CBN Says Unclear Rules, Licence Delays Hindering Growth of Fintech Sector

The Central Bank of Nigeria (CBN) has raised concerns that regulatory bottlenecks, including unclear compliance requirements and delays in licence approvals, are constraining the growth of Nigeria’s financial technology (fintech) sector.

The concerns were outlined in the CBN’s Fintech Policy Insight Series, an inaugural report released on Monday following a dedicated fintech policy forum convened by the apex bank.

According to the report, stakeholders across the fintech ecosystem identified regulatory uncertainty and prolonged approval timelines as key challenges limiting innovation, investment, and scalability within the sector.

The policy forum brought together regulators, industry leaders, fintech operators, and subject-matter experts to examine emerging opportunities and risks in Nigeria’s rapidly evolving digital finance landscape.

The CBN noted that while fintech firms have played a critical role in expanding financial inclusion, enhancing payment systems, and driving innovation, gaps in regulatory clarity have created friction between regulators and market participants.

“Participants highlighted the need for clearer compliance guidelines, more predictable licensing processes, and improved coordination among regulatory agencies,” the report said.

The apex bank added that addressing these issues would be essential to sustaining growth, boosting investor confidence, and ensuring that fintech innovation aligns with financial stability and consumer protection objectives.

Nigeria is home to one of Africa’s largest fintech markets, attracting significant local and foreign investment in recent years. However, industry players have repeatedly called for reforms to streamline regulatory processes and create a more enabling environment for digital financial services.

The CBN said insights from the forum would inform future policy reforms aimed at balancing innovation with effective oversight in the fintech ecosystem.