Nigeria’s fintechs raise $520m, lead Africa amidst interest rate pressure — CBN

•Urges domestic funding to sustain fintech growth

•Says over 60% of fintechs eye regional expansion

By Babajide Komolafe, Economy Editor

Nigeria’s fintech ecosystem remained Africa’s leading innovation hub in 2024, raising over $520 million in equity funding despite rising global interest rates and tightening financial conditions, the Central Bank of Nigeria (CBN) has disclosed.

According to the CBN Fintech Report, Nigerian startups accounted for a sizeable portion of the $2.2 billion raised by African tech firms last year, ranking among the continent’s top ecosystems by both capital raised and deal activity.

The apex bank noted that the performance reinforces Nigeria’s long-standing dominance in Africa’s fintech space, recalling that in 2019 Nigerian startups raised about $747 million, representing roughly 37 per cent of total African startup funding in that year.

The CBN, however, warned that fintech funding in Nigeria remains heavily dependent on foreign capital, exposing the ecosystem to global macroeconomic gyrations.

“However, Nigeria’s fintech funding has largely depend ed on foreign capital, making the ecosystem vulnerable to global market fluctuations. The sharp rise in interest rates in advanced economies during 2022 contributed to a slowdown in venture capital funding, which helps explain the decline in Nigeria’s fintech investment inflows by 2024. 

“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 CBN said.

Regional expansion

The CBN also said that a  survey of stakeholders in the fintech industry,  revealed that 62.5 per cent of Nigerian fintech firms plan to expand regionally, reflecting strong confidence in cross-border opportunities across Africa.

To support this ambition, stakeholders expressed strong backing for regulatory passporting frameworks, which would enable fintechs to expand seamlessly into peer African markets while remaining compliant with local regulations.

The CBN said broader engagement across the ecosystem, beyond fintech firms, would be required to deliver a more holistic and coordinated approach to policy and industry development.

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