Reported by Weng Patrick Atokor l Journalist at Weng Global
Banking and fintech applications have become a major part of Nigeria’s growing smartphone economy, with adoption reaching as high as 88 per cent among respondents in a new study by KPMG Nigeria and Orange Group.
The Nigeria Smartphone Study, which examined smartphone ownership and digital application usage, surveyed 13,251 respondents across 12 major Nigerian cities. The findings provide a picture of how Nigerians are increasingly using smartphones for financial services, communication, commerce and other aspects of everyday life.
The study also found that smartphone penetration in Nigeria rose to 75 per cent in 2025, compared with 64 per cent in 2023, indicating a significant expansion of access to internet-enabled mobile devices.
Fintech Becomes a Major Part of Smartphone Use
According to the report, banking and fintech applications recorded adoption levels of as high as 88 per cent among respondents.
The finding reflects the growing importance of mobile applications in how Nigerians make payments, transfer money and manage their finances.
KPMG said the widespread adoption of financial applications points to Nigeria’s rapid movement towards digital financial services, with mobile banking applications, digital wallets and fintech platforms providing alternatives to traditional banking infrastructure.
The report also highlighted continued opportunities for innovation within Nigeria’s fintech ecosystem as smartphone ownership and digital literacy expand.
However, the 88 per cent figure should be understood in the context of the study’s respondents and methodology. It does not mean that 88 per cent of Nigeria’s entire population uses fintech applications, nor does it mean that one fintech company has an 88 per cent market share.
The finding instead indicates the high level of presence or adoption of banking and fintech applications within the population covered by the study.
OPay Leads Individual Financial Apps
Among individual financial applications examined in the study, OPay recorded the highest smartphone presence.
OPay was found on 69 per cent of smartphones surveyed, putting it ahead of other fintech platforms and individual traditional banking applications.
PalmPay followed with 29 per cent, while Moniepoint recorded 14 per cent.
Among traditional banking applications, Access Bank recorded 16 per cent, followed by UBA and GTBank at 11 per cent each. FirstBank recorded 10 per cent, Zenith Bank 9 per cent and Kuda 8 per cent, while PayPal recorded 7 per cent, according to reports based on the study’s findings.
The figures illustrate the significant smartphone presence of mobile-first financial platforms in Nigeria.
They do not, however, represent exclusive market shares. A smartphone user can have several banking and fintech applications installed at the same time, meaning the percentages should not be added together to produce a total market share.
Nigeria’s Smartphone Market Is Expanding
The fintech findings come against the backdrop of a broader increase in smartphone ownership across Nigeria.
KPMG and Orange Group reported that smartphone penetration reached 75 per cent in 2025, compared with 64 per cent in 2023.
At the same time, the share of feature phones declined from 36 per cent in 2023 to 28 per cent in 2025, according to reporting on the study.
The shift means that an increasing proportion of Nigerians have access to devices capable of supporting sophisticated applications and digital services.
For financial institutions, payment companies and fintech businesses, the expansion of the smartphone population provides a larger potential customer base for mobile financial products.
KPMG’s study describes smartphones as increasingly important tools for economic participation, innovation and enterprise. The firm said digital adoption is being driven across areas including financial services, telecommunications, commerce, entertainment, education and transportation.
Android Dominates Nigerian Smartphones
Another major finding from the study is the dominance of Android devices in Nigeria.
Android accounted for 88 per cent of smartphones among the respondents, according to reports on the KPMG-Orange study. KPMG described Android’s position as making it the de facto platform for Nigeria’s digital economy and highlighted the importance of Android-first strategies for businesses developing mobile products for the Nigerian market.
The report linked Android’s continued strength partly to the availability of devices across a broad range of price points.
This has implications for fintech companies because the design, affordability and technical performance of financial applications must take into account the devices used by the majority of their customers.
For developers and businesses entering Nigeria’s digital economy, Android compatibility is therefore an important consideration.
WhatsApp and Other Apps Also Have Strong Presence
Financial applications are part of a much wider pattern of intensive smartphone application use in Nigeria.
The study found that social media and communication applications were among the most widely used categories.
WhatsApp was reported on 95 per cent of smartphones surveyed, followed by Facebook at 87 per cent and Xender at 77 per cent.
The study attributed the strong presence of these applications to their broad usefulness and, in some cases, their availability on devices when consumers acquire them.
The findings demonstrate that Nigerian smartphone users are not using mobile devices solely for communication.
Smartphones have increasingly become gateways to financial services, social interaction, commerce, entertainment and other digital activities.
Implications for Banks and Fintech Companies
The findings have implications for both fintech companies and traditional financial institutions competing for customers in Nigeria’s increasingly digital economy.
For fintech businesses, the high level of application adoption demonstrates the importance of convenient and accessible digital financial services.
For banks, meanwhile, the figures underline the importance of maintaining competitive mobile applications as consumers increasingly interact with financial institutions through smartphones rather than relying exclusively on physical branches.
The growing presence of OPay, PalmPay and Moniepoint alongside established bank applications also illustrates that consumers can use multiple financial platforms for different purposes.
A high smartphone presence for a fintech application should therefore not automatically be interpreted as evidence that traditional banking services have disappeared.
Instead, the figures indicate that fintech platforms have become significant participants in a financial ecosystem where consumers may maintain traditional bank accounts while also using digital wallets and fintech applications.
Financial Inclusion and Digital Access
KPMG said mobile banking applications, digital wallets and fintech platforms have created alternatives to traditional banking infrastructure and contributed to wider access to financial services.
The expansion of smartphone ownership could further increase that opportunity.
At the same time, the report identified barriers that could limit the inclusiveness of Nigeria’s digital transformation.
KPMG noted that infrastructure limitations, affordability, gaps in digital literacy and cybersecurity concerns remain important challenges. More than a third of mobile subscribers were still using 2G as of May 2026, highlighting differences in the quality and depth of digital access across the country.
This means that rising smartphone ownership does not necessarily translate into equal access to every digital service.
The quality of connectivity, cost of devices and data, digital skills and confidence in online financial services can all influence whether consumers are able to benefit fully from Nigeria’s expanding digital economy.
Nigeria’s Wider Digital Economy
The smartphone study comes as digital activity becomes increasingly important to Nigeria’s economy.
KPMG reported that the Information and Communication sector accounted for 11.31 per cent of Nigeria’s real GDP in the first quarter of 2026.
The firm said understanding the country’s changing smartphone and application ecosystem would be important for technology companies, telecommunications operators, investors, entrepreneurs, businesses and policymakers.
The combination of higher smartphone penetration, strong Android adoption and widespread use of financial applications suggests that mobile devices are becoming increasingly important to how Nigerians interact with businesses and financial institutions.
For fintech companies, the market presents opportunities to develop payment, savings, lending, investment and other digital services.
For consumers, the growth of mobile financial services can provide greater convenience and additional channels for managing everyday transactions.
But the expansion also increases the importance of cybersecurity, consumer protection, reliability and responsible digital finance.
What Happens Next
KPMG and Orange Group’s findings point to continued growth in Nigeria’s mobile application ecosystem as smartphone ownership expands.
The report said demand for secure and user-friendly financial applications is expected to continue growing as smartphone adoption and digital literacy improve.
For the fintech industry, the next phase of competition is likely to involve not only attracting users but also maintaining reliable, secure and accessible services in an increasingly crowded digital market.
For policymakers and regulators, the continuing expansion of digital financial services also makes issues such as consumer protection, cybersecurity, digital inclusion and reliable connectivity increasingly important.
Nigeria’s smartphone market is therefore becoming more than a story about devices. The growth of mobile applications is changing how millions of consumers communicate, access financial services and participate in the digital economy.
The KPMG and Orange Group study provides a snapshot of that transition, showing both the scale of mobile adoption and the opportunities and challenges that accompany Nigeria’s movement towards a more smartphone-driven economy.
Weng Global – Stories beyond borders
Sources
- KPMG Nigeria — Nigeria Smartphone Study: A Nationwide Analysis of Smartphone Ownership and Digital Application Usage. The study surveyed 13,251 respondents across 12 major Nigerian cities.
- THISDAY — reporting on the KPMG Nigeria and Orange Group smartphone study and its findings on smartphone penetration, Android adoption and fintech applications.
- Technext24 — reporting on the study’s findings on OPay, PalmPay, Moniepoint and other financial applications.
- KPMG Nigeria — background information and official study page.
