Nigeria’s fintech ecosystem retained its position as Africa’s leading innovation hub in 2024, attracting more than $520 million in equity funding despite higher global interest rates and tighter financial conditions, the Central Bank of Nigeria has said.
In its latest Fintech Report, the apex bank disclosed that Nigerian startups accounted for a significant share of the $2.2 billion raised by African technology firms last year. This placed Nigeria among the continent’s top ecosystems, both in total capital raised and in the volume of investment deals.
The CBN said the latest figures reinforce Nigeria’s long-standing dominance in Africa’s fintech space. It recalled that in 2019 alone, Nigerian startups raised about $747 million, representing roughly 37 percent of total startup funding across the continent at the time.
Despite the strong showing, the bank cautioned that the sector remains heavily reliant on foreign capital, a situation that leaves it exposed to global economic shocks. According to the report, the sharp rise in interest rates in advanced economies from 2022 triggered a slowdown in venture capital flows, contributing to weaker fintech investment inflows into Nigeria by 2024.
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The CBN stressed that these trends underline the need to deepen domestic funding sources. It said greater use of Nigeria’s capital markets would help reduce currency risks and provide more stable, long-term financing to support sustained growth in the fintech industry.
On regional growth, the report revealed that confidence remains high among industry players. A survey of stakeholders showed that 62.5 percent of Nigerian fintech firms plan to expand into other African markets, driven by growing cross-border opportunities on the continent.
To support this push, stakeholders expressed strong support for regulatory passporting frameworks that would allow fintech companies to operate across multiple African jurisdictions while remaining compliant with local rules.
The central bank added that achieving this vision would require broader engagement across the entire ecosystem, not only fintech firms. It said closer coordination among regulators, investors, and other industry players would be critical to building a more balanced, resilient, and competitive fintech sector in Nigeria and across Africa.
