Lagos, Nigeria — GTCO’s HabariPay, the fintech arm of Guaranty Trust Holding Company Plc (GTCO), has witnessed a substantial surge in profitability, reflecting a broader trend among Nigerian banks to integrate fintech solutions in response to the rising competition from independent fintech firms.
The after — tax profit of HabariPay for 2025 reached ₦9. 7 billion, marking a significant increase year-on-year.
The backbone of HabariPay’s success lies in its digital payments platform, Squad, which has experienced a significant upsurge in transaction volumes. HabariPay’s rise is not just a testament to its own capabilities but also a sign of a larger shift within the Nigerian banking sector.
As fintech companies such as OPay, Moniepoint, Flutterwave, and Paystack challenge traditional banking models, Nigerian banks are increasingly turning to fintech to diversify their revenue streams and maintain their market presence. Matilda Adefalujo, a fixed income analyst at Meristem Stockbrokers, noted that Nigerian banks have been accelerating their investments in fintech subsidiaries focused on payments and digital transaction services, such as GTCO’s HabariPay and AccessCorp’s Hydrogen. This strategic move reflects the growing importance of payments as a key non-interest revenue driver.
Despite HabariPay’s impressive performance, it remains a relatively small unit within GTCO’s core banking business.
However, its contribution to the group’s profit has been steadily increasing, from 0. 5% in 2022 to 1. 1% in 2025, suggesting a potential for greater strategic importance as GTCO seeks to diversify its revenue sources.
The competitive landscape in Nigeria’s fintech market is fierce, with independent fintech firms often moving quickly, investing heavily in customer acquisition, and competing aggressively on pricing and user experience.
However, HabariPay’s success indicates that traditional banks can leverage their existing customer base and infrastructure to compete effectively in this fast-paced sector. KICKER: As HabariPay continues to grow, its trajectory could serve as a blueprint for other Nigerian banks looking to integrate fintech into their operations.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Ayodeji Adegboyega
