CBN Warns Against Fintech Reliance on Foreign Capital
The Central Bank of Nigeria (CBN) has raised concerns over the country’s fintech sector, warning that its heavy dependence on foreign investment leaves it vulnerable to global market swings.
In its 2025 Fintech Policy Insight Report, the apex bank noted that Nigerian startups raised $520 million in equity funding in 2024, down from $747 million in 2019, when Nigeria accounted for 37% of Africa’s startup investment.
“These dynamics highlight the importance of developing domestic funding avenues, such as leveraging Nigeria’s capital markets, to reduce currency risk and sustain fintech growth,” the CBN stated.
CBN Governor Olayemi Cardoso described Nigeria’s fintech evolution as rapid and transformative.
“Even amid global economic headwinds, Nigerian fintech firms continued to attract investment and drive change. Today, with improved stability of our currency and domestic economy, it is clearer than ever that financial innovation can advance inclusion at scale,” he said.
The report highlighted Nigeria’s leadership in digital financial infrastructure, noting that more than 25% of all electronic transactions in Africa are processed through Nigeria’s real-time payment channels. In 2024 alone, nearly 11 billion transactions were recorded, up from five billion in 2022.
However, the CBN stressed the need to strengthen compliance, anti-money laundering supervision, and consumer protection to sustain investor confidence.
Stakeholders surveyed cited regulatory costs as a major challenge, with 87.5% saying compliance requirements limit innovation.
The report also revealed that 62.5% of fintech firms plan regional expansion, with strong support for regulatory passporting frameworks to ease cross-border growth.
But the CBN cautioned that such expansion requires stable funding and coordinated regulation.
By focusing on domestic capital, regulatory modernization, and innovation infrastructure, the CBN said Nigeria can position itself not only as a fintech frontrunner but also as a global rule-setter in emerging markets.