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Nigeria’s top financial institutions are reshaping the future of banking with record earnings from electronic payments, generating a combined ₦674 billion ($419.7 million) in 2024—a 58% surge from ₦428.6 billion ($266.6 million) in 2023, according to their latest financial disclosures. The milestone reflects a growing shift toward compliance-driven digital banking and the strategic monetization of RegTech-powered transaction channels.
The ten leading institutions—Access Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, First HoldCo Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, FCMB Group Plc, Sterling Financial Holdings Company Plc, and Fidelity Bank Plc—are leveraging compliance management systems, internal controls, and advanced e-payment infrastructure to capitalize on Nigeria’s rapidly expanding digital economy.
UBA led the earnings chart with ₦236.3 billion ($147.1 million), followed by Access Holdings at ₦178.6 billion ($110.9 million), as banks processed transactions totaling ₦1.07 quadrillion via the NIBSS Instant Payment (NIP) platform—a historic record up from ₦600 trillion in 2023.
Regulatory Compliance Meets Digital Innovation
This exponential growth underscores how regulatory technology solutions are enabling banks to optimize non-interest income channels amid macroeconomic headwinds like high inflation, interest rate volatility, and foreign exchange instability. As banks face mounting pressure on loan books and traditional margins, e-payment revenue—driven by transaction charges between ₦10 and ₦50—is now a critical lifeline.
Notably, the Federal Government’s December 2024 directive imposing a ₦50 fee on transfers above ₦10,000 reflects a regulatory policy shift that directly impacts customer costs and bank revenue.
“The digital channel has evolved from a supplementary service to a strategic pillar of financial performance,” said Israel Odubola, a Lagos-based financial analyst. “It’s no longer optional—it’s imperative.”
Investment in Compliance and Digital Infrastructure
Driven by this shift, banks are ramping up investment in compliance automation, payment security systems, and IT infrastructure. A recent report revealed that six major Nigerian banks spent ₦268.7 billion ($171.5 million) on technology and compliance-related infrastructure in 2024—a 74.5% rise from ₦153.8 billion ($98.2 million) the previous year.
“The increase in e-banking income provides the rationale for enhanced digital infrastructure spending,” said Gbolahan Ologunro, portfolio manager at FBNQuest. “It’s about delivering frictionless and secure experiences while staying ahead of evolving regulatory requirements.”
This focus aligns with broader RegTech industry trends, including risk mitigation, fraud detection, and the adoption of compliance analytics to ensure seamless user experiences and regulatory reporting.
Digital Inclusion and Market Transformation
Nigeria’s embrace of cashless policy reforms, smartphone penetration, and innovative platforms like OPay and PalmPay have catalyzed the digital shift. According to NIBSS, NIP transaction volume jumped to 11.3 billion in 2024, up from 9.7 billion in 2023. PoS transaction volume also grew to 1.45 billion, with a corresponding value increase to ₦79.5 trillion from ₦46.9 trillion.
Further driving value growth is the ongoing devaluation of the naira, which dropped from ₦463.4/$ in June 2023 to ₦1,601.4/$ by April 2025, affecting both local and foreign currency settlements through interbank platforms.
Tajudeen Ibrahim, Director of Research and Strategy at Chapel Hill Denham, noted: “With NIBSS handling both naira and foreign currency settlements, the naira depreciation contributed significantly to the recorded transaction value.”
The Rise of E-Banking as the New Financial Frontier
Nigeria’s declining reliance on cash—down 59% over the past decade—has made it one of the fastest economies transitioning to digital payments, according to Worldpay. As this transformation accelerates, compliance-first digital platforms and RegTech innovations are becoming the cornerstone of sustainable banking growth.
With ₦674 billion earned from ₦1.07 quadrillion in digital transactions, Nigerian banks are not only adapting to the digital wave—they are pioneering a new era where Governance, Risk, and Compliance (GRC) tools, AML software, and Regulatory compliance frameworks power financial performance.
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