According to the Nigerian Fintech Report, OPay has established itself as the dominant player in Nigeria's agency banking sector. The fintech giant currently controls an impressive network of 563,262 points of sale (POS) agents out of a total of 1.5 million agents nationwide. This puts OPay at the forefront of the industry, capturing a significant market share.

Not far behind, MoniePoint also boasts a substantial presence in the agency banking landscape, with 303,946 POS agents operating across the country. When combined, OPay and MoniePoint command a staggering 867,208 agents, accounting for 57.8% of all POS agents in Nigeria.

It is worth noting that the concentration of agency banking in Lagos, Nigeria's main economic hub, is somewhat surprising given that the concept was originally designed by the Central Bank of Nigeria (CBN) to cater to the unbanked and underbanked populations in areas with limited access to traditional banking services. However, the limitations of traditional banks in meeting the financial needs of customers have created an opportunity for fintech companies to step in and fill the void with agency banking services.

The report reveals that a significant portion of Nigerians, approximately 50.3%, rely on banking agents, including mobile money and POS agents, to receive funds. Additionally, 44.4% of Nigerians utilize these agents for sending money, while 2.9% utilize their services for bill payments. Moreover, 2.5% of respondents reported using banking agents for the convenient purchase of airtime. These statistics underscore the widespread usage and versatility of banking agents among the surveyed population.

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The report also highlights the substantial growth in both the volume and value of POS transactions over the years. In 2012, POS transactions amounted to ₦0.05 trillion, with a transaction volume of 2.6 million. By 2021, these figures skyrocketed to ₦6.4 trillion in transaction value and 982.8 million in transaction volume. Despite competition from other financial services such as eBillsPay and mobile money, POS transactions continue to outperform the rest, solidifying their position as the preferred method of payment.

The rise of POS agents has been remarkable, with their numbers increasing exponentially. These agents have penetrated every corner of the country, providing access to financial services that traditional banks struggle to offer. Their widespread presence has significantly contributed to Nigeria's financial inclusion efforts.

Nigeria stands at the forefront of the trend towards financial inclusivity in Africa. The country boasts 54,314,017 bank account holders aged 15 and above, demonstrating substantial progress. However, internet access remains lower, with only 29,793,611 individuals having online connectivity. On the other hand, mobile phone access is widespread, with a notable count of 87,918,717 individuals aged 15 and above owning mobile phones. These variations highlight the varying degrees of financial inclusion, internet access, and mobile phone usage within Nigeria.

The report also highlights the remarkable growth in active bank accounts in Nigeria. Between 2021 and December 2022, the number of active bank accounts surged from approximately 133.5 million to an impressive 152.2 million, with an addition of 18.7 million new accounts. This surge indicates the increasing adoption of banking services and the growing financial participation among Nigerians.

Undoubtedly, agency banking, POS agents, and other innovative financial models have played a pivotal role in bridging the gap and ensuring accessible financial services for individuals who were previously underserved. The continued growth and dominance of OPay and MoniePoint in Nigeria's agency banking sector demonstrate the evolving landscape of financial transactions in the country.