Trillions of naira move through these platforms every year, but are we as Nigerians truly the owners of this digital revolution, or are we simply feeding the machine?

The numbers look commendable, as mobile money operators, led by OPay, PalmPay, and others, processed over ₦71.5 trillion in 2024, up from ₦46.6 trillion the previous year. That’s a 53% surge in digital transactions in a single year. 

The total volume of transactions rose from 3 billion to nearly 4 billion, while Nigeria’s e-payment ecosystem crossed the mind-bending threshold of ₦1.07 quadrillion. Flutterwave, PalmPay, and OPay together are worth more than $6 billion. 

Moniepoint alone serves over 10 million customers, processing more than a billion transactions monthly. These platforms have become the arteries of Nigeria’s economy.

But look past the numbers and we see a worrisome picture. Most of these platforms are not Nigerian-owned, at least not in the full sense. They are backed, funded, and in many cases controlled by foreign investors who are ultimately the biggest beneficiaries of the profits. 

Nigerians generate the volume, carry the risks, and pay the fees, but the value extracted rarely stays here. Even Paystack, once a poster child of local innovation, now sits under Stripe, an American company.

The experience for everyday users is not always rosy either. High transfer fees eat into income, hidden charges appear without explanation, and platforms monetise data without ever asking for consent. In April 2024, the Central Bank of Nigeria (CBN) froze new customer onboarding for OPay, PalmPay, and Moniepoint over issues about compliance. 

Millions of users were instantly locked out, not because they did anything wrong, but because regulators and platforms were at war. That moment exposed a painful truth: Nigerians are passengers, not drivers, in this so-called digital economy.

The story is not limited to payments. Ride-hailing and e-commerce also have their part. Bolt is one of Nigeria’s leading transport apps, while Jumia has over four million active customers across West Africa, with Nigeria as its biggest market. 

But again, ownership sits elsewhere. These platforms dominate mobility and retail in Nigeria, yet the wealth created flows outward. Nigerians keep the ecosystem alive, the drivers, riders, buyers, and sellers, but who really profits at the end of the day?

So we circle back to the question: who owns Nigeria’s digital economy? Is it the millions of people who log in every day, building the data, trust, and traffic that keep these platforms alive? Or is it the platforms themselves, backed by capital far beyond Nigeria’s borders? 

On one hand, Nigerians are enjoying convenience, speed, and access like never before. On the other hand, we might be building wealth we’ll never truly share in, trapped in a cycle of dependency where platforms set the rules and people have little choice but to comply.

And that’s where the conversation must begin. Are we content to be consumers, or should we be demanding true participation and ownership? Should regulators create space for real local authorities, or will foreign-backed platforms continue to dictate the terms? 

Until those questions are answered, Nigeria’s digital economy will remain a paradox, built by Nigerians, but not necessarily for Nigerians.

But then, billions still don’t trust the systems built for their benefit. As the World Bank’s Global Findex 2025 shows, usage continues to lag behind access. In Nigeria, the paradox is especially obvious, despite digital advances, old fears, cultural divides, and gender gaps keep many out of the system.

Techeconomy sat down with Akinlabi G. Adegoke, chief digital officer at Lotus Bank, to go beyond the numbers. With decades of experience in digital banking, from his pioneering work at ALAT to his current role at Lotus, Adegoke doesn’t just talk technology; he talks about human habits, values, and the trust deficit stalling progress.

In this wide-ranging conversation, he dissects the illusion of inclusion, exposes why savings habits remain informal, and challenges banks and regulators to rethink how they design products, build resilience, and reach the underserved, particularly women and the disconnected poor.

What follows isn’t just a reflection on digital banking, but a blueprint for building a financial system that people actually believe in and use.

TE: The World Bank’s Global Findex 2025 reveals commendable progress in digital financial inclusion globally. However, it also exposes deep-rooted challenges in trust, savings habits, and gender inclusion, especially in regions like Sub-Saharan Africa. From your perspective as a digital leader in Nigeria’s banking space, what stood out to you most in the report?

Akinlabi: What struck me is the paradox behind the progress. It’s impressive that nearly 80% of adults worldwide now have some form of account access. Yet beyond those headlines, the report highlights that simply having an account isn’t the same as really using or benefiting from it.

There’s still a trust and usage gap. Many people remain sceptical about formal finance, don’t save in their accounts, or limit activity due to fears and habits. The persistent gender divide also stood out. Women are still being left behind in many markets, which means we’re not fully tapping our potential.

For me, the big message is that the next real challenge isn’t expanding access, it’s building trust and inclusion. We have to ensure digital financial tools translate into genuine, everyday usage that improves people’s lives.

TE: Despite account ownership rising to 79 percent globally and 75% in low and middle-income countries, over 1.3 billion adults still lack financial accounts. In your view, why does adoption lag behind access in Nigeria, and how can banks like Lotus bridge the trust gap?

Akinlabi: In Nigeria, access is no longer the main barrier. Banks have expanded reach through agents, mobile apps, and digital accounts, but usage lags because trust hasn’t caught up. Many people still hold on to past experiences or hearsay.

They’re unsure if fees are hidden or if their money is truly safe. To bridge that gap, banks need to show up differently. At Lotus, we focus on transparency, zero hidden fees, and stability. We also build solutions that reflect people’s values. As an ethical bank, our approach appeals to people who want alternatives to traditional interest-based models.

Most importantly, we meet people where they are through education, community presence, and consistent service. If people experience banking that works and feels fair, trust begins to build, and with that, usage follows.

TE: The report shows that 40% of adults in Sub-Saharan Africa now have a mobile money account, up from 27% in 2021. Yet only about half of these users in the region secure their phones with passwords. What role should banks and regulators play in digital literacy and consumer protection as mobile finance grows?

Akinlabi: The growth is great, but it’s a red flag that many users still don’t secure their phones. That’s like leaving your wallet open on a park bench. Banks and regulators have to take a more hands-on role in digital literacy and security.

At Lotus, we design our mobile platforms to require authentication, PINs, biometrics, and two-factor prompts. We also run in-app prompts and SMS nudges to encourage safe habits. But we can’t do it alone. Regulators need to set minimum safety standards and run coordinated public education drives. We should normalize conversations around digital safety the same way we do around fraud alerts.

As mobile finance grows, security can’t be optional. It has to be built into every level of the ecosystem, from onboarding to the interface to the policy side.

TE: With formal saving increasing by 16% points globally to 40% between 2021 and 2024, how is Lotus Bank leveraging mobile platforms and ethical finance to nudge informal savers, especially in rural Nigeria, into the formal financial system?

Akinlabi: A lot of Nigerians still save in cash or with informal groups because it’s what they know. We bring formality to them in a way that feels familiar and safe. Through our USSD and mobile platforms, people can open an account in minutes, even on a basic phone. Then we layer in features like auto-save or savings pockets that feel like traditional thrift savings, but safer and more accessible.

What helps us stand out is our ethical banking model. We don’t pay or charge interest, which resonates with people whose beliefs or culture may keep them away from conventional banks. Instead, we focus on profit-sharing models or fixed charges.

That builds trust. So, in short, we use tech to remove friction and values to build confidence. Over time, that draws informal savers into formal banking without forcing them to change who they are.

TE: Sub-Saharan Africa has the largest gender gap in smartphone ownership and mobile money use. Over 300 million women globally still lack mobile phones. How can digital banks like Lotus design inclusive solutions that empower female users without reinforcing digital inequalities?

Akinlabi: It starts with acknowledging that access and usage are different for women. Many don’t own phones or have full control over them. So we build services that work on basic phones, through USSD and SMS. We also recruit and train female agents within communities. That way, women can bank through someone they trust, in a space that feels comfortable.

On the design side, we simplify interfaces and add voice support features to help people who are not fully literate. Most importantly, we take feedback directly from female users and cooperatives to understand what actually works for them. Inclusion has to be deliberate. It’s not just about putting a product out. It’s about designing the right product and ensuring women feel seen, safe, and supported when they use it.

TE: According to the Findex data, 31% of unbanked adults in low and middle-income economies, including half of those in Sub-Saharan Africa, also lack a mobile phone. How can the financial sector ensure inclusivity in such digitally disconnected demographics, especially where affordability remains the biggest barrier?

Akinlabi: When someone doesn’t even own a phone, we have to go back to basics. That’s where agent banking comes in. We work with local agents, people already well-known in the community, to serve as the access point for banking.

They can help open accounts, manage deposits, and initiate transfers. It’s face-to-face, but powered by tech behind the scenes. On top of that, we need partnerships that make phones more affordable. Subsidizing low-cost devices, bundling basic data access with banking, or working with telcos to roll out shared community phones are ways we can close the gap.

Digital banking doesn’t have to mean everyone has a smartphone. It can mean everyone has access to someone who does, until they can afford their own. That’s how we start.

 TE: Only 56% of adults in low and middle-income countries are financially resilient enough to access emergency funds within 30 days. How is Lotus Bank thinking about financial health, not just access, especially in designing savings, insurance, and credit products that promote resilience?

Akinlabi: At Lotus, we see access as step one. Step two is helping customers build the habits and buffers that protect them during tough times. One example is our Save-As-You-Earn feature. Every time money comes into your account, a portion can go directly into a savings pocket. It’s automatic and low-effort, which makes it more likely to stick.

We’re also building micro-insurance offerings, low-cost coverage for health or emergencies, and ethical credit products with transparent repayment terms. Because we don’t charge interest, there’s no compounding debt. It gives people room to breathe.

We also use simple nudges, reminders to save, prompts to set financial goals, and educational messages that explain why small actions today matter tomorrow. Our goal is not just to grow balances, but to help people feel secure and prepared.

TE: Given your previous work at ALAT by Wema and now at Lotus Bank, what innovations or policies do you believe are urgently needed to transition Nigeria’s cash-heavy informal economy into a robust digital ecosystem that people actually trust and use regularly?

Akinlabi: It comes down to three things: trust, ease, and relevance. We need digital tools that work as smoothly as cash but come with more benefits. For example, standardizing QR payments and making wallets truly interoperable would go a long way. We also need to keep designs simple and intuitive. Not every user is tech-savvy, but everyone wants to transact fast and without hassle.

From a policy angle, the government should support infrastructure upgrades and enforce consumer protection. Nothing damages trust faster than a failed transaction or unresolved dispute. Agent networks should be expanded, not just in rural areas, but across markets and informal zones where cash dominates. Lastly, we need more collaboration.

Banks, fintechs, and telcos need to share infrastructure and data safely so we can offer connected services that fit into people’s real lives. If we make digital banking feel safer, faster, and more useful than cash, people will adopt it, not because we told them to, but because it simply works better for them.

According to the GSM Association’s (GSMA’s) State of the Industry Report on Mobile Money 2023, 781 million of the 1.6 billion registered mobile money accounts globally—which increased 13% year over year (YoY) in 2022—are in Africa. The report also includes that mobile accounts in Africa have increased by 17% and 22% in 2021 and 2022, respectively, reaching a total of $1.26 trillion in transactions.

According to the 2023 research, sub-Saharan African regulatory reforms, particularly in Nigeria and Ethiopia, where mobile money adoption increased quickly, were a contributing factor to the development.

Sub-Saharan Africa accounted for over two-thirds of the growth in mobile money accounts. According to the report, activity rates in West Africa rose steadily between 2018 and 2022. More people are signing up for mobile money accounts than in past years, and many of those who have done so are actively using it for their daily requirements.

West Africa now leads the way, not only on the continent but also globally, as the region’s global share of registered mobile money accounts increased from 11% in 2021 to 33% in 2022.

Mobile Money is key to furthering the financial inclusion agenda in Nigeria, as it enables the delivery of financial services at a lower cost. However, the issues of cost of usage, penetration, and poor infrastructure have hampered the normalization of mobile money in Nigeria.

Bleak Outreach

The number of mobile money accounts in Nigeria was over 60 million in 2022, according to Statista. However, the stars have yet to align as regards mobile money in Nigeria. While mobile money adoption has increased in Nigeria over the years, it is important to note that most of the adopters are banked individuals.

Interestingly, most mobile money operators in Nigeria have, over the years, targeted overbanked individuals living in urban areas. The larger concentration of mobile money services in areas filled with people with overloaded bank accounts and different payment methods tells a better story of the issue of online banking in Nigeria.

Mobile money is a crucial lifeline for people living in disconnected and underserved areas in Nigeria to receive financial services, even while those in urban areas are well supplied by a variety of financial services. Mobile money struggles to take hold in certain areas. When you consider it, there is a significant dissonance. Customer education is essential for the success of mobile money.

High Transaction Costs

Operators charge customers to use their services, and developers deduct a fee from each transaction. Consumers have complained that sometimes agents charge more even though the Central Bank of Nigeria has stated that the maximum total cost should be 1.25% of the transaction amount, up to a maximum of N2,000.00 (US$2.44).

Most mobile money agents charge outrageous prices for their services, although they are closing the unbanked gap by bringing more individuals into the financial system. As an example, some operators imposed over 30% transaction fees during the recent naira shortage. Particularly in regions with little to no competition, there is little to no oversight of the operators.

Poor Infrastructure

The Nigerian financial services system continues to face significant obstacles due to poor infrastructure. The efficient operation of mobile money transactions can be hampered by slow internet connections and servers.

The Central Bank of Nigeria (CBN) has improved the situation by introducing Payment Service Banks (PSBs). Even though this is insufficient, PSBs have developed effective banking models by utilizing firms’ strengths.

PSBs are a type of bank that operates on a smaller scale by utilizing technology services through mobile and agency banking to mobilize deposits and facilitate transfers from unbanked customers in rural areas and any location where they exist in Nigeria. 

It is expected that building on the infrastructure of MTN and Airtel will disrupt the payment landscape and introduce innovative services in rural areas, even as it services the overbanked.

[Feature Image Credit]