10/01/2026
Banks, Fintechs, and Nigeria’s Cashless Journey
Banking in Nigeria did not begin with apps or instant alerts. It began in 1894 with the Bank of British West Africa, now First Bank of Nigeria. For decades, banks symbolised trust, physical cash, and face-to-face transactions. To bank was to visit a branch.
By the early 2000s, consolidation and recapitalisation reshaped the sector. ATMs and digital platforms emerged, but access remained rigid and bureaucratic.
A major turning point came in 2012 when the Central Bank of Nigeria (CBN) introduced the cashless policy, starting in Lagos and later expanding nationwide. The policy aimed to reduce cash use, promote electronic payments, and deepen financial inclusion. POS terminals, transfers, and withdrawal limits became part of everyday life.
Policy opened the door, but innovation determined the pace.
Interswitch, founded in 2002, laid Nigeria’s digital payment foundation. A new wave of fintechs followed in the 2010s — Paystack, Flutterwave, OPay, and Moniepoint — offering faster, simpler, mobile-first services. They met Nigerians where they already were: on their phones and through agent networks.
During COVID-19 and the 2022–2023 cash scarcity, fintechs became essential tools for daily transactions.
Today, banks are becoming more agile, fintechs more regulated, and the lines increasingly blurred. Nigeria’s financial future will belong not to institutions with the longest history, but to those who understand the moment and the customer best.
Notes by Lawal