CBN Raises Concerns Over Nigeria's Fintech Sector's Reliance on Foreign Investments
The Central Bank of Nigeria (CBN) has expressed worry over the Nigerian fintech sector's significant dependence on foreign investments, as revealed in a 2025 fintech policy insight report. Despite attracting $520 million in equity funding in 2024, down from $747 million in 2019, Nigeria captured about 37% of African startup investments.
The report emphasizes the importance of developing domestic funding avenues to leverage Nigeria's capital market and reduce currency risks for sustainable fintech growth. Notably, Nigeria's instant payment platform, NIBSS NIP, processed close to 11 billion transactions in 2024.
The CBN aims to position Nigeria as a fintech frontrunner and rule-setter, emphasizing the need for regulatory lessons relevant to emerging high-growth economies. However, challenges such as compliance costs and regulatory delays impact innovation capacity.
The report underscores the necessity of strengthening regulatory frameworks, enhancing consumer protection measures, and sustaining investor confidence to support the sector's growth.
Plus234Feed summary based on reporting from Punch Newspapers. Read the original report below.
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