Tier-1 Banks Drive N286tn Mobile Transactions as Fintech Advantage Narrows in Nigeria’s Digital Payments Shift

Nigeria’s leading commercial banks have recorded a massive surge in digital activity, processing a combined N286.19 trillion in mobile banking transactions in 2025. The figure highlights how traditional banks are rapidly strengthening their digital platforms, narrowing the gap that once gave fintech companies a clear advantage in Nigeria’s fast-growing payments sector.

The growth was driven by major players including Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Zenith Bank, and First Bank of Nigeria. These banks have spent the past few years heavily upgrading their technology systems to improve speed, reliability, and customer experience across mobile and digital channels.

GTCO led with N72.4 trillion in mobile transactions, followed by Zenith Bank at N104.14 trillion and UBA at N51.65 trillion. First Bank of Nigeria also posted strong momentum, recording N58 trillion in mobile transactions within just the first nine months of 2025, signaling an even stronger full-year performance.

This shift marks a turning point in Nigeria’s digital payments ecosystem. Between 2020 and 2023, fintech platforms dominated everyday transactions due to faster services and fewer system disruptions. However, that advantage is now shrinking as banks modernise infrastructure and improve service delivery, reducing the need for customers to rely solely on fintech apps.

To catch up, banks have invested heavily in technology upgrades, spending over N415.36 billion on core banking systems since 2024. These improvements have boosted transaction success rates and uptime, while also increasing digital revenue streams. At the same time, competition is evolving beyond payments, with focus now shifting to lending, savings products, customer rewards, and broader financial services as Nigeria’s digital economy matures.

source: Business day