Despite growing competition from fintech companies, Nigerian banks recorded a strong 23 percent increase in fee and commission income, reaching ₦986.5 billion in the first half of 2025, according to data compiled from the half-year financial statements of leading deposit money banks (DMBs).
The performance underscores the resilience of traditional banks in sustaining non-interest income growth amid a rapidly evolving digital finance landscape.
Analysts attribute the surge to higher transaction volumes, increased electronic banking fees, and growth in account maintenance charges, card services, and remittance transactions. The rollout of new digital platforms and revised tariff structures also contributed significantly to the improved earnings.
Major Tier-1 banks, including Access Holdings, Zenith Bank, GTCO, UBA, and FBN Holdings, led the rally, collectively accounting for over 70 percent of the total fee income. Access Holdings topped the chart with robust gains from electronic channels and trade services, while GTCO and Zenith Bank reported strong recoveries in digital transaction fees and credit-related commissions.
Industry watchers note that while fintech startups such as Opay, PalmPay, and Moniepoint continue to capture younger and unbanked demographics with lower-cost digital services, traditional banks have responded by expanding their mobile platforms and improving customer experience to retain market share.
“Banks are aggressively monetizing their digital ecosystems while leveraging scale and trust to maintain profitability,” said a Lagos-based financial analyst. “Fintech competition has forced innovation rather than erosion of value.”
The Central Bank of Nigeria (CBN)’s push toward a cashless economy and rising adoption of instant payment channels have further boosted transaction-based revenues.
However, experts warn that the rapid shift toward digitalization could intensify pricing pressure as fintechs continue to offer cheaper, more flexible options to customers.
With the second half of 2025 underway, market observers expect the upward trend in fee income to continue, supported by seasonal spending, growing e-commerce activity, and increased cross-border remittances.
In summary, the ₦986.5 billion fee income reported across the banking sector signals that Nigerian banks are not only surviving but also thriving in the face of fintech disruption—by innovating, diversifying, and monetizing their vast digital ecosystems.
