Nigeria’s fintech regulatory environment continues to divide opinion among industry operators, according to a new report by the Central Bank of Nigeria (CBN).
Half of the fintech stakeholders surveyed described the regulatory landscape as supportive, while the other half viewed it as restrictive. Notably, no respondent characterised the environment as either very supportive or very restrictive, suggesting that regulators are perceived less as decisive drivers of outcomes and more as neutral actors.
The findings form part of the CBN’s broader effort to better understand industry realities and refine its engagement with the fintech ecosystem.
However, the report highlights persistent operational pain points. Ambiguity in existing regulatory guidelines and prolonged approval timelines emerged as the two most significant challenges, cited by 62.5% of respondents, respectively.
According to stakeholders, regulatory approvals can add up to a year to product launch timelines. In a sector where speed-to-market often determines success or failure, these delays introduce material risk into business planning. In some cases, fintechs that proceeded without full approvals have faced regulatory penalties.
While fragmented regulatory mandates were identified as a major challenge by only 12.5% of respondents, the feedback told a deeper story.
Stakeholders called for a centralised regulatory engagement channel to streamline interactions across multiple agencies. Given fintech’s inherently cross-sectoral nature, these participants argued that a unified interface could significantly reduce friction.
Beyond structural reform, industry players expressed a strong desire for more consistent dialogue. Seventy-five per cent of respondents advocated for regular engagement with regulators, proposing a dedicated fintech forum modelled after the Bankers’ Committee.
Regulatory non-compliance by both licensed and unlicensed operators was viewed unfavourably by 37.5% of stakeholders. This highlights growing concern that uneven enforcement may distort competition and undermine consumer trust, particularly as fintech adoption deepens across retail and SME segments.
Victoria Fakiya – Senior Writer
Techpoint Digest
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Unsurprisingly, compliance-related expenditure was widely acknowledged as a drag on innovation. Rising costs associated with licensing, reporting, and governance were said to limit experimentation.
Looking beyond Nigeria’s borders, expansion remains firmly on the agenda. Sixty-five per cent of respondents either already operate in other African markets or plan to expand. To support this ambition, stakeholders called for stronger cross-border regulatory collaboration, particularly around regulatory passporting.
With Ghana and Rwanda taking early steps in 2025, successful outcomes could encourage broader continental adoption. Technological collaboration, especially in payment systems, was also flagged as critical to reducing the complexity of moving money across borders.
