By 
Nigeria Enters New Fintech Era as Fintech Regulation Tightens Across Landscapes
Across developing economies, fintech has been a powerful catalyst for financial inclusion and digital commerce. As these ecosystems mature, however, regulation is increasingly determining who can scale and who cannot. Nigeria now offers one of the clearest signals of this global shift.
RELATED: CBN unveils first fintech report, admits regulatory bottlenecks, outlines roadmap for Nigeria’s digital finance growth
With a population of over 230 million and one of the world’s fastest-growing digital economies, Nigeria has seen the number of licensed payment service providers almost double between 2019 and 2023. But that rapid expansion is now entering a more disciplined phase.
CBN Raises the Bar on Licensing and Compliance
The Central Bank of Nigeria (CBN) has introduced tighter licensing, capital, governance, and compliance requirements, effectively filtering the fintech landscape. While these measures raise entry barriers for smaller players, they are also accelerating market consolidation and enabling well-capitalised firms to emerge as national and regional champions.
This regulatory evolution mirrors trends unfolding across Africa, Asia, and Latin America, as governments seek to strike a balance between innovation, consumer protection, and systemic stability.
What Stricter Regulation Means for Fintech Startups
The new regulatory phase raises critical questions for fintech operators in developing markets:
- How does stricter licensing reshape competition and survival?
- Will smaller players be pushed out as compliance costs rise?
- Can better-capitalised fintechs leverage regulation to scale regionally?
- How can startups maintain innovation speed while meeting tougher oversight standards?
In Nigeria’s case, regulation is no longer optional—it is now foundational to market access and long-term growth.
Implications for Global Merchants Entering Emerging Markets
For global merchants expanding into developing economies, regulatory maturity changes the playbook. Market entry now requires:
- Working with licensed and compliant payment providers
- Managing FX volatility and cross-border settlement complexity
- Navigating fragmented regulatory frameworks across multiple jurisdictions
Failure to align with compliant local infrastructure increasingly translates into higher risk and slower growth.
Payfuture Tracks the Rise of Regional Fintech Champions
Executives at Payfuture are closely analysing how regulatory evolution in emerging markets is redefining payments and cross-border commerce. As a next-generation payment gateway connector with deep local infrastructure, Payfuture enables global merchants to:
- Partner with licensed local providers
- Navigate evolving compliance requirements
- Manage FX risk and settlement complexity
- Scale efficiently as markets consolidate
The company believes regulatory tightening will ultimately strengthen ecosystems by rewarding discipline, governance, and infrastructure depth.
Nigeria’s Fintech Ecosystem Reaches a Turning Point
Fintech has fundamentally reshaped financial inclusion and digital adoption across Africa, with Nigeria emerging as a continental leader in real-time payments. By 2026, fintech firms are projected to process over 70% of Nigeria’s electronic payment transactions, supported by mobile wallets, digital lending, and agency banking.
Recognising this shift, the CBN released its inaugural “CBN Fintech Report: Shaping the Future of Fintech in Nigeria – Innovation, Inclusion and Integrity,” offering the most comprehensive assessment yet of the sector and a roadmap for its next phase of growth.
Impact on Financial Inclusion in Nigeria
Fintech adoption has helped bridge long-standing structural gaps:
- Reduced Financial Exclusion: Nigeria’s exclusion rate declined from 46.3% in 2010 to approximately 26–37% by 2026.
- Mobile Banking and POS Growth: Mobile banking remains the strongest driver of inclusion, followed closely by POS terminals that deliver essential services in rural and underserved communities.
- Empowerment of Vulnerable Groups: Digital wallets have expanded access to savings, credit, and insurance for women and rural populations historically excluded from formal banking.
Fintech as the Engine of Digital Commerce
Fintech is also powering Africa’s digital economy, projected to exceed $75 billion by 2025:
- Embedded Finance: By 2026, financial services are increasingly embedded into ride-hailing, e-commerce, and service platforms, enabling seamless payments and BNPL at checkout.
- Transaction Growth: In Nigeria alone, electronic payments reached ₦295 trillion in Q1 2025. Across Africa, digital wallets and mobile money are expected to process over $500 billion annually.
- Cross-Border Trade: Platforms like Flutterwave and systems such as the Pan-African Payment and Settlement System (PAPSS) are lowering costs and complexity for intra-African trade under the AfCFTA framework.
A New Phase for Fintech in Developing Markets
As regulation tightens, the challenge for fintech in developing economies is shifting—from rapid experimentation to scalable, compliant execution. Nigeria’s experience suggests that the next generation of fintech leaders will be those that combine innovation with governance, capital strength, and regional ambition.
For startups, merchants, and investors alike, regulation is no longer a constraint to navigate around—it is becoming a competitive advantage for those prepared to meet it.
