NIGERIA Trends and Developments Contributed by: Moe Odele, Inikpi Sule, Dumebi Onyetube and Inemesit Eton, Vazi Legal
Tax, institutionalisation, and consolidation The reforms reinforce the connection between tax compliance, governance maturity, and market con - solidation. Increased scrutiny from the FIRS, real‑time monitoring, and tighter transfer‑pricing rules reduce the viability of older tax optimisation models. Tax is now a strategic factor influencing corporate structure, product design, and cross‑border expan - sion. Conclusion As Nigerian fintech matured, regulatory gaps initially encouraged a build‑first approach. By 2025, however, regulators tightened enforcement, including significant fines and refund orders. Stronger compliance monitor - ing is expected to continue shaping the industry. Credit remains a major opportunity, supported by: • the National Credit Guarantee Company (NCGC), established in 2025; • enhanced consumer protection and enforcement; and • increasing penalties for non‑compliance.
AI adoption will expand, improving fraud detection and operational efficiency. Fintechs are shifting toward specialised, infrastructure‑led models centred on pay - ments, credit infrastructure, digital identity, compli - ance tools, and cross‑border settlement. Stablecoins gained prominence, supported by new partnerships with blockchain infrastructure providers. Consolidation and M&A continue to define the sector. Having navigated a difficult period of regulatory scru - tiny, Nigerian fintech is poised to contribute an esti - mated USD6 billion to GDP in 2026, underpinned by investor confidence and a more mature ecosystem. The sector is now entering an era defined by insti - tutionalisation, scalability, regulatory alignment, and disciplined expansion.
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