Nigerian Fintechs Are Using AI Mainly for Fraud Detection — CBN

Nigerian fintech is no longer testing artificial intelligence. It is using it — and using it most urgently to fight fraud.

A new report by the Central Bank of Nigeria has revealed that 87.5 per cent of surveyed Nigerian fintech companies deploy AI tools specifically to detect and prevent fraudulent transactions. The findings, published in the CBN Fintech Report 2025, confirm that AI adoption in Nigeria’s financial technology sector has shifted decisively from experimentation to operational necessity.

How Nigerian Fintechs Are Using AI

Fraud detection leads the pack. However, it is not the only area where AI is making an impact. Customer service automation ranks second, with fintechs using AI-powered chatbots and response systems to handle the massive volume of queries that come with serving millions of users.

Credit scoring and risk modelling come third, with 37.5 per cent of surveyed companies applying AI to loan decisions. This is particularly significant in Nigeria, where a large portion of the population lacks formal credit history. As a result, AI-based credit assessment is creating access to financial services for people who have historically been locked out.

The Bigger Picture for Nigeria’s Fintech Industry

Nigeria’s fintech sector now counts more than 500 startups. The ecosystem continues to grow at a rapid pace, with Lagos remaining the dominant hub. Meanwhile, 2026 is shaping up to be the year Nigerian businesses fully transition from AI pilots to AI-powered execution, according to analysts.

Still, the CBN report also flags challenges. Regulatory delays remain a significant barrier to innovation. About 62.5 per cent of respondents cited slow approvals and unclear guidelines as their biggest constraints. Furthermore, 37.5 per cent said it can take over a year to bring a new product to market — a timeline that the fast-moving tech sector finds frustrating.

Regional Ambition

Nigerian fintechs are not just thinking about the local market. The CBN report found that 62.5 per cent of respondents are already operating or planning to operate across other African markets. Ghana, Kenya, South Africa, Uganda, and Senegal were named as the most suitable countries for expansion.

Consequently, what Nigeria is building in fintech is not just a domestic story. It is an African one — and AI is at the centre of it.