Recent research has revealed that Nigerian Banks accumulated N224.69 billion in revenue from electronic banking and ATM-related charges in the first quarter of 2026, a significant surge in income from digital services. This figure, compiled from 11 listed lenders’ unaudited financial statements, represents a 12.56 percent rise compared to N199.61 billion earned in the same period of 2025. These charges include fees for fund transfers, debit card maintenance, SMS alerts, and ATM withdrawals.
The growth underscores how Nigerian banks are deepening their digital banking adoption, with these levies now forming a substantial part of their non-interest revenue. Income from electronic banking activities rose 11.57 percent to N177.97 billion, while earnings from ATM and card management fees climbed even faster, up 16.48 percent to N46.70 billion.
Among lenders, Access Holdings led the pack, generating N55.71 billion from e-banking services in Q1 2026. United Bank for Africa followed with N46.93 billion, while Ecobank recorded N35.53 billion from card management fees alone. Fidelity Bank posted the strongest expansion, with its combined ATM charges and e-banking commissions jumping 164.9 percent year-on-year.
The trend has not gone unnoticed by ordinary bank customers, who face a growing list of deductions from ATM withdrawals to debit card renewals and maintenance fees. The Central Bank of Nigeria introduced new ATM withdrawal charges in March 2025, including a N100 fee for every N20,000 withdrawn at on-site machines.
In response to public complaints, the CBN has proposed capping electronic transfer fees, keeping transfers below N5,000 free, charging a maximum of N10 for those between N5,000 and N50,000, and N50 for higher amounts. Additionally, a 7.5 percent value-added tax now applies to electronic banking service charges, from mobile transfers to POS transactions.
As digital payments continue to expand, with the Nigeria FinTech and Mobile Payments market now valued at USD 1.5 billion, Nigerian banks appear positioned to sustain this revenue stream, even as regulators move to protect consumers from excessive fees.
