The directive comes amid widespread disruption, long queues and gridlock at airport access points, which left travellers frustrated and, in some cases, missing flights.

The policy, branded “Operation Go Cashless”, was introduced earlier this week and required motorists and airport users to pay electronically at toll gates, car parks and other revenue collection points nationwide.

While the move was designed to improve efficiency, reduce revenue leakages and align with broader digital payment reforms, its rapid implementation exposed significant operational challenges, including limited public awareness, card shortages and delays in electronic payment processing, that led to severe congestion at entry and exit points, particularly in Lagos and Abuja.

At the end of a Federal Executive Council meeting, Transportation Minister Festus Keyamo, speaking on behalf of the government, said the President was “concerned about the welfare of Nigerians” and directed that the system be taken back to the drawing board for review and improvement.

He emphasised that the suspension does not signal an outright rejection of cashless transactions, but rather an acknowledgment that the rollout needs to be better planned and executed so as not to inconvenience the travelling public.

Keyamo indicated that the administration may involve private sector partners to help design a more efficient system, suggesting a hybrid approach where those with electronic payment tools can use them, while others may temporarily continue to pay in cash until a seamless digital solution is ready.

The decision stresses the challenge of implementing large-scale digital reforms in high-traffic environments where infrastructure, user readiness, and clear communication are critical for success.

It also highlights the government’s responsiveness to public feedback, even as it continues to pursue broader cashless initiatives across federal revenue systems.

By early 2025, over 430 fintech companies were operating in the country, a huge jump of 70% from 255 in January 2024.

This makes Nigeria the continent’s Fintech leader, hosting 28% of Africa’s fintech companies and accounting for around 44% of the region’s fintech funding.

But what is driving this surge, and what needs to change to maintain this growth?

This article explores the trends drawing investors to Nigeria, the numbers behind the fintech surge, and the challenges the sector must tackle to reach its full potential.

Fintech Trends Drawing Investors to Nigeria

Digital Payments and Mobile Wallets

Digital payments are the biggest magnet for investors. In 2024, Nigeria processed over 108 billion mobile money transactions worth around $1.68 trillion, a 53% jump from the previous year.

Factors like cash shortages, increasing smartphone use, and the Central Bank of Nigeria’s initiative for a cashless economy are driving this growth.

POS transactions alone hit N18 trillion in 2024, up 69% from N10.7 trillion in 2023. The number of POS terminals jumped 129%, from 2.4 million to 5.5 million. Companies like OPay, PalmPay, and Moniepoint have also supported this, extending financial services to millions through their agent networks.

Embedded Finance and Banking-as-a-Service (BaaS)

Embedded finance is gaining traction as startups develop tools enabling businesses to provide banking services easily. Anchor, founded in 2021, is a prime example. Its platform allows developers to integrate account creation, transfers, savings, and loans into their apps.

By early 2024, Anchor processed over N1 trillion ($652 million) across 1.5 million transactions for more than 400 businesses. Investors favor embedded finance for its ability to expand financial access without relying on traditional banks.

Alternative Lending and BNPL Solutions

Credit and digital lending are hot sectors. Small and medium enterprises in Nigeria need roughly N13 trillion ($9 billion) in credit, creating ample opportunities.

Digital lending and Buy Now, Pay Later (BNPL) solutions provide flexible options, using alternative data and mobile tech to reach those underserved by traditional banks.

Cross-Border Payments Innovation

Remittances from Nigerians abroad represent a huge market. Fintech companies are addressing the high fees, slow transfers, and limited access of traditional services by offering faster, cheaper solutions.

The Central Bank’s Pan-African Payment and Settlement System (PAPSS) and updated international money transfer rules have opened additional opportunities. Cross-border payments continue to attract investor interest.

Digital Banking and Neobanks

Digital-only banks appeal to Nigeria’s tech-savvy population. Neobanks provide instant account opening, real-time updates, and intuitive money management tools.

Notable companies include Moniepoint, which became a unicorn in October 2024 after raising $110 million.

The company processes over 800 million transactions monthly, worth more than $17 billion, powering much of Nigeria’s POS activity and opening 10 million bank accounts. PalmPay and OPay have also sustained rapid growth despite regulatory challenges, showing strong companies can thrive.

Funding and Market Insights

Funding Trends

Despite global funding challenges, Nigerian fintechs raised around $520 million in 2024, matching 2023 levels. While lower than peak years 2021–2022, Nigeria’s share of African fintech funding increased to 44% in the first half of 2024.

However, funding now favours established firms. The average deal size fell from $13 million in 2023 to $5 million in 2024. Big rounds, like Moniepoint’s $110 million, remain rare.

Market Size and Growth Projections

Nigeria’s fintech market was worth about $1.13 billion in 2024 and is projected to reach $4.24 billion by 2033, growing around 15.8% yearly. Digital payments could reach $154.5 billion in transactions by 2029.

Mobile money alone is expected to grow 19.2% annually, reaching $140.2 million by 2033, driven by Nigeria’s population, smartphone adoption, and growing middle class.

User Adoption

Mobile money usage rose 63% in 2023, with transactions reaching 3.9 billion in 2024. E-payment volumes totalled N1.56 quadrillion in the first half of 2024, 70% of 2023’s total. Still, only 8% of Nigerians aged 16–64 used mobile payments in 2024, highlighting a huge untapped market.

Comparison with Other African Hubs

In fintech companies and funding, Nigeria is leading, securing 36% of Africa’s investment from 2020 to mid-2024. Kenya, driven by M-Pesa, raised $638 million in 2024 and remains mobile money-focused. South Africa’s funding dropped 36% in 2024, while Egypt is still a growing player.

Together, Nigeria, Kenya, South Africa, and Egypt account for 90% of Africa’s fintech funding. Nigeria’s strength lies in its market size and diverse fintech ecosystem, spanning payments, lending, wealth management, insurtech, and emerging tech like crypto.

Challenges Slowing Investor Confidence

Regulatory Uncertainty

Frequent policy changes are a huge concern. In April 2024, the CBN temporarily froze sign-ups for fintechs over forex-linked crypto concerns, alarming investors. Inflation hit 34.8% in 2024, prompting speedy policy adjustments. Regulatory oversight is split across multiple agencies, creating confusion.

Infrastructure Limitations

Internet access is still uneven, particularly in rural areas, and power outages disrupt services. Digital ID systems are incomplete, slowing KYC processes and onboarding.

Fraud and Cybersecurity

Financial fraud is a top threat. From 2023 to April 2025, Nigeria lost over N320 billion to fraud, mostly in digital payments and fintech apps. Cases rose 26% in 2024. Common attacks include phishing, SIM swaps, and identity theft. Fraud undermines consumer trust and affects investors.

Currency Instability

The naira’s volatility complicates valuations and exposes fintechs to forex risks, especially when reporting in dollars.

Scalability Issues

Many early-stage fintechs struggle to secure funding, face high customer acquisition costs, and contend with compliance and tech challenges as they scale.

What Must Change for Sustainable Growth

Stable, Clear Regulations

Predictable policies are essential. Regulatory sandboxes and innovation hubs should be expanded. A central fintech regulatory agency could streamline oversight and boost investor confidence.

Robust Fraud Prevention and Digital Identity

Mandating audits for large fintechs, creating a national fraud reporting system, and improving digital ID infrastructure would reduce risk and speed up onboarding.

Investor-Friendly FX Policies

Clear rules for dividend repatriation, transparent forex allocation, and hedging tools would strengthen investor trust.

Collaboration Across Stakeholders

Startups, banks, and regulators should work together through joint programs and shared initiatives. Banks should act as partners, supporting tech innovation while sharing licenses and financial backing.

Regional and Global Expansion

Fintechs must explore regional markets via PAPSS and beyond. Global partnerships and international recognition demonstrate that Nigerian companies can compete worldwide.

Conclusion

Nigeria’s fintech sector is at a turning point. A young population, digital adoption, and investor interest provide strong fundamentals. But then, regulatory uncertainty, infrastructure gaps, fraud, and currency volatility remain obstacles.

The question isn’t if Nigeria will stay Africa’s fintech leader, it likely will. The bigger challenge is evolving into a world-class, globally competitive fintech ecosystem.

With stable regulations, strong digital identity systems, collaboration, and regional expansion, Nigeria’s fintech could become one of the world’s most innovative. The opportunity is ready for the taking.

Now, imagine standing helpless, phone in hand, watching N250,000 trapped in a “processing” notification. No banker or support line, just a chatbot telling you to “check back later.” That’s not an unusual experience anymore, it’s the new normal.

In the rush to modernise, Nigeria’s financial system has quietly removed one important feature, which is human trust. And most people didn’t notice it happening.

There’s a broken reality behind fintech apps and profitability reports as banks and startups automate their systems to reduce costs and drive speed. Nigerians are left to wonder who to trust when machines control their money.

How We Got Here: Nigeria’s Push into Automated Finance

Cashless Nigeria didn’t happen by accident; it was policy-driven. Regulators encouraged digital adoption, banks launched fintech subsidiaries like GTCO’s Squad and Access Bank’s Hydrogen, telcos joined in with wallets and payment platforms, payment gateways, switching infrastructures, APIs—everything was digitised to serve one purpose, which is ‘move money faster’.

Yes, it worked. Digital payments exploded, billions now flow through apps and backend systems every day; Squad processed ₦27.4 trillion in 2024, Hydrogen handled nearly double that. Banks reduced costs, businesses scaled without hiring more staff, and customers were promised convenience.

But buried beneath these numbers, something more human was lost.

The Trade-off: When Efficiency Replaces Empathy

The problem isn’t just that banking went digital; it’s that it became impersonal.

Try resolving a failed transaction today; you’ll meet chatbots, automated emails, and self-service portals; usually while your funds remain stuck. 

Fintechs, in their quest for efficiency, have replaced human service teams with algorithms. Fraud detection is now automated, account freezes happen without warning, customer complaints disappear into systems optimised for “reduced human contact.”

For small traders in Lagos or shop owners in Kano, this could be inconveniencing, not progress.

What was once like a relationship with a bank has become a cold transaction with a machine.

Why Trust Still Matters in Nigeria’s Economy

In Nigeria, trust has always been more valuable than receipts. You paid because you trusted the person receiving your money. You kept your savings in a bank because you trusted the people working there, not the building or the app.

But digital systems don’t understand trust; they execute code, process transactions and when something breaks, there’s no human to appeal to. The very thing Nigerians valued in financial transactions—personal connection—has been stripped away.

The result is growing mistrust, digital fatigue, and even a quiet return to cash transactions in some sectors.

For businesses, the damage is invisible but real. Customers who feel betrayed by digital systems hesitate before transacting again. Small businesses lose sales, people hoard cash because it feels safer than trusting a machine that doesn’t speak back.

Who Profits from the Breakdown?

Ironically, as customers lose trust, fintechs grow richer. GTCO Squad posted ₦1.66 billion in Q1 2025 alone. Hydrogen’s profits jumped over 1,000% last year. These companies optimise back-end processes, automate dispute handling, and scale digital infrastructures, all while reducing human support staff.

This is by design, not accidental. Every automated response saves companies money; every unresolved complaint, every frozen account, is a small sacrifice made in favour of operational efficiency.

But on the other side of this success story stand millions of upset Nigerians, excluded, ignored, and becoming more sceptical of the digital economy.

Is There a Way Forward? Rebuilding Trust in a Digital Age

The digital economy doesn’t have to be heartless, but change won’t happen naturally. Fintechs need to rethink their obsession with automation:

• Blend human service with digital tools: Real people must return to customer care. Automation should support, not replace, human trust.
• Open the backend: Transparency about who controls transactions and what happens when errors occur can rebuild customer confidence.
• Design for people, not just profit: Platforms should work for rural traders, elderly customers, and digitally hesitant users, not just tech-savvy city dwellers.
• Regulators must step in: Consumer protection laws for fintechs should be enforced, not just announced.

The companies that solve these problems won’t only win customers, but will restore something more valuable: trust.

So, Are We Building an Economy That No Longer Understands Its People?

In Nigeria, digital payments were supposed to liberate people. Instead, they’ve left many feeling powerless. Trapped funds, unanswered complaints, faceless apps; this is exclusion in digital form.

Money, after all, is more than numbers on a screen; it’s a promise of security and in a country where trust usually matters more than documentation, an economy without human connection is one that has lost its way.

Machines are efficient. But people still need people.

This expansion includes a revamped market strategy and new key appointment: Managing Director for Nigeria at BPC, a seasoned expert who will bolster BPC’s local team, reflecting a commitment to delivering secure, innovative digital payment while driving innovation and growth in Africa’s largest markets and most dynamic economies.

To spearhead its operations in Nigeria, BPC welcomes Dapo Adeosun as managing director, Nigeria. A seasoned Banking and Payments expert with 30 years of experience, Adeosun has played key roles in leading institutions such as First Bank, Access Bank, UBA, and NIBSS (A National Central Switch).

During his 12-year experience at NIBSS, he was the divisional head of the business development directorate and the academy and worked closely with industry stakeholders across the ecosystem to advance Nigeria’s payment systems and infrastructure both locally and internationally.

“At NIBSS, I witnessed firsthand the challenges that are in front of Nigeria’s financial sector—from ensuring secure, efficient services to finding future-proof, easily scalable solutions to bridge the financial inclusion gap,” says Adeosun.

“BPC brings globally certified tools and AI-driven fraud prevention mechanisms that can drastically reduce transaction failures, enhance security, and optimise financial operations for banks and payment providers.”

Dapo Adeosun adds, “Legacy systems have long hindered banks from reaching their full potential, often preventing them from serving unbanked communities with modern financial solutions. With BPC’s SmartVista, we are changing that landscape—offering banks the flexibility, security, and scalability needed to thrive in today’s digital economy.”

Nigeria’s digital payment ecosystem experienced noticeable growth in 2023–2024, with digital transactions rising from ₦600 trillion to ₦1.08 quadrillion, an 80% surge that reflects the expanding reach of digital financial services.

Monthly payment values consistently climbed past the ₦100 trillion mark in the latter part of 2024, boosted by widespread adoption of POS, which now dominates 92.8% of combined POS-ATM transactions, a complete reversal from 2016 figures.

Despite this growth, the sector faces substantial challenges, such as large segments of the population remain unbanked or underbanked, and fraud incidents have soared fivefold to ₦52 billion in early 2024, prompting the Central Bank of Nigeria to intensify efforts on digitalisation, cybersecurity, and payment safety.

Recognising these market dynamics – the need for modern and safe payment mechanisms, BPC has positioned its next-generation SmartVista platform at the forefront of payment modernisation and Innovations in Nigeria. SmartVista provides:

• Flexible end-to-end digital payment solutions, including card and merchant management, e-wallets, mobile banking, agent banking, and SoftPOS technology for a mobile-first economy.
• Advanced fraud management capabilities and prevention tools powered by AI-driven Fraud Management with Link Analysis and Case Management, helping financial institutions combat transaction fraud effectively. Already, several Tier 1 financial institutions in Nigeria leverage SmartVista’s multi-layered fraud management solutions, highlighting its effectiveness in defending against modern fraud.
• Scalable and flexible microservices based architecture that bridges the gap between legacy banking systems and next-generation financial services, ensuring seamless transactions for businesses and consumers alike.

As Nigeria advances its digital agenda, BPC remains dedicated to equipping financial institutions, payment providers, and government agencies with technology that drives efficiency, security, and financial inclusion.

The technology modular architecture and holistic approach allows financial institutions to centralise diverse third-party services, smoothing operational discrepancies and speeding time-to-market for new offerings.

“Our goal is to provide cutting-edge solutions that support Nigeria’s financial ecosystem from powering complete digital financial ecosystems to enhancing non-financial sectors through enablement of marketplaces and digitalisation of government services,” says Dapo Adeosun.

“With SmartVista, we’re not just offering payment solutions—Our goal is to advance Nigeria’s nationwide digital agenda and we’re building a future-ready digital economy.”