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eTranzact International Plc increased its revenue by 22.6% to ₦16.28 billion in the first half of 2026, but the payments company recorded a decline in profitability as operating and transaction-related costs grew faster than earnings.
The company, which has continued to expand its agent banking and point-of-sale (POS) network, generated ₦13.28 billion in revenue during the corresponding period of 2025.
Revenue Growth Fails to Lift Bottom Line
Despite the stronger top line, eTranzact’s cost of sales jumped 39% to ₦9.50 billion, compared with ₦6.84 billion a year earlier.
Consequently, gross profit rose by only 5.1% to ₦6.78 billion, while gross margin narrowed significantly to 41.6% from 48.5%.
Administrative expenses also increased by 21.9% to ₦4.81 billion. Selling and marketing expenses, however, declined by 11.9% to approximately ₦377 million.
The combined effect was a 23.2% drop in operating profit to ₦1.59 billion, from ₦2.07 billion in H1 2025.
Profit Before Tax Falls 19.1%
Finance income provided some support, increasing from ₦88 million to ₦150 million during the period.
However, the additional income was insufficient to offset the higher operating costs.
Profit before tax consequently fell 19.1% to ₦1.75 billion, while profit after tax declined to ₦1.22 billion.
The results highlight a widening gap between eTranzact’s revenue growth and its earnings performance, as the company spends more to support expansion.
₦1.23bn Invested in Expansion
A major focus of the company during the period was expanding its physical payments infrastructure.
eTranzact invested approximately ₦1.23 billion in capital expenditure during H1 2026, with around ₦850 million allocated to POS deployment.
The investment forms part of its strategy to expand its agent banking network and capture a larger share of Nigeria’s financial inclusion and digital payments market.
However, the expansion came with significant pressure on cash flows.
Payments to suppliers and employees nearly doubled to approximately ₦21 billion, pushing operating cash flow from a positive ₦1.14 billion in H1 2025 to a negative ₦6.86 billion in the latest period.
Payment Switching Model Faces Fee Pressure
eTranzact’s performance is also being shaped by changes in the economics of payment switching in Nigeria.
The NIBSS NIP switching fee has fallen from ₦5 per transaction before 2023 to ₦3.75 in July 2023 and subsequently to ₦2 in January 2026, with a zero-fee model targeted for the end of the year.
For payment switches, lower fees mean transaction volumes must increase substantially to compensate for the reduced income generated per transaction.
The industry is simultaneously transitioning towards the National Payment Stack, which recorded its first live transaction in November 2025 and is expected to eventually replace the existing NIBSS NIP rails.
Ownership Structure Changes
The first half also saw a major shift in eTranzact’s shareholder structure.
As of June 30, 2026, Trademarks Global Concepts Limited held a 56.18% controlling stake in the company.
The position replaces Access Bank Nigeria Plc’s previous 37.56% holding, while eTranzact Global Limited’s stake dropped from 22.50% to 14.49%.
The ownership change comes as the payments company continues to reposition its operations amid changes in Nigeria’s financial technology and payments landscape.
Follows Weaker 2025 Earnings
The H1 performance comes after eTranzact reported weaker annual earnings in 2025.
The company recorded ₦4.2 billion in profit before tax for 2025, down from ₦5.02 billion in 2024. Although revenue increased slightly, higher operating expenses weighed on the company’s overall earnings.
eTranzact also attracted significant activity on the Nigerian Exchange in March 2026, when 5.1 billion of its shares changed hands on March 18, making it the most actively traded stock that day.
Results Come Amid Fraud Investigation
The company’s latest financial results also arrive against the backdrop of a separate legal matter involving alleged fraudulent transactions on its platform.
Earlier in August, the Federal High Court in Abuja ordered 12 commercial banks and six fintech platforms to place approximately 69 accounts under post-no-debit restrictions following allegations of unauthorised credit transactions.
The case followed a petition by eTranzact concerning an alleged penetration of its database and manipulation of transactions on its internet banking platform. The allegations remain subject to investigation and do not establish wrongdoing by the affected account holders.
Growth Versus Profitability
eTranzact’s H1 2026 figures present a mixed picture.
The company is expanding its revenue base and investing heavily in its POS and agent network, but the cost of that expansion is currently outpacing its earnings growth.
With payment-switching fees under pressure and the country’s payment infrastructure undergoing a major transition, eTranzact will need to convert its growing transaction footprint into stronger margins and cash generation as it enters the second half of 2026.
