The Central Bank of Nigeria (CBN) has identified regulatory bottlenecks — notably unclear compliance rules and prolonged licence approval processes — as major constraints to the growth of Nigeria’s financial technology (fintech) sector.
The concerns are outlined in the CBN’s Fintech Policy Insight Series, its first report produced following a dedicated fintech policy forum convened by the apex bank and released on Monday.
The forum brought together regulators, fintech operators, industry leaders and subject-matter experts to evaluate opportunities and emerging risks within Nigeria’s rapidly evolving fintech ecosystem. Inputs for the report were drawn from stakeholder surveys, a closed-door fintech workshop held in June 2025, the CBN fintech roundtable in October 2025, and international benchmarking studies.
According to the report, industry stakeholders highlighted several obstacles impeding sectoral growth, including unclear compliance obligations, delays in product approvals and licensing, inconsistent enforcement of regulations, and weak coordination among regulatory agencies.
The CBN noted that these challenges have increased operational friction across the ecosystem, driven up compliance costs, and heightened uncertainty for fintech firms.
“Stakeholders pointed to issues such as ambiguity in compliance requirements, delays in product approval and licensing, inconsistent application of rules, and insufficient coordination among regulatory agencies,” the bank said.
“These challenges increase friction, raise compliance costs and stifle innovation.”
The apex bank warned that failure to address these issues could weaken innovation at a time when fintech is becoming increasingly central to Nigeria’s financial system. It stressed that the next phase of reforms must directly tackle the identified bottlenecks to sustain growth and reinforce trust in the ecosystem.
Rapid Fintech Growth Complicating Oversight.
From the regulator’s standpoint, the CBN acknowledged that the rapid expansion of fintech has made supervision more complex, requiring a delicate balance between fostering innovation and maintaining financial stability.
While fintech can enhance financial inclusion, lower transaction costs and modernise service delivery, the bank noted that it also introduces new risks that stretch traditional supervisory frameworks.
The CBN emphasised that bridging the gap between regulators and industry players, improving regulatory clarity, and strengthening inter-agency collaboration are critical to consolidating Nigeria’s position as a hub for financial innovation while safeguarding systemic resilience and integrity.
“To support this effort, stakeholders are encouraged to report any persistent or serious cases of regulatory overlap or uncertainty to enable more focused coordination and policy refinement,” the bank said.
The report also addressed Nigeria’s international reputation, noting that many digital financial crimes attributed to the country are often carried out by actors operating outside its borders.
According to the CBN, stronger enforcement, greater transparency, and clear communication of progress — including Nigeria’s enforcement actions and steps toward exiting the Financial Action Task Force (FATF) grey list — are vital to restoring global confidence.
Additional challenges identified in the report include compliance gaps, financial integrity risks, limited supervisory capacity, and jurisdictional complexities, all of which were flagged as key weaknesses in the current regulatory framework.