Pulsating data

Blog

Lagos’ Fintech Surge: OPay, Paga & The New Value of Inclusion

Opening

In the heart of Lagos, the rhythm of commerce has changed. Street-vendors, market mothers, tech-savvy youths and small-shops are now part of a new financial chorus — one led by fintech players such as OPay and Paga. What was once cash-only is now cash + code. But beneath the sleek interfaces and onboarding pop-ups lies something more: real financial inclusion.

“In Lagos the fintech story isn’t about apps. It’s about agents in clip-on sandals, and savings in the backs of phones.” — Nehal, The Reflective Economist

Key Data & Insight

Paga has processed over ₦14 trillion (≈ US$32 billion) in transactions over its 15-year history. PAN Finance
Research shows fintech adoption in Lagos is highest among the middle-class and “affluent” segments — but mass-market access is rapidly increasing. McKinsey & Company+1
A study of mobile money operators in Lagos (including OPay & Paga) found that mobile-money adoption is significantly correlated with increased financial inclusion for SMEs. norma.ncirl.ie
Nigeria’s fintech market size is projected to grow from USD 1.13 billion in 2024 to over USD 4.24 billion by 2033 – a 15.8 % CAGR. IMARC Group

These numbers aren’t just nice headings — they hint at a deeper shift in value.

What’s Actually Changing for People

Agent‐networks become onboard stations
OPay and Paga aren’t just digital apps: they lean heavily on physical agents in Lagos’ markets and micro-economies. As one study notes:

“OPay’s rise … combining physical agent networks, frictionless onboarding, and hyperlocal marketing to penetrate underserved communities.”https://www.researchgate.net/publication/394417821_Inside_OPay%27s_Playbook_How_a_Fintech_Outpaced_Nigeria%27s_Legacy_Banks

That means a vendor in Balogun Market can accept digital payments, transfer money and build a mini-business without needing a traditional bank.

Reducing cost & friction for informal trade
For many in Lagos, traditional banking remains cumbersome, paperwork-heavy and distant. Fintech lowers entry-costs, speeds up transfers, and expands access — especially when cash shortages hit.
The inclusion study shows: fintech usage links directly to greater access to payments and savings for SMEs.https://norma.ncirl.ie/5836/1/akeemkehindeadebisi.pdf

Inclusion isn’t yet universal – yet the momentum is real
Yes — Lagos leads the pack. But gaps remain: infrastructure strains, digital literacy divides, agent reliability issues. McKinsey found that fintech uptake is highest in Lagos and still nascent in other regions of Nigeria. https://www.mckinsey.com/featured-insights/middle-east-and-africa/harnessing-nigerias-fintech-potential

Inclusion here isn’t just “adding an app”. It’s transformation of trust, behaviour, cost, access.

Why This Matters: The “Economics of Empathy” Angle

Why does this matter for someone like me, a reflective economist who cares about data and dignity? Because:

Access becomes value. When a small-business gets digital payments, its cash binds loosen — that’s more working capital, better inventory, more resilience.
Inclusion becomes growth. When more people transact, save and borrow via trusted channels, the macroeconomy shifts — informal becomes formal, leakage reduces, trust builds.
Empathy becomes infrastructure. Fintech isn’t just commercial. In Lagos, it intersects daily life — vendors, mothers, small-shops. When inclusion spreads, dignity spreads.

Voices from the Ground

“Before OPay, I used to carry huge bags of cash every market day. Now I transfer from my phone and send home money to my children.” — Female market vendor, Ikeja, Lagos

“Paga gave me my first merchant code. Now I accept payments on my phone. It’s more customers, more sales.” — Lagos micro-store owner

“We see the phones and the apps – but truly, the agent next door became my bank branch.” — Young Lagos entrepreneur

Take-aways

Lagos is a fintech inclusion laboratory — a dense urban hub where scale works, innovation finds traction, and inclusion moves fastest.
But scale alone isn’t enough — genuine inclusion requires access, trust, literacy and cost-reduction.
Fintech giants like OPay and Paga aren’t just business models. They’re platforms of dignity in a city that demands speed, cost-efficiency and flexibility.
The story here aligns with larger global lessons: financial inclusion isn’t a side project; it’s foundational for resilient economies.

“When payments shift from cash-bags to phone-taps, it’s not just convenience. It’s permission to participate.” — Nehal