Hot SourceBy Kayode Tokede
Despite mounting competition from fintech operators, Nigeria’s tier-one and mid-tier banks have strengthened their non-interest income streams, posting a combined N986.5 billion in fees and commission income in the first half of 2025, representing a 23 per cent surge from the N805.3 billion recorded in the corresponding period of 2024.
A THISDAY analysis of financial statements from seven leading banks, including Zenith Bank, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Stanbic IBTC Holdings, FCMB Group, and Wema Bank, revealed that transactions across PoS, USSD, ATM, and internet banking platforms drove the impressive rise, underscoring the resilience of traditional lenders in defending their turf amid the fintech onslaught.
The growth was fuelled largely by a widening customer base and higher fees from credit-related services, account maintenance, foreign currency transactions, and electronic product commissions.
However, digital-only banks such as Opay, Moniepoint, Palmpay, and Kuda continue to woo customers with zero charges on deposits and transfers.
While fintech firms gained traction with no-charge models, the federal government’s decision to enforce a N50 Electronic Money Transfer Levy (EMTL) on all transactions from N10,000 and above, effective December 1, 2024, narrowed the competitive gap.
The levy, introduced under the 2020 Finance Act, ensured that both banks and fintechs now operate on a more level fiscal field.
Analysts noted that fintechs’ aggressive pricing has created a new savings and withdrawal behaviour among bank customers, compelling traditional banks to innovate around loyalty, convenience, and reliability.
UBA led the industry with N253.6 billion in fees and commission income for H1 2025, a modest 1.2 per cent rise from N250.7 billion in 2024, with N100.5 billion coming from electronic banking alone, nearly 40 per cent of the total.
The bank attributed the marginal gain to “strategic rebalancing” of income streams towards scalable, fee-based services despite pressures on traditional lines.
Zenith Bank followed closely with N196.4 billion, up 21.1 per cent from the N162.2 billion in H1 2024.
GTCO grew its fee and commission income by 33 per cent to N151.5 billion.
Stanbic IBTC Holdings delivered one of the strongest performances, growing 39 per cent to N123.8 billion, buoyed by robust asset management and e-payment inflows.
Mid-tier lenders FCMB Group and Wema Bank also impressed, recording N47.4 billion and 45.4 billion respectively, the latter surging by nearly 92 per cent year-on-year on the back of its aggressive digital banking push.
A deeper look into the numbers shows that the banks collectively earned N113.4 billion from current account maintenance fees, a 23 per cent rise from N91.9 billion in the same period last year.
The uptick follows the Central Bank of Nigeria’s reintroduction of the negotiable Current Account Maintenance (CAM) fee, capped at N1 per N1,000 debit transaction, effectively replacing the phased-out Commission on Turnover (CoT).
According to the CBN circular, the revised guide to bank charges, effective since April 1, 2013, permits the negotiable CAM fee “in the interest of the stability of the banking system.”
Financial analysts say the strong fee growth underscores banks’ adaptability amid narrowing interest margins and digital disruption.
According to investment banker and stockbroker Tajudeen Olayinka, “banks gain on these income lines as they extend retail and loan offerings. The spike in transactions during the first half of 2025 is translating directly into stronger fee and commission earnings.”
However, market watchers warn that the CBN’s limited enforcement of pricing caps and rising customer charges may attract regulatory scrutiny, especially as consumers become more price-sensitive in a fintech-driven marketplace.
The performance reaffirms that, far from being eclipsed, Nigerian banks are reinventing their revenue model, blending old-school account fees with new digital income streams — as they battle to stay relevant in a rapidly evolving financial ecosystem.
In a market where fintechs promise convenience and zero fees, legacy banks are showing they can still turn every swipe, tap, and transfer into billions.
