The Central Bank of Nigeria (CBN) has raised concerns regarding the Nigerian financial technology sector’s heavy reliance on foreign investment. In its 2025 Fintech Policy Insight Report, the apex bank warned that this dependence leaves the industry exposed to volatility in global markets.
Okay News reports that Nigerian startups raised $520 million in equity funding in 2024, a decline from the roughly $747 million secured in 2019 when the country attracted about 37 percent of all African startup investment. While the sector has shown resilience, the report noted that the reliance on external capital creates vulnerability to international economic pressures and macroeconomic instability.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), Nigeria’s financial system regulator, emphasized the necessity of developing domestic funding avenues. He stated that leveraging Nigeria’s capital markets is crucial to reducing currency risk and sustaining long-term growth. Cardoso noted that despite global headwinds, the sector has evolved from a handful of startups into one of the most vibrant innovation ecosystems in Africa over the last decade.
The report also highlighted the country’s leadership in digital financial infrastructure. It cited the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payments (NIP) platform as one of the most mature globally. Data indicates that close to 11 billion transactions were processed in 2024, a significant increase from five billion in 2022, with over 25 percent of all electronic transactions in Nigeria, Africa, processed via real-time channels.
However, stakeholders surveyed by the CBN cited high compliance costs as a significant barrier to innovation. The report indicated that 87.5 percent of respondents felt regulatory and risk requirements impacted their capacity to innovate. Additionally, 62.5 percent of firms expressed plans to expand into other African markets, prompting calls for regulatory frameworks that support compliant cross-border growth.
