Data gaps undermine Nigeria’s financial inclusion gains

Nigeria’s fast-growing fintech sector is facing new risks that could slow its expansion, as industry leaders warned that weak trust systems and persistent data gaps are undermining gains in financial inclusion.

As of January 2026, the combined valuation of Nigeria’s top nine fintech companies is approximately $10.6 billion, establishing it as Africa’s leading fintech hub. Major players driving this valuation include Flutterwave ($3.0 billion), OPay ($2.75 billion), Moniepoint ($1.0 billion), and Interswitch ($1.0 billion). High digital payment adoption, a large young population, and significant venture capital fuel the ecosystem’s growth.

However, industry leaders said this fast-growing fintech sector is facing a new set of risks that could slow its expansion.

They gave the warning on Wednesday at the BusinessDay Fintech Summit 2026 in Lagos.

While Nigeria has made major progress in expanding financial inclusion over the past two decades, the next phase of growth will depend on intelligence, trust, and coordination across the financial ecosystem.

Frank Aigbogun, publisher, BusinessDay Media Limited, said the country has moved past the question of access and must now confront deeper issues about how financial systems serve users.

“Access is no longer enough. The real question now is: what kind of financial system are we building, and who does it truly serve?” Aigbogun, who was represented by Innocent Unah, deputy editor-in-chief, BusinessDay Media Limited, said in his opening remarks.

Nigeria’s fintech sector has grown rapidly, driven by mobile money, digital payments, and agency banking. Today, more than half of the country’s adult population has access to some form of financial service, a sharp rise from less than 30 percent two decades ago.

But speakers warned that access alone does not guarantee meaningful impact.

Stanley Jacob, president of FintechNGR and group chief Innovation and technology officer at Meristem Securities, said Nigeria has largely won the access war but is now at risk of losing what he called the ‘intelligence war.’

“Access gives people accounts. Intelligence asks: What are those accounts actually doing for them? Are users better off, or are we just moving money without insight?” Jacob said.

He explained that the next phase of financial innovation will depend on systems that can understand user behaviour, assess risk more accurately, and deliver personalised financial services.

According to him, Nigeria currently processes massive volumes of digital transactions, but much of the data generated is underutilised.

“Every transaction should generate insight. But today, we process payments at scale without truly understanding what they mean for credit, for economic activity, or for financial wellbeing,” he said.

Jacob called for investments in data infrastructure, artificial intelligence, and shared systems that can turn transaction data into actionable insights.

He also urged stakeholders to treat data as a national asset rather than a competitive advantage, stressing the need for secure and responsible data sharing.

Trust deficit threatens growth

A recurring theme at the summit was the issue of trust, which many speakers described as one of the biggest challenges facing Nigeria’s financial system.

Ajibade Laolu-Adewale, chairman, Committee of e-Business Industry Heads (CeBIH), warned that rapid growth in digital payments is exposing weaknesses that could undermine confidence in the system.

“Speed without trust is a liability. When transactions fail, or reversals take too long, customers lose confidence and blame the entire ecosystem,” Laolu-Adewale, who was represented by Abidemi Asunmo, executive committee member of the Committee of e-Banking Industry Heads (CeBIH), stated.

Nigeria has seen increasing complaints from users over failed transactions, delayed refunds, and fraud. These issues, industry experts say, are eroding trust even as adoption continues to rise.

Laolu-Adewale said trust must be treated as core infrastructure, not just a branding issue.

He outlined three key areas for improvement: stronger security systems, greater transparency in financial processes, and faster dispute resolution.

Among his proposals were the use of artificial intelligence to resolve transaction disputes within hours and the introduction of a customer-focused refund scheme to compensate victims of fraud quickly.

“Trust is not a brand promise; it is a system promise,” he said.

Interoperability remains a weak link

Another major concern raised at the summit was the lack of interoperability across Nigeria’s financial ecosystem.

Despite progress in digital payments and identity systems, users still face difficulties moving money across platforms or accessing unified financial data.

Laolu-Adewale described interoperability as the missing middle of Nigeria’s financial system.

He called for a national interoperability accord that would require banks, fintechs, telecom operators, and other players to adopt common standards and timelines.

“Interoperability is not just technical. It involves commercial agreements, legal frameworks, and governance structures,” he said.

Without better coordination, Nigeria risks building a fragmented system that limits efficiency and increases costs for users, he warned.

Global ambitions, local challenges

Speakers also highlighted the need for Nigeria to position itself as a key player in the global financial system.

Jacob noted that financial services are increasingly being embedded into everyday platforms such as agriculture, healthcare, logistics, and e-commerce.

To compete globally, he said Nigeria must improve cross-border payment systems, align regulations with other African markets, and support initiatives that allow fintech companies to operate across multiple jurisdictions.

“If goods and services move freely, money must too,” he said.

However, achieving this will require stronger regulatory coordination and infrastructure development.

Capital market seen as key to fintech growth

Beyond operations and infrastructure, the summit also examined the role of Nigeria’s capital market in supporting fintech growth.

Olu Oyinsan, managing partner at Qui Capital, said Nigeria must develop stronger exit opportunities for investors if it wants to sustain innovation.

“Africa has shown that it can build valuable fintech companies. Now the opportunity is to evolve the market so that value can be realised locally,” Oyinsan said.

He noted that while venture capital has helped build successful startups, the lack of clear exit pathways, such as public listings, remains a major challenge.

Oyinsan pointed to structural issues in the Nigerian market, including limited depth and concentration among a few large companies, which make it difficult for high-growth fintech firms to list without disrupting the market.

“There is a valuation gap between private and public markets. Startups are priced for growth, while public markets are more conservative,” he said.

Despite these challenges, he said reforms in market infrastructure and investor education could unlock new opportunities.

Arese Ugwu, a capital market strategist, said increasing retail participation could help bridge the gap between private innovation and public investment.

“We have digitised payments, but we haven’t digitised ownership. If Nigerians can invest in the companies they use every day, it deepens trust and liquidity,” she said.

Call for coordinated action

Across all sessions, a common message emerged: Nigeria’s fintech future will depend on coordinated action across the ecosystem.

Publisher of BusinessDay, Aigbogun, said the summit was designed to bring together policymakers, investors, and innovators to align on the next phase of growth.

“The future of finance in Nigeria will not be determined by any single institution. It will be shaped by the collective choices we make on technology, regulation, inclusion, and trust,” he said.

Aigbogun, however, thanked the sponsors of the 2026 Fintech Summit and the distinguished group of institutions whose leadership and market presence reflect the direction in which the industry is moving.

“Our headline sponsor, OPay, stands at the forefront of financial access and digital payments at scale. Alongside them, we are supported by leading institutions including First City Monument Bank, Visa West Africa, TeamApt Limited, Oxygen X Finance, and Platnova Technologies Limited,” he added.

Speaking on how AI can enhance efficiency in the banking sector, Blessing Ehize, the chief technology officer of FCMB, advised banks to build strong systems that focus on security and compliance, adding that any new technology must fit into that structure.

According to the CTO, “AI can help banks make faster and better decisions, but it must operate within governance and accountability structures,” he said.

On the fintech side, Ibukun Humphrey Oluwagbenga of OPay explained how AI is already being used in daily operations, especially in processing payments.

He said AI helps companies choose the best routes for transactions and detect fraud by identifying unusual patterns.

However, he warned that AI should not be allowed to make decisions alone. “There must always be control. AI can guide decisions, but additional checks like OTP and biometric verification are still needed,” he said.

Industry leaders agreed that while Nigeria has made significant progress, the next stage will require deeper collaboration and deliberate reforms.

Without this, they warned, the country risks inefficiencies, fragmentation, and loss of global competitiveness.

“Growth without coordination will be chaotic,” Laolu-Adewale said.

As Nigeria’s fintech sector continues to expand, the challenge now is not just to include more people, but to build a system that works better for everyone, smarter, safer, and more connected.

“The future is already here. The question is whether we are ready to build it properly and lead it,” Jacob said.

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