About 87.5% of Nigerian fintech companies now deploy artificial intelligence (AI) for fraud detection, highlighting how risk management concerns are shaping technology adoption across the country’s fast-growing digital finance ecosystem.
This is according to the Central Bank of Nigeria’s Fintech Report 2025, published on Monday under its Policy Insight Series, based on a nationwide ecosystem survey, a closed-door stakeholder workshop held in June 2025, and the October 2025 CBN Fintech Roundtable.
The report shows that fraud detection is the most dominant AI use case among Nigerian fintechs, far outpacing other applications such as customer service and credit assessment.
What does the report say
Beyond fraud detection at 87.5%, about 62.5% of respondents said they use AI-powered chatbots for customer service, while 37.5% deploy AI for credit scoring and risk modelling.
Another 37.5% apply AI to customer onboarding and know-your-customer processes. Only 12.5% of surveyed firms reported that they are not currently using AI at all.
The report read, “AI is widely adopted in Nigerian fintech, primarily for risk management and operational efficiency. “Fraud detection” is the most common use case by a significant margin, employed by 87.5% of companies. This underscores the severity of the fraud challenge, which was described in the closed-door stakeholder workshop as a “big issue in the industry”. Other key uses include “Chatbots/customer service” (62.5%), “Credit scoring/risk modelling” (37.5%) and “Customer onboarding/KYC” (37.5%).”
According to the CBN, this pattern reflects both the scale of digital fraud challenges confronting Nigeria’s financial system and the growing reliance on data-driven tools as fintech services become more embedded in payments, lending, and remittances.
Fintech growth collides with integrity concerns
The AI findings sit within a broader assessment of Nigeria’s fintech expansion.
- The report notes that the country processed close to 11 billion real-time payment transactions in 2024, more than double the volume recorded in 2022, placing Nigeria among the world’s most active instant payment markets.
- However, the CBN warned that rapid digitisation has expanded the system’s risk surface.
Fraud, weak controls at some fast-scaling firms, and cross-border financial crime remain persistent concerns, even as Nigeria has strengthened anti-money laundering supervision, tightened KYC standards, and exited the Financial Action Task Force grey list.
Industry appetite for responsible AI
Despite the heavy focus on fraud control, fintech operators signalled strong interest in scaling AI more broadly under clearer regulatory guidance.
About 62.5% of respondents said they are very interested in participating in an AI-focused regulatory sandbox.
Meanwhile, 75% prioritised ethical and transparent use of AI in credit and risk decisions, as well as fair and inclusive access to AI tools and data.
The report stresses that as AI systems move from experimental tools to core components of financial services, governance and supervisory learning must evolve alongside industry adoption.
Barriers to scaling AI adoption
Fintechs also identified clear constraints to deeper AI deployment. Limited access to technical talent and lack of regulatory clarity were each cited by 37.5% of firms as the biggest obstacles.
In addition, 50% of respondents said access to high-quality data or infrastructure would be the most critical support for scaling AI use, underscoring the importance of digital public infrastructure such as interoperable identity systems and reliable data-sharing frameworks.
Compliance costs and regulatory friction
Beyond AI, the survey highlighted broader pressures within the fintech ecosystem.
About 87.5% of respondents said the cost of meeting regulatory and risk requirements significantly affects their ability to innovate.
- At the same time, 62.5% reported that regulatory timelines materially delay product launches, while more than one-third said it takes over 12 months to bring a new product to market due to approval and compliance bottlenecks.
- Perceptions of regulation remain divided. Exactly 50% of respondents described the regulatory environment as enabling, while the other 50% viewed it as restrictive, citing delays, unclear guidance, and inconsistent rule application.
Collaboration remains strong despite challenges
Despite these frictions, the report found strong willingness among fintech firms to engage regulators more closely. 100% of respondents expressed readiness to collaborate through policy pilots, regulatory sandboxes, or structured working groups.
The CBN said these insights are shaping its policy priorities, including innovation-friendly regulation, expanded supervisory technology, shared compliance utilities, and deeper collaboration on AI governance, fraud intelligence, and digital identity infrastructure.
