The Central Bank of Nigeria has said Nigeria’s financial technology sector remains heavily dependent on foreign investment, according to its 2025 Fintech Policy Insight Report.
The apex bank’s comments were published on February 8, 2026, alongside the release of its fintech policy report. The report noted that reliance on external capital exposes Nigeria’s fintech ecosystem to fluctuations in global markets.
The report showed that fintech startups in Nigeria raised $520 million in equity funding in 2024, down from about $747 million in 2019 when Nigeria accounted for roughly 37 per cent of all African startup investment.
The Central Bank said that although the sector has remained resilient in a challenging global economy, heavy reliance on foreign capital makes it vulnerable to external market conditions.
The CBN urged the development of domestic funding avenues such as leveraging Nigeria’s capital markets to reduce currency risk and support sustained fintech growth.
CBN Governor Olayemi Cardoso said Nigeria’s fintech landscape has evolved significantly over the past decade, growing from a small group of startups into one of Africa’s most active innovation ecosystems.
The report noted that Nigeria processes more than 25 per cent of all electronic transactions in Africa. It said close to 11 billion electronic transactions were processed in 2024, up from five billion in 2022, and described the Nigeria Inter‑Bank Settlement System’s instant payment platform as widely adopted.
The CBN also highlighted compliance reforms, anti‑money laundering supervision, and consumer protection measures as priorities for strengthening system integrity and sustaining investor confidence.
The report said stakeholders cited high compliance costs as a challenge for fintech innovation. It noted that 87.5 per cent of respondents said regulatory and risk requirements significantly affected their capacity to innovate, while delays in product approvals remained a major issue.
The report mentioned that 62.5 per cent of fintech firms plan regional expansion and support frameworks that would enable compliant cross‑border operations. It stated that such expansion requires a stable funding base and coordinated regulation.
