Nigeria’s financial technology sector recorded a remarkable 70 per cent growth in 2025, defying a challenging global economic environment, according to the Central Bank of Nigeria.
The findings published in Monday’s report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity”, highlight Nigeria’s emergence as a leading digital finance hub in Africa.
The banking regulator attributed the surge to improved domestic economic stability and a strategic focus on digital transformation, which has transformed the fintech landscape from a collection of small startups into one of the continent’s most vibrant innovation ecosystems.
“Even amid global economic headwinds, Nigerian fintech firms continued to attract investment and drive change. Today, with improved stability of our currency and domestic economy, it is clearer than ever that financial innovation can advance inclusion at scale,” Governor of the Central Bank of Nigeria, Olayemi Cardoso, said.
Despite the rapid growth, the report cautioned that several challenges could hinder future progress. Rising compliance costs, particularly related to fraud prevention and anti-money laundering requirements, remain a significant burden, while delays in regulatory approval for new products continue to slow time-to-market for some firms.
The report also identified critical technical and systemic hurdles that could limit expansion. Roughly half of industry stakeholders described the current fintech ecosystem’s interoperability as poor, pointing to fragmented API standards and data protocols. Limitations in integrating digital identity and a lack of robust credit history were cited by 37.5 per cent of respondents as barriers to scaling financial services.
The findings further highlighted the strain on infrastructure during peak transaction periods, referencing a “Detty December” case study that illustrated how spikes in travel, remittances, and salary disbursements test the resilience of payment systems.
To sustain the momentum, the apex bank outlined policy measures aimed at balancing innovation with financial stability. These include a proposed shared defence model for real-time fraud intelligence sharing, exploration of regulatory passporting to facilitate cross-border expansion within Africa, and leveraging open banking and tiered KYC frameworks to extend services to previously unbanked populations.
The report stated that by fostering a collaborative relationship between regulators and innovators, Nigeria’s fintech sector could remain a cornerstone of economic growth and a model for financial inclusion in Africa.
