Nigerian Fintech Stakeholders Call for Clearer Regulation, Stronger Infrastructure and Cross-Border Support
Nigeria’s fintech sector continues to expand rapidly, but industry stakeholders say growth is being held back by regulatory uncertainty, infrastructure gaps and rising compliance costs, according to a new report from the Central Bank of Nigeria (CBN).
The report draws on a 2025 survey of leading fintech executives, a closed-door workshop held in June and the CBN Fintech Roundtable in October. It finds that delays in regulatory approvals and unclear guidelines remain among the most pressing issues facing companies operating in the market.
According to the survey, 62.5% of respondents identified approval delays and ambiguity in regulatory requirements as major constraints on product development and innovation timelines. In addition, 37.5% said it takes more than a year to bring a new product to market in Nigeria.
Compliance Costs and Regulatory Fragmentation
The report also highlights the financial burden of compliance. A large majority, 87.5% of respondents, said spending on fraud controls, cybersecurity and anti-money laundering and countering the financing of terrorism (AML/CFT) infrastructure materially affects operations.
Views on the current regulatory environment were split. Half of the stakeholders described it as supportive of fintech innovation, while the other half viewed it as restrictive. This divide suggests that while reforms may be taking hold, many companies still see significant room for improvement.
To reduce friction, stakeholders called for a centralized engagement channel that would streamline communication across multiple regulatory areas. The proposal received support from 62.5% of respondents, who said a single channel could improve coordination, speed up decision-making and shorten time-to-market.
Infrastructure Gaps Remain a Barrier
Beyond regulation, respondents pointed to weaknesses in Nigeria’s digital infrastructure. These include limited access to reliable digital identity verification, incomplete data-sharing systems, low broadband penetration and weak open-data frameworks.
Although digital identity systems exist in Nigeria, stakeholders said fragmentation and poor integration reduce their effectiveness. The report shows that 37.5% of respondents identified a national digital ID authentication system as a key priority for growth. An equal share called for stronger open banking interfaces to enable smoother data exchange.
Industry participants also noted that fragmented APIs, inconsistent data-sharing protocols and the absence of universal service standards are making platform integration more difficult.
Regional Expansion and Passporting
The report suggests that many Nigerian fintech firms are already looking beyond the domestic market. About 62.5% of respondents said they are either already operating or planning to expand into other African countries.
That same share supported a regulatory passporting framework, which would allow licenses issued in one jurisdiction to be recognized in others. Stakeholders said such a model could simplify cross-border expansion and support wider regional growth. Ghana, Kenya, South Africa, Uganda and Senegal were identified as possible pilot markets.
AI and Crypto Also Under Review
The study also examined the growing use of artificial intelligence in fintech. It found that 87.5% of companies surveyed are using or exploring AI for fraud detection. Other common applications include chatbots and customer service, cited by 62.5% of respondents, as well as credit scoring, risk modelling and onboarding/KYC.
On cryptocurrencies, stakeholders acknowledged both opportunities and risks. While digital assets could support lower-cost cross-border payments and financial inclusion, participants also pointed to risks around illicit flows, consumer protection and volatility. They called for a risk-based regulatory approach, clearer rules for licensed institutions and stronger international cooperation on AML/CFT compliance.
Industry Analysis
The findings underline a familiar challenge in fast-growing fintech markets: innovation is advancing faster than the supporting policy and infrastructure framework. For Nigeria, the next phase of fintech growth may depend less on startup momentum and more on practical reforms that improve regulatory clarity, strengthen open banking and digital identity systems, and enable efficient cross-border operations.
Without these foundations, stakeholders warn that scaling new products, expanding regionally and deploying advanced technologies such as AI could remain slower and more costly than necessary.
