THE Nigerian financial sector is expected to undergo significant changes in 2025, driven by regulatory reforms, technological advancements, and market expansion.
A newly released report by Stren & Blan Partners, a full-service commercial law firm, outlined key trends and developments that will shape the industry in the coming year.
The report, titled: “Financial Sector 2024 Round-up and 2025 Forecast,” highlights bank recapitalisation, mergers and acquisitions (M&A), financial inclusion, cryptocurrency regulation, and ESG financing as major areas of focus.
These changes are expected to strengthen the sector’s stability, enhance digital financial services, and attract more local and international investments.
According to the report, the Central Bank of Nigeria (CBN) will continue implementing its Banking Sector Recapitalization Programme 2024, with financial institutions working to meet the March 2026 compliance deadline.
This will drive a surge in mergers, acquisitions, and equity investments, as banks aim to meet new capital requirements. Strengthening bank capital bases will enable financial institutions to offer larger-scale credit, promoting economic growth and business expansion.
“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, “ it read in part.
In 2025, the CBN will intensify its regulatory and supervisory activities, ensuring compliance with recapitalization guidelines, anti-money laundering (AML) regulations, and risk-based capital adequacy ratios the report stated.
This strengthened oversight aims to improve financial system stability, protect depositors’ funds, and increase confidence in the banking sector.
The report also noted that Recapitalization pressures and strategic expansion goals will lead to a rise in mergers and acquisitions (M&A) within the financial sector.
Smaller banks it added, will seek mergers to meet capital requirements, while larger institutions will acquire weaker entities to expand market share. The fintech industry is also expected to see more partnerships and acquisitions as startups aim to scale operations and attract global investors. Furthermore, cross-border M&A deals are projected to grow, strengthening Nigeria’s position as a leading financial hub in Africa.
Nigeria is set to introduce a comprehensive regulatory framework for cryptocurrency in 2025, providing guidelines for banks and fintech firms to develop compliant crypto-based products. “This is expected to lead to the introduction of custodial wallets, decentralized finance (DeFi) platforms, and cross-border payment solutions. The eNaira, Nigeria’s central bank digital currency (CBDC), is also expected to undergo enhancements to boost adoption and compete with private cryptocurrencies.
“To enhance financial sector stability, the CBN will reinforce AML, Know Your Customer (KYC), consumer protection, and capital adequacy regulations. These measures aim to create a safer, more transparent financial environment, reducing risks and attracting more investors—both domestic and foreign, “ according to the report.
With sustainability gaining momentum globally, Nigerian financial institutions will increase their focus on ESG (Environmental, Social, and Governance) financing. Banks are expected to expand funding for renewable energy projects, climate adaptation initiatives, and green infrastructure. Collaborations between Nigerian banks and international development agencies will further drive the adoption of sustainable finance solutions in the country.
Looking ahead, 2025 is set to be a pivotal year for Nigeria’s financial sector. M&A activities, financial inclusion efforts, clearer cryptocurrency regulations, and sustainable finance initiatives will play a key role in shaping the industry’s future.
As financial institutions navigate regulatory reforms, technological advancements, and evolving market dynamics, they must remain agile and forward-thinking to capitalise on emerging opportunities and mitigate potential risks.
With these anticipated developments, Nigeria’s financial sector is on track for long-term growth, innovation, and resilience, positioning the country as a major player in Africa’s economic landscape.
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