Fintech operators in Nigeria are urging the establishment of a dedicated growth fund or credit guarantee scheme to ease mounting capital constraints in the sector, according to a new survey conducted by the Central Bank of Nigeria (CBN).
The findings, drawn from nationwide surveys, stakeholder workshops, and policy roundtables held in 2025, highlight persistent funding gaps as a major barrier to scaling digital financial services.
The survey revealed that 37.5% of fintech operators described raising capital within Nigeria as “difficult” or “very difficult.” Opinions on the regulatory environment were sharply divided: 50% of respondents viewed it as enabling, while the other half described it as restrictive. Concerns cited include delays in licensing, ambiguous regulatory guidance, and inconsistent application of rules.
Access to capital emerged as the most critical challenge, with macroeconomic volatility, regulatory delays, and currency risks discouraging both local and foreign investment.
Reflecting widespread agreement, 87.5% of fintech operators supported the creation of a sector-specific growth fund or credit guarantee scheme to de-risk lending and unlock long-term investment.
Industry stakeholders suggested that the CBN could play a catalytic role by bringing together development finance institutions, such as the Development Bank of Nigeria and InfraCredit, to structure blended finance, credit guarantees, or risk-sharing models.
Proposals also included the development of a secondary market for fintech debt instruments to deepen domestic capital markets and provide well-governed fintech firms with additional funding options within the existing regulatory framework.
Beyond domestic measures, the survey underscored the importance of improving Nigeria’s international standing to attract patient foreign capital.
Operators highlighted that stronger global visibility of regulatory progress—particularly in anti-money laundering enforcement and Nigeria’s exit from the Financial Action Task Force (FATF) grey list—could enhance external risk perception and encourage long-term investment in the sector.
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In parallel, the CBN has upgraded licences for selected fintech companies and microfinance banks (MFBs) with nationwide operations to national status, aiming to align regulatory frameworks with actual operational footprints.
Many operators initially licensed under unit, tier-one, or tier-two frameworks—such as Kuda Bank, Opay, Moniepoint, and Palmpay—had expanded nationwide through mobile technology and agent banking models.
The CBN noted that the previous mismatch between licence scope and operational reality created regulatory risks, prompting reforms to ensure oversight frameworks reflect the scale and systemic importance of fast-growing fintech institutions.
The report and related reforms reflect a concerted effort by both operators and regulators to address funding and regulatory bottlenecks, with the ultimate goal of sustaining innovation, financial inclusion, and investor confidence in Nigeria’s fintech ecosystem.