This article was originally published on Insights, and was written by Victoria Olaonipekun– Analyst, Insights.
Zone, a regulated blockchain-powered payment infrastructure company, has released the Nigeria Payments Report 2025 in partnership with Insights, the research arm of pan-African publication .
This second edition builds on the insights from 2024, which tracked how the COVID-19 pandemic spurred a surge in digital payments, with e-transaction values doubling to over ₦1.25 quadrillion. It also charted the rise of Nigeria’s fintech sector—over 200 startups accounted for 42% of all tech funding, driving financial inclusion to 76%.
The 2025 report builds on these trends. From open banking and AI-powered fraud detection to blockchain-based innovations, it maps Nigeria’s fast-evolving payment landscape and highlights what lies ahead for the continent’s largest digital economy.
It highlights standout players and milestones across the payments ecosystem. Moniepoint adapted quickly to stricter KYC rules while deepening mobile money adoption. Flutterwave, valued at $3 billion, remained a market leader despite a major ₦11 billion fraud incident, underscoring industry-wide security concerns.
Banks are deepening collaboration with fintechs on open banking and AI-driven fraud detection, while regulators like CBN drive innovation with diaspora accounts and real-time compliance checks. Despite a funding slowdown, VCs still bet big on Nigeria, injecting $140 million in H1 2024 alone.
Key Findings from the 2025 report:
- Explosive growth: E-payment channels, including POS, mobile money, USSD, and RTGS, are driving a 70% year-on-year rise in transaction volumes, led by fintechs delivering innovative, user-focused solutions.
- Regulatory momentum: Initiatives from the Central Bank of Nigeria (CBN), including the Payment Systems Vision (PSV), open banking guidelines, and new diaspora account categories (NRNOA/NRNIA), are fostering a more secure and inclusive ecosystem.
- Cross-border expansion: Nigerian fintechs such as LemFi and Rise are leveraging annual remittance flows of over $20 billion to scale Africa’s global payments influence.
- Persistent Challenges: Infrastructure gaps, fraud threats, and a 54% dip in overall African fintech funding underline the need for sustained investment.
“This edition reflects how quickly collaboration among banks, fintechs, and regulators is reshaping our economy,” said Olayiwola Osoba, VP of Marketing and Communications at Zone. “But bold moves in risk management and cross-border innovation will be key to maintaining momentum,” he added.
According to the CEO, Obi Emetarom, Zone processes over ₦100 billion in transaction value each month, totalling more than ₦1 trillion annually. He is highly optimistic about the prospects of payments in 2025, following regulatory approval of its decentralised PTSA model that is expected to spur widespread adoption.
“Our ambitious target for 2025 is a 20x growth, meaning the current annual volume would become the monthly average by the end of next year, marking a major scale-up in operational capacity and network usage,” he said.
What’s next for Nigeria’s payment ecosystem in 2025?
- Scaling AI-powered fraud detection and RegTech partnerships (e.g., SmileID, Dojah)
- Using open banking and AfCFTA frameworks to grow cross-border payment solutions
- Bridging the fintech funding gap to solidify Nigeria’s lead on the continent
Download the full Nigerian Payment Report 2025
