Mobile Money And Digital Lending Poised to Spur Growth in The Service Sector in 2024- CBN Governor
The Central Bank of Nigeria (CBN) governor Olayemi Cardoso has said that Mobile money and digital lending will lead to growth in the service sector in 2024.
Speaking at the launch of the Nigerian Economic Summit Group 2024 Macroeconomic Outlook Report recently, the CBN governor stated that the sector has continued to spur economic growth in the country.
He projected that the country’s economy would grow by 3.76 percent in 2024, as reliance on fintechs is expected to grow in the year.
In his words,
“The services sector is expected to maintain its dominance, driven by mobile money adoption, increased government partnerships, and expanded digital lending offerings. Continued digitization and government support for financial inclusion initiatives are poised to drive growth in the fintech sector in 2024.”
This is not the first time the CBN governor has expressed optimism in Fintech to drive Nigeria’s economic growth. Recently, while speaking on Nigeria’s aim to become a $1tn economy, Cardoso listed the fintech industry as one that will attract significant capital investments into the country.
Also, speaking at the Chartered Institute of Bankers of Nigeria’s annual dinner in 2023, Cardoso projected growth target, sectors, which included fintech, among others, to attract significant capital investments.
Despite his optimism about the fintech sector, Cardoso had also declared the CBN’s intention to be stricter on regulatory compliance. According to him, the apex bank will engage in extensive consultations to develop a new regulatory and compliance framework that is suitable for the technology-driven payment services sector, as it concurrently conducts a comprehensive review of the licensing framework for payment services.
Recall that last year November, Yemi Cardoso, announced plans to comprehensively review licenses granted to financial institutions, particularly those in the technology-driven payment services sector.
He said operators under the bank’s purview have the duty to ensure they are licensed for the services they offer, effectively ending startups’ previous free rein to float products before regulators caught up.
Currently, Nigerian fintech executives are braced for a regulatory overhaul by the central bank which will push for tighter controls to battle a persistent fraud problem.
