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Growth of Fintech Companies in Nigeria

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By Samuel Abimbola

Fintech offers innovative banking solutions to bridge financial inclusion.

Nigeria has a thriving financial Technology ecosystem driven by high smartphone usage and a large unbanked population. The country is a leader in the financial sector in Africa, with many start-ups and banks offering innovative digital solutions in banking services, lending, payments, investments, regulatory compliance, Blockchain technology, and remittances. The country has recently seen increased financial companies operating within its borders. Financial technology refers to using technology to provide financial services to individuals and businesses. These services range from mobile banking and digital payments to peer-to-peer lending and Insurance.

The growth of financial firms in the country can be attributed to several factors, such as the country’s large and underserved population, which presents a ripe market for financial Innovation. According to the World Bank, only 40 percent of the country’s population has access to formal financial services, leaving a substantial portion of the population unbanked or underbanked. Financial technology companies have seized this opportunity to provide financial services to previously excluded individuals and small businesses.

Mobile devices expand financial firms’ reach to a broader audience.

Another factor driving the growth of financial institutes in the country is the increasing adoption of Mobile Technology. With over 140 million mobile phone subscribers, the country has one of the highest mobile penetration rates in the continent. This widespread use of mobile devices has enabled financial firms to reach a larger audience and offer services through mobile applications and platforms. Mobile banking, in particular, has become increasingly popular among its people, with many preferring the convenience and accessibility of digital banking services.

Furthermore, the regulatory environment in the country has become more favourable towards financial companies in recent years. The Central Bank of Nigeria (CBN) has taken steps to promote financial inclusion and support innovation in the financial sector. The CBN introduced the Payment Service Banks (PSBs) framework, which allows non-bank entities to provide basic financial services to underserved areas. This framework has paved the way for financial companies to expand their operations and reach new customers in rural and remote areas.

Africa’s financial market is projected to grow by 10% per year.

According to a recent report, Africa’s financial services market is forecasted to grow at approximately 10 percent annually, reaching $230 billion in Revenue by 2025. The country’s financial industry accounts for approximately one-third of the financial technology market in the continent. Its increases have also been fuelled by investments from both domestic and international sources. Venture capital firms and private equity Investors have shown a strong interest in supporting financial start-ups in the country, recognising the potential for high returns in this rapidly growing market.

Also, the rush of Investment capital has empowered financial companies in the country to expand their operations, introduce innovative products and services, and extend their presence globally. This increase in funding has provided opportunities for these companies to enhance their technological capabilities, improve customer experiences, and accelerate their growth. With access to increased capital, financial institutions invest in research and development, explore new markets, and stay ahead of industry trends. This rush of investment capital has been instrumental in driving the evolution and expansion of the financial sector globally.

Related Article: Nigeria has largest share in fintech market

Overall, the growth of financial technology companies signifies an advancement in the country’s financial sector and Economy. Through technology and innovation, these companies can offer essential financial services to traditionally underserved populations, thereby promoting financial inclusion and Economic Development. With ongoing backing from regulators, investors, and consumers, the country’s financial industry is well-positioned to sustain its rapid growth line in the foreseeable future. This continued expansion benefits the financial sector and contributes to the country’s overall economic prosperity.


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