Nigerian Fintech Sector Expanded by 70% in 2025 – CBN

Nigeria’s financial technology sector recorded an impressive 70 per cent growth in 2025, despite a difficult global economic climate, according to the Central Bank of Nigeria.

The growth was revealed in a new report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity,” which underscores Nigeria’s rising status as one of Africa’s leading digital finance hubs.

The report attributed the strong performance to improved domestic economic stability and a deliberate push towards digital transformation. It noted that Nigeria’s fintech industry has evolved rapidly from a cluster of small startups into one of the continent’s most dynamic innovation ecosystems.

Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the sector’s resilience demonstrates the power of financial innovation to drive large-scale inclusion, even in the face of global economic pressures.

He explained that fintech firms continued to attract investment and deliver impactful solutions despite international headwinds, adding that recent improvements in currency and economic stability have further strengthened the sector’s growth prospects.

However, the report warned that several challenges could constrain future expansion if left unaddressed. Rising compliance costs, particularly those linked to fraud prevention and anti-money laundering requirements, were identified as a growing burden for operators. In addition, delays in regulatory approvals for new products were said to be slowing innovation and time-to-market.

Structural and technical limitations were also highlighted. About half of industry stakeholders surveyed described the level of interoperability within the fintech ecosystem as weak, citing fragmented application programming interfaces and inconsistent data standards. Difficulties in digital identity integration and limited access to comprehensive credit histories were identified by over a third of respondents as major barriers to scaling financial services.

Infrastructure pressure during periods of high transaction volumes was another concern. The report referenced peak activity periods, such as year-end festivities, when increased travel, remittances, and salary payments place significant strain on payment systems and test their resilience.

To sustain the sector’s growth trajectory, the central bank outlined a range of policy initiatives aimed at balancing innovation with financial stability. These include the development of a shared defence framework for real-time fraud intelligence sharing, the exploration of regulatory passporting to ease cross-border fintech expansion across Africa, and the use of open banking and tiered know-your-customer frameworks to extend services to underserved and unbanked populations.

The report concluded that a strong, collaborative relationship between regulators and innovators will be essential for maintaining momentum, positioning Nigeria’s fintech industry as a key driver of economic growth and a benchmark for financial inclusion on the continent.