Technology-Enabled Banking as a Strategic Catalyst for Nigeria's 2036 Vision

Nigeria's 2036 Vision for economic transformation is increasingly anchored in the rapid digitization of its financial ecosystem. At the heart of this shift lies technology-enabled banking, which is redefining access, efficiency, and inclusion in the country's financial services landscape. With a confluence of progressive regulatory frameworks, surging fintech innovation, and infrastructure advancements, Nigeria is emerging as a high-potential hub for investors seeking to capitalize on the next wave of financial inclusion in Africa.

Government Policy: A Foundation for Fintech Growth

The Central Bank of Nigeria (CBN) has been instrumental in shaping a regulatory environment conducive to fintech innovation. The Payments System Vision 2025 (PSV2025) outlines a roadmap to modernize Nigeria's payments infrastructure, emphasizing contactless solutions, real-time payments, and open banking. Key initiatives include the deployment of QR code-based transactions (NQR), the development of a Central Bank Digital Currency (CBDC), and the establishment of a regulatory framework for stablecoins in collaboration with the Securities and Exchange Commission (SEC) as detailed in PSV2025. These policies are not merely aspirational; they are actively driving a cashless economy, with Nigeria's digital payment policy aiming to reduce cash dependency and expand banking access to 85%.

The CBN's recent policy shifts have further unlocked opportunities. For instance, the 2023 lifting of the ban on banks serving crypto companies and the 2024 launch of the Accelerated Regulation Incubation Program (ARIP) by the SEC have legitimized the crypto sector, attracting both domestic and international investment. Such regulatory clarity is critical for investors, as it mitigates uncertainty and fosters long-term confidence in Nigeria's fintech ecosystem.

Fintech Sector Growth: A 70% Surge and Rising

Nigeria's fintech sector has experienced exponential growth, expanding by 70% year-over-year from 2023 to 2025 despite macroeconomic headwinds. By early 2025, the country hosted over 430 fintech companies, with 32 operating in cryptocurrency and Web3.0. This growth is underpinned by a surge in digital payment adoption, driven by smartphone penetration (now exceeding 80% in urban areas) and the rise of e-commerce.

The Nigeria FinTech Payments and Wallets Market was valued at USD 1.5 billion in 2023, with projections indicating a compound annual growth rate (CAGR) of 8.7%. By 2025, the embedded finance market-encompassing digital payments, lending, and insurance-is expected to reach USD 4.34 billion. These figures underscore a market that is not only expanding but also maturing, with robust infrastructure and consumer trust.

Real-Time Payments: The Backbone of a Cashless Economy

Real-time payments (RTP) are central to Nigeria's financial inclusion strategy. The NIBSS Instant Payment (NIP) platform, which facilitates real-time transactions, recorded a transaction value of $770 billion in 2024. This system is pivotal to the CBN's goal of transitioning to a cashless economy, with real-time payments accounting for 27.7% of all transactions in 2023-a figure projected to rise to 50.1% by 2028.

The National QR (NQR) code standard has further accelerated adoption. By enabling secure, low-cost peer-to-peer and peer-to-business transactions, NQR has empowered small-scale merchants and rural communities. For example, the Lagos State Government's integration of NQR into revenue collection systems generated over 750,000 QR codes for land use and utility payments, streamlining transactions for citizens. Street vendors and hawkers now use NQR lanyards to accept payments, bypassing the need for expensive POS terminals. This democratization of digital payments is a testament to Nigeria's progress in bridging the financial inclusion gap.

Open Banking: A Game Changer for Financial Services

While the nationwide launch of Nigeria's open banking framework was delayed to early 2026, the groundwork is firmly in place. The CBN's Operational Guidelines for Open Banking, published in March 2023, mandate standardized APIs, customer consent protocols, and data privacy measures. Five dedicated workstreams-spanning governance, legal compliance, and technical infrastructure-have completed their deliverables, with the Nigeria Inter-Bank Settlement System (NIBSS) tasked with operationalizing the Open Banking Registry (OBR) and Consent Management System (OBCMS).

Open banking is poised to revolutionize financial services by enabling third-party providers to offer personalized solutions, such as credit scoring and wealth management, through secure data sharing. For instance, mobile-money operators handled $47.6 billion in transactions in 2024, while the NIP platform processed $770 billion. These figures highlight the scalability of open banking, which is expected to drive innovation in embedded finance- where financial services are integrated into non-financial platforms like e-commerce and ride-hailing apps.

Why Now Is the Optimal Time to Invest

The alignment of regulatory support, market growth, and technological infrastructure makes Nigeria's fintech sector a compelling investment opportunity.

1. Regulatory Momentum: The CBN's proactive approach-ranging from NQR adoption to open banking readiness-creates a stable environment for innovation. The recent ARIP program, for example, has attracted $140 million in fintech funding in 2024 alone, signaling investor confidence.
2. Market Scalability: With e-commerce transactions projected to exceed $35 billion and a population of 220 million, Nigeria offers a vast, untapped market. The CBN's 85% financial inclusion target by 2036 further amplifies the potential for scalable solutions.
3. Infrastructure Readiness: The NIP platform, NQR standard, and NIBSS's role in open banking demonstrate a robust infrastructure capable of supporting high-volume, secure transactions.

Risks and Mitigations

While the outlook is optimistic, challenges such as cybersecurity risks and regulatory compliance must be addressed. However, the CBN's emphasis on data protection and the SEC's ARIP program are mitigating these risks by fostering a secure and compliant ecosystem.

Conclusion

Nigeria's fintech revolution is not a distant vision but a present reality. The confluence of government policy, real-time payments, open banking, and NQR adoption is creating a fertile ground for investors. For those seeking high-growth opportunities in Africa's largest fintech market, the time to act is now.