Why Lagos is the Hub of most Digital Banks in Nigeria

Digital bank

Have you noticed the unusual concentration of the headquarters of many banks including digital banks in Lagos? Whether you call it a coincidence or happenstance, there sure must be a reason most banks in Nigeria have their base of operations situated in no other state than Lagos.

Unsurprisingly, Ceepass digital bank also has its headquarters in Lagos, Nigeria, although it is a digital bank. What makes Lagos State so enticing for most investors and pioneer businesses?

One reason perhaps, is because Lagos is the major Information and Communication Technology (ICT) hub of West Africa, and also the base of operations for national and global companies alongside the complex business and professional services that function with their spaces.

In line with its goal to become a world-class megacity, Lagos is developing a 24-hour economy fueled by two of Nigeria’s largest and busiest seaports namely the Apapa and Tin-Can Ports and the concentration of international aviation players in the state.

Another reason digital banks will rather localize in Lagos is because it is the second-most populous city in Africa with a population of 14.8 million within the city proper, as of 2015, and a population of roughly 23.5 million in the metropolitan areas as a whole, as of 2018. This, alone present a huge market for businesses to test their products and make great sales in one city.

Aside from this, Lagos is one of Africa’s major financial centers, having the fourth-highest GDP as a city on the continent. It is also the seventh fastest-growing city in the world, and the second-largest city in Africa. This is why digital banks will rather leverage the existing market in Lagos.

With all of this, Lagos only covers a fraction of Nigeria’s territorial land mass as the smallest state in the country, yet with a rich history of economic growth and transformation. The state alone accounts for over 60% of industrial and commercial activities in Nigeria.

Lagos is known as the center of most of Nigeria’s manufacturing and pan-African banking industry, apart from other industries such as music, movie, fashion, etc. Little wonder why Ceepass digital bank chose Lagos as its base of operations.

Lagos is also known as Nigeria’s economic and financial nerve center, being home to around 65 per cent of all the nation’s businesses, with over 2,000 manufacturing companies, over 200 financial institutions and services providers, and the largest collection of small and medium enterprises in Africa as a continent. All these are just too juicy for any business to ignore, and digital banks are not left out in owning a chunk of the pie that Lagos presents.



Photocredit: Sheyi Owolabi on Unsplash.com

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