Kuda Processes N14.3 Trillion in Q1 2025 Transactions, Expands Overdraft Lending by 50%
Nigeria’s leading digital bank, Kuda Technologies, has revealed that it processed a record N14.3 trillion in transaction volume in the first quarter of 2025, across over 300 million transactions on its platform. This milestone was announced during a media parley in Lagos by the bank’s co-founder and CEO, Babs Ogundeyi.
The latest data provides the most detailed operational insight Kuda has shared to date, signalling steady growth in digital financial activity and a strong appetite for mobile-first banking in Nigeria.
Retail and Business Banking Drive Kuda’s Transaction Growth
Out of the total N14.3 trillion processed:
- N8.5 trillion came from retail banking customers
- N5.8 trillion was generated via business banking users
Transfers continue to dominate user activity on the Kuda app, particularly among business users who accounted for N1.5 trillion in transfer transactions alone.
Interestingly, the bank recorded more paid transfers than free ones, indicating a growing willingness among Nigerian users to pay for reliable, convenient transaction services.
“For free transfers, we moved about almost a trillion Naira. And then on non-free transfers, we did over 3 trillion Naira,” Ogundeyi explained.
Kuda Issues N17 Billion in Overdrafts, Pays N130 Million in Interest
In Q1 2025, Kuda also strengthened its credit offerings:
- N17 billion in overdrafts issued to eligible customers
- 50% increase in credit disbursement compared to Q4 2024
- N130 million paid out in user interest
According to the CEO, the neobank’s positive monthly interest returns underline the strength of its credit model—a key pillar for any modern financial institution.
“The better your credit model is, the better you are as a bank,” said Ogundeyi. “It’s an important factor for us… and we’re still scaling it.”
Kuda’s Strategic Focus: Digital-Only, App-First Model
With over 7 million users, Kuda remains committed to its digital-only strategy, unlike its competitors, who rely on extensive agent networks. The neobank continues to offer core services like free transfers, credit, automated savings, and interest payouts through its mobile app alone.
Kuda Faces Tough Competition in Nigeria’s Fintech Market
Nigeria’s fintech ecosystem is becoming increasingly competitive, with major players such as:
- PalmPay: 15 million daily transactions and 35 million customers
- OPay: Over 50 million users and 500,000 agents nationwide
- Moniepoint: Growing with an expansive agent network
Despite the pressure, Kuda stands out with its tech-driven, no-agent, and consumer-focused approach, offering flexibility, credit access, and intuitive digital experiences to Nigerians.
Industry Outlook
According to the Nigeria Inter-Bank Settlement Systems (NIBSS), mobile money operators processed a total of N71.5 trillion in transactions in 2024. Kuda’s N14.3 trillion Q1 2025 contribution positions it as a significant player within this growing digital economy.
Conclusion
Kuda’s impressive Q1 2025 results—ranging from N14.3 trillion in processed transactions to its expanded credit services—reinforce its position as a leading force in Nigeria’s digital banking revolution. As the neobank continues to innovate and scale, its focus on user experience, financial inclusion, and credit empowerment could solidify its long-term leadership in Africa’s fintech landscape.
