Built on a maturing instant payments backbone, electronic transactions are increasing, regulators are asserting closer oversight, and accessibility to credit is getting stronger.

The Nigerian fintech space is projected to contribute around $6 billion to the nation’s GDP by the end of 2026, which will be largely driven by payments processing and expanding digital credit access.

In February 2026, the Central Bank of Nigeria (CBN) unveiled an 18-month fintech roadmap focused on implementing open banking, strengthening supervision, and enabling secure cross-border interoperability.

The plan is widely seen as a defining moment for the next phase of growth in the sector.

Regulatory scrutiny is also intensifying. The Federal Competition and Consumer Protection Commission (FCCPC) set a January 2026 compliance deadline for digital lenders, granting a final grace period until April for registration. Platforms that fail to meet the requirements risk delisting.

The move is aimed at curbing predatory practices while preserving innovation in a market that disbursed an estimated $865 million in digital loans in 2025.

On the infrastructure side, the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payments platform maintained top maturity ratings across Africa in late 2025 and continues to process billions of naira in real-time transfers each year.

Meanwhile, deployed POS terminals crossed the 8 million mark in early 2025, with first-quarter transaction values exceeding ₦10.5 trillion.

Taken together, these developments reflect how far Nigeria’s fintech ecosystem has come in the past decade, especially in expanding financial services to underserved and unbanked communities.

Below are ten trends expected to shape payments and digital lending in 2026.

1. Phased Rollout of Open Banking

The CBN’s open banking framework is set to begin limited commercial operations this year. Licensed participants will be able to share customer-consented data securely through standardised APIs.

Early applications are expected to focus on payment initiation and improved credit scoring for small and medium-sized enterprises (SMEs), as well as individuals in the informal sector.

With better access to verified financial data, lenders are likely to refine underwriting models and develop more tailored products.

2. Continued Growth in Real-Time Payments

Instant transfers are at the heart of Nigeria’s electronic payments system. Real-time rails are already dominant for salary payments, merchant settlements, person-to-person transfers and bill payments.

With transaction volumes increasing, operators are expected to prioritise infrastructure resilience, especially during peak periods, to minimise service disruptions.

3. Shift Toward a More Cash-Lite Economy

Cash usage in everyday transactions has been declining steadily over the past few years. Analysts expect the trend to continue, supported by mobile wallets, expanding POS networks and government-backed cashless policies.

Digital channels are now playing a bigger role in e-commerce, informal retail and rural-urban remittances, gradually reshaping payment behaviour.

4. Faster and Cheaper Cross-Border Payments

Cross-border remittances and trade payments are becoming more efficient, helped by fintech partnerships and improving foreign exchange liquidity. Some platforms are exploring blockchain-based corridors and stablecoin settlements, while traditional remittance channels benefit from better interoperability.

These changes could support diaspora inflows and small-scale trade transactions under the African Continental Free Trade Area framework.

5. Consolidation in Digital Lending

Following the FCCPC’s enforcement actions, the digital lending market is expected to shrink in number but strengthen in structure. Non-compliant operators may exit or restructure to meet standards on pricing transparency, debt collection and data privacy.

Industry watchers expect surviving players to focus more on sustainable underwriting and long-term customer relationships rather than short-term loan cycles.

6. Expansion of Buy Now, Pay Later (BNPL)

Africa’s Buy Now, Pay Later market is projected to reach $6.5 billion in gross merchandise value in 2026, with Nigeria ranking among the leading contributors alongside Kenya, South Africa and Egypt.

Integration with major e-commerce platforms and offline retail chains is likely to deepen adoption. At the same time, regulators are paying closer attention to affordability checks and credit risk management.

7. Greater Use of Alternative Data in Credit Scoring

The push for e-invoicing and digital transaction records is opening up new data sources for lenders. Verified tax filings, payment histories and utility records are increasingly being used to assess creditworthiness.

For informal-sector operators without traditional credit histories, this could mean broader access to formal finance.

8. Evolution of POS and Agent Banking

While POS deployment continues in both urban and rural areas, growth is slowing in major cities where the market is nearing saturation.

Attention is shifting toward agent profitability and the introduction of value-added services such as micro-loans, savings products and bill payments through agent networks.

9. Extension of the Global Standing Instruction (GSI)

The CBN has signalled plans to extend the Global Standing Instruction framework to fintech lenders and microfinance banks.

If implemented broadly, the move could strengthen loan recovery mechanisms, reduce default rates and promote more responsible lending practices across the digital credit space.

10. Rise of Embedded Finance and Super-Apps

Financial services are increasingly being built into non-financial platforms, including ride-hailing apps, online marketplaces and utility payment systems.

Payments, wallets, micro-insurance and small-ticket loans are now integrated into everyday digital platforms. As competition intensifies, companies are racing to offer seamless, all-in-one experiences while keeping up with regulatory demands.

Final Analysis

Nigeria’s digital financial services ecosystem is moving into a more mature phase. Payments infrastructure is largely in place, shifting the focus toward scale, stability and cross-border integration.

At the same time, digital lending is entering a period of tighter regulation and consolidation.

The projected $6 billion contribution from fintech to GDP in 2026 underlines the sector’s growing economic weight.

How effectively these trends translate into deeper financial inclusion and long-term stability will depend on continued coordination between regulators, operators and infrastructure providers in a policy environment that is still evolving.

The company’s strong presence at the event reinforced its position as the critical payment infrastructure that empowers individuals, businesses, and governments to do more, while championing conversations that shape Africa’s digital future.

As part of the week-long engagements, a panel session focused on “The Future of Platforms and Partnerships in Africa’s Digital Economy” featured Mujib Ishola, chief technology officer at Remita, who shared forward-looking insights on how innovation and collaboration are shaping the continent’s digital evolution.

His participation underscored Remita’s commitment to driving conversations on technology adoption, data intelligence, and collaborative innovation within and beyond the payments ecosystem.

The session, moderated by Lanre Basamta, CEO and co-founder of Optimus AI Labs, and featuring Yejide Runsewe, CEO of NaijaNomads, was held on Day 2 of the conference, Wednesday, October 8, at the Landmark Centre, Lagos.

The conversation explored how technology, fintech collaboration, and intelligent data use are redefining Africa’s travel, payments, and hospitality sectors.

Speaking during the session, Mujib Ishola underscored that technology has become an intrinsic part of modern business and no longer a competitive advantage.

“Technology is no longer what gives you an edge; it is what keeps you in the game. If you’re not embedding technology into your business model, you’ll struggle to compete.”

Ishola highlighted how artificial intelligence and data tokenisation are transforming financial systems, accelerating efficiency, and enabling more personalised customer experiences.

“AI gives us the ability to reduce time to truth. For businesses, that efficiency – getting to the truth faster – is everything,” he said.

According to him, data remains the fuel that will drive the growth of industries, particularly travel and hospitality.

He noted that tokenised data allows users to securely share relevant information across systems, improving insurance claims, customer service, and user convenience.

“You don’t realise how powerful data is until things go wrong, like missing a flight or a booking cancellation. When data is structured and tokenised, systems can act intelligently and responsively.”

On the evolution of cross-border payments in Africa, Ishola pointed to the growing impact of the Pan-African Payment and Settlement System (PAPSS), which allows businesses and individuals to transact across African markets without sourcing foreign exchange.

“You can now pay with naira for services in another African country, and settlement happens seamlessly.  That’s a practical example of technology breaking barriers,” he explained.

Addressing affordability and inclusion in payments, Ishola discussed the role of flexible credit solutions such as Buy Now, Pay Later (BNPL) schemes, targeted microloans, and credit cards in democratizing access to experiences.

He called for broader education around alternative methods of proving creditworthiness.

“The challenge isn’t always access to credit, it’s how we demonstrate our ability to repay. With smarter data systems, young Nigerians can prove creditworthiness beyond traditional banking history,” he observed.

Turning to the panel’s theme of partnerships, Ishola called for “open, honest collaboration” across the fintech and travel ecosystem.

He noted that while the fintech industry once operated on protectionist instincts, the future lies in co-creation and shared infrastructure.

“Technology is everywhere now. The question isn’t who owns it, but who can execute and scale sustainably. We need to co-create Africa-specific platforms that make sense for our realities, not just copy models that work elsewhere.”

His remarks drew attention to Remita’s role in enabling interoperable financial ecosystems and powering collaboration across private, public, and continental boundaries.

Through solutions that integrate payments, collections, data analytics, and financial intelligence, Remita continues to serve as a unifying infrastructure for digital growth.

Beyond its thought leadership role, Remita also featured as a headline sponsor at the event, reaffirming its position as one of Nigeria’s most influential fintech brands.

The company’s presence at the conference underscored its vision to serve as the payment operating system that powers individuals, businesses, and governments to do more.

That doesn’t just make it difficult for them to save effectively, but also to access formal lines of credit.

The thing is, when most people talk about financial exclusion and the proposed solutions to it, they tend to focus on the “big” economic movers that come with financial inclusion.

A lot of attention, for example, is given to affordable home and vehicle financing and business and education loans. That’s understandable too: those are all vital tools in helping people advance economically.

But financial inclusion can’t be limited to those big-ticket items. It must also cover many of the day-to-day purchases that people in other markets take for granted.

We cannot, after all, talk about real financial inclusion if someone can access a business loan but still has to approach informal lenders to pay for their child’s school uniforms and stationery.

It’s why the rise of “buy now, pay later” (BNPL) services in Africa is so important. These services allow people to purchase items and choose to pay for them over a specified period, typically in instalments with low interest rates.

Unlike lay-by offerings, people are allowed to take possession of their goods immediately. While these offerings are most visible online, they’re increasingly common in physical retail spaces too.

A personal journey

There are any number of examples of how BNPL can empower ordinary Africans by enhancing their purchasing power.

Maybe it’s someone needing to buy a new suit for a job interview, a promising athlete needing a new pair of running spikes as they look to secure a university scholarship, or someone needing to buy a laptop to start their side hustle.

Sometimes (as I discovered myself, when I returned to Kenya in 2017 after studying in the USA), it’s just about staying connected.

As I trawled the malls of Nairobi looking to buy a phone (something few of us can live without), I realised that very few stores had the option to pay off a device in instalments. It came as a stark contrast to the US, where instalment plans are available almost everywhere.

But it was also a lightbulb moment that inspired the founding of Lipa Later. I realised how effective BNPL could be in the Kenyan and broader African contexts, particularly if it was adapted to the way Africans shop.

That vision was further crystallised in the early days of the business when my co-founder Michael Maina spent hours walking around malls, speaking to shoppers.

Many, he found out, wanted a specific phone that was just out of reach but which they could easily pay off over a few months.

BNPL for predominantly offline markets

While many of us are familiar with BNPL in e-commerce contexts, we knew that launching an e-commerce-only BNPL product would have limited efficacy in an African context.

Even in a country as renowned for embracing technology as Kenya, online made up just 4% of all retail sales in 2021 (the most recent year for which I could find figures).

But getting physical retailers on board with the concept wasn’t always easy. In the early days especially, there were a lot more noes than yeses.

Nonetheless, we persisted because we knew that, implemented correctly, the BNPL solution we were building could be a “lifeline for a lifetime” for both our retailer and consumer customers.

As a result, today, we have a BNPL offering that works as effectively in offline physical retail settings as it does online.

And because we’ve taken an attitude that everything about Lipa Later, from the name (Lipa is Swahili for “pay”) to the technology, should be tailored for Africa, we’ve been able to expand beyond Kenya into Uganda and Rwanda.

We also welcome the growing competition in the African BNPL space, not only because it’s pushed us to keep improving our own offering (a partnership with Mastercard means that we’ll soon be rolling out the first buy now, pay later card in Africa, for example) but also because it’ll help advance financial inclusion across Africa.

An increasingly important financial inclusion tool

While BNPL can’t eliminate debt entirely, it can make a dent in it, and with nearly 60% of Kenyans living in debt and similarly high numbers across many countries on the continent, its role will only become increasingly important.

Without having to resort to expensive informal lenders, customers can save more of their money or use it on things that improve their lives, rather than simply servicing debt.

As operators become mature and innovative (rewarding the best-paying customers with even lower interest rates, for example), its value will keep growing.

But consumers aren’t the only ones who benefit from this expanded financial inclusion. Retailers also benefit from increased customer bases. Those increased sales, in turn, can lead to expansion and even contribute to national economic growth.

So, as important as more traditional forms of financial inclusion are, it’s important to remember that consumer spending power is a critical component of financial inclusion, too.

Tailored effectively to African realities, there are few more powerful instruments for improving that spending power than BNPL.