CBN raises alarm over Nigeria fintech’s foreign reliance
Nigeria’s fintech sector, one of Africa’s fastest-growing, remains heavily dependent on foreign investment, exposing it to swings in global markets, the Central Bank of Nigeria said in its 2025 Fintech Policy Insight Report.
Startups in the country raised $520m in equity funding in 2024, down from about $747m in 2019, when Nigeria captured roughly 37 per cent of all African startup investment. The report said the sector has shown resilience despite global economic pressures, but warned that reliance on external capital leaves it vulnerable to market fluctuations.
This performance, amid significant global macroeconomic gyrations, underscores Nigeria’s position as a key hub for financial innovation. The sharp rise in interest rates in advanced economies during 2022 contributed to a slowdown in venture capital funding.
“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 apex bank stated.
