GTCO’s HabariPay records N9.7bn profit in 2025, jump 155%

Nigeria's fintech sector is experiencing a profound structural shift, and GTCO's HabariPay subsidiary has just delivered compelling evidence that traditional banking incumbents are successfully transitioning into digital payment powerhouses. The company's announcement of N9.7 billion ($6.1 million USD equivalent) in profit after tax for 2025—a stunning 155% year-on-year increase from N3.8 billion in 2024—reveals a critical inflection point in how African financial services are evolving.

HabariPay's trajectory is not merely a success story; it represents a strategic blueprint that European investors should closely monitor. The subsidiary operates at the intersection of two powerful trends: Nigeria's accelerating digital payment adoption and the consolidation of fintech services within established banking groups. Rather than viewing traditional banks as dinosaurs threatened by fintech disruption, HabariPay demonstrates how legacy financial institutions with deep customer bases and regulatory relationships can leverage technology to recapture market share and drive profitability.

The 155% profit growth is particularly significant when contextualized within Nigeria's broader economic environment. The country's digital payments ecosystem has matured considerably, with transaction volumes growing at double-digit rates annually. However, profitability in this space remains elusive for many pure-play fintechs dependent on venture capital. HabariPay's strong financial performance suggests that sustainable fintech profitability increasingly favors platforms with institutional backing, established compliance infrastructure, and existing customer relationships—exactly what GTCO provides.

For European investors considering exposure to African fintech, this development carries multiple implications. First, it validates the "fintech-as-a-service" model where traditional banks acquire or build digital subsidiaries rather than being displaced by them. This reduces execution risk for investors wary of pure startup models. Second, it demonstrates that profitability, not just user growth metrics, is now the benchmark for success in African digital finance. HabariPay achieved this through revenue diversification—payments processing, merchant services, lending products, and API-based solutions for third-party developers.

The 155% profit increase also reflects operational leverage. HabariPay likely benefited from fixed-cost infrastructure investments made in prior years now generating significantly higher transaction volumes. This suggests the company has achieved critical mass in its core payment products while maintaining cost discipline. European investors should note that this efficiency model is replicable across other GTCO subsidiaries and competitors, indicating that African fintech profitability is moving from exception to standard.

However, regulatory scrutiny remains a persistent headwind. Nigeria's Central Bank has intensified oversight of fintech operations, including capital requirements and consumer protection standards. HabariPay's institutional backing provides compliance advantages, but new regulations could compress margins across the sector. Additionally, competition from international players and aggressive domestic competitors like Flutterwave and Paystack (now owned by Stripe) maintains pricing pressure.

GTCO's broader strategic positioning deserves attention. The bank is leveraging HabariPay as an ecosystem play, cross-selling financial services to tech-native customer segments. This mirrors strategies employed by traditional banks globally and suggests that African financial services consolidation around tech-enabled platforms will accelerate. European investors should view HabariPay not in isolation but as part of GTCO's digital transformation thesis.