CBN Admits “Regulatory Friction” In New Fintech Growth Report

The Central Bank of Nigeria (CBN) has released a landmark report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity,” acknowledging that high compliance costs and slow approval timelines are currently stifling innovation.

Launched on February 2, 2026, the report reveals a stark divide in the industry: while Nigeria processed nearly 11 billion real-time transactions in 2024, double the volume of 2022, the regulatory framework has struggled to keep pace. According to a nationwide survey of operators, 87.5% of fintechs cited compliance costs as a major barrier, while over 60% reported that regulatory delays have materially stalled their product launches.

To bridge these gaps, the apex bank unveiled a policy roadmap focused on a “Single Regulatory Window” to harmonize approvals across the CBN, SEC, NITDA, and the NCC. The report also proposes the deployment of Supervisory Technology (SupTech) to automate monitoring and a “Compliance-as-a-Service” (CaaS) model to help smaller startups manage the heavy burden of AML and cybersecurity requirements.

This shift positions the CBN not as a “policeman” but as a strategic partner, aiming to move the industry toward a 95% financial inclusion target while supporting the 62.5% of Nigerian fintechs currently planning regional expansion across Africa.

A major highlight of the report is the confirmation that Nigeria has officially exited the FATF “grey list,” a move expected to drastically reduce the cost of cross-border finance and restore global investor confidence.

Governor Olayemi Cardoso emphasized that the challenge is no longer a lack of ideas but a need for “faster execution” and deeper trust between regulators and innovators. By streamlining the licensing process which currently takes over a year for a third of all applicants, the CBN hopes to solidify Nigeria’s status as a global reference point for real-time payments and digital finance.