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Expertise
Nigeria’s financial services market is poised for significant expansion in 2025, driven by robust economic growth, a youthful population, and a wave of digital innovation. After a decade of sluggish growth, the Nigerian economy has returned to a high growth trajectory, with a 4.6% growth rate in Q4 2024 and a forecasted growth rate of 3.6% in 2025, according to the World Bank.
Introduction
Nigeria’s financial services market is poised for significant expansion in 2025, driven by robust economic growth, a youthful population, and a wave of digital innovation. After a decade of sluggish growth, the Nigerian economy has returned to a high growth trajectory, with a 4.6% growth rate in Q4 2024 and a forecasted growth rate of 3.6% in 2025, according to the World Bank[1]. These gains, coupled with foreign exchange unification and rising government revenue, have begun to stabilise the macroeconomic environment and to fuel demand for financial services. With an estimated population of over 233 million Nigerians, the country represents one of the world’s largest underserved markets. Meanwhile, smartphone and internet penetration are surging, with over 108 billion mobile money transactions valued at $1.68 trillion processed in 2024. Furthermore, Nigeria’s smartphone user base is projected to exceed 140 million by the end of 2025[2]. These trends are driving an unprecedented fintech boom. For example, Nigeria’s fintech sector experienced remarkable growth of approximately 70% in 2024, now hosting over 430 startups. Concurrently, regulatory reforms, including an impending Open Banking framework, Payment Systems Vision 2025, and a new Investment and Securities Act, are transforming the financial landscape. The convergence of these factors presents significant opportunities across traditional banking, fintech (encompassing payments, lending, and remittances), insurance, and capital markets. This paper highlights the key opportunities in each segment, incorporating relevant 2025 data and trend insights.
Regulatory and Legal Framework
Nigeria’s regulators have introduced reforms to foster innovation and inclusion in the financial sector. In March 2025, the government enacted the modernised Investments and Securities Act 2025 (ISA 2025), replacing the outdated 2007 law.
The ISA 2025 introduces several key provisions, including:
Recognition of Digital Assets: Digital assets are recognised as securities under the oversight of the Securities and Exchange Commission (SEC)
Capital Raising: State and local governments are permitted to raise capital via bonds.
Composite Exchange Model: A "composite exchange" model is introduced, allowing multiple asset types to be traded on a single platform.
Tightened Governance: The ISA 2025 also tightens governance, including the expansion of the capital markets tribunal.
These reforms are expected to have a significant impact on Nigeria's capital markets, broadening their scope and attracting foreign and domestic investment.
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[1] Nigeria's economy grows strongly amid high inflation, World Bank says | Reuters https://www.reuters.com/world/africa/nigerias-economy-grows-strongly-amid-high-inflation-world-bank-says-2025-05-12/
[2] Startup Lagos https://www.startuplagos.net/post-detail/nigerias-fintech-boom-a-magnet-for-global-investment-in-2025-and-beyond
Important Notice: The information contained in this Article is intended for general information purposes only and does not create a lawyer-client relationship. It is not intended as legal advice from Jackson, Etti, & Edu (JEE) or the individual author(s), nor intended as a substitute for legal advice on any specific subject matter. Detailed legal counsel should be sought prior to undertaking any legal matter. The information contained in this Article is current to the last update and may change. Last Update: October 1, 2024.
