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.