Nigeria’s finance sector is entering a new era of digital transformation — Taye Emmanuel

Nigeria’s financial ecosystem is undergoing one of its most profound transformations in decades. Once dominated by traditional banks and manual processes, the sector has evolved into a digitally driven, innovation-led economy. In the nine months of 2025 alone, 33 percent ($725 million out of $2.2 billion) of the funding raised has gone to African fintech start-ups (exc. exits), a figure that reflects not just investor confidence. From mobile money and AI-driven banking to cross-border payments and blockchain-enabled remittances, the nation’s financial future is being rewritten.

In this conversation, Taye Emmanuel, a finance professional at the Office of the Accountant General of the Federation with years of experience navigating Nigeria’s evolving economic landscape, discusses the current shifts, challenges, and opportunities shaping the future of finance and fintech across the country. BusinessDay’s Chinwe Michael brings excerpts.

How would you characterise the major shifts happening in Nigeria’s finance sector today?

The sector is in the middle of a digital revolution. What we’ve seen in the last five years is a complete change in how financial services are delivered and consumed. Traditional banking has given way to mobile-first and data-driven models. The rise of fintech firms has expanded access to credit, savings, and investment products that were once out of reach for millions. In the first quarter of 2025, Nigerian fintechs processed transactions worth N20.7 trillion in mobile transfers, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).

That’s a level of scale that even established banking systems in some developed economies haven’t achieved. This shift is not just about convenience; it’s about inclusion, transparency, and efficiency.

What would you say are the main drivers behind this fintech boom?

Nigeria’s demographic and digital profile make it a perfect breeding ground for financial innovation. We have one of the youngest populations in the world, most of whom are comfortable with smartphones and digital platforms. Mobile penetration is above 90 percent, and internet connectivity, although uneven, is improving. This creates the demand side. On the supply side, we’ve seen regulatory frameworks evolve, open banking guidelines, digital identity systems, and the licensing of payment service providers have all encouraged competition and creativity. Foreign and domestic investors are also seeing long-term potential here. Even amid global venture funding slowdowns,

How much influence are technologies like artificial intelligence and blockchain having on the sector?

Their impact is already significant and growing. Artificial intelligence is now central to how banks and fintechs assess risk, detect fraud, and personalise financial products. A few years ago, credit scoring in Nigeria relied mostly on historical banking records, which excluded millions without a formal banking history. Today, AI models analyse behavioural data, mobile usage, and transaction patterns to determine creditworthiness. That’s a huge step for financial inclusion. Blockchain, meanwhile, is redefining transparency and transaction speed. Cross-border payments that once took days now happen almost instantly through decentralised systems. It also ensures tamper-proof record-keeping, which is vital for trust in digital finance. Together, AI and blockchain are making the financial system more predictive, transparent, and accessible.

Despite these advances, what challenges remain?

The biggest one is cybersecurity. As more money moves digitally, the incentive for fraudsters grows. Financial institutions are racing to strengthen their defences, but they also need customers to be more aware and cautious. Infrastructure gaps are another issue. Power supply and internet connectivity are still inconsistent in many parts of Nigeria, and that limits the reach of digital services. There’s also a regulatory challenge: innovation often outpaces oversight. Regulators are doing their best to keep up, but they must balance flexibility with consumer protection. Finally, profitability remains a concern for many fintechs. It’s one thing to scale; it’s another to sustain. Many companies are learning to focus not just on rapid expansion but on operational discipline and long-term value creation.

From a policy standpoint, what reforms could help the sector reach its full potential?

Government policy plays a crucial role. The first thing is to keep supporting digital inclusion, which means investing in infrastructure, education, and financial literacy, especially in rural areas. The second is to deepen collaboration between regulators and innovators. Sandbox environments, like those the Central Bank has launched, are excellent because they allow startups to test products without putting the system at risk. Stronger consumer protection laws are also essential. Many Nigerians are still sceptical of digital finance because of fraud and a lack of clarity around fees. Transparency builds trust, and trust sustains growth. Lastly, we should start integrating environmental and social sustainability into finance. Fintechs can play a big role in financing renewable energy, supporting smallholder farmers, and driving green innovation.

For young professionals who want to join this new wave, how should they prepare?

Young professionals embarking on a career in finance have the potential to shape their futures significantly and contribute to the industry. To help them navigate this journey, here are several pieces of advice: Keep learning, seek mentors, gain practical experience, understand regulations, and uphold integrity. Ethics and adaptability are your strongest assets.

How do you personally stay relevant in such a fast-changing landscape?

Through lifelong learning, networking, and adherence to ethical standards. I continuously engage with new technologies and feedback to grow professionally.

Looking ahead, what’s your outlook for Nigeria’s finance and fintech ecosystem?

I aim to promote financial literacy, drive innovation, and mentor young professionals. In the next decade, finance will be shaped by AI, sustainability, and digital inclusion.