Lagos State Deputy Governor, Dr. Kadri Obafemi Hamzat, has urged Nigeria’s fintech operators to transition from facilitating simple digital payments to building robust economic infrastructure that supports credit, insurance, and savings. Speaking at the opening of the 2026 Nigeria Fintech Week in Lagos, Hamzat argued that while the industry has successfully streamlined transactions, the next phase of growth must focus on deepening the broader financial ecosystem.
Representing Governor Babajide Sanwo-Olu at the event, the Deputy Governor noted that the proliferation of payment gateways has reached a point of relative maturity. He suggested that the true potential of the Nigeria Fintech Week platform lies in its ability to spark innovation in sectors that remain underserved, particularly in providing affordable credit to Small and Medium Enterprises (SMEs) and expanding insurance penetration among the informal workforce.
The call for a strategic shift comes at a time when the Nigerian fintech landscape is dominated by unicorns and startups focused primarily on peer-to-peer transfers and merchant collections. According to industry data, while payment solutions account for the largest share of venture capital inflows into the Nigerian tech sector, credit and insurance technology remain significantly underfunded. Hamzat emphasised that for fintech to be a true catalyst for economic development, it must address these foundational gaps.
Lagos State remains the epicentre of this digital evolution, hosting approximately 80% of the country’s fintech companies. The state government has recently intensified efforts to support the sector through the Lagos Startup Act and various investment initiatives aimed at turning the Yaba district into a global technology hub. However, Hamzat warned that the concentration of talent and capital in payments could lead to diminishing returns if other pillars of the digital economy are neglected.
Addressing the Credit Gap in Nigeria’s Digital Economy
One of the central themes of the Deputy Governor’s address was the role of fintech in democratising access to capital. He pointed out that traditional banking systems often struggle to meet the credit needs of millions of Nigerians due to stringent collateral requirements and lack of credit history. By leveraging data-driven infrastructure, fintechs can create alternative credit-scoring models that allow artisans, farmers, and small business owners to access the funds they need to scale.
The National Bureau of Statistics has consistently highlighted that SMEs contribute nearly 50% of Nigeria’s Gross Domestic Product (GDP), yet they receive less than 10% of total bank credit. Hamzat argued that fintechs are uniquely positioned to bridge this divide by building the technical pipes that connect institutional capital with retail borrowers. This shift, he noted, would transform fintechs from mere convenience providers into essential components of the national economic architecture.
Beyond credit, the Deputy Governor highlighted the urgent need for innovation in the insurance space. With insurance penetration in Nigeria still hovering below 1%, the sector represents a massive untapped market. Digital-first insurance products, or “insurtech,” could provide a safety net for vulnerable populations, protecting them against health crises, crop failures, or business losses, thereby fostering long-term economic stability.
Regulatory alignment remains a critical factor in this transition. The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have introduced various frameworks to monitor fintech activities, ranging from Open Banking regulations to licensing for digital banks. Hamzat called for continued collaboration between the state government, federal regulators, and private sector players to ensure that regulation encourages innovation rather than stifling it.
The 2026 edition of Nigeria Fintech Week has drawn thousands of delegates, including investors, developers, and policymakers from across Africa and beyond. The discussions are expected to shape the trajectory of the industry as it navigates a changing global economic climate and a shifting funding environment. Analysts suggest that the move toward “infrastructure-as-a-service” could be the primary driver of the next wave of fintech investment in West Africa.
As the three-day event progresses, industry leaders are expected to present new roadmaps for integrating AI-driven financial services and cross-border payment systems that align with the African Continental Free Trade Area (AfCFTA). The next regulatory step involves the full implementation of the National Digital Economy Policy and Strategy, which aims to formalise millions of digital transactions into the national tax and credit reporting systems.
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