Nigeria fintech sector remains one of the most dynamic in Africa but continues to rely heavily on foreign investment, exposing it to volatility in global financial markets, according to the Central Bank of Nigeria 2025 Fintech Policy Insight Report.
The report revealed that Nigerian startups raised about 520 million dollars in equity funding in 2024, a decline from roughly 747 million dollars recorded in 2019, a year when Nigeria attracted nearly 37 percent of all startup investment on the continent. While the sector has shown resilience despite global economic pressures, the apex bank warned that excessive dependence on external capital increases vulnerability to sudden shifts in global market conditions.
According to the CBN, the sharp rise in interest rates in advanced economies in 2022 contributed significantly to a slowdown in venture capital inflows. These developments, the bank noted, underscore the need to strengthen domestic funding sources, including deeper use of Nigeria capital markets, to reduce currency risks and support sustainable fintech growth.
CBN Governor Olayemi Cardoso said Nigeria is experiencing a rapid financial transformation, with the fintech ecosystem expanding from a few startups into one of Africa most vibrant innovation spaces. He added that despite global economic headwinds, Nigerian fintech firms continued to attract investment and drive financial inclusion, especially with improved currency and economic stability.
Beyond funding, the report highlighted Nigeria leadership in digital payment infrastructure. More than a quarter of all electronic transactions in the country are processed through instant payment channels, with nearly 11 billion transactions recorded in 2024, compared to five billion in 2022. The NIBSS NIP platform was described as one of the most mature and widely adopted payment systems globally.
The CBN also emphasized the importance of compliance reforms, consumer protection, and anti money laundering supervision to sustain investor confidence. However, 87.5 percent of fintech stakeholders surveyed said high compliance costs limit innovation, while regulatory delays remain a major challenge. Despite this, many firms plan regional expansion, though the bank cautioned that stable funding and coordinated regulation are essential for success.
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