By Nigeria’s fintech industry is still battling with the challenges of infrastructure and institutional capabilities, according to the latest report by the Central Bank of Nigeria (CBN) that was released yesterday, and sighted by TechnologyMirror.
The CBN Fintech Report with the theme: Shaping the Future of Fintech in Nigeria: Innovation, Inclusion and Integrity, called for focus on the priority areas for investment and alignment which include digital identity integration.
According to the report, which was signed by the CBN Governor, Mr. Olayemi Cardoso, Fintech players were urged to ensure that Nigeria’s identity systems are accessible to regulated fintechs through APIs, with appropriate safeguards.
The Report warned that this is critical for inclusive onboarding, KYC compliance, and credit access adding that finalise protocols for payments and credit interoperability, including the rollout of GSI and open APIs should include investment in data-driven supervision capabilities, including dashboards, risk-scoring tools, and real-time alerts to strengthen proactive oversight.
Meanwhile the CBN recommended the establishment of structured capacity-building programmes for regulators and fintech professionals, including secondments, joint bootcamps, and regional peer-learning networks.
The Report assured that these frameworks and enablers provide a concrete foundation to move from high-level ambition to operational results, reinforcing Nigeria’s credibility as a fintech leader and policy innovator in Africa.
The CBN revealed that more than 25% of all electronic transactions in Nigeria are processed via real-time payment channels and through the NIBSS NIP platform adding that close to 11 billion transactions were processed in 2024, up from 5 billion transactions in 20222, placing the country among the top adopters globally and a clear leader on the African continent.
“This aligns with the Payments System Vision 2025, which sets a target for achieving near-universal e-payment penetration by 2030”, the Report said.
The CBN lamented that Nigeria’s fintech funding has largely depended on foreign capital, making the ecosystem vulnerableto global market fluctuations.
It however Lauded the adoption by the Fintechs but primarily for risk management and operational efficiency saying that “Fraud detection” is the most common use case by a significant margin, employed by 87.5% of companies.
“This underscores the severity of the fraud challenge, which was described in the closed-door stakeholder workshop as a “big issue in the industry”, the CBN said.
The Report noted some challenges such as the access to “technical talent” and the lack of “regulatory clarity” each cited by 37.5% of firms as the biggest obstacle.
The CBN unveiled Fintechs as a sector now at the forefront of expanding financial access, with their most effective strategies being “Tiered or low-KYC onboarding” (75%) and leveraging “Agent or mobile network partnerships” (62.5%).
“Fintech offers a powerful mechanism for extending access to underserved and excluded populations. With mobile phone penetration far outpacing access to traditional financial services, there is a compelling opportunity to bridge the gap between digital reach and financial access”, said the Report.
According to the CBN Fintech Report, stakeholders highlighted several persistent barriers, including limited identity verification systems, affordability, and infrastructure gaps, that constrain broader inclusion.
The apex bank however said that addressing these barriers is central to unlocking inclusive financial sector growth.
Commending on the Report, the CBN chief said that the report reflects the Central Bank’s commitment to fostering a thriving fintech landscape while safeguarding the stability of our financial system.
“It is the product of extensive engagement between regulators and industry stakeholders. By surveying fintech operators, financial institutions and policymakers, we have gathered candid insights on what is working, what is not, and where we can do better” he said.
