Nigeria’s largest banks are rapidly closing the gap with fintech rivals, processing a combined $208 billion in mobile transactions in 2025 as investments in digital infrastructure begin to deliver results.
Data from four tier one lenders shows a sharp rise in mobile banking activity, reflecting a broader shift in how Nigerians move money. Guaranty Trust Holding Company, United Bank for Africa, Zenith Bank, and First Bank of Nigeria collectively processed ₦286.19 trillion, equivalent to about $208.15 billion, through their mobile platforms.
The surge marks a turning point for traditional banks that had long struggled with unreliable apps and frequent transaction failures. For years, those issues pushed customers toward fintech platforms such as OPay and PalmPay, which built their dominance on speed and consistency.
That advantage is beginning to narrow. Banks have spent heavily upgrading their core systems, fixing long standing issues that once frustrated users. These upgrades are now translating into higher transaction volumes and stronger customer engagement across mobile channels.
Individually, the numbers are striking. GTCO alone processed ₦72.4 trillion in digital transactions, while Zenith Bank recorded ₦104.14 trillion in mobile banking activity. UBA’s mobile transaction value has nearly doubled since 2023, rising by more than 90 percent, while First Bank handled ₦58 trillion in mobile transactions within the first nine months of the year.
The growth is being driven by changing consumer behaviour. Nigerians are increasingly relying on mobile apps for everyday payments, moving away from older channels such as USSD and even physical cash. Instant payment volumes have surged alongside this shift, with transactions reaching hundreds of trillions of naira within a short period.
Behind the scenes, banks have committed significant capital to technology. Since 2024, leading lenders have collectively invested hundreds of billions of naira in core banking upgrades, including migrations to more advanced platforms. While these transitions initially caused service disruptions, they have improved speed, reliability, and scalability over time.
The payoff is not just in transaction volume. Digital channels are also becoming a major source of revenue. E banking income has surged across the sector, with some banks reporting hundreds of billions of naira generated from digital services alone over the past year.
For customers, the improvement reduces the need to split transactions between bank apps and fintech platforms. Payments that once required multiple apps can now be handled within a single banking ecosystem, as reliability improves and processing speeds increase.
For fintech companies, however, the landscape is becoming more competitive. As banks regain ground on performance and uptime, the differentiators are shifting toward pricing, user experience, and additional services such as lending and savings products.
What is emerging is a more balanced digital payments ecosystem. Banks are no longer lagging behind. Instead, they are rebuilding their position as central players in Nigeria’s fast evolving financial system, powered by mobile technology and a growing appetite for seamless digital transactions.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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