217 Start-ups, ₦11B in Fraud, and a $3B Industry: Inside Nigeria’s 2025 Payment Revolution
Nigeria’s payment ecosystem isn’t just growing it’s exploding.
According to the 2025 Nigeria Payments Report by TechCabal Insights and Moniepoint, the country now boasts:
217 active payment startups
An industry valuation of $3 billion
Over ₦11 billion lost to fraud in 2024 alone
That’s innovation, acceleration, and chaos all at once.
Let’s break down the winners, red flags, and where the money’s really going.
The Start–up Surge
- Nigeria’s fintech space now includes 217 payment-focused startups
- A few dominate the market Moniepoint, Opay, Palmpay but smaller players are fast-cloning innovation
- Lagos remains the nerve center, but Abuja, Ibadan, and Port Harcourt are seeing serious traction
This isn’t a bubble it’s a full-blown ecosystem buildout.
Big Valuations, Small Margins?
- The payment industry is valued at $3 billion, up from ~$2.1 billion in 2023
- But margins remain tight due to:
- Aggressive fee cuts
- Regulatory compliance costs
- High customer acquisition spending
Translation: Everyone’s building but not everyone’s banking.
₦11 Billion in Fraud: The Hidden Cost of Digital Growth
While digital payments rise, so do the cyber risks:
- ₦11.1 billion lost to fraud in 2024
- Dominant fraud types:
- Social engineering (phishing, fake BVN calls)
- Internal collusion from compromised agents
- Sim swap attacks
Despite massive fintech innovation, consumer protection is still playing catch-up.
What’s Driving Adoption?
- POS Agents: Over 1.9 million deployed nationwide
- USSD Growth: Still relevant in low-data zones
- APIs & Embedded Finance: Fintechs enabling other start-ups
- BNPL & Microloans: Driving stickiness via credit
Regulation & CBN’s Role
CBN has become more active post-2023:
- Crackdown on unlicensed wallets
- Push for better fraud reporting
- Pressure to localize payment data storage
But friction remains:
- Delayed API access
- Sandbox testing bottlenecks
- Fragmented KYC enforcement
Financial Juggernut Insight
Nigeria’s payment system is a rocket strapped to a rollercoaster.
It’s growing fast. Too fast, maybe. And with that speed comes systemic risk.
Start-ups need to:
Harden fraud detection
Improve compliance tooling
Balance UX with security
Meanwhile, investors must look beyond hype and ask:
“Is this product sticky, safe, and scalable?”