Fintech

Overview

Nigeria’s financial technology (fintech) sector, which integrates technology into services such as banking, credit, mobile payments, investment, and blockchain, has emerged as one of the largest fintech markets in Africa, comprising approximately one-third of the continent’s total fintech market, according to the World Bank. By August 2023, fintech companies accounted for 40 percent of all startups in Nigeria, with investments in fintech making up 42 percent of total startup funding. Nigeria’s substantial market size of 237 million people and one of the most developed financial markets in Africa poises it for significant growth in financial services and innovative technological development.

Nigeria’s fintech sector shines as a prime destination for foreign direct investment (FDI) in Africa. As of 2025, five of the eight tech African unicorns (billion-dollar USD valuations) are Nigerian, and four of them are in the fintech sector: Moniepoint, Opay, Flutterwave, and Interswitch. A key factor driving Nigeria’s fintech sector is the increased ease of cross-border payments. Mobile money transfers have made cross-border transactions between Nigerian businesses, consumers, and international entities more efficient and accessible. Fintech companies have played a pivotal role in facilitating these payments, contributing to the growth of Nigeria’s economy, particularly within the fintech market.

Opportunities

Nigeria has realized an explosion of growth and opportunities across many subsectors of fintech. For example, the country has seen a surge in cryptocurrency and blockchain adoption due to relaxing regulations, including the Central Bank of Nigeria (CBN) lifting its crypto currency ban in 2023 and Nigeria’s Security and Exchange Commission (SEC) introducing regulatory frameworks. This shift has positioned Nigeria as a global leader in cryptocurrency adoption. Artificial Intelligence (AI) is also transforming the Nigerian fintech sector by enabling personalized financial services and enhancing risk management through fraud prevention and improved credit scoring. Digital lending and Buy-Now-Pay-Later services are expanding in Nigeria, utilizing AI for personalized lending and meeting the growing demand for flexible credit, especially within the e-commerce sector. In addition, contactless payments, driven by NFC and QR codes, are rapidly gaining popularity in Nigeria’s urban centers, offering faster, more secur

Challenges

Despite significant potential, Nigeria’s fintech sector faces several challenges that may dampen growth, including regulatory issues, inadequate infrastructure (lack of reliable power, fiber optic cabling, data centers), limited funding, and data security concerns. Additionally, fintech companies relying heavily on investment and venture capital, may struggle to find investors willing to take on the adequate risk appetite for a complex market such as Nigeria, especially for early-stage startups. Another significant concern is the integrity of data and data security due to weak consumer protection regulations surrounding fintech products. There have been numerous cases of fintech-related fraud, Ponzi schemes, and cyberattacks, especially those which take advantage of digitally illiterate populations.

U.S. companies should be aware of the complex and evolving regulatory landscape in the Nigerian market. High compliance costs from multiple (often competing) federal agencies lack a cohesive legal framework. There remains no unified regulatory approach to fintech startups, which further complicates the regulatory process. However, in April 2025, Nigeria announced that it joined the Cross-Border Privacy Rules (CBPR) system as an Associate Member. The CBPR is a global certification system designed to facilitate trusted cross-border data flows while upholding strong privacy protections. This announcement was a positive development in Nigeria’s overall tech regulatory landscape.

The outlook for Nigeria’s fintech sector is bright with continued growth fueled by technological advancements and a strong appetite for digital financial services from a young population. As fintech adoption increases across the country, Nigeria is well-positioned to emerge as a leading hub for financial technology innovation in Africa. The Access to Finance (A2F) Survey report administered biannually by the Enhancing Financial Inclusion & Advancement Institution noted that formal financial inclusion in Nigeria has grown significantly from 56 percent in 2020 to 64 percent in 2023, but still short of the government’s goal of 94 percent. Fintech companies looking to tap into Nigeria’s dynamic market will find significant opportunities to promote financial inclusion and expand access to mobile credit. U.S. firms interested in exploring these and other prospects are encouraged to write the U.S. Commercial Service in Nigeria’s ICT specialist at Ambrose.Thomas@trade.gov