The Central Bank of Nigeria in its 2025 Fintech Policy Insight Report, has raised concern over Nigeria’s fintech sector heavily dependent on foreign investment, exposing it to swings in global markets.

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.

It would be recalled that 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.

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.

Olayemi Cardoso, CBN Governor, said Nigeria is undergoing a rapid and significant financial evolution. Over the past decade, the nation’s fintech landscape has grown from a handful of startups into one of Africa’s most vibrant innovation ecosystems.

“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,” the executive commented on the report.

In addition to funding, the central bank underscored Nigeria’s continued leadership in digital financial infrastructure. More than 25 per cent of all electronic transactions in Africa’s most populous nation are processed via real-time payment channels, with close to 11 billion transactions processed in 2024, up from five billion in 2022. The report described Nigeria’s instant payments platform, NIBSS NIP, as among the most mature and widely adopted globally.

The report also mentioned the need to strengthen system integrity and reputation, pointing to compliance reforms, anti-money laundering supervision, and consumer protection measures as key priorities for sustaining investor confidence.

By focusing on domestic funding, regulatory modernisation, and innovation infrastructure, the CBN aims to position Nigeria not only as a fintech front-runner but also as a rule-setter whose regulatory lessons are relevant to peer emerging and high-growth economies globally, the central bank said.

Stakeholders surveyed by the CBN also cited compliance costs as a significant challenge to innovation. According to the report, 87.5 per cent of respondents said that the cost of meeting regulatory and risk requirements significantly impacts their capacity to innovate, while delays in product approvals and regulatory timelines also remain major bottlenecks.

The report noted that 62.5 per cent of fintech firms plan to expand regionally, and there is strong support for regulatory pass-porting frameworks to enable compliant expansion into other African markets. However, the CBN warns that such cross-border growth requires a stable funding base and coordinated regulation.

After a few years abroad, I returned to Nigeria and faced a dilemma. Let me tell you all about it.

UBA

A few days ago, I was dragging my luggage through Murtala Muhammed International Airport. Everything felt bright and beautiful. Not necessarily in aesthetics, but in the vibrant colours, sounds, and energy all around. After three intensive years in the UK, I was finally back home. Ready for the hustle and bustle of Lagos life, and yes, the comfort of my parents’ home.

The plan was simple. Settle down and get my life on track. I’d sorted the job, and I had my person. But then came my dilemma. Money!. This doesn’t mean I was short of it or had too much of it. The real issue is where to actually keep and manage it in this country with daily dramatic happenings. With just two weeks left before I resumed at my new workplace, I had no time for long queues, endless paperwork, or the classic “Nigeria bank stress.” So, I needed an account, and I needed it fast.

So I turned to my best friend, Google, and typed, “Instant account opening in Nigeria.”

In less than a second, I was redirected to the United Bank for Africa instant account opening portal. A few taps later, and I had a fully functional account. Just like that. I could receive my funds, transfer my funds, and start building my financial life here again.

In less than a second, I was redirected to the United Bank for Africa instant account opening portal. A few taps later, and I had a fully functional account. Just like that. I could receive my funds, transfer my funds, and start building my financial life here again. Talk about ease, and this beautiful experience truly exemplified that definition

I was genuinely amazed. It felt too easy, almost suspiciously easy. But it was real, I mean, really soft like they were just thinking all about me while developing this new feature.

If you’re like me and pressed for time, avoiding unnecessary stress, or just ready to sort your finances without the hassle, consider this your sign.

UBA’s instant account opening is a game-changer. No queues to cut into your precious time. Just you and your phone, minutes away from being banked.

Get started here: https://aop.ubagroup.com

Trust me, if I could do it between unpacking and settling in, you can do it too. Your future self will thank you.

Oliver Alawuba, Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA) Plc, has called on leaders and key stakeholders in the South-East to prioritise security and peace, infrastructure development and the delivery of bankable, investment-ready projects.

Oliver Alawuba, Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA) Plc,

This, according to him, is critical if the South Eastern region of the country is to unlock its long-term development agenda under the South-East Vision 2050 (S8V2050).

Alawuba made the call while delivering a goodwill remark at the South-East Vision 2050 Regional Stakeholder Forum which was held at the International Conference Centre, Enugu on Wednesday.

The multi-day forum was convened by the South-East Development Commission (SEDC) in collaboration with the Office of the Vice President, the Ministry of Regional Development and the South-East State Governments, to build consensus around a shared development pathway for the region and advance implementation-ready interventions aligned with national priorities.

Speaking in his capacity as GMD/CEO as well as the Chairman of the Body of Banks’ CEOs and on behalf of Corporate Nigeria, Alawuba identified peace and security as the most urgent requirement for attracting investment into the region, noting that safety remains the first signal investors assess before committing capital.

“The first thing the South-East needs is peace. It is an established fact, world over, that investments flow in the direction of safety,” Alawuba stated, urging state governments and regional leaders to sustain coordinated efforts to secure lives, assets and infrastructure.

He also challenged stakeholders to adopt a results-driven partnership model between government and the private sector; just as he noted that the success of the South-East Vision 2050 will largely depend on the region’s ability to articulate and package clear, measurable and value-adding projects capable of attracting long-term capital.

“Vision alone is not enough. The South-East must present specific, bankable projects with defined impact – projects that can unlock investment, create jobs and deliver real improvements in the lives of our people,” Alawuba stated.

The Forum brought together prominent Nigerians from across government and the private sector, including His Excellency, Senator Kashim Shettima, GCON, Vice President of the Federal Republic of Nigeria, Governors of the South-East States (Imo, Abia, Anambra, Ebonyi and Enugu), Distinguished Senators and Honourable Members of the House of Representatives.

Other key participants included the Honourable Minister of Regional Development, the Chairman, Board Members and Management of SEDC, Royal Fathers and members of the clergy, members of the Diplomatic Corps, captains of industry, and development partners.

The UBA CEO took time to commend the South-East Governors for visible progress in road construction and other critical facilities across the region, while calling for accelerated delivery at scale.

He said, “Infrastructure is the bedrock of development,” he said. “We have seen improvements, but a little bit more is required such as reliable power, motorable roads, rail, water and connectivity to remove the bottlenecks that limit productivity and competitiveness.”

While stressing the importance of creating a truly investor-friendly business environment and unlocking diaspora capital to drive inclusive growth, he added that “Capital will always respond to predictability, ease of doing business and confidence. If we get the fundamentals right, Corporate Nigeria and the banking industry will rally round to finance viable projects, support SMEs, create jobs for our youth and mobilize long-term capital to make South-East Vision 2050 a reality.”

He seized the opportunity to reaffirm UBA’s readiness to partner the SEDC and South-East State Governments, as he noted that the Vision 2050 framework will be strengthened by private-sector participation and long-term capital mobilization to ensure it remains credible and investable.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally. Operating in twenty African countries, the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.