Nigeria’s transition from economic stabilisation to expansion in 2026 is sharpening focus on the role of technology-enabled banking and electronic payments in driving the country’s growth ambitions, with industry leaders pointing to Open Banking and the rapid scale-up of digital transactions as critical tools for accelerating progress toward the Federal Government’s $1 trillion economy target by 2036.
This perspective was outlined by Henry Obiekea, managing director of FairMoney Microfinance Bank, who examined how digital-first financial institutions are complementing traditional commercial banks in expanding access to finance and improving capital flow across the economy.
While commercial banks continue to provide balance sheet strength, regulatory depth and long-term capital, Obiekea argued that mobile-first and technology-enabled institutions are delivering the reach and speed required to include millions of Nigerians in the formal financial system.
Nigeria’s improved macroeconomic outlook follows a series of structural reforms, including foreign exchange unification, which have helped restore confidence in the naira. Foreign reserves have climbed to a five-year high of over $45 billion, providing a more stable foundation for economic expansion and private sector activity.
Electronic payments are playing an increasingly central role in this growth push. In the first quarter of 2025, Nigeria recorded more than N295 trillion in electronic payment transactions, highlighting the scale at which digital financial infrastructure is supporting trade, commerce and productivity.
According to Obiekea, faster and more secure payment systems enable efficient capital circulation, reduce transaction frictions and strengthen overall economic activity.
The Central Bank of Nigeria’s Open Banking framework, scheduled to roll out in phases from early 2026, is expected to further deepen trust and efficiency in the financial system. The framework introduces standardised rules for secure data sharing among regulated financial institutions, allowing customers’ financial information to move with them across platforms.
This, industry watchers say, will improve credit assessment, promote competition and strengthen accountability within the sector.
Obiekea described Open Banking as a form of social contract, underpinned by regulatory oversight, NDIC deposit insurance and clearer dispute resolution mechanisms, noting that these safeguards are essential to building confidence among consumers and businesses, particularly as more Nigerians adopt digital channels for savings, payments and credit.
Technology-enabled banking models are also reshaping access to finance for micro, small and medium-scale enterprises (MSMEs), which contribute nearly 48 percent of Nigeria’s gross domestic product. By using alternative data to assess risk, digital lenders are able to provide small-ticket working capital loans that help businesses manage cash flow and scale operations, creating a pipeline of enterprises that can eventually graduate into larger corporate clients.
Beyond private sector growth, the expansion of electronic payments is strengthening public revenue mobilisation. Increased transaction transparency broadens the tax base and generates additional government revenue through channels such as stamp duties, reinforcing fiscal sustainability at a time when the government is seeking to boost non-oil revenues.
Formal financial inclusion in Nigeria surpassed 64 per cent in 2025, driven largely by the spread of mobile banking and digitally delivered financial services. With a population exceeding 220 million, analysts say reaching the remaining financially excluded Nigerians will depend less on physical bank branches and more on scalable, technology-driven solutions.
Obiekea maintained that Nigeria’s banking future depends on alignment rather than rivalry between traditional and digital players. Commercial banks provide stability and depth, while technology-enabled institutions extend access and efficiency.
Working together, both segments can turn wider financial access into economic resilience and ensure that growth reaches households and businesses across the country as Nigeria pursues its long-term development goals, he affirmed.
