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Key Fintech Trends in Nigeria from 2024 and the Outlook for 2025

Key Fintech Trends in Nigeria from 2024 and the Outlook for 2025

What are the fintech trends in Nigeria in 2024? Financial technology, popularly called fintech, is earning a high throne in the Nigerian financial sector. 

Fintech companies in Nigeria provide commendable solutions in the areas of payments, transfers, new bank accounts, loans, crowdfunding, cryptocurrency, etc.

In this guide, we shall explore the key fintech trends in Nigeria from 2024, and the projections for the coming year, 2025.

Table of contents

What is a Fintech Company?

Fintech is drawn from the words, “financial” and “technology.”

Thus a fintech company is an institution that leverages technology to meet customers’ financial needs. 

Some services that fintech companies provide include loans, virtual bank accounts, transfers, investment solutions, wealth management, financial advisory, saving opportunities, crowdfunding platforms, tokens, and so on. 

Also read: Climate technology outpaces fintech, attracts 45% of startup funding in Africa for 2024

Features of Fintech Companies 

The following are some of the key characteristics that often define fintech companies:

  • They are highly technology-based
  • They are constantly improving their products 
  • They ease payments and other financial processes
  • Their products are almost always accessible to anyone 
  • Users can access products and services from their digital devices.

Comprehensive List of Top Fintech Companies in Nigeria

There are currently over 150 licensed fintech companies in Nigeria, according to reports by the Federal Competition and Consumer Protection Commission. 

Below is a list of top Fintech companies that are shaping fintech trends in Nigeria: 

NoCompanyYear of Establishment 
1Flutterwave2016
2Remita2005
3Paystack2015
4Interswitch2002
5Carbon2012
6RenMoney2012
7Piggyvest2016
8Cowrywise2017
9Bamboo2019
10MutualBenefit 2003

The number of Fintech companies in Nigeria is rapidly on the rise. The industry is indeed gaining prominence in the nation.

But how well have fintech solutions penetrated our day-to-day activities in Nigeria? Let’s find out by studying key fintech trends in 2024.  

Also read: Nigerian Fintech Startup Brass Acquired by Paystack, Ventures Platform, and Piggyvest

Digital Money Lending Platforms 

Digital money lending has become a popular option for Nigerians. 

A survey conducted by SBM Intelligence revealed that 27% of Nigerians use loans to meet up with their monthly expenses.

Up to 80% of these loans are gotten from Fintech companies that venture into digital money lending. 

Nigerians prefer these digital loan platforms to commercial loans for several reasons, such as:

  • Quick loan service
  • No request for collateral
  • Wide loan options
  • Accessibility of loans from a mobile phone, and so on.

The Federal Competition and Consumer Protection Commission reported that there are over 200 licensed digital money lenders in Nigeria. This was after a few licenses were revoked last year.

Even commercial banks are developing digital money lending platforms. In January 2024 for instance, the Central Bank of Nigeria licensed Oxygen X, a digital money lending platform by Access Holding Plc.

Some top digital money lenders in Nigeria as of 2024. are Renmoney, Moniepoint, Okash, and Opay. These lenders contribute largely to the fintech trends in Nigeria. 

Robo-advisory Services

The robo-advisory service in Nigeria is expected to peak this year, according to reports by Statista.

Robo-advisory is the use of automation, AI and other advanced technology to manage users’ finances. 

Robo-advisory platforms collect users’ financial status, goals and other financial information. With these, they offer recommendations about allocation, investments, savings, etc. They also provide wealth management.

Fintech companies that started robo-advisory in Nigeria include Piggyvest, CowryWise, Carbon, Bamboo, etc. 

According to Statista, “The average assets under management per user in the Robo-Advisors market is expected to amount to US$8.35k in 2024.”

Statista also projected that assets managed by robo-advisory services in Nigeria will be worth at least USD4.72 billion before the end of 2024.

Also read: Global Investment in Fintech Drops 16% in Early 2024, Biggest Decrease in 7 Years

Non-fungible Tokens (NFTs)

Non-fungible tokens (NFTs) are digital trading cards that secure ownership of a particular asset, usually artwork, videos, books, frames, music, collectibles, real estate, or even quotes. 

These tokens are valued in Solana, Avalanche, Ethereum, and other forms of blockchain.

NFTs give creatives in Nigeria a global platform to display and monetize their art.

NFTs began contributing to Nigeria’s fintech trends in 2021. Its future appears promising too. Reports by Statista reveal the following NFTs projections: 

  • Revenue in the NFT market is projected to reach US$1,644.0k in 2024
  • The average revenue per user in the NFT market amounts to US$21.0 in 2024.
  • User penetration will be 0.03% in 2024 and is expected to hit 0.04% by 2028.

Some other key Fintech trends in Nigeria are:

  • Reports from KPMG and PwC projected up to 25% growth in Nigeria’s fintech sector by 2024
  • Reports from GlobalData and Briter Bridges project a Fintech rebound in the second half of 2024
  • Reports from KPMG reveal that fintech solutions have, and will continue to, target the SME market

Fintech Outlook for 2025

Fintech companies will continue to meet several financial needs of Nigerians in 2025.

Some of the key outlooks for fintech in Nigeria by 2025 are: 

Banking the Unbanked

Several financial reports have revealed that up to half of Nigerian adults remain unbanked. 

This is mostly due to the long procedures and requirements associated with traditional banking. 

In villages and city outskirts, there are little to no physical bank branches. Thus indigenes prefer to find another way of preserving their money. 

Fintech platforms in Nigeria have started to provide solutions to these challenges. 

By 2025, more Nigerians are expected to open bank accounts under fintech platforms. This is due to easier accessibility and less technical requirements associated with fintech banking. Agents are also distributed across rural areas to help indigenes with setting up an account, mobile transfers, saving and withdrawing. 

Also read: Zenith Bank’s Fintech Subsidiary Zenpay Partners AfCFTA on Innovative Trade Portal

Decentralised Finance (DeFi) 

DeFi is another alternative to traditional banking, with the use of blockchain. Its platforms provide services such as loans, trading, stablecoins, etc. 

DeFi is set to gain traction in Nigeria by 2025, based on certain indices. Firstly, the use of cryptocurrency in Nigeria is the largest worldwide, reaching 32% as of 2024. 

Secondly, DeFi solves vital financial problems for Nigerians. These solutions that DeFi brings attract users, venture capitalists and other investors. By late 2023, 35% of the funding raised by Nigerian startups attributed to the development of fintech products, DeFi inclusive. Fintech trends show that DeFi platforms are currently some of the most funded Web3 in Nigeria.

Central Bank Digital Currencies

Digital currencies are becoming prevalent in the financial discussions of nations. 

By late 2024/2025, the Central Bank of Nigeria is expected to accelerate the development and deployment of our digital currency. 

This innovation will reduce transaction costs and enhance financial inclusion, among other benefits.

Integration of AI

Artificial intelligence (AI) is changing how several things are perceived and operated worldwide. 

By 2025, it is expected that Nigerian Fintech companies will greatly integrate AI into their operations. This will advance their solutions and services, helping them to solve greater financial problems in the nation. 

With AI, fintech companies can personalise user experience to meet unique needs and preferences. 

AI will also enhance customer service and efficiency and ease the detection of cybercrimes, among other benefits. 

Also read: Breaking News: Lesaka to Acquire Fintech Platform Adumo for $85 Million

Green Finance 

Between 2023 and 2024, climate talks gained a wide reach and is expected to double by 2025. 

Conversely, fintech companies have joined the movement by promoting climate investment opportunities, carbon footprint tracking, etc. 

There are several sustainability issues that financial habits can contribute to solving. By 2025, Environmental, Social and Governance (ESG) will be a stronger consideration in financial decision-making processes.

Advantages of Fintech

Below are some advantages of fintech companies: 

  • Most fintech solutions are accessible with one click on your mobile phone. It is easy and convenient. 
  • Fintech companies are much more inclusive than traditional financial services. Because fintech companies leverage technology, they can meet the needs of a wider range of people; the young, the old, the poor, the jobless, the self-employed, etc. 
  • Complex technological procedures secure transactions.
  • Users are not subject to numerous requirements the way traditional financial solutions subject their customers to. 
  • Fintech companies constantly improve and update their products to meet demands and growth. 
  • Customers have asserted that fintech solutions reduce the stress of money management, and help them save better. 

Frequently Asked Questions

What is the Future of Fintech 2025?

Projections from The 2016 Financial Inclusion Summit revealed that digital financing in Nigeria could reach an annual GDP of  $3.7 trillion by 2025, thus contributing to about 12% of the country’s GDP.

What are Some Top Fintech Companies in Nigeria?

Some top Fintech companies in Nigeria are Flutterwave, Carbon, Interswitch, Remita, Jumia Pay, CowryWise, and Moniepoint. 

What is a Fintech Company?

A Fintech Company is a financial institution that leverages technology to meet customers’ financial needs. 

Conclusion: Financial Transformation

Fintech has undoubtedly left Nigerians with a new way of managing their finances. It is a necessary development to enhance our financial habits and opportunities. 

As fintech trends continue to shape our financial lives, growth becomes inevitable.

For more informative reads, follow us on X or Twitter,@SiliconAfriTech.

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References 

Oluwajuwon Oladiti
Oluwajuwon Oladiti

Oladiti Oluwajuwon is an ardent reader and a voracious writer who is passionate about informing the public with first-hand, authentic information. His writing expertise has spanned over 5+ years, an odyssey that began in 2018. Over the years, he has crafted pieces across multiple domains, including religion, education, politics, and tech. There are two principles at the core of his writing: information must be genuine and accurate, and there is nothing erudite about speaking in terms people don't understand. While maintaining technicality, messages must be passed in a way that resonates with the readers.

Oluwajuwon is also a software engineer who specializes in backend development with Python, and he has an unwavering passion for music, pop genre especially.

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