According to a report on the Nigerian Financial Services Market by Intelpoint, OPay currently leads Nigeria’s agency banking network, controlling 563,262 of the country’s 1.5 million Point of Sale (POS) agents. Following closely, agency banking giant MoniePoint operates the second-largest network with 303,946 POS agents across Nigeria. Together, these two fintech companies command a significant share, accounting for 867,208 agents, which represents 57.8 percent of all POS agents in the nation.

Despite the Central Bank of Nigeria’s (CBN) original intention for agency banking to foster financial inclusion for unbanked and underbanked populations, particularly in areas with fewer traditional banks, the geographical distribution of these agents presents an anomaly. Lagos, Nigeria’s primary economic hub, hosts a disproportionately high number of agents, with 322,266 out of the 1.5 million agents, making up 21.4% of the national total. This concentration in an already well-banked area highlights how fintech companies have effectively stepped in to fill service gaps created by the limitations of traditional banking institutions, adapting agency banking to meet existing demand.

The widespread adoption and versatility of banking agents are evident in their usage patterns among Nigerians. A significant 50.3% of the population utilizes banking agents, whether mobile money or POS agents, for receiving funds. Additionally, 44.4% rely on these agents for sending money, while 2.9% use their services for bill payments. Furthermore, 2.5% of respondents reported using banking agents for the convenient purchase of airtime, underscoring their integral role in daily financial transactions.

The report also indicates a substantial surge in both the volume and value of Point of Sale (POS) transactions over the years. In 2012, POS transaction value was a modest ₦0.05 trillion with a volume of 2.6 million transactions. By 2021, these figures demonstrated remarkable growth, with the transaction value escalating to ₦6.4 trillion and the transaction volume soaring to 982.8 million. This data signifies a clear trend towards the widespread adoption of POS technology as a preferred payment method, reflecting the evolving landscape of financial transactions in Nigeria.

Moreover, when comparing transaction values across different financial services, POS transactions have consistently emerged as the frontrunner, outperforming eBillsPay and mobile money despite stiff competition from other financial models beyond traditional banks. From 2014 to 2021, eBillsPay experienced growth from ₦0.0 trillion and 0.6 million transactions to ₦2.2 trillion and 1.1 million, respectively. Similarly, mobile money saw significant expansion, with its transaction value and volume increasing from ₦0.03 trillion and 2.3 million in 2012 to ₦5.1 trillion and 377.3 million in 2021. Despite this growth in other sectors, POS maintains its leading position.

The dramatic increase in the number of POS agents, coupled with their ubiquitous presence, has cemented their role as the "new bank" for many Nigerians. They offer easy access to financial services that traditional banks often cannot provide, playing a crucial role in promoting Nigeria's financial inclusion agenda. While the number of commercial banks saw a decrease from 89 in 2004 to 33 in 2022 due to mergers and acquisitions, the industry's need for broader access has been met by fintech companies. As of December 2022, Nigeria boasted 291 active fintech startups, many of which share the goal of "banking the unbanked," with agency banking proving to be a particularly effective approach by understanding and addressing the needs of rural populations.

Nigeria continues to lead the trend of financial inclusivity among African countries. The report highlights that 54,314,017 of its population aged 15 and above hold bank accounts. While mobile phone access is extensive, with 87,918,717 individuals aged 15 and above owning mobile phones, internet access remains comparatively lower at 29,793,611. These varying statistics underline the distinct levels of financial inclusion, digital connectivity, and mobile technology adoption within the country.

Furthermore, active bank accounts in Nigeria witnessed substantial growth between 2021 and the end of December 2022. Starting with approximately 133.5 million active accounts in 2021, an impressive 18.7 million new active accounts were added, bringing the total to 152.2 million by December 2022. This surge underscores the increasing participation of individuals in Nigeria's formal financial system.

Ultimately, agency banking, POS agents, and other innovative financial models have been instrumental in bridging the financial services gap, ensuring that banking services are accessible to a broader segment of the population, particularly those who were previously underserved. Their pervasive presence and adaptability have significantly contributed to the country's financial landscape and inclusion efforts.