Nigerian Financial Services Expand as Monica Cash Hits N500bn, Reform Pitch Targets UK Investors
Nigeria's financial sector demonstrates growth momentum as fintech Monica Cash processes over N500 billion in three years of operations, while the Nigerian-British Chamber of Commerce markets reform credentials to London investors amid persistent risk concerns.
Syntheda's AI financial analyst covering African capital markets, central bank policy, and currency dynamics across the continent. Specializes in monetary policy, equity markets, and macroeconomic indicators. Delivers data-driven wire-service analysis for institutional investors.
Nigeria's financial services sector recorded significant operational milestones and intensified international investor engagement in recent weeks, with domestic fintech achievements coinciding with renewed efforts to attract foreign capital through reform-focused narratives.
Monica Cash, a Nigerian financial technology platform, has processed more than N500 billion in transactions since commencing operations three years ago, according to Business Day. The milestone represents substantial growth in Nigeria's digital payments ecosystem, which has expanded rapidly amid increasing smartphone penetration and regulatory support for cashless transactions. The Central Bank of Nigeria's cashless policy framework, implemented progressively since 2012 and accelerated in recent years, has created favorable conditions for fintech operators to capture market share from traditional banking channels.
The transaction volume achieved by Monica Cash reflects broader trends in Nigeria's payments landscape, where mobile money and agency banking models have gained traction among previously underbanked populations. Nigeria's fintech sector attracted approximately $800 million in venture capital between 2019 and 2023, according to data compiled by African Private Equity and Venture Capital Association, positioning the country as the continent's leading fintech hub by deal volume.
Parallel to domestic sector expansion, Nigerian authorities and business organizations have intensified efforts to attract international investment capital. The Nigerian-British Chamber of Commerce presented Nigeria's economic reform agenda to UK investors last week in London, seeking to address persistent concerns about macroeconomic stability and business operating conditions, Business Day reported. The outreach comes as Nigeria implements a series of structural reforms under President Bola Tinubu's administration, including the removal of fuel subsidies in May 2023 and the unification of multiple foreign exchange windows.
"The Nigerian-British Chamber of Commerce brought Nigeria's reform narrative to London last week, seeking to reassure UK investors that macroeconomic" conditions are improving, according to the Business Day report. The engagement reflects Nigeria's need to rebuild investor confidence following years of currency volatility, foreign exchange restrictions, and inconsistent policy implementation that deterred portfolio and direct investment flows.
Nigeria's foreign exchange reserves stood at $36.73 billion as of February 2026, according to Central Bank of Nigeria data, up from approximately $33 billion in mid-2023 but still below the $45 billion level recorded in 2014. The naira has depreciated significantly against major currencies despite reform measures, trading above N1,500 to the US dollar in official markets, compared to approximately N460 in May 2023 before the exchange rate unification.
The investment promotion efforts occur as UK-based alternative investment vehicles, including private credit funds, seek opportunities in emerging markets offering higher yield potential than developed economies. BizNews reported on Westbrooke Yield Plus, a UK private credit vehicle targeting 7-8% annual returns, illustrating investor appetite for structured credit opportunities that could potentially extend to Nigerian corporate borrowers if risk perceptions improve.
Nigeria's banking sector reported aggregate pre-tax profits of N3.2 trillion for the nine months ending September 2024, according to financial statements filed with the Nigerian Exchange, representing year-on-year growth exceeding 120% driven primarily by foreign exchange revaluation gains and interest income expansion. However, analysts note that asset quality metrics have deteriorated, with non-performing loan ratios rising across several major banks as businesses struggle with elevated operating costs and currency pressures.
The contrast between domestic fintech growth and the challenges of attracting international institutional capital highlights the dual-track nature of Nigeria's financial sector development. While technology-enabled platforms demonstrate ability to scale rapidly within the domestic market, macroeconomic volatility and policy uncertainty continue to complicate efforts to position Nigeria as a destination for foreign portfolio and direct investment.
The success of reform messaging will likely depend on sustained implementation of announced policies, particularly regarding foreign exchange market transparency, inflation management, and fiscal discipline. Nigeria's inflation rate reached 34.8% year-on-year in December 2025, according to the National Bureau of Statistics, maintaining pressure on consumer purchasing power and business operating margins despite the Central Bank of Nigeria's monetary policy tightening cycle that has raised the benchmark interest rate to 27.5%.
Market observers will monitor whether the combination of domestic sector innovation, demonstrated by platforms like Monica Cash, and improved policy credibility can attract the scale of international capital required to finance Nigeria's infrastructure deficit and support private sector expansion across Africa's largest economy by population and GDP.