With confidence in the naira and the banking sector steadily returning, the effectiveness of Nigerians' participation in the formal financial system will define the next growth phase. This perspective comes from Henry Obiekea, Managing Director of FairMoney Microfinance Bank, who emphasizes the pivotal role of technology-driven banking in this national transition.
The Digital Bridge to Financial Inclusion
Obiekea acknowledged that commercial banks form the system's backbone, offering essential balance sheet strength, regulatory depth, and long-term capital for development. However, he stressed that in a nation exceeding 220 million people, relying solely on physical bank access cannot achieve large-scale financial inclusion.
He identified mobile-first and digitally delivered financial services as the crucial bridge. By extending regulated banking services from physical branches to everyday devices, licensed institutions like microfinance banks are integrating millions into the formal economy. Obiekea credited this approach for helping to elevate formal financial inclusion to over 64% in 2025, ensuring the 'last mile' population is no longer left out.
Powering Commerce and Economic Targets
According to Obiekea, realizing the Federal Government's ambition of a $1 trillion GDP by 2030 depends on efficient capital flow. He highlighted the sheer volume of digital transactions, noting that Nigeria recorded over N295 trillion in electronic payment transactions just in the first quarter of 2025. He argued that faster, secure financial infrastructure underpins modern commerce, boosts trade, and enhances overall economic productivity.
"Micro, small, and medium-scale enterprises (MSMEs), which contribute nearly 48% of GDP, are central to this growth," Obiekea stated. "Technology-driven banking models are helping to close long-standing credit gaps. By responsibly using alternative data for risk assessment, small-ticket working capital loans provide the 'pocket capital' businesses need to expand." He added that this process creates a pipeline of enterprises capable of maturing into larger corporate clients within the broader banking ecosystem.
Regulatory Evolution and Structural Harmony
Obiekea also pointed out that digitally delivered services enhance public revenue collection. Increased transaction transparency supports a wider tax net and directly contributes to government revenues through mechanisms like stamp duty, thereby reinforcing fiscal sustainability.
He noted that this evolution is backed by a maturing regulatory environment. The Central Bank of Nigeria's Open Banking framework, set to roll out in phases from early 2026, ensures all regulated institutions operate under consistent oversight. Secure data-sharing standards will allow customers' financial histories to move with them across institutions, strengthening trust and accountability.
"At FairMoney Microfinance Bank, we see this framework as a social contract," Obiekea explained. "Knowing that deposits are protected by NDIC insurance and supported by clear dispute resolution mechanisms gives customers the confidence to participate actively in the economy."
He concluded by defining the future of Nigerian banking as one of 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," he stated.
