Nigerian tier-1 banks earned N392 billion ($268 million) from electronic business in 2023 as the adoption of cashless transactions increased among Nigerians.
According to local reports, the growth in e-business income was driven by the increasing popularity of mobile and online banking in Nigeria, with growth driven by the five leading banks in the country:
- FBN Holdings
- United Bank for Africa (UBA)
- GTCO Holdings
- Access Holdings, and
- Zenith Bank
Electronic payment transactions in Nigeria in 2023
The data from @NIBSS_NG indicated that in March 2023, the volume of e-payment transactions reached an unprecedented peak of 1.17 billion, followed by the 968 million transactions recorded in December. pic.twitter.com/6LCKBakElB
— BitKE (@BitcoinKE) May 27, 2024
It was not just the big 5, however, as other banks also recorded increases in e-business. FCMB (First City Monument Bank), for instance, grew its electronic transactions income by 26% to N17.7 billion ($135.7 million) in 2023.
Stanbic IBTC nearly doubled its e-business earnings in 2023, generating N4.4 billion ($3.0 million), a 76% increase from the N2.5 billion ($1.7 million) earned in 2022. Wema Bank also saw growth in e-business revenue, rising from N6.1 billion ($4.1 million) in 2022 to N7.3 billion ($4.9 million) in 2023.
Similarly, Fidelity Bank’s e-business income increased from N2.8 billion ($1.9 million) in 2022 to N3.6 billion ($2.4 million) in 2023, marking a 29% year-on-year growth.
E-business income encompasses revenue generated from electronic channels, card products, and associated services. These channels include mobile applications, USSD channels, automated teller machines (ATMs), agency banking, internet banking, and point of sale (POS) payments.
According to data released by the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions in Nigeria surged to N600 trillion ($410.4 billion) in 2023, reaching an all-time high as more Nigerians adopted cashless payment.
The value recorded on the NIBSS Instant Payment (NIP) system represents a 55% increase over the N387 trillion ($264.7 billion) recorded in 2022.
While the month of March 2023 recorded the highest volume of transactions in 2023 at 1.17 billion, the highest value was recorded in December 2023 when Nigerians spent a total of N71.9 trillion ($49.1 billion) through electronic channels. This set a new all-time high monthly record on the NIBSS electronic payment platform.
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