Customers of nine leading Nigerian commercial banks paid ₦154 billion in fees for using electronic banking services in the first half of 2023 (H1’23). This represents a 16.7% year-on-year increase from the ₦131.97 billion paid in H1’22. The rise in electronic banking fees and commissions indicates the continued growth of electronic payment adoption in Nigeria. According to the Nigerian Interbank Settlement System (NIBSS) e-payment data for Q1’23, both the volume and value of e-payment transactions saw significant year-on-year growth.
Key Points:
- Nine leading commercial banks in Nigeria earned ₦154 billion in fees for electronic banking services in H1’23.
- This represents a 16.7% year-on-year increase from ₦131.97 billion in H1’22.
- The banks earning these fees include Guaranty Trust Bank, Access Bank, Zenith Bank, United Bank for Africa Plc, Stanbic IBTC, First City Monument Bank, Unity Bank, Fidelity Bank, and Wema Bank.
- Electronic banking services encompass transactions through channels like internet banking, mobile banking, ATMs, and Point of Sale (PoS) systems.
- The volume of e-payment transactions grew by 209% year-on-year to 4.7 billion in Q1’23, while the value increased by 48% year-on-year to ₦137.52 trillion.
- In H1’23, the nine banks earned ₦66.7 billion from account maintenance fees and commission income, a 14.7% year-on-year increase from ₦57.5 billion in H1’22.
- Zenith Bank had the highest account maintenance fees and commission income, followed by Access Bank and Guaranty Trust Bank.
Analysis: The surge in fees for electronic banking services highlights the growing popularity of digital payment channels in Nigeria. This aligns with the broader trend of increased digital adoption in financial services globally. The substantial growth in both the volume and value of e-payment transactions, as reported by NIBSS, underscores this shift. Additionally, the increase in account maintenance fees and commission income reflects the banks’ ability to diversify revenue streams. Overall, these trends signify a continued shift towards a more digitally-driven financial landscape in Nigeria.
