As the digital landscape continues to evolve, mobile money and digital lending are poised to drive significant growth in Nigeria’s service sector in 2024.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, addressing the Nigerian Economic Summit Group 2024 launch, emphasized the sector’s pivotal role in the country’s economic advancement. Cardoso highlighted the increasing reliance on fintech’s and projected a 3.76 percent growth in the country’s economy. With a focus on mobile money adoption, government partnerships, and expanded digital lending offerings, the services sector is expected to maintain its dominance.
“The services sector is expected to maintain its dominance, driven by the adoption of mobile money, increased government partnerships, and enhanced digital lending services . The ongoing digitization and government backing of financial inclusion initiatives are expected to propel fintech sector growth in 2024,” he said.
He further expressed his optimism about various sectors, including industry, services, agriculture, mining, electricity, gas & water supply, benefiting from market-based reforms and private investments.
“Specifically, the positive outlook for industry, services, agriculture, and mining, electricity, gas & water supply sub-sectors reflects the potential effect of market-based reforms through private investment and SMEs-led growth that would contribute to business improvement and confidence,” he added.
While recognizing the potential of the fintech industry to attract significant capital investments, Cardoso also stressed the need for regulatory compliance. The Central Bank of Nigeria plans to develop a new regulatory framework tailored to the technology-driven payment services sector and review the licensing framework for payment services to ensure compliance and accountability.
With the growth of mobile money and digital lending in Nigeria, there is a shift towards a more cashless economy. Mobile money transactions soared to $832 billion in 2022, reflecting the increasing adoption of mobile money accounts and the expansion of mobile money agents. Additionally, the rise in digital lending, with 211 licensed digital lenders operating in Nigeria, is providing financial solutions to more Nigerians amidst economic challenges. The future of Nigeria’s service sector looks promising as advancements in fintech continue to shape the financial landscape, promoting financial inclusion and economic growth in the country.