Starting a Fintech Company in Nigeria

Fintech is reshaping how Nigerians access and manage money. With over 220 million people, a young, tech-savvy population, and one of the highest rates of mobile phone usage in Africa, Nigeria presents a huge opportunity for fintech innovation. 

According to Fintech News Africa, as of 2025, Nigeria’s fintech sector has over 430 companies, and accounts for 28% of all African Fintech Companies, making it one of the biggest ecosystems in Africa. This growth reflects the country's increasing demand for digital financial services and its position as a leading hub for fintech innovation on the continent. This is why APIs are necessary for any founder looking to start a fintech company.

In this article, we’ll be discussing starting a fintech company in Nigeria and all you need to know about starting a fintech company, especially with Bitnob’s API.  

Growth and Evolution of Fintech in Nigeria

Fintech in Nigeria didn’t start with flashy apps or billion-dollar valuations. It began with a simple need, making money movement easier in a system that wasn’t built for speed or accessibility.

In the early 2000s, the financial system was largely traditional. Banks operated with long queues, limited access, and high service charges. Then came the rise of mobile phones and an increasing demand for financial services that worked in real time. This was the opening fintech needed.

The First Wave: Mobile and Payments

Other companies started paving the way with digital payments. Interswitch built the infrastructure to connect ATMs and enable card payments, while Paga launched as one of the first mobile money platforms focused on everyday Nigerians, especially the unbanked.

This era laid the groundwork for what we see today: a population more comfortable with using phones for financial transactions, and a growing appetite for convenience.

The Second Wave: Innovation and API Culture

Around 2015–2020, the scene exploded. A payments platform introduced clean, developer-friendly APIs that made it easier for businesses to accept payments online. At this point, it wasn’t just about solving user problems anymore, it was about building tools for other startups to grow.

Suddenly, it became possible for a small online store, a creator, or even a student with a hustle to accept payments, issue invoices, and track income, all digitally. This marked the rise of Nigeria’s “API-first” fintech generation, and it played a huge role in deepening financial inclusion.

The Third Wave: Diversification

By 2020 and beyond, fintech in Nigeria had evolved beyond just payments. Startups began tackling savings, lending, investments,  neobanking, insurance, and even digital currency.

These companies didn’t just digitize old systems, they reimagined them. They offered 24/7 service, better user experiences, and more flexibility than traditional banks. 

Global Attention and Investment

As Nigerian fintech matured, the world started paying attention. In 2020, a payment platform was acquired, with another hitting a valuation of over $3 billion. VC funding poured in, and Nigerian fintech startups began expanding across Africa and beyond.

But it wasn’t all smooth sailing. Regulatory pushback, especially around crypto and lending, reminded founders that they were building in a sensitive space. The Central Bank of Nigeria (CBN) stepped up enforcement and tightened licensing rules. Still, the innovation hasn’t stopped; it’s just gotten better.

How to Start a Fintech Company in Nigeria

Starting a fintech company in Nigeria is exciting and equally demanding. It's not as simple as launching a website and building an app. Nigeria offers a huge market, especially for digital financial services but it’s also one of the most regulated, competitive, and complex markets in Africa. So if you're thinking about building a fintech startup here, you need more than just a brilliant idea. It involves legal, technical, regulatory, and market considerations. The opportunity comes with challenges. Infrastructure is fragmented, building secure systems takes time, and compliance is non-negotiable. That's why founders are turning to APIs.

Find a Real Problem to Solve

Starting a fintech company in Nigeria requires you to find a real problem to solve. Fintech winners are solving real, everyday problems. In technical terms, this is referred to as Market Research. It’s important to start with the pain point. Do people in your community struggle to send money across states? Are small businesses still getting rejected for loans? Are freelancers stuck without easy ways to get paid? Your idea doesn’t have to be flashy, it just has to be useful. Do thorough market research to understand your target audience, their pain points, and your competitors. Tools like Statista, CBN reports, or even street-level surveys can offer real insights. 

Register Your Company With CAC

Before you do anything else, you need to legally register your company with the Corporate Affairs Commission (CAC).

• Choose a unique name
  
   
• Register as a Private Limited Company (Ltd)—most fintech investors prefer this
  
   
• Submit required documents online (e.g., IDs, business address, directors, etc.)
  
   
• Get your Certificate of Incorporation

Understand What License You Need and What It Costs

Nigeria’s fintech space is mainly overseen by the Central Bank of Nigeria (CBN), but other key regulators like the Securities and Exchange Commission (SEC) and the Nigerian Communications Commission (NCC) also play important roles. The type of fintech you're building will determine which licenses you’ll need; some businesses require just one, while others may need approvals from multiple regulators to operate legally.

Here’s a quick breakdown of the most common ones:

• Payment Service Provider License (PSP)
  This covers most fintechs dealing with payments. It comes in a few flavors:
  
   
• PSSP – For companies handling online payments (like gateways).
• MMO – Needed if you’re offering mobile wallets or transfers.
• PTSP – For those managing POS terminals and related infrastructure.
  
   
• Microfinance Bank License (MFB)
  If your startup plans to offer loans or savings products, you’ll need this license. It gives you the authority to lend and accept deposits, especially useful for serving underbanked communities.
  
   
• Switching & Processing License
  This is for companies that route transactions between banks and platforms, essentially the behind-the-scenes infrastructure for payments to flow smoothly.
  
   
• Regulatory Sandbox
  Testing something new or experimental? The CBN’s Sandbox lets you launch in a controlled environment while staying compliant. It’s a great way to innovate without breaking the rules.
  
   
• International Money Transfer Operator (IMTO)
  Planning to handle cross-border remittances? This license is a must for operating legally within Nigeria’s international money transfer space.
  
   

Build a Team

The Nigerian fintech market is deeply local, and that’s exactly why your team needs to reflect the realities on the ground. It’s not enough to have great developers or a flashy UI; you need people who understand how Nigerians use financial products, work with local regulators, and build trust in an environment where many people are still largely unbanked.

Find Funding

Here’s the truth: most Nigerian fintechs don’t raise money on day one. They start with founders’ savings, money from friends and family, and small angel investments. 
But if you’ve got a working MVP and some early traction, you can apply to local VC firms, accelerators, and government grants. Even without raising funds, you can grow steadily by monetizing early and keeping your burn rate low. 

Launch and Learn Fast

The best fintech founders in Nigeria know how to listen, adjust, and move fast. Agility has to be your superpower. You can build what you think is the perfect product, only to find out that your users don’t get it, don’t trust it, or simply ghost you without warning. That’s part of the process. The key is not to take it personally but to take it as data. Referrals work incredibly well in Nigeria because Nigerians trust people more than ads, and also partner with the right local influencers & agents. 

Why APIs Matter When Building a Fintech

Imagine trying to build an entire banking system from scratch. It would take a long time. APIs cut that time down.

APIs allow you to plug into existing systems and infrastructure. Instead of building wallet services, payment rails, or card issuance tech, you connect to providers like Bitnob and launch in a fraction of the time. That means you can test faster, onboard users quicker, and focus on building your core experience.

What Can You Build With Bitnob’s API?

Bitnob provides an array of powerful APIs that help fintech founders build cross-border products, bitcoin and stablecoin wallets, virtual cards, and more without the heavy lifting. 

Cross-Border Payments

With Bitnob’s cross-border payments API, you can facilitate peer-to-peer transfers and remittances across Africa, all with a few lines of code.

Bitcoin and Stablecoin Wallets

Bitnob's API helps you create secure Bitcoin and stablecoin digital wallets (custodial or non-custodial) by simplifying:

• User BTC & USDT address creation and management.
• Instant sending, receiving, and swapping.
• Compliant and scalable wallet experiences.

Virtual Card 

Issue virtual dollar cards to your users so they can shop or pay for services online. This is perfect for platforms solving international payment challenges.

Conclusion: Start Small and Start Smart

Launching a fintech startup in Nigeria is no small feat but with Bitnob’s APIs, it can become easy. Whether you're building a digital wallet, a cross-border remittance platform, or a digital currency-powered savings app, Bitnob gives you the rails to move fast and scale. Start exploring Bitnob's API documentation here.