Nigeria’s financial technology sector attracted more than $2 billion in investment in 2024, consolidating the country’s position as Africa’s fintech hub, according to the Lagos Business School (LBS).
The Dean of LBS, Professor Olayinka David-West, represented by Professor Akintola Owolabi, disclosed this at the 35th annual conference of the Finance Correspondents Association of Nigeria (FICAN) held in Lagos at the weekend.
David-West noted that fintech remains a cornerstone of Nigeria’s digital transformation, alongside a rapidly expanding e-commerce market projected to exceed $16 billion by 2030. She said the country is “on the brink of a digital revolution” powered by its young population, growing internet penetration, and dynamic digital platforms.
“As of March 2024, more than 163 million Nigerians were online, representing 43.5 per cent internet penetration, while telecommunications contributed 18–20 per cent to GDP,” she said. “This revolution is reshaping commerce, livelihoods, and services across the country.”
She explained that e-commerce giants like Jumia and Konga continue to fuel online trade, while logistics firms such as Kwik and GIGL are creating new value chains that enhance efficiency and unlock employment opportunities.
In the financial sector, leading banks including Access Bank and GTBank are already leveraging Artificial Intelligence (AI) and Machine Learning (ML) for fraud detection, credit scoring, and customer service, she added.
On policy, David-West pointed to Nigeria’s 6 per cent Digital Services Tax (DST) on non-resident providers and levies such as the N50 electronic transfer charge as examples of how government is tapping into the digital marketplace for revenue. She emphasised that digital payments and mobile money are also enabling tax compliance and formalisation of the informal economy.
Despite these opportunities, she warned that weak infrastructure, unreliable electricity, and gaps in digital skills continue to limit inclusion. Regulators, she said, must strike a balance between encouraging innovation and protecting consumers.
FICAN chairman, Mr. Chima Titus, reinforced the message, describing the digital economy as Nigeria’s “new backbone for growth.” He revealed that the ICT sector contributed 18.3 per cent to GDP in the second quarter of 2025, while digital payment transactions hit N600 trillion in the first half of the year — a 22 per cent increase from 2024. Mobile money users have also grown to over 73 million, extending services into rural communities.
Titus added that the Central Bank of Nigeria’s Payment System Vision 2020, covering AI-driven banking, blockchain settlements, and cross-border digital payments, underscores the country’s commitment to building a robust digital financial ecosystem.
“No digital economy can thrive without an equitable and effective tax framework,” he said, calling for reforms to match innovation with sustainable growth.
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