With over 200 million residents—many of whom are underbanked—Nigeria offers fertile ground for digital financial innovation. Today, fintech startups in Nigeria are transforming mobile banking and even the crypto sector. For both local and international investors, the scale and momentum of this transformation present compelling opportunities.
Recent reports highlight Nigeria as Africa’s fastest-growing fintech market, accounting for approximately 28% of the continent’s fintech firms. Between 2020 and 2024, active fintech firms on the continent increased from 450 to 1,263, with Nigeria contributing the largest share. In monetary terms, Nigeria-based fintechs attracted about US $1.4 billion during the first three quarters of 2024, despite an overall 38% drop in funding to African startups compared to 2023.
Payment Solutions And Agency Banking
Payment systems form the backbone of Nigeria’s fintech ecosystem. Major players like Interswitch and Flutterwave facilitate business-to-business and merchant payments, while newer infrastructure projects, such as the domestic card scheme AfriGo Pay (introduced in January 2023), enhance financial inclusion by offering affordable Naira denominated debit, credit, and virtual card.
Agency banking, that is POS terminals, is another high-growth segment. Moniepoint, for example, operates over 300,000 agents nationwide and processes more than 800 million transactions per month. Following a US $110 million Series C raise in October 2024, Moniepoint achieved unicorn status. In January 2025, it secured an investment from Visa to deepen its footprint in digital payments and banking.
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Neo‑Banks and Digital Lending
Beyond payments, mobile-native neo-banks such as Kuda, FairMoney, Carbon, PiggyVest, PalmPay, and Opay are growing rapidly. PalmPay alone, backed by Chinese investors like Transsion and NetEase, raised US $140 million and now claims 35 million registered users in Nigeria and around one million SME clients. These platforms combine payments with lending, savings, and insurance.
Another area of booming growth is digital lending. Apps such as Carbon and FairMoney leverage alternative credit scoring to deliver micro-loans instantly, targeting an underserved market eager for flexible finance.
Similarly, savings and investment apps like PiggyVest and Cowrywise are enabling disciplined, goal-based financial planning.
Crypto and Blockchain Innovation
Nigeria consistently ranks among the top global markets for crypto adoption, largely driven by a young, tech-savvy population. Bundle Africa, a social and crypto payment app launched in 2019, quickly amassed over 650,000 users and some US $56 million in monthly transaction volume.
Nigerian entrepreneurs are experimenting with DeFi, stablecoins, and blockchain-enabled merchant settlement systems (e.g., Flutterwave’s USDC-based settlement solution).
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Regulatory clarity is emerging. The CBN, after freezing crypto transactions in 2021, has since re-engaged—piloting eNaira through structured rollout and signaling openness to blockchain innovation, although consumer adoption remains under 0.5%. The Securities and Exchange Commission has also introduced rules classifying digital assets and regulating Virtual Asset Service Providers.
Investment Opportunities
For investors evaluating Nigeria’s fintech terrain, the landscape are as categorised:
PAYMENTS AND INFRASTRUCTURE
Platforms specialising in agent banking, B2B payments, and domestic card schemes are at the core. Moniepoint and Interswitch stand out, with Moniepoint leading agent banking and Interswitch positioned as a cross-border payment switch.
NEO‑BANKING, LENDING, AND WEALTH TECH
The combination of daily payments, micro‑loans, and savings solutions crafts sticky consumer ecosystems. PalmPay, Carbon, PiggyVest, and Opay are among the frontrunners. Investors might explore B2B integration layers and embedded financial services layered onto these platforms.
CRYPTO, DEFI, AND BLOCKCHAIN SERVICES
Given Nigeria’s pioneering crypto culture, startups developing remittance-focused stablecoins, decentralized lending protocols, and merchant settlement via USDC/other token frameworks offer high-growth possibilities.
Risk Considerations
Despite the upside, several risks must be navigated carefully. First on the list is funding volatility. Although Moniepoint’s $110 million round in late 2024 bucks the trend, overall African tech funding dropped by nearly 40% in 2024.
Secondly, electricity and internet reliability remain uneven outside urban Nigeria, impeding scalability.
Thirdly, the government’s sudden policy shifts like crypto freezes, currency redesigns, could unsettle operations unless startups remain agile.
Lastly, according to a 2025 review, phishing, malware, and weak third-party integrations present ongoing threats. Fintech firms will have to integrate AI-driven fraud detection and robust cybersecurity protocols to gain consumer trust.
