Nigeria FinTech Landscape - Impact Assessment
Executive summary
Executive summary
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The Nigerian FinTech landscape is attractive and growing, with a concentration in Lagos, focused on
banked customers and providing payment and lending solutions. However, dynamics are changing -
new pockets of growth are emerging driven by changes in consumer behavior, funding sources, and
new business models
Despite the increased activity in the FinTech sector in Nigeria and the positive multiplier effect,
economic impact to date is low, with FinTech activity accounting for only ~1.25% of retail banking
revenues in 2019. A concerted effort by all stakeholders to address structural challenges is required to
capture a greater share of Nigeria's $50bn² Digital Financial Services opportunity, and mitigate
emerging risks as the sector evolves
There are a number of actions that could enhance Nigeria's Digital Financial Services landscape,
however five of them, if well executed could yield the biggest impact and help drive financial
inclusion- Innovation enablement, Digital ID, Credit infrastructure, Digital infrastructure and Technology
talent pipeline
1. FinTech revenue as a percentage of total retail banking revenue
2. Assuming growth rate pre-COVID-19
Source: McKinsey Global Banking Pools, MGI Digital Finance for all 2016
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