• About 87.5% of Nigerian fintechs use artificial intelligence to detect fraud, according to the Central Bank of Nigeria.

• Nigerian financial institutions processed nearly 11 billion instant payment transactions in 2024, more than double the 2022 volume.

• Around 62.5% of fintechs seek participation in a regulated AI sandbox, while 75% prioritize ethical and transparent AI use.

About 87.5% of Nigerian fintech companies use artificial intelligence for fraud detection, according to a survey published by the Central Bank of Nigeria.

The figures appear in the Fintech Report 2025, which the Central Bank published on Monday, February 2, 2026, as part of its Policy Insight series. The report draws on a national survey of fintech operators, a closed-door workshop held in June 2025, and a roundtable discussion organized in October.

Fraud detection stands out as the main use case for artificial intelligence, far ahead of other applications such as customer service and credit risk assessment.

According to the report, 62.5% of surveyed fintechs use AI-powered chatbots for customer relations, while 37.5% apply AI to credit scoring and risk modeling. The same share uses AI for customer onboarding and know-your-customer (KYC) processes. Meanwhile, 12.5% of respondents report no AI usage at this stage.

“The fintech sector in Nigeria widely adopts AI, mainly for risk management and operational efficiency. Fraud represents a major issue for the industry,” the report states, describing the challenge as a “major industrial issue” during discussions between regulators and operators.

Rapid growth under pressure

These findings emerge amid rapid expansion in digital financial services. In Nigeria, financial institutions processed nearly 11 billion instant payment transactions in 2024, more than double the volume recorded in 2022, which places the market among the most active real-time payment markets globally.

However, the Central Bank warns that accelerated digitization expands the financial system’s risk surface. Fraud, weak internal controls at some fast-growing firms, and cross-border financial crime remain concerns, despite strengthened anti–money laundering frameworks and Nigeria’s recent exit from the Financial Action Task Force grey list.

Interest in regulated AI

Despite the focus on fraud prevention, the report shows that fintech companies express strong interest in broader AI deployment, provided regulators clarify the applicable framework.

Nearly 62.5% of respondents say they show strong interest in participating in an AI-focused regulatory sandbox, while 75% rank ethical and transparent AI use as a priority in credit decision-making and risk management.

The report estimates that as AI becomes a core financial services tool, supervisory and governance capacities will need to evolve at the same pace.

Persistent constraints

Fintech companies nonetheless identify several obstacles to large-scale AI adoption. About 37.5% of respondents cite shortages of technical talent and regulatory uncertainty as major constraints.

In addition, 50% of respondents consider access to high-quality data and adequate infrastructure as the most critical condition for AI development. The report highlights the role of public digital infrastructure, including digital identity systems and data-sharing frameworks.

This article was initially published in French by Fiacre E. Kakpo

Adapted in English by Ange J.A de BERRY QUENUM