A new report has revealed that 88% of smartphone users in Nigeria are now utilizing banking and financial technology applications. This shift towards digital financial services highlights the growing reliance on mobile devices for transactions such as payments and transfers. The study, titled the Nigeria Smartphone Study 2025, was conducted by KPMG Nigeria in collaboration with Orange Group and surveyed over 13,000 respondents across twelve major cities in Nigeria.

Released in September 2026, the report indicates that banking and fintech applications rank as the second-most popular category of apps among users, trailing only behind social media and communication platforms, which have a penetration rate of 98%. The findings suggest a significant transformation in consumer behavior, with individuals increasingly opting for mobile apps over traditional banking methods.

The report states, "This reflects Nigeria’s rapid shift toward digital financial services as consumers increasingly rely on mobile applications for payments, transfers, and financial management." Notably, OPay emerged as the leading fintech application, found on 69% of the surveyed smartphones, followed by PalmPay at 29% and Moniepoint, which also ranked among the top three.

In contrast, traditional banking apps lagged significantly behind. For instance, Access Bank's app was present on just 16% of devices, while UBA and GTBank had 11% each, and FirstBank, Zenith Bank, and Stanbic IBTC recorded even lower penetration rates.

The report emphasizes that the surge in fintech adoption is largely driven by a growing demand for instant payment services, as consumers transition from cash transactions to digital payment methods. This trend is particularly evident in urban areas, where digital payments are becoming the norm for retail, transportation, and various services. The study notes, "The strong adoption of fintech platforms also signals continued progress toward financial inclusion in Nigeria."

Moreover, the increase in smartphone ownership, which rose to 75% in 2025 from 64% in 2023, has played a crucial role in this digital shift. The decline of feature phones, now at 28%, further underscores Nigeria's transition towards a mobile-first economy. Android remains the dominant operating system, comprising 88% of smartphones, while Apple’s iOS accounts for 13%.

The report also highlights the competitive landscape of Nigeria's smartphone market, dominated by affordable brands such as Tecno, Infinix, and Itel, which cater to the price-sensitive consumer base. This trend is reflected in the broader digital payments market, where the value of digital transactions surged from N587.5 trillion in 2020 to N1,261.65 trillion in 2024, marking a 115% increase.

Despite these advancements, the study identifies several challenges that could hinder further digital adoption. More than one-third of mobile subscribers still operate on 2G networks, and issues related to infrastructure, affordability, digital literacy, and cybersecurity remain prevalent. The survey included responses from 53% male and 47% female participants, with 85% of respondents aged between 18 and 45 years.

As the banking industry continues to evolve, the report notes a significant reduction in physical bank branches, with a net closure of 476 branches between 2022 and 2025, reflecting the ongoing migration towards electronic banking solutions. This trend indicates a fundamental shift in how Nigerians manage their financial activities, increasingly favoring digital platforms over traditional banking structures.