The Nigerian FinTech industry continued to expand in 2024, albeit at a moderated pace, reflecting a more mature phase of growth amid macroeconomic volatility, tighter funding conditions, and evolving regulations. Key sub-segments, including digital payments, lending, wealth management, insurtech, and emerging RegTech, demonstrated resilience, supported by high mobile phone and internet penetration, the proliferation of agency banking networks, and deepening financial inclusion initiatives. Transaction volumes in e-payments reached 44.8 billion in 2024, up 16% year-on-year, while transaction values climbed to ₦3.1 quadrillion (US$2.03 trillion), marking a 39% increase, powered by platforms like Moniepoint, OPay, and PalmPay.
The regulatory landscape underwent significant change, with the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigerian Communications Commission (NCC), and other agencies introducing reforms to strengthen cybersecurity, protect consumers, and ensure responsible innovation. Key developments included the 2024 Nigeria Data Protection Act (NDPA), expansion of Open Banking frameworks, and refined Virtual Asset Service Provider (VASP) guidelines. Meanwhile, the enactment of the Investment and Securities Act (ISA) 2024 introduced broader oversight of digital asset markets.
Key Trends include:
· AI and Automation – Enhancing credit scoring, fraud detection, and customer service.
· Embedded Finance & Super Apps – Platforms offering bundled services (payments, lending, savings).
· Blockchain & DeFi – Growing traction amid evolving regulation.
· Regulatory Evolution – The CBN, SEC, and FCCPC introduced frameworks for VASPs, digital lending, and data protection, increasing compliance demands but fostering trust.
Funding Landscape: Funding to Nigerian FinTechs declined for the second consecutive year, reflecting global venture capital headwinds and increased investor selectivity. Nevertheless, major players such as Flutterwave, Paystack, Moniepoint, and OPay expanded product offerings, strengthened infrastructure, and pursued regional growth strategies.
· Nigerian FinTech funding declined 17.1% to $331 million in 2024, mirroring global VC caution.
· Notable deals include Moniepoint’s $110M Series C and Paystack’s acquisition of Brass.
· Outlook for 2025 is cautiously optimistic, with projected 6% funding growth and increased M&A activity.
Operational risk remained a pressing concern, with high-profile cybersecurity breaches, highlighting vulnerabilities in payment infrastructure. Industry-wide, Nigerian financial institutions lost ₦52.3 billion to fraud in 2024, underscoring the need for robust cybersecurity measures, real-time monitoring, and regulatory collaboration. Looking ahead, the Nigerian FinTech sector is expected to benefit from increasing adoption of embedded finance, artificial intelligence, and blockchain-based solutions. While funding conditions may remain tight in the short term, opportunities lie in cross-border payments, SME financing, and deeper integration with traditional financial institutions, positioning Nigerian FinTech for sustained growth beyond 2025.
This report provides current information on the attributes and performance of the Nigerian Financial Technology Industry (“the Industry” or “FinTech Industry”). The report includes:
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