Remita, a leading Nigerian payment solutions provider, has issued a clarion call to fintech companies, urging them to embrace Artificial Intelligence (AI) as a crucial tool for securing their position in the rapidly expanding Nigerian fintech market. Projected to reach a value of $434.4 million by 2026, with an impressive annual growth rate of 44.2%, this market represents a significant opportunity for companies willing to innovate and adapt. Remita’s newly released report, “Unlocking the Power of AI in Nigeria’s Fintech Sector,” emphasizes the transformative potential of AI, positioning it as a cornerstone for future growth and success within the industry. The report advocates for the strategic integration of AI across various facets of fintech operations, including streamlining processes, enhancing decision-making capabilities, and bolstering fraud detection and prevention mechanisms.
The report underscores the urgency of AI adoption for fintech companies seeking to thrive in a highly competitive landscape. Nigeria currently commands a dominant share of Africa’s fintech funding, attracting 52% of the continent’s investment and boasting five out of nine fintech unicorns as of 2024. This dominance underscores the vibrant and dynamic nature of the Nigerian fintech ecosystem, a landscaperipe with opportunity but also demanding continuous innovation. Remita argues that integrating AI is no longer a choice but a necessity for companies hoping to maintain their competitive edge, achieve resilience, and drive innovation in this rapidly evolving sector. The report highlights the potential of AI to amplify the already significant growth in digital transactions witnessed in Nigeria, which reached 11.2 billion in 2024, representing a 16.7% increase from the previous year and a total value of $713 billion (N1.07 quadrillion).
Remita’s call to action is further contextualized by the significant strides made in financial inclusion in Nigeria, which has doubled from 32% in 2012 to 64% in 2024, driven largely by the innovations of fintech companies. However, the report cautions that without embracing AI, these companies risk missing out on the next wave of growth and transformation. The potential benefits of AI extend beyond mere market competitiveness. Remita emphasizes that AI can play a critical role in broadening access to financial services and enhancing operational efficiency, particularly crucial in a digital economy grappling with inflationary pressures. The report stresses that the time for action is now, urging fintech companies to embrace AI to unlock their full potential and contribute to a more inclusive and robust financial ecosystem.
DeRemi Atanda, Managing Director of Remita, emphasizes the transformative potential of AI in the next phase of fintech development in Nigeria. While acknowledging the bold ambition and relentless execution that have characterized the industry thus far, Atanda highlights the need for more strategic intelligence to drive future growth. AI, he argues, is key to unlocking this next level of advancement. He posits that the future leaders in the fintech space will be those who effectively leverage the capabilities of emerging technologies like AI. The central question, according to Atanda, is not whether to adopt AI, but how to do so strategically and effectively to maximize its benefits. This statement reflects a shift in perspective, moving from a discussion about the merits of AI to a focus on practical implementation and optimization.
Remita’s report serves as a comprehensive guide for fintech companies, regulators, and other industry stakeholders, outlining key steps for successful AI adoption. It provides practical strategies for AI transformation, drawing on Remita’s own experiences and lessons learned in implementing AI within their operations. Recognizing the importance of ethical considerations and regulatory frameworks, the report also offers a framework for regulatory collaboration. This framework aims to ensure that AI-driven financial services remain ethical, transparent, and secure, safeguarding consumer interests and promoting responsible innovation. Furthermore, the report addresses the crucial aspect of workforce readiness, providing guidelines for developing the necessary skills and literacy to drive AI-powered innovation within fintech teams. This holistic approach underscores the understanding that successful AI implementation requires not only technological advancement but also human capital development and a supportive regulatory environment.
Uchenna Okpagu, Chief AI Officer at Remita, emphasizes the need for a strategic and integrated approach to AI adoption, advocating for its integration into the operational DNA of fintech companies. He argues that AI should not be viewed as a mere add-on feature but as a powerful tool capable of transforming security, scalability, and business intelligence. Okpagu predicts that companies that embrace this comprehensive approach to AI integration will be the ones driving the next decade of financial transformation. He cautions against simply adopting the latest technology for the sake of keeping up with trends, emphasizing the importance of careful, structured implementation, thorough risk assessment, and a commitment to responsible innovation. This highlights the need for a strategic and measured approach to AI adoption, emphasizing the long-term benefits over short-term gains. Remita’s own strategy reflects this philosophy, demonstrating a commitment to shaping the standards for AI integration in fintech, not just adopting it.
Remita’s proactive stance on AI reflects its vision to remain at the forefront of fintech innovation. By spearheading the development and implementation of AI-driven solutions, the company aims to empower businesses, governments, and individuals. The report concludes by emphasizing that the future of fintech belongs to those who demonstrate a forward-thinking approach, building with intention, executing with precision, and adapting to the evolving realities of an AI-driven world. This underscores the importance of a strategic mindset, operational excellence, and adaptability as key success factors in the rapidly transforming landscape of fintech. Remita’s report, and its own actions, serve as a strong call to action for the Nigerian fintech sector, urging companies to embrace AI not just as a technological advancement, but as a strategic imperative for future growth and success.
