For many, remittances from the African diaspora are essential and sometimes life-saving contributions from family members living and working abroad. In 2024, an estimated $100bn was remitted to Sub-Saharan Africa through formal channels, while informal flows are believed to account for an additional 30–50%. In Nigeria alone, about $21bn was sent back to the country from its diaspora in 2024, accounting for about 10% of its gross domestic product.
For policymakers, however, the challenge is to convert these largely consumption-driven inflows into savings and investment that can support sustainable development. Achieving this will require scaling Africa’s fast-growing fintech sector to formalise flows and create accessible financial products. This subject was addressed by a panel on “Fintech and the Future of Remittances” convened as part of the Africa Capital Forum, hosted by the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO) and the Central Bank of Nigeria (CBN).
Temi Popoola, group chief executive officer of the Nigerian Exchange Group (NGX) pointed to the tremendous impact that technology has had on the Nigerian market. This digital transformation, he suggested, should also enable capital markets to access investments from the diaspora. “Can you imagine a world where a Nigerian living abroad can go to any fintech platform to transfer $100 or a $1,000, and that money has a termination on the capital markets? That’s the kind of future that we’re trying to build and to scale into, and it’s something very exciting,” he said.
Ridwan Olalere, CEO, LemFi, one of the leading remittance platforms in the continent, argued that while Nigeria’s regulatory environment is improving, particularly with greater openness and easier licensing, further progress will depend on creating a tiered, scalable licensing framework for fintechs. Drawing on the UK model, he suggested introducing graduated licences that allow smaller players to enter the market with lower capital requirements and grow over time, thereby increasing competition, lowering costs, and expanding participation.
Such an approach, Olalere emphasised, would further open access to the sector, enabling innovation beyond established players and unlocking broader value across the remittance ecosystem. “Nigeria, being a significant country, should be a rule setter in the financial technology space and should also enable regulations to move in a similar direction,” he urged.
Neeraj Kapur, group CEO, Crown Agents Bank, suggested that Nigeria’s path to becoming a regional hub for remittances and trade payments will depend on the convergence of technology, regulatory agility, and regional collaboration. He pointed to the rapid pace of development already underway, noting that sustained investment in fintech, coupled with closer cooperation among African central banks, is helping to build an increasingly integrated financial ecosystem.
Kapur argued that regulators must remain adaptive to innovation, observing that “to keep up with fintech, regulators have to become more and more fleet of foot.” Noting the growing importance of regtech, adaptable banking institutions, and stronger intra-African financial markets, he said that Nigeria’s evolution will not only drive domestic prosperity but position it as a key financial centre for the wider sub-Saharan region.
For Odunayo Eweniyi, chief operating officer of PiggyVest, a digital savings platform, the core challenge is not a lack of savings in Nigeria, but the need to bridge the gap between savings and long-term investment, pointing out that products must align with user behaviour and trust dynamics. She said trust and access are the primary barriers and called for investment to be made intuitive and seamlessly integrated into existing financial habits. This will require enabling fintech platforms, which are already trusted by millions, to distribute investment products, alongside faster regulatory sandboxes and treating data as core infrastructure. “What we have learned is that it is not that Nigerians don’t save; it is that we require containers that match their habit,” she said of PiggyVest’s experience in the market.
Facts Only
In 2024, an estimated $100 billion was remitted to Sub-Saharan Africa through formal channels.
Informal remittance flows to Sub-Saharan Africa are believed to account for an additional 30–50%.
Nigeria received about $21 billion in remittances in 2024, accounting for approximately 10% of its GDP.
A panel on “Fintech and the Future of Remittances” was convened as part of the Africa Capital Forum, hosted by the UK’s Foreign, Commonwealth and Development Office (FCDO) and the Central Bank of Nigeria (CBN).
Temi Popoola, group CEO of the Nigerian Exchange Group (NGX), discussed the impact of digital transformation on Nigeria’s financial markets.
Ridwan Olalere, CEO of LemFi, advocated for a tiered, scalable licensing framework for fintechs in Nigeria.
Neeraj Kapur, group CEO of Crown Agents Bank, highlighted the need for regulatory agility and regional collaboration to position Nigeria as a financial hub.
Odunayo Eweniyi, COO of PiggyVest, emphasized the importance of aligning financial products with user behavior and trust dynamics.
The panel addressed the challenge of converting remittances from consumption-driven inflows into savings and investment.
The discussion focused on scaling Africa’s fintech sector to formalize remittance flows and create accessible financial products.
Executive Summary
Remittances from the African diaspora play a critical role in Sub-Saharan Africa, with formal channels facilitating an estimated $100 billion in 2024, while informal flows add another 30–50%. Nigeria alone received about $21 billion, representing 10% of its GDP. Policymakers aim to shift these consumption-driven inflows toward savings and investment to support sustainable development, leveraging Africa’s growing fintech sector to formalize flows and create accessible financial products. A panel at the Africa Capital Forum, hosted by the UK’s FCDO and the Central Bank of Nigeria, explored these challenges, featuring insights from industry leaders.
Temi Popoola of the Nigerian Exchange Group highlighted the potential of digital transformation to connect diaspora remittances directly to capital markets, envisioning a future where fintech platforms enable seamless investment. Ridwan Olalere of LemFi emphasized the need for a tiered licensing framework to foster competition and innovation, drawing on the UK’s regulatory model. Neeraj Kapur of Crown Agents Bank stressed the importance of regulatory agility and regional collaboration to position Nigeria as a financial hub. Odunayo Eweniyi of PiggyVest underscored the need to align financial products with user behavior and trust dynamics, advocating for intuitive investment tools integrated into existing financial habits. The discussion reflected a consensus on the need for adaptive regulation, technological innovation, and trust-building to unlock the full potential of remittances for economic growth.
Full Take
The strongest version of this narrative centers on the transformative potential of fintech to formalize remittances and channel them into productive investments, positioning Nigeria—and by extension, Africa—as a financial powerhouse. The panelists present a cohesive vision: digital platforms can democratize access to capital markets, tiered licensing can spur innovation, and adaptive regulation can foster regional integration. This aligns with a broader paradigm of financial inclusion as a driver of economic sovereignty, where technology bridges gaps left by traditional institutions. The unstated assumption is that regulatory and technological solutions alone can overcome deep-seated trust deficits and behavioral barriers to investment.
Patterns detected: none. The discussion avoids emotional exploitation or distortion, focusing instead on structural solutions. However, the narrative leans heavily on the authority of industry leaders and the promise of fintech, which could risk oversimplifying systemic challenges. For instance, while tiered licensing may lower barriers to entry, it doesn’t address the underlying volatility of remittance flows or the macroeconomic conditions that discourage long-term investment. The root cause here is a tension between short-term consumption needs and long-term capital formation—a dilemma not unique to Africa but amplified by its informal financial ecosystems.
The implications for human agency are significant. If successful, these reforms could empower diaspora communities to participate in Nigeria’s economic growth beyond mere consumption, fostering a sense of ownership and intergenerational wealth. Yet, the costs may fall disproportionately on smaller fintechs navigating complex regulations or on low-income remittance recipients who lack the financial literacy to engage with investment products. Second-order consequences could include increased financial surveillance as flows formalize or the consolidation of power among a few dominant platforms, potentially stifling competition.
Bridge questions: How might the push for formalization inadvertently exclude the most vulnerable who rely on informal channels? What evidence exists that tiered licensing in other markets has successfully balanced innovation with consumer protection? If trust is the primary barrier to investment, how can fintech platforms build it without replicating the extractive practices of traditional finance?
Counterstrike scan: A coordinated influence campaign pushing this narrative might emphasize fintech as a panacea while downplaying regulatory risks or the digital divide. It could also frame Nigeria’s regulatory reforms as a model for the continent, leveraging authority games to pressure other nations into adoption. However, the actual content does not match this pattern. The panelists acknowledge challenges and advocate for measured, adaptive approaches rather than overselling solutions. The discussion remains grounded in practical considerations, avoiding the hallmarks of a manipulative playbook.