Joy Agwunobi
Nigeria’s electronic payments (e-payments) ecosystem has emerged as the driving force of the country’s financial sector, with platforms such as Moniepoint, OPay, and PalmPay powering record transaction growth despite tightening funding conditions and evolving regulations.
According to the FinTech 2025 Industry Report released by Agusto & Co., e-payments transaction volumes rose to 44.8 billion in 2024, representing a 16 percent increase from the previous year. Transaction values also climbed sharply, hitting ₦3.1 quadrillion (US$2.03 trillion) — a 39 percent year-on-year growth.
Agusto & Co. noted that the expansion of digital payment services, alongside growing adoption of agency banking, high mobile penetration, and ongoing financial inclusion drives, positioned e-payments as the backbone of Nigeria’s financial ecosystem. “The Nigerian FinTech industry continued to expand in 2024, albeit at a moderated pace, reflecting a more mature phase of growth amid macroeconomic volatility, tighter funding conditions, and evolving regulations,” the report stated.
Regulatory shifts reshape the market
The report highlighted reforms across the regulatory landscape in 2024, with the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and the Nigerian Communications Commission (NCC) playing key roles. Major developments included the enactment of the Nigeria Data Protection Act (NDPA), expansion of the Open Banking framework, and refined Virtual Asset Service Provider (VASP) guidelines.
In addition, the Investment and Securities Act (ISA) 2024 introduced broader oversight of the digital asset market, signaling stronger supervisory interest in emerging financial technologies. These measures, Agusto & Co. observed, are aimed at strengthening cybersecurity, protecting consumers, and ensuring responsible innovation.
Key sectoral trends
The industry analysis pointed to four major trends currently shaping the Nigerian FinTech landscape. It highlighted the growing role of artificial intelligence and automation, particularly in enhancing credit scoring models, strengthening fraud detection systems, and improving the efficiency of customer service. Alongside this, embedded finance and the rise of super apps are redefining user experience by offering bundled financial services—such as payments, lending, and savings—through a single digital interface.
Blockchain technology and decentralised finance (DeFi) are also gaining momentum, supported by increasing regulatory clarity that is gradually opening up pathways for wider adoption. At the same time, the sector is witnessing a wave of regulatory evolution, with new frameworks around digital lending, virtual asset service providers (VASPs), and data protection. While these rules have raised compliance requirements for operators, they are also helping to foster greater transparency and trust across the financial technology ecosystem.
Funding pressures persist
Despite the strong transaction growth, the report noted that Nigerian FinTech funding declined for the second consecutive year, reflecting global venture capital headwinds. Total investments fell by 17.1 percent to $331 million in 2024.
Notable deals, however, underscored investor confidence in market leaders. Moniepoint secured $110 million in a Series C round, while Paystack completed the acquisition of Brass, a business banking startup. Other leading players such as Flutterwave and OPay focused on expanding their product offerings, strengthening infrastructure, and scaling across African markets.
Looking ahead, Agusto & Co. projects a modest 6 percent rebound in FinTech funding by 2025, alongside rising merger and acquisition activity.
Cybersecurity remains a concern
Operational risk, particularly cyber threats, remained one of the industry’s most pressing challenges. Nigerian financial institutions collectively lost ₦52.3 billion to fraud in 2024, according to the report, underscoring vulnerabilities in payment infrastructure. The firm stressed the importance of deploying robust cybersecurity measures, real-time monitoring, and stronger collaboration with regulators to safeguard consumers.
Despite macroeconomic and funding pressures, Agusto & Co. expressed cautious optimism about the sector’s prospects. Growth opportunities are expected to emerge in cross-border payments, SME financing, embedded finance, and deeper integration with traditional financial institutions.
“With increasing adoption of artificial intelligence, blockchain-based solutions, and embedded finance, Nigeria’s FinTech industry is positioned for sustained growth beyond 2025,” the report added.
