Nigeria’s Fintech Sector Thrives Amid African Tech Funding Decline

Nigeria’s fintech sector has maintained its pivotal role in the nation’s economic landscape, significantly improving access to capital, enhancing financial inclusion, and boosting operational efficiency for businesses through diverse digital platforms. This robust growth comes despite a substantial 53.5% drop in overall African tech funding in 2024, an observation highlighted in EnterpriseNGR’s State of Enterprise 2025 report. 

The sector’s innovative strides, as detailed in the report, include the widespread adoption of automated payroll systems and streamlined digital payment solutions. The “Buy Now Pay Later” (BNPL) market is a key growth area, projected to reach an impressive $2.61 billion by 2030. Furthermore, the rise of digital lenders, now numbering over 400, has been crucial in extending credit to underserved individuals and Small and Medium-sized Enterprises (SMEs). Fintech innovations have also played a critical role in increasing remittance inflows and driving the broad adoption of mobile-first financial platforms across the country.

This digital transformation has directly led to a significant surge in electronic transactions. NIBSS instant payments alone hit a staggering ₦1.07 quadrillion in 2024, alongside notable growth in Point-of-Sale (POS) and mobile money usage.

Despite the broader contraction in African tech funding, Nigeria showcased its resilience and prominence by leading the continent in value raised. The nation attracted $331.64 million in funding, accounting for nearly 30% of Africa’s total, with a substantial portion of these investments directed towards its thriving fintech startups. This underscores the continued investor confidence and the transformative potential of Nigeria’s financial technology ecosystem.