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Youth

Unlocking Upward Mobility for Nigeria's Youth

Strategic Insights

— 2 min read

In Nigeria, where over 60% of the population is under 35 years old, financial inclusion and economic empowerment rely on leveraging technology and strategic leadership in financial services to uplift a generation of young entrepreneurs. The financial services sector is undergoing a quiet revolution powered by technology, but beneath this tech-powered revolution lies a deeper opportunity: leveraging innovations to spark upward social mobility for young people.

Key Takeaways:

  • Over 49% of Nigerians aged 18-35 remain unbanked, making formal finance a young-adult luxury.
  • Mobile banking adoption surged by more than 50% between 2020 and 2024, driven largely by youth-led businesses and side hustlers.
  • Despite mobile banking usage among Nigerians aged 18-35 reaching around 80%, only about 19% of SMEs accept mobile money payments, and a mere 5% consider it their most convenient payment channel (Alfred, Vanguard, 2023).
  • Barriers such as infrastructure gaps, unstable connectivity, unreliable electricity, and rising fees continue to limit consistent usage of digital financial services (DFS).
  • To boost DFS penetration among youth-led businesses, targeted improvements are needed on both supply and demand sides, including affordability, transparency, and financial literacy (NITDA's Digital State Initiative).
  • The Nigeria Inter-Bank Settlement System (NIBSS) reported a 50% increase in mobile banking adoption between 2020 and 2024, driven by youth-led businesses and side hustlers.
  • Only 19% of SMEs accept mobile money payments, and only 5% consider it their most convenient payment channel (Alfred, Vanguard, 2023).
  • Human-centered design (HCD) in digital financial services places the needs, behaviors, and experiences of real users-at the core of product development, ensuring services are not only accessible but also meaningful.

Story of Change:

Ayomide, a 27-year-old fashion designer in Lagos, leveraged a mobile lending platform to secure a ?200,000 loan and expand her production capacity, hiring two assistants, and becoming eligible for further credit.

Impact of HCD:

HCD leads to products that are more likely to be adopted and used effectively, building trust, encouraging financial inclusion, and empowering users to take control of their financial futures.

Statistics:

  • Over 49% of Nigerians aged 18-35 remain unbanked, making formal finance a young-adult luxury (Statista, 2025).
  • Mobile banking adoption surged by more than 50% between 2020 and 2024 (NIBSS).
  • Only 19% of SMEs accept mobile money payments, and only 5% consider it their most convenient payment channel (Alfred, Vanguard, 2023).
  • 50% of mobile banking adoption between 2020 and 2024 was driven by youth-led businesses and side hustlers (NIBSS).
  • 80% of mobile banking usage among Nigerians aged 18-35 (Alfred, Vanguard, 2023).

Sources:

  • Statista (2025)
  • Nigeria Inter-Bank Settlement System (NIBSS)
  • Alfred, Vanguard (2023)
  • NITDA's Digital State Initiative
  • International Finance Corporation (IFC)

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