Joy Agwunobi
As Nigeria aspires to achieve a $1 trillion economy by 2030, the role of financial technology (fintech) in fostering economic growth and financial inclusion has become increasingly vital.
This ambitious target, established by the federal government, seeks to more than double Nigeria’s current economic size. The goal is part of a broader strategy to accelerate economic reforms, strengthen financial infrastructure, and modernise regulatory frameworks to create a more dynamic and inclusive economy.
According to the World Bank, Nigeria’s economy was valued at $362.81 billion in 2023, and to reach the $1 trillion mark, the economy will have to grow at an impressive rate annually.
Recognising fintech’s strategic importance, the Fintech Association of Nigeria (FinTechNGR) organised a webinar titled “Fintech Outlook 2025 – FinTech’s Role in Stimulating a $1 Trillion Economy.” The discussion brought together industry experts, policymakers, and stakeholders to explore how fintech innovations could unlock new growth opportunities and reshape Nigeria’s economic landscape.
Speaking at the event, Dotun Adekunle, the chief operating officer and chief technology officer at OPay Digital Services Limited, underscored the need for Nigeria to draw lessons from global economies that have harnessed fintech-driven innovations to accelerate growth.
According to Adekunle, “Economies that have experienced tremendous growth in the last two decades—including China, India, Brazil, and Singapore—have all had fintech companies or payment solutions at their core, serving as the foundation upon which their rapid economic expansion was built.”
He pointed to China as a prime example, where fintech solutions have transformed the economy, propelling it toward a nearly cashless society. The widespread adoption of digital payment platforms, seamless financial transactions, and increased access to credit have not only boosted economic activity but also enhanced financial inclusion, empowering millions who previously lacked access to traditional banking services.
“In China, even beggars do not collect cash. The way we have signs in Nigerian shops saying ‘Mastercard or Visa Accepted Here,’ in China, you would struggle to find a place where cash is accepted because payments have gone fully digital,” he explained.
Adekunle stressed that Nigeria has the potential to replicate similar successes if the right policies, technological innovations, and investment climate are cultivated. He highlighted that fostering a robust digital payment ecosystem, improving financial literacy, and creating regulatory frameworks that encourage fintech startups would be instrumental in achieving the $1 trillion economy target.
Adekunle pointed to similar fintech-driven transformations in India, where the Unified Payments Interface (UPI) and Paytm have reshaped financial transactions, and in Brazil, where Nubank has revolutionised digital banking. “These countries that experienced tremendous GDP growth and successfully deepened financial inclusion were powered by fintechs. If Nigeria is to achieve its ambitious goal of becoming a $1 trillion economy by 2030, we must empower existing fintech players and encourage more entrants into the sector to drive this growth,” he stated.
He further underscored the significant roles fintechs must play in advancing financial inclusion, supporting small and medium-sized enterprises (SMEs), and enhancing payment systems. “For this growth to happen, there are several roles that fintechs have to play. The first is financial inclusion. Today, the typical domestic worker has an OPay, PalmPay, or Moniepoint account. The average young person in university also owns a fintech account. This demonstrates how fintechs have achieved the level of inclusiveness that traditional financial institutions struggled with,” he noted.
Many Nigerians are opening fintech accounts as their first exposure to formal financial services. “For many, it’s their first financial service tool, their first app, their first bank account, their first experience with the financial ecosystem. This momentum must continue, and fintechs are responsible for driving this forward,” Adekunle added.
Beyond financial inclusion, he stressed fintech’s role in strengthening SMEs by improving access to credit. “A lot of small businesses today depend on fintech applications to access credit. Traditional banks often reject them due to a lack of financial history, no credit records, and insufficient data. However, fintechs have lower entry barriers and assess mobile data usage, spending patterns, and income levels over time to determine creditworthiness,” he said.
Adekunle highlighted how fintechs are facilitating seamless digital payments, allowing businesses to scale beyond physical boundaries. “Imagine a farmer in a remote village who previously could not sell to buyers beyond his immediate environment. Today, with an OPay account, he can advertise his goods on WhatsApp, receive payments digitally, and have logistics companies—made possible by fintech innovations making delivery accessible to distant customers,” he explained.
“Expanding financial inclusion, strengthening SMEs, enhancing payments, and driving investment and capital mobilisation are some of the key enablers that fintechs continue to provide,” he added.
Adekunle cited platforms like PiggyVest as an example of how fintechs are democratising access to funding. “I see companies on PiggyVest selling land or launching agricultural innovations, seeking investments from ordinary Nigerians. PiggyVest has made it possible for individuals to fund businesses without the need for complex proposals or pitching to major investors,” he noted.
While some argue that there are too many fintech startups offering similar services, Adekunle stresses that the sector has room for more innovation and competition. “There are many players in the fintech space, and some services appear repetitive. But we cannot stop that. If there are 200 fintechs today, let them grow to 400, then 500. Over time, we will see consolidations, mergers, and acquisitions, and niche markets will emerge where specific players can thrive,” he stated.
He emphasised that even smaller fintech firms with just 20,000 users can still carve out a sustainable market. “There are niche services that a major player like OPay might not find cost-effective, but a smaller fintech can serve that segment efficiently,” he noted.
Adekunle concluded that if fintech innovations continue to scale and reach the grassroots, Nigeria will witness increased productivity, more businesses, higher employment rates, and ultimately, a stronger economy. “A $1 trillion economy is achievable, but fintechs are critical to making this happen,” he added.
For Nigeria to achieve its ambitious target of a $1 trillion economy, a thriving fintech sector alone is not enough—insurance also plays a fundamental role in mitigating financial risks and ensuring long-term stability. Rashidat Adebisi, chief client officer at AXA Mansard Insurance PLC, emphasised the significance of embedded insurance and InsurTech in creating a robust safety net within the financial system.
“At its core, life is about protection,” Adebisi stated. “If debt is inevitable, then risk is also inevitable for every one of us. When we talk about building a $1 trillion economy, it essentially means doubling our current economic capacity. This should translate into job creation, industrial growth, and an overall strengthening of economic resilience. But for this to happen effectively, we must ensure that individuals and businesses have financial protection.”
She emphasised the importance of insurance as a safety net, not only shielding individuals from financial shocks but also fostering stability in the broader economy. According to Adebisi, insurance remains one of the few industries that simultaneously provide protection, facilitate wealth creation, and generate revenue.
While embedded insurance has recently gained traction as a buzzword, Adebisi pointed out that the concept has existed for years. The real challenge, she explained, is ensuring that insurance solutions are seamlessly integrated into digital ecosystems, making them accessible and easy to adopt.
“How do we make financial protection seamless and accessible? “How do we integrate insurance solutions into digital ecosystems in a way that makes adoption effortless?”
She highlighted key sectors where embedded insurance has already taken root, including: Ride-hailing services; E-commerce platforms; Digital banking and payment systems and Healthcare.
Despite its benefits, Adebisi acknowledged cultural barriers to insurance adoption in Nigeria, particularly regarding life insurance. She noted that many Nigerians hesitate to discuss financial risks associated with death, yet informal safety nets exist within communities where individuals rally to support those in need. The goal, she said, is to formalise this informal practice into structured insurance coverage that benefits a larger segment of the population.
Adebisi emphasised that InsurTech should not be viewed solely through the lens of app development or digital aesthetics but rather through its tangible impact on people’s lives. She cited the example of financial services stepping in during Nigeria’s cash shortages, demonstrating how digital platforms can provide crucial support during crises.
To unlock the full potential of InsurTech, she identified four key focus areas: Personalised risk assessment – leveraging data to create tailored insurance products, stronger partnerships – between insurers, fintech firms, and digital platforms,efficient claims processing and greater transparency – simplifying policy terms to make insurance coverage easily understandable.
According to Adebisi, fintech companies have a unique opportunity to integrate insurance solutions into their value chains, extending financial protection to a broader audience.
One of the most significant areas where embedded insurance has demonstrated its impact is in healthcare, particularly in the rise of telemedicine. Adebisi revealed that AXA Mansard successfully provided micro health insurance to over half a million Nigerians by embedding it within the payment ecosystem of a fintech company.
“This allows individuals to insure themselves for telemedicine services, meaning they no longer need to visit a hospital physically to consult a doctor,” she explained.
She stressed that financial inclusion should not be perceived as a small-scale initiative, as microinsurance solutions have the potential to evolve into large-scale economic value. By integrating health insurance with mobile data plans in collaboration with telecom operators, her company has enhanced accessibility, reducing self-medication practices and encouraging professional medical consultations.
Adebisi emphasised that the initiative has gained significant traction, surpassing previous efforts that bundled insurance with telecom services. According to her,unlike traditional insurance offerings that struggled with low adoption, embedding insurance within digital payment systems and everyday services has significantly improved user engagement.
Beyond healthcare, Adebisi noted the success of other embedded services, including mobile phone insurance. Through partnerships, they created a streamlined process where users could have their devices repaired and delivered seamlessly.
The healthcare sector, in particular, has benefited from a favourable regulatory environment, enabling partnerships between insurers and telecom operators. This has allowed the integration of health insurance with mobile data plans, further increasing accessibility.
Adebisi cited PalmPay as a key success story, where a large user base actively subscribes to insurance services. “Having half a million people pay for insurance is significant, especially in a country where only about 10 million people have any form of insurance coverage,” she noted. “Last year, we closed approximately 1.8 million policies across various inclusion initiatives with different partners, demonstrating real traction.”
For fintech and telecom partners, embedded insurance enhances customer loyalty and service adoption while reinforcing trust in their brands. “It’s not just about attracting users—it’s about retaining them and ensuring long-term engagement,” she added.
While the potential for fintech and InsurTech is enormous, regulatory bottlenecks continue to hinder scalability. Olubunmi Abayomi, a partner at Balogun Harold Company, emphasised the need to balance innovation with compliance to accelerate fintech-driven economic growth.
He identified two critical regulatory challenges: data privacy concerns and the broader need for regulatory frameworks that support innovation without stifling progress.
Abayomi addressed concerns surrounding data privacy, asserting that Nigeria’s data protection laws are robust enough to mitigate risks. He highlighted that the country mandates annual data protection compliance audits, a requirement stricter than the European Union’s General Data Protection Regulation (GDPR).
“From a data privacy standpoint, there is nothing to be afraid of,” he said. “The NDPC is actively ensuring that companies adhere to data protection laws. While compliance is still in its early stages, we have largely addressed this issue in Nigeria.”
However, he acknowledged that fintech innovation will always outpace regulation. “This is not due to inefficiency on the part of regulators but rather the nature of technological progress. While the Central Bank of Nigeria (CBN) can take steps to bridge the gap, fintech firms must recognise that they operate within a well-established banking framework and proactively integrate compliance into their models, regulators must also support innovation to maximise the sector’s contribution to GDP,” he stated.
One of the complexities fintech firms face is navigating multiple regulatory agencies. Unlike the UK, where a single regulator oversees financial services, Nigeria’s fintech space is governed by multiple agencies—including the CBN, NAICOM (for insurance), and SEC (for investment platforms). Abayomi called for greater inter-agency coordination to streamline compliance requirements.
“The existence of multiple regulatory bodies makes it difficult for fintech firms to navigate compliance efficiently. More collaboration among regulators would enhance the fintech ecosystem,” he stated.
Abayomi also stressed the importance of advancing a platform-driven economy, where government and private sector services are digitised for seamless delivery. He highlighted the Central Bank of Nigeria’s (CBN) efforts in launching digital registration platforms for microfinance banks, urging more initiatives to streamline regulatory processes.
Abayomi also called for periodic reviews of fintech regulations to ensure they remain effective. “If we are serious about bridging the gap between compliance and innovation, we must conduct periodic evaluations of our existing regulations. This will allow us to refine policies and create an environment where fintech firms can thrive while ensuring consumer protection,” he added.
