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Financial sector will see stronger regulations, tech advancements, market expansion in 2025 –Report

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In 2025, Nigeria’s financial sector should expect stronger regulations, technological advancements, and increased market expansion, according to a report.A report says Nigeria’s financial sector will witness stronger regulations, technological advancements, and increased market expansion in 2025. Photo credit: Ripples Nigeria
  • A report said Nigeria’s financial sector will see stronger regulations, technological advancements, and increased market expansion in 2025
  • The report also said fintechs and other digital platforms will play a role in Nigeria’s financial inclusion drive in the year
  • It also made forecasts for cryptocurrency regulations and other digital currencies

A newly released report by Stren & Blan Partners, says Nigeria’s financial sector will be driven by stronger regulatory reforms and oversight, technological advancements, and market expansion in 2025. 

It said the changes will be in the form of the bank recapitalisation policy of the Central Bank of Nigeria (CBN), mergers and acquisitions (M&As), financial inclusion drive, cryptocurrency regulation, and ESG financing.

The report, titled, ‘Financial Sector 2024 Round-up and 2025 Forecast,’ noted that these are expected to strengthen the sector’s stability, enhance digital financial services, and attract more local and international investments.

It added that banks working to meet the 2026 CBN’s recapitalisation deadline, mergers, acquisitions, and equity investments will be on the rise.

Also, it noted that strengthening banks’ capital base will enable financial institutions to offer larger-scale credit, which will in turn promote economic growth and drive business expansion.

The report read, “As we look ahead to 2025, the sector is poised for dynamic growth and consolidation. Stakeholders should prepare for a surge in Mergers and Acquisitions (M&A), driven by recapitalisation efforts and strategic expansions.
“Additionally, the expected clarity on cryptocurrency regulation will open new avenues for digital asset innovation and blockchain adoption. The push for sustainable finance, coupled with advancements in technology and stronger regulatory frameworks, will further shape the financial ecosystem.
“With these developments, 2025 promises to be a transformative year for Nigeria’s financial sector, one that balances innovation, compliance, and inclusivity to foster long-term growth and resilience. Stakeholders must remain agile, collaborative, and forward-thinking to capitalise on these opportunities and navigate emerging challenges.”

Fintechs, digital platforms to play a role in financial inclusion

The report further stated that financial technology (fintech) companies and digital platforms will lead the push for financial inclusion in the year.

It also projected partnerships between traditional banks and fintech startups, which will drive innovation and accessibility of financial services.

The report read, “With financial inclusion remaining a top priority, efforts to broaden access to banking services—especially in rural and underserved areas—are expected to increase.
“Digital platforms, mobile banking, and AI-powered financial solutions will play a critical role in reaching unbanked populations.
“Additionally, partnerships between traditional banks and fintech startups will further drive innovation, making financial services more accessible to millions of Nigerians.”

Expect increased CBN regulatory and supervisory oversight

According to the report, the year will see the CBN intensify its regulatory and supervisory activities, ensuring compliance with recapitalisation guidelines, anti-money laundering (AML) regulations, and risk-based capital adequacy ratios.

It noted that the strengthened oversight aims to improve financial system stability, protect depositors’ funds, and increase confidence in the banking sector.

“The CBN will continue to intensify its monitoring and supervisory activities, ensuring compliance with recapitalisation guidelines, anti-money laundering (AML) standards, and risk-based capital adequacy ratios.
“Heightened regulatory oversight will foster greater confidence in the system, safeguard depositor interests, and strengthen the resilience of financial institutions to withstand economic and geopolitical shocks,” the report stated.

Forecast for crypto and other digital currencies

The anticipated introduction of Nigeria’s comprehensive regulatory framework for cryptocurrency in 2025, the report stated, will provide guidelines for banks and fintechs to develop compliant crypto-based products.

“Cryptocurrency will continue to gain prominence in 2025, with Nigeria expected to introduce comprehensive regulatory frameworks to govern its use.
“These policies will enable banks and fintechs to develop compliant crypto-based products, such as custodial wallets, decentralised finance (DeFi) platforms, and cross-border payment solutions. The adoption of blockchain technology for transparency in transactions will likely increase.
“Additionally, the e-Naira is expected to undergo significant enhancements, positioning it as a viable competitor to private cryptocurrencies and accelerating the adoption of digital currencies in Nigeria’s economy.”

The report also noted that with sustainability gaining momentum globally, Nigerian financial institutions will increase their focus on ESG (Environmental, Social, and Governance) financing.

It said banks are expected to expand funding for renewable energy projects, climate adaptation initiatives, and green infrastructure, even as collaborations between Nigerian banks and international development agencies will further drive the adoption of sustainable finance solutions in the country.

Experts project naira, FX stability, MPR, inflation decline, fuel price slash, others in 2025

Meanwhile, TheRadar earlier reported that experts projected some of the economic realities that will shape 2025.

These include stability of the naira and the foreign exchange (forex) market, decline in the Monetary Policy Rate (MPR) and inflation rate, reduction in fuel price, and growth of other economic indicators.

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Nchetachi Chukwuajah Admin

Nchetachi Chukwuajah is a multimedia journalist with over five years of experience covering business, economy, climate change, environment, gender and social issues. She has worked as a Television Reporter and Presenter; one of the Nigerian correspondents for Youth Journalism International (YJI), Maine, USA, and a Senior Reporter with the Nigerian Tribune. Nchetachi is skilled in information management and copy editing. She is a Freelance Writer with TheRadar

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