In the financial sector in Nigeria, businesses have experienced significant growth in revenues generated from online banking fees and commissions. A recent report revealed that seven Nigerian banks accrued a total of ₦495.57 billion from online banking fees, account maintenance fees, and other miscellaneous fees in the financial year 2023. This represents a 36% increase from the ₦365.11 billion earned in 2022.
These banks include well-established names such as FBN Holdings Plc, Stanbic IBTC Holdings Plc, Fidelity Bank Plc, FCMB Group Plc, Wema Bank Plc, Sterling Financial Holdings Company Plc and Jaiz Bank Plc.
FBN Holdings reported impressive revenues, with ₦66.04 billion coming from online banking fees, ₦204.9 billion from fees and commissions, and ₦22.08 billion from account maintenance fees in 2023.
Stanbic IBTC Holdings also reported strong numbers, with ₦117.84 billion in revenue from bank fees and commissions, representing a 23% increase from the previous year.
FCMB Group recorded a 38% growth in revenue from ₦44 billion in 2022 to ₦60.78 billion in 2023, while Fidelity Bank saw a 44% increase in revenue from ₦31.15 billion at ₦44.91 billion.
Additionally, Sterling Bank, Wema Bank and Jaiz Bank also posted significant increases in bank fee and commission revenue in 2023.
This sustained growth can be partly attributed to the CBN’s Naira revamp policy, which has prompted many Nigerians to shift to electronic forms of payment. This has led to an increase in cashless transactions in the country, reflecting the growing importance of online banking and the revenue generated by it.