Fintech 2026

NIGERIA Trends and Developments Contributed by: Moe Odele, Inikpi Sule, Dumebi Onyetube and Inemesit Eton, Vazi Legal

Nigerian Fintech: From Disruption to Consolidation and Regulation This guide outlines the major developments that shaped Nigeria’s fintech sector in 2025 and provides practical insight into regulatory, structural, and market shifts that will influence the industry going forward. It covers licensing and entity consolidation, mergers and acquisitions, global expansion trends, the evolu - tion of digital asset regulation, changes in credit and compliance frameworks, AML/CFT enforcement, tax reforms, and concludes with an outlook for 2026 and beyond. Consolidation As the Nigerian fintech ecosystem moved from a period of rapid disruption to one of market maturity, 2025 emerged as a pivotal year. Increased regula - tory scrutiny encouraged more operators to pursue licensing through strategic acquisitions, accelerating a sector-wide structural shift. Key drivers included the following. • Higher Capital and Compliance Requirements – the Central Bank of Nigeria (CBN) introduced stricter capital and compliance thresholds across the financial system, compelling operators to reassess sustainability and view consolidation as a pathway to long‑term compliance viability. • Intensified Consumer Protection Enforcement – the Federal Competition and Consumer Protection Commission (FCCPC) strengthened its enforce - ment against digital money lenders and payment providers following persistent consumer com - plaints and exploitative practices. • Legal Clarity Through the Investments and Secu - rities Act (ISA) 2025 – the ISA 2025 provided long‑awaited clarity on the regulatory treatment of digital assets, tokenised securities, and virtual asset service providers (VASPs), offering a formal market entry path that had previously been absent. Licence consolidation Licence consolidation enabled fintech companies to capture more value across the financial services value chain. For example, a company with a Payment Solu - tion Service Provider (PSSP) licence can expand into credit underwriting and loan disbursement by acquir - ing a microfinance banking licence. This reduces reli -

ance on third‑party partnerships that create friction, add cost, and increase counterparty risk – paralleling trends in more mature markets where providers offer end‑to‑end financial services. Stronger governance and regulatory compliance also attracted greater investor confidence. Conversely, operators unable to meet the capital or compliance thresholds either exited the market or pivoted, making room for more institutionalised and licensed compa - nies. Mergers and acquisitions in the Nigerian tech sector M&A activity increased significantly in 2025, largely driven by strategic acquisitions aimed at securing licences, expanding infrastructure, integrating prod - ucts, and accelerating cross‑border expansion. Notable transactions included: • Infrastructure and Licence‑Driven Acquisitions – Moniepoint acquired majority stakes in Kenya’s Sumac Microfinance Bank and Bancom Europe (a UK‑based FCA‑licensed EMI). C-One Ventures acquired Bankly, while Rank acquired Zazzau Microfinance Bank. • Digital Banking and SME Finance Consolidation – Carbon’s acquisition of Vella Finance highlighted consolidation in digital banking and SME‑focused financial services. • Sector‑Integrated Acquisitions – Chowdeck acquired Mira, blending food delivery, POS solu - tions, and restaurant management tools. Moove’s acquisition of Brazil’s Kovi strengthened its mobility and fleet‑management capabilities while expanding into Latin America. • Crypto and Digital Asset Expansion – Roqqu’s acquisition of Flitaa expanded Nigerian crypto plat - forms into East Africa. M&A activity is expected to accelerate further in 2026 due to: • Licensing as a Speed‑to‑Market Strategy – com - panies increasingly see acquisitions as the fast - est route to regulatory compliance and market access. For example, Flutterwave’s acquisition of

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