Expert: Technology-enabled Banking Will Boost Nigeria’s Digital Transformation Goal

Emma Okonji

Managing Director, FairMoney Microfinance Bank, Mr. Henry Obiekea, has stressed the need for technology enabled banking across all financial institutions in the country, insisting that the deployment of technology in financial service delivery will accelerate Nigeria’s digital transformation goal.

Obiekea, who said this in his 2026 Outlook for the Fintech industry, explained that Nigeria would be a defining moment in 2026, should there be close collaboration between financial institutions and the Fintech players, coupled with the rapid adoption of emerging technologies by the banks.

According to him, after several years of bold macroeconomic adjustments, including foreign exchange unification and structural reforms, the country is moving from stabilization into expansion.

“With the Central Bank of Nigeria restoring confidence in the Naira and foreign reserves reaching a five-year high of over $45 billion, the next phase of growth will be shaped by how effectively Nigerians can participate in the formal financial system, and technology-enabled banking is playing a critical role in this transition. Commercial banks remain the backbone of the system, providing balance sheet strength, regulatory depth, and long-term capital essential for national development. In a country of over 220 million people, physical access alone cannot deliver financial inclusion at scale.

“Mobile-first and digitally delivered financial services are bridging this gap. By extending regulated banking beyond physical locations into everyday devices, licensed microfinance banks and other regulated institutions are bringing millions of Nigerians into the formal economy. This approach helped in pushing formal financial inclusion to over 64 per cent in 2025, ensuring the last mile is no longer excluded,” Obiekea said.

In his view, achieving the federal government’s target of a N1 trillion dollar GDP by 2036 requires efficient capital flow.

He said: “In the first quarter of 2025 alone, Nigeria recorded over N295 trillion in electronic payment transactions. Faster, secure financial infrastructure supports modern commerce, strengthens trade, and improves overall economic productivity.

“Micro, small, and medium-scale enterprises, which contribute nearly 48 percent of GDP, are central to this growth. Technology-driven banking models are helping to close long-standing credit gaps. By responsibly using alternative data to assess risk, small-ticket working capital loans provide the “pocket capital” businesses need to grow. This builds a pipeline of enterprises that can mature into larger corporate clients within the broader banking ecosystem.”

Digitally delivered financial services also strengthen public revenue mobilisation. Increased transaction transparency supports a broader tax net and contributes directly to government revenues through stamp duty, reinforcing fiscal sustainability, he further said, adding that the evolution is supported by a maturing regulatory environment.

According to him, the Central Bank of Nigeria’s Open Banking framework, rolling out in phases from early 2026, will ensure that all regulated institutions operate under consistent oversight. Secure data sharing standards mean customers’ financial histories can move with them across institutions, strengthening trust and accountability.

“At FairMoney Microfinance Bank, we see this framework as a social contract. Knowing that deposits are protected by Nigeria Deposit Insurance Corporation (NDIC) and supported by clear dispute resolution mechanisms, gives customers the confidence to participate actively in the economy. The future of Nigerian banking is defined by structural harmony. Traditional banks provide depth and stability, while technology-enabled institutions provide reach, speed, and accessibility. Together, they turn financial access into economic resilience. By working in alignment, we can ensure every Nigerian, from the professionals to the rural traders, is equipped to contribute meaningfully to our shared one trillion dollar future,” Obiekea said.