Nigerian banks collectively earned N224.69 billion from electronic banking services and ATM and card-related charges in the first quarter of 2026, a 12.56 per cent rise from the N199.61 billion recorded in the same period of 2025, according to an analysis of unaudited financial statements from 11 listed lenders.
The growth was driven by continued deepening of digital banking adoption, with e-banking income accounting for a substantial share of non-interest revenue across the sector. Income from electronic banking and e-business activities grew by 11.57 per cent to N177.97 billion, while earnings from ATM and card management fees rose by 16.48 per cent to N46.70 billion.
The expansion in digital banking revenue came alongside a broader increase in fee income. Total fee and commission earnings across the 11 lenders rose by 13.64 per cent to N984.47 billion, while account maintenance fee income climbed 14.07 per cent to N209.18 billion.
Access Holdings led all lenders in e-banking income, generating N55.71 billion in the quarter. UBA followed with N46.93 billion, while Ecobank earned N35.53 billion from card management fees. GTCO posted N21.90 billion in e-business income and Zenith Bank generated N21.54 billion from electronic product fees. Other contributors included First Holdco with N20.75 billion, Wema Bank with N6.10 billion, Fidelity Bank with N8.81 billion, Stanbic IBTC with N4.33 billion, Sterling Financial Holdings with N2.89 billion and Jaiz Bank with N187.05 million.
Among lenders, Fidelity Bank recorded the fastest growth in digital banking income, with its combined ATM charges and e-banking commissions surging 164.9 per cent to N8.81 billion, 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, while Zenith Bank’s electronic product fees rose 58.91 per cent and Stanbic IBTC’s combined digital income grew 52.8 per cent.
Not all lenders shared in the growth. Wema Bank recorded the steepest decline, with fees on electronic products falling 50.68 per cent to N6.10 billion from N12.37 billion a year earlier. Stanbic IBTC’s electronic banking fees dropped 20.57 per cent, while UBA and Ecobank posted marginal declines of 1.91 per cent and 1.52 per cent respectively.
Digital channels made up a significant portion of individual banks’ fee income. UBA’s electronic banking income represented 37.82 per cent of its total fee and commission revenue, making it the bank’s single largest fee-generating line. Wema Bank derived 35.08 per cent of its fee income from electronic products despite its decline, while GTCO and Access Holdings each drew roughly 27 per cent of fee income from digital channels.
The strong performance comes amid broader signs of economic improvement. 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 Central Bank of Nigeria has also pointed to its recapitalisation programme and foreign exchange reforms as measures strengthening the foundations of the banking sector.
The trend mirrors a wider continental shift. The African Development Bank’s Africa Economic Outlook 2026 noted that digitalisation was helping countries lower the cost of business registration and payments, improve taxpayer registration and enhance transaction traceability, allowing governments to broaden their tax base without raising rates. The AfDB also said digital financial tools were helping small businesses build transaction histories and gain access to credit and savings products, encouraging a gradual migration from informal to formal economic activity.
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