In the midst of a pronounced downturn in African tech investment, Nigeria’s Fintech Sector has not just endured—it has flourished. The country commandingly drew in $331.6 million, representing close to 30% of the continent’s total tech funding, even as total investment across Africa plunged by 53.5% to approximately $1.1 billion.
This significant haul positions Nigerian fintech as the continent’s powerhouse—commanding six times as much investor interest compared to startups in many other countries. While the broader African ecosystem reels from a steep funding contraction, the dollar signs have continued to flow into Nigeria’s Fintech startups, proving their resilience and appeal.
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A stronghold in a shaky market
According to Disrupt Africa’s 2024 funding report, African tech investment more than halved—from about $2.4 billion in 2023 to roughly $1.1 billion last year. The number of startups receiving funding dropped nearly in half, from over 400 to just 200. Fintech, typically the continent’s top sector, wasn’t spared. Fintech funding declined nearly 40%, dropping to around $500 million, yet remained the dominant segment—contributing close to half of all received capital.
But here’s the twist: despite the slump in overall funding, Nigerian fintech companies demonstrated standout performance. They collectively secured $331.6 million—almost 30% of the continent’s total—a milestone reflecting both scale and investor confidence.
Nigeria’s fintech ecosystem: the go-to destination
Nigeria’s leadership in fintech is supported by multiple data points:
- Between 2020 and mid‑2024, Nigerian startups captured 36% of Africa’s fintech equity funding, outpacing all regional rivals
- A 2024 European Investment Bank report noted Nigeria hosts 28% of all African fintech firms, reinforcing its robust ecosystem.
- Moreover, fintech accounted for close to 47% of Africa’s total startup investment in 2024—the highest share since 2021.
These figures underscore Nigeria’s continued primacy. Even as funding retreats elsewhere, the nation’s fintech startups show remarkable traction and investor backing.
Notable success stories lighting the way
Nigeria’s fintech boom is being spearheaded by several high-profile success stories:
- Moniepoint, a major digital banking platform, achieved unicorn status in October with a $110 million funding round, valuing it over $1 billion].
- Flutterwave, a payment infrastructure provider, has expanded beyond Nigeria, boasting a $3 billion valuation and earning global recognition as a top fintech innovator.
- PiggyVest, focused on savings and investment tools, processed over ₦2 trillion (approx. $1.25 billion) for 5 million users by end of 2024—a 53% year-over-year increase.
- Raenest, facilitating multi-currency accounts, closed $11 million in Series A funding in early 2025.
These successes mirror Nigeria’s potent ecosystem—marked by smartphone proliferation, a youthful population under 30, and rising digital financial adoption
Fueling factors behind the momentum
Several converging forces have ensured the continued growth of fintech in Nigeria, even against the backdrop of declining continental investment:
- Demographics and digital habit
With a population nearing 220 million, half under 30, Nigeria is rapidly embracing digital services. By 2025, smartphone users are projected to surpass 140 million, and overall mobile penetration stands at approximately 87% . - Pro‑fintech reforms
The Central Bank’s Payments System Vision 2025 and new remittance-friendly policies (such as non-resident accounts initiated January 2025) have catalysed fintech innovation - International investor confidence
Big names—Visa, Google, QED Investors—have injected capital into startups like Moniepoint, Raenest, and OmniRetail. Moniepoint’s Series C round, led by Google’s Africa Investment Fund, exemplifies this trend. - Need‑driven innovation
Fintech platforms are bridging gaps in access to finance, savings, remittances, and cross‑border payments—serving millions previously excluded from traditional banking services. - Maturation and consolidation
As capital retreats, fintechs are gaining favor with investors due to stronger unit economics. Funding models are shifting from early-stage equity to debt instruments and M&A moves.
Obstacles ahead in the fintech journey
Despite strong headwinds, challenges remain:
- Regulatory tightening – The Central Bank imposed hefty fines in 2024—₦250 million on Paystack, ₦1 billion each on Moniepoint and OPay—for compliance violations. Smaller startups may struggle under such pressure.
- Currency volatility – Fluctuating naira rates and limited access to US dollars complicate planning, particularly around cross-border financial products.
- Talent drains – Like other sectors, fintech is losing skilled staff to better-paying international hubs, making talent retention a growing concern
- Cybersecurity threats – With increasing digital transactions, fintech firms face rising cybercrime, prompting sector-wide frameworks and vigilance .
The future: poised yet cautious
Projections indicate significant growth ahead:
- Fintech revenues across Africa may hit $47 billion by 2028, a nearly 5-fold jump on the $10 billion benchmark from 2023, according to McKinsey.
- Nigeria is expected to sustain its lead—holding onto about a third of continent-wide fintech funding.
- Innovation in digital banking, cross-border remittances, AI-driven services, and blockchain applications is intensifying.
But success will depend on navigating evolving regulation, currency dynamics, talent supply, and cybersecurity.
Final analysis
Despite the sharp contraction in Africa’s tech investment in 2024, amounting to a 53.5% slump to $1.1 billion, Nigeria’s Fintech Sector not only stayed afloat but surged ahead. Attracting $331.6 million—nearly 30% of all funding—and generating growth and innovation, its ecosystem stands out among its peers.
As Nigeria cements its position as the continent’s fintech capital, ongoing success will hinge on maintaining investor confidence, adapting to policy shifts, improving talent retention, and strengthening cybersecurity safeguards. If it rises to these challenges, Nigeria’s Fintech Sector will remain a resilient beacon in Africa’s volatile tech space.
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