Nigeria is poised to lead Africa’s fintech landscape, projected to capture 29% of the continent’s market share.
According to “Nigeria Payments Reports 2025”, compiled by Zone, Nigeria’s regulated blockchain network and Techcabal, the nation is cementing its status as Africa’s fintech powerhouse, with 217 startups outpacing South Africa (140), Kenya (102), Egypt (65), and Ghana (35).
Fintech is reportedly the most dominant sector in Nigeria’s tech ecosystem drawing record amounts in investments from VC, dominating mergers and acquisitions, and powering innovation.
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As of 2018, the country has over 100 fintech companies offering mobile money services, credit solutions, and e-payment platforms32. Further, Nigerian fintechs made a strong impression on the global stage, securing over USD 600 million in funding between 2014 and 2019. In 2019 alone, it captured 25% of the USD 491.6 million raised by African tech startups, ranking second in the continent behind Kenya.
As of 2023, the country hosted 217 fintech startups, representing a 50% increase from 2021, highlighting their dominance in the sector. These fintech startups now make up 36% of the country’s startups and receive 42% of the total tech funding between 2019 and 202335.
The country’s fintech ecosystem spans 11 segments, which include spend management, BNPL, merchant solutions, payroll, consumer payments, and digital wallets4. Other key areas include payment processing, switching and infrastructure, FX/B2B/ cross-border payments, international remittances, personal finance, digital insurance, agency banking, crowdfunding, digital lending, and fintech infrastructure.
In terms of valuation, Nigeria plays a significant role among Africa’s top fintech companies. In the first half of 2024, Nigeria led African fintech investments, attracting USD 140 million, ahead of Kenya at USD 97 million, Egypt at USD 35 million, and South Africa at USD 34 million36,37,38.
This growth is supported by a steady decline in the unbanked population, from 41.6% in 2016 to 36.8% in 2018, further dropping to 32% in 2020 and to 26% in 2023, highlighting a gradual increase in financial inclusion.
As Africa’s most populous country and largest economy, Nigeria is projected to account for nearly a third of the continent’s fintech ecosystem. Its fintech market is expected to grow at a CAGR of 22.62%, reaching between USD 543 million and USD 77 billion by 2025, depending on the projection model. Statista estimates a market size of USD 68.34 billion in 2025, potentially hitting USD 154.5 billion by 2029.
Platforms such as Paystack, Flutterwave, Moniepoint, Interswitch, Zone, Paga, Opay Palmpay, and SystemSpecs are central to Nigeria’s fintech acceleration. These companies are not only transforming how Nigerians access and manage money but are also exporting fintech solutions across the continent and globally.
Key growth drivers include:
- Demand for speed and convenience
- Business digitization
- Rising Internet and smartphone penetration
- Advancements in AI and blockchain technologies
Regulatory and Technological Advancements
- Open Banking: In 2025, Nigeria became the first African country to approve open banking, enabling seamless financial data sharing via the Nigeria Inter-Bank Settlement System (NIBSS) API. This is set to transform the financial ecosystem by August 2025, enhancing interoperability between banks and fintechs.
- Crypto Regulation: The Investments and Securities Act 2024, signed into law on April 7, 2025, legitimizes digital assets, fostering innovation in decentralized finance (DeFi) and encouraging platforms like Luno Nigeria to enhance crypto services.
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AI Integration: AI is revolutionizing fintech operations, with companies like Dyna.Ai partnering with PalmPay to improve user experience, fraud detection, and operational efficiency using AI-as-a-Service solutions.
Nigeria’s online banking penetration is expected to grow steadily, reaching 8.75% by 2029, marking 15 consecutive years of growth. Meanwhile, blockchain and crypto are forecasted to grow at 50% annually, with wallets, payments, and account management expected to grow at 10% per year.With strong fundamentals, robust startup activity, and an increasingly digital economy, Nigeria is poised to shape the future of financial services in Africa, leading the continent’s fintech evolution into a more connected, inclusive, and tech-enabled era.