A new survey by the Central Bank of Nigeria has revealed that half of Nigeria’s fintech companies identified regulatory delays and unclear guidelines as slowing down their growth.

The findings are part of a report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion and Integrity” published on Monday. The report assesses the state of the country’s fast-growing digital finance industry.

It draws on a nationwide ecosystem survey, a closed-door stakeholder workshop held in June 2025, and the CBN Fintech Roundtable held in October 2025.

These engagements provide one of the most detailed snapshots of how innovators view the direction of Nigeria’s financial system.

Nigeria is widely recognised as one of Africa’s most vibrant fintech hubs, supported by early regulatory reforms, rapid adoption of digital payments, and a strong community of innovators.

The CBN notes that the country’s real-time payments system, introduced in 2011, remains one of the most advanced and widely used on the continent.

More than 25 per cent of all electronic transactions in Nigeria now run on real-time platforms. The NIBSS Instant Payments (NIP) system processed nearly 11 billion transactions in 2024, more than double the five billion recorded in 2022.

This growth is in line with the national target of achieving near-universal electronic payment usage by 2030.

Despite this progress, many fintech companies say that regulation still slows down their operations. Half of the respondents believe the regulatory environment restricts growth and many point to licensing delays, unclear rules and slow approval cycles.

Nearly two-thirds say that long regulatory processes affect the timing of new product launches, and more than a third report that it can take over a year to bring a new product to market. Many firms also say that compliance costs reduce the amount they can invest in innovation.

Regulatory bottlenecks

Although fintech firms acknowledge the CBN’s reforms and improved coordination, many say approval timelines and unclear rules remain major obstacles.

Half of the respondents believe the regulatory environment restricts growth, mainly because of delays in licensing and limited clarity in policy guidance.

Almost two-thirds of firms say that long regulatory timelines slow down the launch of new products, and more than a third report that it can take more than 12 months to introduce a new product because of compliance bottlenecks.

In addition, almost 87.5 per cent of fintechs say that the cost of meeting compliance requirements reduces their ability to innovate.

“Compliance costs are weighing on innovation: 87.5% of respondents report that the cost of meeting regulatory and risk requirements significantly impacts their capacity to innovate,” it said.

The survey shows that 62.5 per cent of fintech firms plan to expand regionally across Africa. Many support the idea of regulatory passporting, which would allow Nigerian-licensed firms to operate more easily in neighbouring markets.

Regulatory passporting already exists within the European Union and is being explored in East Africa. If Nigeria successfully develops an African version, it could reinforce its position as a fintech leader on the continent.

The report also highlights how technology trends are shaping the sector with fintechs increasingly using AI for fraud detection and credit scoring, real-time payment systems are seen as a key national strength.

But firms continue to face infrastructure gaps, including limited broadband access, costly digital ID verification, and incomplete data-sharing systems.

Nigeria’s long-standing challenge with digital fraud remains a concern, though the report stresses that many cases involve cross-border actors using Nigeria as a base rather than originating locally.

The CBN notes that Nigeria has made strong progress in tightening financial integrity rules.

The country’s recent exit from the Financial Action Task Force (FATF) “grey list” is seen as a major step forward, reducing friction in international financial transactions.

Improved transparency and stronger enforcement may help rebuild international confidence and reduce the stigma sometimes associated with Nigerian digital transactions.

Structured engagement

One of the clearest messages from the survey is the desire for collaboration.

The report shows that 75 per cent of fintech firms want regular, formal engagement platforms with the CBN.

It said all respondents (100%) are willing to participate in pilots, policy sandboxes or joint working groups.

The CBN says it plans to introduce several strategic initiatives, including a CBN–fintech engagement platform, a compliance-as-a-service model to reduce regulatory burdens,expansion of open banking.

It also said it will introduce a fintech credit guarantee scheme, and early-stage exploration of regional passporting agreements.

It stated, “With these objectives in focus, and consistent with the Central Bank’s publicly stated commitment to disciplined reform, financial integrity, and evidence-based policy implementation, the report outlines multiple policy initiatives, including a dedicated CBN–fintech engagement platform,a compliance-as-a-service model, a fintech credit guarantee scheme, expansion of open banking, and the piloting of regional passporting agreement.”

Nigeria has the chance not only to lead Africa’s fintech growth but also to shape global regulatory thinking for emerging markets. To achieve this, the CBN says innovation, financial inclusion and system integrity must advance together, and collaboration must be structured, not occasional.