Nigeria’s ambition to deepen its digital economy is receiving renewed momentum following the European Union’s commitment of €22 million to support the country’s planned 90,000-kilometre fibre-optic expansion project.
Akin Adegoke, chief digital officer at Lotus Bank, in this interview with Business a.m’s Joy Agwunobi, discusses how expanded connectivity could accelerate financial inclusion, reduce the cost of banking operations, and support the growth of non-interest financial services. EXCERPTS:
The EU has committed €22 million to support Nigeria’s planned 90,000km fibre-optic rollout. From your perspective, how significant is this intervention in addressing Nigeria’s longstanding broadband infrastructure gaps?
Nigeria’s digital economy has long been constrained by uneven broadband infrastructure, particularly outside major urban centres. Investment in fibre expansion is therefore a critical step toward closing that gap.
A more extensive fibre backbone strengthens the reliability and speed of internet connectivity, which is foundational for everything from digital banking to e-commerce and public services. While infrastructure alone will not solve all access challenges, it creates the platform upon which digital services can scale more effectively across the country.
Nigeria still has a large unbanked population, particularly in rural communities. In practical terms, how could expanded broadband connectivity help banks reach these underserved areas more effectively?
Connectivity is one of the biggest enablers of financial inclusion. In areas where broadband access improves, financial institutions can deploy digital channels, mobile banking, agent networks, and digital onboarding more reliably.
This reduces the dependence on physical branches and allows banks to extend services to communities that have historically been excluded from the formal financial system. Over time, improved connectivity also enables better identity verification, transaction security, and customer education through digital platforms.
Non-interest banking continues to grow in Nigeria. How does improved digital infrastructure support the delivery of ethical financial products and services within this segment?
Non-interest banking emphasises transparency, risk-sharing, and asset-backed financing. Delivering these principles at scale requires a strong digital infrastructure.
Improved connectivity allows financial institutions to digitise processes such as contract documentation, transaction monitoring, and customer engagement. It also allows institutions to reach communities that may prefer ethical or alternative financial models but have limited access to physical banking infrastructure.
One of the key challenges for banks operating in rural areas is the cost of maintaining physical branches. Could stronger digital infrastructure meaningfully reduce operational costs for financial institutions?
Yes, stronger digital infrastructure can significantly reduce the need for heavy physical footprints. Banks increasingly rely on digital channels, agency banking, and partnerships to deliver services without the fixed costs associated with traditional branch networks.
When connectivity improves, these models become more reliable and scalable. This allows institutions to allocate resources more efficiently while still maintaining meaningful access to financial services in remote locations.
Beyond connectivity itself, what kind of digital financial services do you believe could expand the fastest once broadband infrastructure improves across more parts of the country?
Payments and digital wallets are likely to expand the fastest, as they are often the first entry point into the formal financial system. Beyond that, we could see significant growth in digital savings products, micro-investments, and alternative credit solutions.
Improved connectivity also supports more sophisticated services such as embedded finance within e-commerce platforms, digital identity-linked financial services, and real-time lending solutions tailored to individuals and small businesses.
As more financial services become digitally driven, what role will technologies such as smart contracts and other forms of “ethical tech” play in shaping the future of banking in Nigeria?
Technologies such as smart contracts have the potential to increase transparency and trust within financial systems. By automating the execution of agreements once predefined conditions are met, they reduce operational friction and strengthen accountability.
In the context of ethical banking, such technologies can support clearer documentation of transactions and compliance with agreed financial principles. As digital infrastructure improves, these innovations could gradually become more practical within Nigeria’s financial ecosystem.
Looking ahead, what broader impact could this fibre expansion have on Nigeria’s digital economy beyond banking, particularly for fintechs and other digital service providers?
Broadband expansion is ultimately an enabler for the entire digital ecosystem. Stronger connectivity allows fintechs, digital service providers, and startups to reach customers in regions that were previously difficult to serve.
This could accelerate innovation across payments, digital commerce, education technology, and healthcare platforms. Over time, a stronger digital infrastructure base contributes to job creation, entrepreneurship, and a more inclusive digital economy.
