Despite Strong Growth, CBN Flags Serious Issue for OPay, Moniepoint, Others to Address
- The CBN said reliance on foreign capital exposes the sector to global market volatility
- Nigeria remains a leading fintech hub, supported by a strong digital payment infrastructure
- Compliance costs and regulatory delays were identified as major challenges to innovation
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s financial technology sector continues to play a leading role in Africa’s digital finance space, but remains largely reliant on foreign capital, exposing it to volatility in global markets, according to the Central Bank of Nigeria (CBN).
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In its 2025 Fintech Policy Insight Report, the apex bank said Nigerian fintech startups raised about $520 million in equity funding in 2024, a decline from roughly $747 million recorded in 2019, when the country accounted for around 37% of total startup investment in Africa.
While the sector has shown resilience despite global economic pressures, the CBN warned that heavy dependence on external funding makes it vulnerable to shifts in international financial conditions.
Nigeria maintains leading financial position
The report noted that Nigeria has retained its position as a major hub for financial innovation, even amid global macroeconomic uncertainty. It attributed the slowdown in venture capital inflows partly to the sharp rise in interest rates across advanced economies in 2022, which constrained global investment appetite.
The central bank stressed the need to deepen domestic funding sources to support sustainable growth in the sector.
According to the CBN, expanding access to local capital markets would help reduce currency risk and strengthen the long-term stability of fintech firms.
Commenting on the report, the CBN governor, Olayemi Cardoso, said Nigeria’s financial system has undergone significant transformation over the past decade, with fintech startups evolving into one of the most vibrant innovation ecosystems on the continent.
Cardoso hails Nigeria’s fintech growth
Cardoso noted that Nigerian fintech companies continued to attract investment and drive financial inclusion despite global economic headwinds. He added that improving currency stability and domestic economic conditions have reinforced the role of financial innovation in expanding access to financial services at scale.
Beyond funding, the report highlighted Nigeria’s leadership in digital payment infrastructure. It said more than 25% of electronic transactions in the country are processed through real-time payment channels, with nearly 11 billion transactions recorded in 2024, compared to about five billion in 2022.
The CBN described the Nigeria Inter-Bank Settlement System Instant Payment (NIBSS NIP) platform as one of the most mature and widely adopted instant payment systems globally.
Source: Getty Images
CBN seeks stronger system integrity
The apex bank also emphasised the importance of strengthening system integrity and market confidence. It identified compliance reforms, anti-money laundering supervision, and consumer protection as critical priorities for sustaining investor trust.
According to the report, stakeholders surveyed by the CBN flagged regulatory costs as a major constraint to innovation. About 87.5% of respondents said compliance and risk management expenses significantly affect their ability to innovate, while delays in regulatory approvals were also cited as key challenges.
Looking ahead, the report revealed that 62.5% of fintech firms plan to expand regionally, with strong support for regulatory passporting frameworks to enable compliant cross-border operations.
However, the CBN cautioned that regional expansion would require a stable funding base and coordinated regulatory oversight across markets.
CBN grants national licence to Opay, Moniepoint, others
Legit.ng earlier reported that the CBN has granted national operating licences to several fintech companies and microfinance banks, including Opay and Moniepoint.
The approvals will enable the firms to expand agent networks, open outlets nationwide and scale digital banking services.
While the move is expected to improve access and service delivery, the CBN stressed that all beneficiaries remain under strict regulatory oversight
Source: Legit.ng
