Nigeria’s leading digital bank, Kuda Technologies, has announced that it processed a staggering N14.3 trillion worth of transactions across over 300 million dealings in the first quarter of 2025.
Although previous quarterly figures were not disclosed for direct comparison, Kuda revealed that transaction volumes on its app continue to grow steadily.
Speaking at a media parley in Lagos on Monday, CEO Babs Ogundeyi provided a breakdown of the bank’s retail and business banking performance. According to him, retail banking users contributed N8.5 trillion, while business clients accounted for N5.8 trillion within the period.
Transfers remain the platform’s dominant activity, with business banking alone facilitating transfers worth N1.5 trillion. Interestingly, the bank recorded more paid transfers than free ones, indicating that Nigerians increasingly value convenience and are willing to pay for seamless transactions.
“For free transfers, we moved almost a trillion Naira, while non-free transfers exceeded 3 trillion Naira. Despite offering free transfers, the non-free category recorded higher volumes,” Ogundeyi explained.
Overdraft Services and Customer Credit
Kuda, which boasts seven million customers, also disclosed that it issued almost N17 billion in overdrafts during Q1 2025, recording a month-on-month net positive interest.
“Issuing credit is fundamental to banking. The stronger your credit model, the better your institution. Compared to the last quarter, we extended almost 50% more credit in Q1,” Ogundeyi stated.
Additionally, the bank paid N130 million in interest to its users within the same quarter.
This operational update marks Kuda’s first public disclosure of detailed financial transaction data, having previously focused on announcing user milestones such as surpassing 7 million customers by January 2024.
Navigating Nigeria’s Intensifying Fintech Landscape
Kuda faces tough competition in Nigeria’s rapidly expanding fintech sector. Rivals such as PalmPay, Moniepoint, and OPay are aggressively growing their footprints through agent networks and mobile money services.
PalmPay processes 15 million transactions daily (approximately 1.3 billion quarterly) and serves 35 million customers.
OPay claims over 50 million users with 500,000 agents nationwide.
Unlike its competitors, Kuda remains committed to its app-first, digital-only strategy, offering retail banking and credit services without a physical agent network.
According to the Nigeria Inter-Bank Settlement Systems (NIBSS), licensed mobile money operators processed transactions valued at N71.5 trillion in 2024, highlighting the massive market potential within the sector.
Credit:Nairametrics
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