustainable benefits from petroleum activities.

The PIA requires petroleum operators, known as settlors, to establish trusts for their host communities and contribute 3 per cent of their actual annual operating expenditure in the preceding year to the funds. The trusts are intended to finance community development projects and promote peaceful relations between operators and host communities.

The NUPRC is responsible for regulating the trusts, including their incorporation, funding, governance and implementation of development projects. The provision was introduced against the background of decades of grievances in oil-producing communities over environmental impacts, inadequate development and disputes with petroleum companies

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China extends trade boom as global AI tech demand surges

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Chinese exports and imports soared in July, official data showed Friday, as the manufacturing powerhouse benefits from a global AI boom lifting overseas demand for its tech products.

The world’s second-largest economy last year achieved a historic trade surplus of nearly $1.2 trillion, helping its manufacturing sector through a prolonged slump in domestic consumption.

The export boom has been propelled further this year by increased demand for Chinese data-processing equipment and related components, as companies rush to build artificial intelligence capacity.

Exports climbed 23.9 percent year-on-year last month, the General Administration of Customs (GAC) reported, compared with a 23.0 percent forecast by Bloomberg.

Overseas shipments of computers and related parts jumped 45.2 percent on year in the first seven months, the data showed.

“Export and import values remain elevated, helped by soaring global demand for electronics and green tech products,” wrote Julian Evans-Pritchard of Capital Economics.

China’s trade surplus appears to be on pace to match that of last year, reaching $687 billion through the end of July, the data showed Friday.

The yawning gap has increasingly raised eyebrows abroad — particularly in Europe, where leaders worry about floods of Chinese exports squeezing out local manufacturers.

Beijing has insisted it never deliberately pursued a trade surplus.

The Communist Party’s Politburo — the decision-making body headed by President Xi Jinping — urged a more “balanced” trade development at a key meeting late last month.

– China-US flare-up –

“Export growth continued to support the economy in July,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note after Friday’s data.

“I expect intense negotiations between China and (its) major trading partners in coming months on what can be done to make trade more balanced,” he added.

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Imports increased 27.5 percent in July, extending this year’s strong performance even as main indicators of domestic demand have remained weak.

However, that was slower than the 36 percent surge seen in June, and also missed a Bloomberg forecast of 29.5 percent growth.

The growth has been achieved despite considerable pressure on the global trading system from the war in the Middle East and simmering trade frictions between Beijing and Washington.

China’s shipments to the United States rose 17 percent year-on-year last month, Friday’s data showed, as the countries remain locked in a trade war despite efforts to ease tensions.

That brought China’s surplus with its superpower rival this year to nearly $171 billion through the end of July, according to the official data.

The latest figures come days after a fresh flare-up in trade tensions between the world’s top two economies.

Following sanctions imposed by Washington over forced labour and national security concerns, Beijing on Wednesday announced restrictions on drone exports to the United States and blacklisted six firms.

China and the United States spent much of last year embroiled in an escalating trade war but reached a truce when US President Donald Trump met Xi in October.

The relationship will undergo further scrutiny in coming weeks as officials prepare for a scheduled state visit by Xi to the United States in late September.

AFP

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