Nigeria sets African fintech standard with bold regulatory blueprint

The Central Bank of Nigeria unveils a new framework to streamline compliance, expand financial inclusion, and support cross-border fintech growth, positioning the country as Africa’s emerging rule-setter in digital finance.

By Nhllanhla Muthe

Nigeria is positioning itself to move from being Africa’s largest fintech market to a rule-setter for the continent.

This follows the Central Bank of Nigeria’s (CBN) release of its Policy Insight Series 2025, titled “Shaping the Future of Fintech in Nigeria.” The report outlines a coordinated regulatory framework aimed at fostering innovation, financial inclusion, and systemic integrity.

“A dedicated digital bank licence may be a more effective pathway for inclusive lending than expanding the PSB mandate,” the report states, highlighting the need for tailored frameworks to support fintech-led financial inclusion.

Governor of the CBN, Olayemi Cardoso, has stressed the significance of this moment in driving financial inclusion.

"I have witnessed first-hand the transformative power of digital finance to broaden economic participation, create meaningful employment, and improve the lives of millions of Nigerians. Fintech must help deliver financial services to the last mile of our population, so that no Nigerian is left behind in the digital economy," he said.

The report identifies regulatory friction and infrastructure gaps as key constraints. Nearly 88% of fintech operators cited compliance costs as limiting innovation, while over a third reported product rollouts exceeding a year due to duplicative reporting and unclear guidelines. To address these issues, the CBN proposes a Single Regulatory Window, Compliance-as-a-Service utilities, and high-trust engagement platforms to streamline approvals and reduce administrative burden.

Cross-border expansion is also a priority. Nigeria is exploring bilateral pilots with Ghana, Kenya, Senegal, and South Africa to enable mutual recognition of fintech licences, facilitating faster regional scale. “There is broad agreement on the need for a risk-based, activity-focused regulatory framework,” the report says, particularly around digital assets, balancing innovation with integrity.

The CBN highlights that Nigeria’s real-time payments infrastructure, which processed close to 11 billion transactions in 2024, forms a strong foundation for scaling inclusive financial services. Coupled with reforms in digital identity systems and open banking, the country aims to deepen access while ensuring security and consumer protection.

For African fintechs and regulators, Nigeria’s blueprint offers both inspiration and practical lessons in building a scalable, inclusive, and trusted digital finance ecosystem. With sustained collaboration between policymakers and innovators, the country is poised to lead continental fintech development while maintaining global credibility.