Nigeria Fintech Market Size and Forecast by Type, End Users, Industry, and Transaction Types: 2019-2032

Nigeria Fintech Market Growth and Performance

• By 2032, revenue in the Nigeria fintech market is expected to reach US$ 276.03 Billion, with a forecasted Compound Annual Growth Rate (CAGR) of 25.6% from 2024 to 2032.
• By type, the preeminent segment is expected to be fintech digital payment market, with a market valuation of US$ 219.69 Billion in 2032.
• Among various end users in Nigeria, IT and Telecom sector was valued at US$ 7.09 Billion in 2023.

Nigeria Fintech Market Outlook

The Nigeria fintech market has evolved into one of the most dynamic financial ecosystems in Africa, with digital finance solutions transforming how businesses and individuals conduct transactions. By the end of 2024, more than 250 fintech startups had emerged, leveraging advanced technology to address financial inclusion challenges and bridge gaps in traditional banking services. Increased smartphone penetration and internet connectivity have played a critical role in accelerating digital payments, lending platforms, and InsurTech solutions. However, challenges such as cybersecurity threats and infrastructural limitations persist, requiring continuous innovation and strategic regulatory frameworks. Many fintech firms are now securing banking licenses to compete directly with established financial institutions, a move that is reshaping Nigeria’s fintech landscape through increased customer-centric innovation and expanded service offerings.

Nigeria Fintech Sector Attracting Investments

Despite fluctuations in funding, Nigeria remains the leading fintech investment hub in Africa. The Nigeria fintech market size continues to grow, driven by venture capital firms and global investors recognizing its potential. The country’s youthful, tech-savvy population and an increasingly favorable regulatory environment make it a hotspot for fintech innovation. While the sector witnessed a slight dip in funding in recent years, strategic investments in high-growth areas such as blockchain-based payments, InsurTech, and digital lending platforms indicate a promising future. Notably, companies like Flutterwave, Paystack, and OPay have secured multimillion-dollar funding rounds, positioning Nigeria as a key player in Africa’s financial technology revolution.

Regulatory Advancements Driving Market Growth

• The regulatory framework in Nigeria has been instrumental in shaping the fintech industry by promoting security, transparency, and innovation. In early 2021, the Central Bank of Nigeria (CBN) introduced a framework for QR code payments, encouraging contactless transactions as part of its digital transformation strategy. This move gained traction amid the COVID-19 pandemic, highlighting the need for seamless and secure digital payments.
• In January 2021, the Securities and Exchange Commission (SEC) issued the Rules on Crowdfunding to provide a formal structure for investment-based crowdfunding platforms. This initiative facilitated funding opportunities for startups and small businesses while ensuring investor protection. Simultaneously, the CBN launched the Regulatory Sandbox Framework, offering fintech startups a controlled environment to test new financial products and services under regulatory supervision, thereby fostering innovation in the Nigeria fintech ecosystem.
• A major milestone in regulatory development was the introduction of the Open Banking Framework by the CBN in February 2021, which aimed to improve data-sharing mechanisms between banks and third-party fintech firms. This regulation is expected to enhance customer experience, drive financial inclusion, and unlock new fintech use cases across various sectors.
• The launch of the eNaira in October 2021 marked Nigeria’s entry into the central bank digital currency (CBDC) space. As Africa’s first digital currency issued by a central bank, the eNaira aims to facilitate seamless cross-border payments, reduce reliance on cash transactions, and drive financial inclusion for the unbanked population. The initiative aligns with global trends, as central banks worldwide explore digital currencies to modernize payment systems and enhance financial accessibility.

Nigeria Fintech Landscape Embracing Cross-Border Payments

The Pan-African Payment and Settlement System (PAPSS), introduced by the CBN in partnership with other African financial institutions, is another significant development in Nigeria’s fintech industry. This system enables seamless cross-border transactions within Africa, reducing reliance on foreign currencies and enhancing intra-African trade. Leading fintech companies in Nigeria, including Chipper Cash and Paga, are actively integrating PAPSS to expand their payment services across multiple African markets, positioning Nigeria as a fintech hub in the region. As regulatory frameworks continue to evolve, Nigeria fintech sector is set to witness further expansion, particularly in digital lending, wealth management, and mobile banking solutions. The increasing adoption of AI-powered financial tools, biometric authentication for transactions, and blockchain-driven security measures further reinforce the industry’s growth trajectory.

Nigeria Fintech Market Scope