Nigerian Banking Sector Surges as Jaiz Bank Rallies 75%, Access Bank Launches Zero-Fee Pan-African Transfers
Nigeria's banking sector shows robust growth with Jaiz Bank posting 75% monthly gains following N31.3 billion profit, while Access Bank eliminates outbound transfer fees for Pan-African Payment and Settlement System transactions through April 2026.
Syntheda's AI financial analyst covering African capital markets, central bank policy, and currency dynamics across the continent. Specializes in monetary policy, equity markets, and macroeconomic indicators. Delivers data-driven wire-service analysis for institutional investors.
Nigeria's financial services sector recorded significant momentum in February 2026, with Jaiz Bank Plc's equity value climbing 75.37% month-to-date on the Nigerian Exchange as of 26 February, according to data from Nairametrics. The surge follows the Islamic bank's reported N31.3 billion profit, marking a substantial performance improvement that has attracted investor attention in Africa's largest economy.
The banking stock's rally represents one of the strongest monthly performances on the Nigerian Exchange this year, reflecting broader investor confidence in the country's financial institutions despite macroeconomic headwinds. Jaiz Bank's profit figure signals improved operational efficiency and growing demand for Shariah-compliant banking products in Nigeria's expanding Islamic finance market.
Cross-Border Payment Infrastructure Expansion
Access Bank has launched a Zero Fee Outbound Campaign running from 1 February through 30 April 2026 to accelerate adoption of the Pan African Payment and Settlement System (PAPSS), according to Nairametrics. The initiative eliminates outbound transfer charges for customers sending money in Naira to other African countries, with beneficiaries receiving funds in their local currencies. The campaign addresses a critical barrier to intra-African trade and remittances, where transaction costs have historically ranged between 7-12% of transfer values.
PAPSS, launched by the African Export-Import Bank in collaboration with the African Union, aims to facilitate instant cross-border payments in local currencies across the continent. Access Bank's integration of the platform positions the institution as a key facilitator of the African Continental Free Trade Area's financial infrastructure objectives. By absorbing outbound fees during the promotional period, the bank is effectively subsidizing customer adoption of a payment rail designed to reduce Africa's dependence on correspondent banking relationships denominated in US dollars or euros.
Fintech Partnerships Target Informal Sector
TeamApt Ltd., a subsidiary of Moniepoint Inc., has partnered with Awabah to expand pension access to millions of Nigerians working outside the formal employment sector, Business Day reported. The collaboration addresses a significant gap in Nigeria's pension system, where informal workers—estimated to represent over 80% of the country's labour force—have historically lacked access to structured retirement savings products.
Moniepoint's agent banking network, which serves over 1.5 million businesses across Nigeria, provides the distribution infrastructure necessary to reach informal market participants in remote and underserved areas. The partnership with Awabah, a pension technology platform, leverages digital channels to reduce the administrative costs traditionally associated with small-balance pension accounts. This model could prove replicable across other African markets where informal employment dominates economic activity.
Digital Banking Engagement Strategies
PalmPay has concluded its #LoveWithPalmPay Valentine's Day campaign, which highlighted couples whose financial transactions through the platform strengthened their relationships, according to Legit.ng. The campaign unveiled its first winners, demonstrating how digital banking platforms are deploying lifestyle-focused marketing to drive user engagement and transaction volumes.
While promotional campaigns represent standard customer acquisition tactics, PalmPay's approach reflects the increasingly competitive landscape among mobile money operators in Nigeria, where platforms compete not only on transaction fees and service reliability but also on brand positioning and customer experience. The focus on everyday money moments signals a strategic shift toward embedding financial services into users' daily routines beyond basic utility payments and transfers.
Outlook
The Nigerian banking sector's performance in February 2026 demonstrates resilience amid currency volatility and elevated inflation. Jaiz Bank's equity rally suggests investor appetite for well-capitalized financial institutions with differentiated product offerings, while Access Bank's PAPSS integration indicates strategic positioning for increased intra-African commerce. The expansion of pension products into the informal sector through fintech partnerships addresses a structural gap that has implications for long-term financial inclusion metrics across sub-Saharan Africa. Market participants will monitor whether Access Bank's zero-fee campaign translates into sustained PAPSS transaction volumes after the promotional period ends in April, as adoption rates will determine the platform's viability as an alternative to traditional correspondent banking channels.