You see it every week on X or in group chats. Someone announces a new fintech product. Another app for transfers, another POS solution, another savings tool that looks exactly like the last five. The comments come fast. "Nigeria has too many fintechs already." "Why build another one when we already have OPay, PalmPay and Moniepoint?"
The complaints make sense. We now have over 500 fintech startups in the country. Walk into any busy area in Lagos or Abuja and your phone notifications are full of similar offers. People keep building because payments looked like the easiest money to chase. But after all this activity, one big question remains. Has Nigeria actually solved its payment problems?
My honest answer is no. Not completely. For daily life in the cities, we have come very far. Nationally though, the job is far from done.
Let me explain what has improved.
The numbers tell a strong story. The NIBSS Instant Payment system processed nearly 11 billion transactions in 2024. That is more than double the figure from 2022. Electronic payments hit huge volumes. In the first three months of 2025 alone, the value crossed 284 trillion naira. The Central Bank says the entire fintech sector grew 70 percent last year even when the economy was tough. Funding reached more than 215 million dollars for startups. Players like Flutterwave, Paystack, Moniepoint, Kuda, OPay and PalmPay turned what used to be slow bank transfers into something instant and cheap.
Agents are everywhere now. You can do USSD transfers from a feature phone in a village. QR codes work in markets. Many people in Lagos and other big cities live almost cashless. The National Payment System Vision that the CBN pushed for years has delivered real infrastructure. Instant payments are reliable most of the time. Cross-border options using stablecoins have made remittances faster and cheaper for some.
So why do I still say the problem is not solved?
Because numbers only show part of the picture. Twenty-six percent of Nigerian adults, around 28 million people, remain completely outside the formal financial system. The rate jumps higher in rural areas and in parts of the North. Many who have accounts still do not save or borrow formally. They use the apps for transfers and nothing else. Power outages, weak internet and low digital skills make the experience painful outside the main cities.
Fraud is another headache. People still lose money and lose trust. Even with better tools, one failed transaction or surprise fee can send someone back to cash. The informal economy, which is bigger than most people realise, has not fully moved online. Market women, small traders and women in general need more than just send-and-receive. They need credit that actually reaches them, simple savings products and insurance that works on basic phones.
The CBN itself admits this in recent reports. The payment rails are now world class, but deeper issues remain. We still lack good credit data for most people. Digital identity integration is slow. Regulation sometimes moves too slowly for the real needs on the ground.
This is exactly why new fintechs keep coming. The basic transfer problem is mostly fixed for urban users. But the bigger opportunities are wide open. Smart founders are already shifting focus. They are building full solutions for small businesses that include payroll, inventory and credit in one place. Others are working on offline-first tools, voice interfaces for people who cannot read well, and embedded finance inside everyday apps. Consolidation will happen soon. Only the strong ones with real product depth will survive the next few years.
The truth is simple. Nigeria does not have a "too many fintechs" problem. We have a "too many copycats chasing the same easy wins" problem. The payment foundation is built. Now the real work begins. Solve credit for the informal sector. Make insurance simple and cheap. Bring proper tools to the North and to rural communities. Tackle fraud with better AI and education. Those areas will create the next big winners.
If you are thinking of building in this space, my advice is this. Stop cloning transfer screens. Go and talk to market women in Oshodi or traders in Kano. Ask what actually breaks their hustle every day. Build for them, not for the same Lagos crowd everyone else is fighting over.
The fintech story in Nigeria is far from over. It is just entering the interesting chapter. The rails are there. The question now is who will use them to lift the millions still left behind.
What do you think? Are we truly saturated or just getting started? Drop your comments below. If you are a founder or user in this space, I would love to hear your own experience.
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