The Global System for Mobile Communications Association (GSMA) has predicted a significant boost in Nigeria’s fintech market, attributing the potential growth to affordable mobile connectivity, influx of funding, increasing smartphone ownership, and supportive regulatory frameworks.
According to the report ‘The Mobile Economy Sub-Saharan Africa (2023)’ by the association, the fintech market in the region may grow at an annual rate of 10 percent until 2025 due to the increasing adoption of digital lifestyles.
It added, “Fintech growth is not uniform across the region, with some markets like Kenya and South Africa being more advanced, while others like Ghana and Nigeria have a lot of potential.
“To support fintech solutions for financial inclusion, regulatory initiatives are emerging in the region that align with the shift towards digital lifestyles. For instance, programmes to promote financial inclusion and boost digital cash transactions have been launched in Nigeria, Ghana, and Uganda.
“These programmes will enable fintech stakeholders to offer new and innovative products. Similarly, there are some regional initiatives, such as the Pan-African Payment and Settlement System, which facilitates instant cross-border payments in local currencies and expanded its operations in 2022. Such initiatives at the regional and national levels create opportunities for collaboration and foster the development of digital payment networks.”
The association expects that payments and wallets will be the fastest-growing products in the region. It also observes that mobile operators like MTN and Airtel Africa are expanding their mobile money services and collaborating with fintech companies and financial institutions, as they seek to leverage the growth in fintech services beyond basic connectivity.