One of the things I feel fintechs have done to the Nigerian financial system is that they have made commercial banks sit up. Everyone would attest that transactions on their platforms are faster and cheaper.
This might have made commercial banks aware of the potential threat this poses if they do not improve their services too. Fintechs came through for many Nigerians during the 2022–2023 naira redesign crisis, and this made many of them more popular among Nigerians.
These fintech banks, like OPay for example, reportedly process massive daily transaction volumes, rivaling the retail transaction activity of many traditional Nigerian banks.
Moniepoint, which has the largest number of POS terminals, has a presence in almost every part of the country. It reportedly processed about ₦412 trillion in transactions in 2025, averaging over ₦34 trillion monthly, according to its internal company presentation.
Based on its 2025 report, eight out of every ten in-person payments in Nigeria are made with Moniepoint.
Many fintechs operate under microfinance banking licenses, payment service bank licenses, or switching/payment licenses issued by the Central Bank of Nigeria.
Although fintechs cannot offer all the services commercial banks provide, the dynamics regarding the services holders of these licenses can render are gradually changing. The Central Bank of Nigeria keeps reviewing its policies and changing the service delivery scope of each type of financial institution.
An example was when fintechs stepped in after naira debit cards were restricted from being used for international transactions. Some fintechs offered dollar cards to their customers. This would normally have forced users to either open domiciliary accounts or settle transactions through more rigorous means.
Nigeria has experienced rapid digital adoption and remains one of Africa’s largest fintech markets. This may be attributed to its large population and the Central Bank of Nigeria’s policy flexibility, which promotes financial inclusion.
Although fintechs are disrupting specific banking functions, especially payments and transfers, commercial banks still dominate corporate finance, international banking, large-scale lending, trade finance, and treasury operations.
FINAL THOUGHT
As long as the Central Bank of Nigeria draws the line regarding what each financial institution can do with its license, commercial banks will still retain some of their traditional functions and services.
MACRO DIALOGUE
In your view, will fintechs eventually evolve into full-service banks, or will commercial banks continue to dominate the Nigerian financial system in the long run?
Akinsulere’s Economic Notes
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