Banking
Why Fair Digital Access is the Foundation of Nigeria’s 2030 $1trn Roadmap Ambition
By Henry Obiekea
Nigeria’s pursuit of a $1 trillion Gross Domestic Product (GDP) by 2030 is perhaps the most significant economic objective in the nation’s history. This goal is audacious, yet wholly achievable, rooted in the nation’s greatest asset: its dynamic and youthful population. With a median age well below the global average, this demographic dividend is a reservoir of creativity, entrepreneurship, and innovation—the very fuel for an economic explosion.
However, harnessing this potential requires more than just ambition; it demands inclusive capital. Today, the brilliant ideas generated by young Nigerians—from tech startups to agri-business ventures—often stall due to a fundamental challenge: access to finance.
The Finance Minister, Mr. Wale Edun, recently amplified this imperative, urging financial institutions to actively finance the ideas of young Nigerians, warning that failure to do so risks pushing this talent into unregulated, unproductive ecosystems. This official focus underscores a critical truth: financial inclusion is the priority driver for meeting the $1 Trillion target.
Despite Nigeria’s status as a continental leader in technology adoption, a significant portion of its adult population remains financially underserved. Recent surveys show that the total gap—those entirely excluded or reliant only on informal systems—stands at 36%, representing approximately 40 million productive individuals.
This population includes 26% of adults who are fully cut off from the formal system, while another 10% rely solely on informal services. Persistent gaps are especially pronounced across regional and demographic lines, particularly in the North and among low-income groups.
Relegated largely to the informal economy, these millions of people are unable to save securely, build credit, or access the capital needed for scale. While mobile penetration, agent networks, and digital onboarding are actively narrowing the divide, sustained progress in inclusion-driven growth fundamentally demands access to credit.
Despite an observed increase in account ownership, Nigeria’s credit penetration remains notably shallow, registering between 13% and 19% of GDP, which is among the lowest globally and limits critical economic growth vectors, particularly for MSMEs and household consumption. This low credit-to-GDP ratio highlights a significant underdevelopment in the domestic credit market.
In contrast, regional African peers like Kenya and Egypt have credit ratios roughly twice as high, sitting between approximately 31% and 37%, supported by increasingly data-driven lending models that are more effective at reaching small businesses. Emerging global economies such as India and Brazil boast deep credit markets, where penetration reaches between 53% and 62%, providing the financial leverage necessary for robust private-sector expansion.
The extreme of the scale is occupied by nations with mature financial infrastructure, like South Africa, where the credit penetration rate is approximately 90% of GDP, underscoring the distance Nigeria must travel to unlock its full economic potential through a diversified and accessible lending base.
The opportunity lies in the digital revolution. With mobile phone usage soaring (over 93% of adults), the physical barrier of the bank branch has been rendered obsolete. Fintech companies in Nigeria have brilliantly seized this moment, leveraging mobile technology and data science to catalyze inclusion.
Digital access alone, however, is insufficient. The engine for sustained economic growth is authentic financial inclusion, characterised by fairness and transparency. Without these twin values, digital finance risks replacing physical exclusion with predatory models, characterised by hidden charges and opaque terms that ultimately erode trust, leading to financial distress and a retreat from the formal economy. To truly empower the populace and grow the GDP, every transaction must build, not break, the customer’s financial life. This is the principle that elevates financial services from a mere utility to a foundation of national economic strength.
This commitment to fairness is precisely where FairMoney acts as a crucial lever for the national ambition. Operating as a licensed microfinance bank providing financial services through our mobile app, FairMoney’s model directly tackles the barriers to entry by making every interaction transparent and efficient.
Our commitment to “no hidden charges” means customers understand the full cost of credit upfront, fostering a responsible borrowing culture. We leverage innovation to serve the excluded. We focus on accessibility and speed to enable instant account opening and rapid loan approvals by leveraging alternative data and advanced scoring algorithms, using technology for operational efficiency, such as Maps for remote operational address verification.
Beyond loans, we offer full-service banking with bank account numbers, competitive Fixed Deposits with good interest rates on savings, instant bill payments, and specialized services like POS services for small businesses. Our savings products, designed to track and build wealth, incentivize long-term financial health.
By providing these robust services with speed and transparency, FairMoney is not just offering a product; we are committed to digitally onboarding millions of Nigerians into a trusted, formal economic identity.
The impact of this fair digital model ripples across the economy, directly powering the $1 Trillion objective. A small business owner who secures a transparent, low-friction loan can instantly purchase inventory, hire staff, and expand operations. This immediate injection of capital and increased velocity of money—made possible by digital speed and trust—translates directly into higher output and taxable revenue, boosting GDP.
Also, by offering competitive savings and fixed deposit rates, we successfully mobilise capital that might otherwise sit dormant or be held in informal, non-productive assets. This pooled capital becomes the investment bedrock needed to fund the larger infrastructure and industrial projects essential for the 2030 target.
When entrepreneurs can access transparent loans or savings in a crisis, they prevent business collapse, maintaining employment and economic continuity. This resilience ensures that economic shocks do not derail the cumulative progress toward the national goal.
Authentic financial inclusion acts as a social safety net. Fairness in finance, therefore, is not a philanthropic ideal; it is a sound economic strategy. It ensures that the millions of productive economic units, especially the youth and the underbanked, are not just spectators but active, invested contributors to the nation’s growth story.
The path to a $1 Trillion economy is clear: it must be built on the principle of inclusion. This ambition will be realized by empowering the underbanked financially and leveraging digital solutions to dramatically improve access to finance across Nigeria. Financial institutions must champion Fair Digital Access—a commitment to innovation that FairMoney is already pioneering.
In the digital age, trust is the new currency. To fully unlock Nigeria’s trillion-dollar destiny, we must earn this trust through consistent value, transparency, and the fair and equitable deployment of financial capital.
Henry Obiekea is the Managing Director of FairMoney Microfinance Bank Nigeria
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has unveiled the fourth edition of its Foreign Exchange Manual as part of efforts to deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
Speaking at the launch of the revised manual in Abuja on Friday, the Governor of the apex bank, Mr Yemi Cardoso, said the document will take effect from June 1, 2026.
He said it was developed after extensive consultations with banks, exporters, importers, corporates, regulators and development partners.
He said the new framework reflects the apex bank’s commitment to modernising the country’s foreign exchange administration in line with international best practices.
Mr Cardoso described the foreign exchange market as a critical pillar of any open economy, noting that effective governance of the sector is essential for sustaining macroeconomic stability and investor confidence.
“Foreign exchange is more than a financial instrument. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” he said.
The CBN governor stressed that the revised manual became necessary due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework.
According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Mr Cardoso disclosed that Nigeria’s foreign exchange market has witnessed significant improvement in liquidity since the current administration began reforms in the sector.
He added that daily turnover in the FX market increased from an average of about $100 million in the early days of the administration to between $400 million and $600 million daily.
The CBN Governor added that the market had also recorded transactions of up to $1 billion per day on several occasions in recent months.
“We have gone from a situation where it was more or less a one-way market, where the central bank came in, intervened and went away, to a much more dynamic market,” he stated.
The apex bank boss noted that the reforms were gradually restoring confidence among investors and market participants, encouraging freer entry and exit in the market without unnecessary restrictions.
He also maintained that the nation’s foreign reserves should not be used as the primary tool for funding the foreign exchange market.
“Reserves are reserves. They are not what you look to fund a market,” he said.
The CBN Governor assured stakeholders that the revised manual would be distributed free of charge to authorised dealers while the bank strengthens monitoring mechanisms to ensure compliance, fairness and accountability across the foreign exchange market.
On his part, the Deputy Governor for Economic Policy, Mr Muhammad Abdullahi, said the review formed part of broader reforms initiated by Mr Cardoso to restore confidence, improve transparency and deepen liquidity in the foreign exchange market.
Mr Abdullahi explained that the revised manual introduces several changes aimed at improving ease of doing business and reducing transaction bottlenecks.
Among the notable changes, he noted, are provisions allowing unfettered access to export proceeds, the introduction of non-resident investment accounts and operational guidelines for Pan-African Payment and Settlement System (PAPSS) transactions to support regional trade.
Mr Abdullahi added that the manual also contains new provisions on service exports, revised documentation requirements and updated operational procedures designed to align Nigeria’s FX market with global standards.
He said the apex bank deliberately adopted an ease of doing business approach during the review process to eliminate inefficiencies and ambiguities identified by stakeholders.
“The revised manual is not a stand-alone exercise but part of a broader institutional reform effort designed to strengthen the integrity, credibility and effectiveness of Nigeria’s foreign exchange system,” he said.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has approved the appointment of Mr Julius Omodayo-Owotuga to the board of First Bank of Nigeria Limited as an executive director.
A statement from the company said the appointment of Mr Omodayo-Owotuga became effective on Wednesday, May 13, 2026.
He was appointed to the board of the subsidiary of First Holdco Plc to further strengthen its leadership capacity across strategic finance, governance, risk management, and institutional transformation.
Before now, he served on the board of First Holdco as a non-executive director between 2021 and 2026.
The appointee brings to the board 24 years of experience spanning banking and financial services, infrastructure finance, power, oil & gas, and audit and consulting.
His appointment, according to the notice to the Nigerian Exchange (NGX) Limited, reflects the Bank’s continued commitment to strong governance, disciplined execution, financial resilience, and sustainable long-term growth.
He most recently served as deputy chief executive of Geregu Power Plc, Nigeria’s first listed power generation company, where he played a pivotal role in institutional transformation, governance strengthening, capital market positioning, operational optimisation, and major financing initiatives, including the company’s landmark listing on NGX.
Mr Omodayo-Owotuga previously served as group executive director, Finance & Risk Management at Forte Oil Plc (now Ardova Plc), where he was instrumental in the company’s financial and operational transformation, leading strategic restructuring, capital raising, treasury optimisation, enterprise risk management, and governance improvement initiatives that strengthened long-term shareholder value.
His professional career also includes roles at Africa Finance Corporation, Standard Chartered Bank, KPMG Professional Services and MBC International Bank (Now First Bank Nigeria Limited), providing him with deep experience in institutional finance, treasury management, financial controls, regulatory engagement, and corporate advisory.
Mr Omodayo-Owotuga is a CFA Charter Holder, KPMG-trained Accountant, and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN), and the Institute of Credit Administration. He is also a member of the Institute of Directors (IoD) Nigeria and a Certified Management Accountant.
He holds a Doctorate in Business Administration, a Master’s in Business Administration and a Bachelor’s degree in Accounting. He is an alumnus of Saïd Business School, University of Oxford, IE Business School, Geneva Business School, and the University of Lagos.
By Modupe Gbadeyanka
In recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises (SMEs), Union Bank of Nigeria Plc has been honoured by the Association of Small Business Owners of Nigeria (ASBON).
The lender was rewarded by the group for its suite of solutions designed to enable business expansion and long-term value creation.
At the Nigeria National SME Business Awards, held recently in Lagos, Union Bank was given the Best SME Growth Banking Initiatives Award for 2025.
The ceremony was organised by ASBON in partnership with the Lagos State government through the Ministry of Commerce, Cooperatives, Trade and Investment.
The event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.
Receiving the award on behalf of the bank, its Head of SME Segment, Mr Ayokunnumi Abraham, described the recognition as a strong endorsement of the organisation’s commitment to supporting small and medium-sized businesses.
“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible.
“Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting.
“These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive,” he stated.
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