'Why are Nigerians paying so much to access their own money?' - Banks earn ₦225bn from ATM, e-banking charges in three months

• Nigerian banks generated ₦224.69 billion from ATM fees, card charges and e-banking services between January and March 2026, up 12.56% from the same period in 2025.

• Access Holdings, UBA and Ecobank were among the biggest earners from digital banking services, with e-banking becoming a major source of non-interest revenue.

• The increase has sparked criticism from customers who question why they continue to face multiple charges as banks make billions from digital transactions and account-related fees.

Nigerian banks generated nearly ₦225 billion from ATM transactions, card management fees and electronic banking services in the first three months of 2026, sparking fresh concerns among customers over the growing cost of accessing financial services.

An analysis of the unaudited Q1 2026 financial statements of 11 listed banks showed that lenders earned a combined ₦224.69 billion from digital banking channels, representing a 12.56 per cent increase from the ₦199.61 billion recorded during the same period in 2025.

The figures come at a time when more Nigerians are relying on mobile apps, USSD services, debit cards, online transfers and automated teller machines for everyday transactions, while also facing multiple bank charges on their accounts.

Many customers have increasingly questioned why they continue to pay transaction fees despite the rapid shift towards digital banking, with some arguing that banks are making significant profits from services that have become essential rather than optional.

Electronic banking services alone accounted for ₦177.97 billion of the total earnings, up from ₦159.52 billion a year earlier. Revenue from ATM and card management fees also climbed to ₦46.70 billion from ₦40.09 billion in the corresponding period of 2025.

The growth reflects the increasing role of digital channels in the banking industry, where electronic transactions now contribute a substantial share of non-interest income.

The development follows an earlier report showing that the same banks generated ₦984.47 billion from fees and commissions in the first quarter of 2026, compared to ₦866.30 billion in the same period last year. Income from account maintenance charges also rose to ₦209.18 billion.

Among the lenders reviewed, Access Holdings recorded the highest income from electronic banking activities, generating ₦55.71 billion during the quarter. United Bank for Africa followed with ₦46.93 billion, while Ecobank earned ₦35.53 billion from card management fees.

GTCO posted ₦21.90 billion from e-business operations, while Zenith Bank generated ₦21.54 billion from fees linked to electronic products and services.

Other banks that reported significant earnings from digital channels included First Holdco, Wema Bank, Fidelity Bank, Stanbic IBTC, Sterling Financial Holdings and Jaiz Bank.

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Fidelity Bank recorded the fastest growth in digital banking revenue among the institutions reviewed. Its combined income from ATM charges and electronic banking commissions surged by almost 165 per cent year-on-year to ₦8.81 billion, largely driven by a sharp increase in ATM-related earnings.

GTCO also posted strong growth, with e-business income rising by more than 68 per cent. Zenith Bank's electronic product fees increased by nearly 59 per cent, while Stanbic IBTC recorded a 52.8 per cent rise in combined digital banking revenue.

Not all lenders recorded growth, however. Wema Bank reported the steepest decline, with income from electronic products falling by more than 50 per cent. UBA and Ecobank also recorded slight drops in some digital banking revenue lines.

The financial statements further showed how important electronic channels have become to banks' profitability.

For UBA, electronic banking generated almost 38 per cent of total fee and commission income, making it the lender's largest fee-generating business segment during the quarter. Similar trends were recorded at Access Holdings, GTCO, Zenith Bank and Wema Bank.

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The rise in digital banking income comes amid broader improvements in economic activity. Nigeria's private sector expanded to a nine-month high in May 2026, according to the Stanbic IBTC Purchasing Managers' Index, which rose to 54.1 points, signalling stronger business activity, increased output and improving demand conditions.

Industry analysts also link the growth to ongoing reforms in the financial sector. The Central Bank of Nigeria has maintained that its banking recapitalisation programme and efforts to stabilise the foreign exchange market are helping to strengthen the sector and support long-term economic growth.

Beyond Nigeria, development institutions across Africa are increasingly promoting digital payments as a tool for economic formalisation and financial inclusion.

In its Africa Economic Outlook 2026 report, the African Development Bank said digitalisation is helping governments improve tax collection, reduce informality and expand access to financial services.

The report noted that digital platforms make it easier for businesses and individuals to register, make payments and participate in regulated financial systems. According to the AfDB, digital financial tools also help small businesses build transaction records, access credit and improve their resilience.

The growing contribution of e-banking services, card transactions and other electronic channels to bank earnings highlights the rapid transformation of Africa's financial landscape. However, for many Nigerians dealing with multiple deductions and service charges, the question remains: "Why are Nigerians paying so much to access their own money?"