Nigeria’s fintechs are drawing renewed confidence from local and global investors, with billions of dollars flowing into startups that are building digital payment systems, cross-border platforms, and enterprise solutions for Africa’s rapidly digitising economy.
The nation’s fintech ecosystem attracted over $2 billion in investment in 2024, according to the 2024 Economic Report released by the Office of the Special Adviser to the President on Economic Affairs. This investment sustained Nigeria’s position as Africa’s leading fintech hub, driven by expansion in digital financial services such as mobile banking, digital lending, and e-commerce.
Across the African continent, fintechs raised more than $2.7 billion between mid-2021 and 2023, with Nigeria accounting for about one-third. The trend was carried into 2025, where fintech continued to lead in startup funding, securing more than $1 billion outpacing other fast-growing sectors such as insurtech and edtech.
Investors see Nigerian startups as critical infrastructure providers with the next phase, which is the backbone of Africa’s digital economy.
A content marketer at a Lagos-based venture capital firm, who requested anonymity, said his firm invested in a cross-border payments startup.
Read also: Why Nigeria’s fintech future depends on building trust, not just products
“They make it easier for Nigerians to receive, send, and convert international currencies at lower fees, which means small traders can buy from Dubai or China, freelancers can get paid from clients abroad, and people in underserved communities with smartphones can access global markets. It’s creating access to global banking for everyday Nigerians.”
He noted that such platforms also improve digital and financial literacy. “When people learn to use digital wallets, online banking, or cross-border apps, they transition from a cash-heavy culture to cashless systems. Even in communities like Makoko, where physical banks can’t be built, residents can still carry out financial activities directly from their phones.”
Nigeria’s 140 million smartphone users and 87 percent mobile penetration rate are at the heart of the fintech boom. With cashless policies from the Central Bank of Nigeria (CBN) pushing more citizens into digital channels, the usage of mobile wallets, embedded finance, and AI-driven credit scoring tools have accelerated.
Monthly internet data consumption surged by more than 93 percent between 2023 and 2025, driven largely by smartphone adoption, creating fertile ground for fintech innovation.
With digital payments projected to dominate the future of African finance, Nigerian startups are increasingly viewed as a continental test-bed for innovation. For investors, it makes Nigeria a strategic gateway into Africa’s financial technology revolution.
Once dominated by consumer payments apps, the ecosystem is now expanding. Startups are building API-driven banking systems, digital identity verification tools, blockchain-powered remittance services, and business-to-business (B2B) platforms for small enterprises. This shift is attracting new categories of venture funding, particularly in embedded finance and open banking.
Read also: How Africa’s fintech in 2025 can drive scale, trust and global relevance
Despite the strong investment flows, Nigeria’s fintech sector faces persistent challenges, which include regulatory uncertainties over cryptocurrency, tighter restrictions on digital lending, and gaps in infrastructure, such as unreliable internet access, which continue to weigh on the industry.
But many investors see those obstacles as opportunities. “Every market friction is a product opportunity,” a Lagos-based venture investor said.
For some investors, fintech is not a primary focus, but its ability to drive inclusion makes it hard to ignore.
“We are investors, but fintech is not a sector that we prioritise. Our focus is on agricultural technology and clean energy. But fintech still powers inclusion in these sectors,” said Frank Samuel, investment associate at Sahara Impact Ventures. “
“One of our agritech portfolio companies, for example, helps farmers to access credit based on their harvest records. Farmers without bank transaction histories can now get loans, using data from their commodity sales as collateral. That is fintech at work in agriculture,” he cited.
Abiodun Lawal, principal at Heave Ventures, said: “Our portfolio of startups generally are impacting over four million smallholder farmers.
“At Heave Ventures, our model revolves around accelerating corporate-backed Open innovation. We have supported promising startups across sectors like agriculture working with partners like ECOBANK, FCMB, and FMO,” he stated.
“Our thesis of corporate-startup fit has been validated repeatedly due to the resounding success of our alumni such as Crop2cash, and Achesa. These startups have gone on to demonstrate impact by integrating the banks financial infrastructure into their agricultural domain.”
