CBN Flags Challenges for Nigerian Fintech Startups Amid Growth and Foreign Capital Reliance
The Central Bank of Nigeria (CBN) has raised concerns about the Nigerian fintech sector's heavy reliance on foreign capital, as highlighted in its 2025 fintech policy insight report. While Nigerian fintech startups raised $520 million in equity funding in 2024, a decline from $747 million in 2019, the sector has shown resilience amidst global economic pressures.
The CBN warns that this external funding dependence makes the sector vulnerable to shifts in international financial conditions. The report stresses the importance of deepening domestic funding sources to support sustainable growth and reduce currency risks.
Despite challenges, Nigeria remains a major hub for financial innovation, attracting investments and driving financial inclusion. The CBN underscores the need for strengthening the local financial ecosystem to enhance long-term stability for fintech firms.
Plus234Feed summary based on reporting from Legit.ng. Read the original report below.
Read full article
Continue on Legit.ng
Get the week in one email
Top stories, NPFL results, the naira — every Friday morning. Free, one email a week.
Related Stories
CBN Raises Concerns Over Nigeria's Fintech Sector's Reliance on Foreign Investments
CBN Warns Nigeria's Fintech Sector of Foreign Capital Risks, Emphasizes Domestic Funding and Regulatory Modernization
CBN Grants National Licenses to Opay, Moniepoint, and Others in Major Fintech Boost
CBN Grants National Operating Licenses to Opay, Moniepoint, PalmPay in Nigeria
CBN Fintech Report Shapes Nigeria's Digital Finance Strategy
Central Bank of Nigeria Reports 70% Growth in Nigerian Fintech Sector in 2025
Get Plus234Feed on messaging apps
Same headlines, delivered where you already scroll.
