Fintech Firms Seek Growth Fund, Clearer Regulations in CBN Survey

Fintech operators in Nigeria have called for the establishment of a dedicated growth fund and clearer regulatory guidelines, citing limited access to capital as a major challenge, according to a new survey by the Central Bank of Nigeria (CBN).

The comprehensive nationwide survey found that 37.5 per cent of fintech companies struggle to raise capital within the country. Responses on the regulatory environment were evenly divided, with half of the operators describing it as supportive, while the other half said delays and inconsistent application of rules make it restrictive.

The report highlighted strong demand for policy intervention, with 87.5 per cent of respondents backing the creation of a fintech-specific growth fund or credit guarantee scheme.

Industry participants suggested that such a fund, potentially involving institutions like the Development Bank of Nigeria, would help reduce lending risks and unlock long-term financing needed for innovation and expansion. They noted that macroeconomic instability and currency risks continue to discourage sustained investment in the sector.

Operators also recommended steps to improve liquidity within the ecosystem, including the development of a secondary market for fintech debt instruments to broaden funding opportunities.

The survey further stressed that Nigeria’s improved international regulatory standing, particularly its removal from the Financial Action Task Force (FATF) grey list, could boost investor confidence and attract patient foreign capital.

Meanwhile, the CBN has recently moved to upgrade the licences of some fintech companies and microfinance banks to national status, aligning regulatory oversight with their growing nationwide operations. The reform is expected to address mismatches faced by digital platforms such as Kuda Bank and OPay, which built national customer bases under regional licences.

The CBN said the measures are aimed at ensuring regulation keeps pace with the scale and systemic importance of Nigeria’s rapidly expanding fintech industry.