FINTECHS RELY ON FOREIGN BANKS AMID SYSTEM GAPS — OPERATOR

Nigerian fintech operators have raised concerns over heavy reliance on foreign correspondent banks due to persistent gaps in the local financial system, which continue to hinder seamless cross-border operations.

Speaking at a fintech summit in Lagos, a leading operator highlighted how limited access to international settlement systems and forex liquidity often force local platforms to partner with offshore institutions. “The gaps in our domestic infrastructure push many fintechs to depend on foreign banks, increasing costs and operational complexities,” he noted.

Participants called for urgent reforms in payment rails, regulatory harmonisation, and improved forex availability to strengthen the local ecosystem. The Central Bank of Nigeria was urged to accelerate initiatives that would reduce dependence on external partners.

The discussion also touched on the potential of blockchain and open banking to bridge some of these gaps. Industry leaders expressed optimism that ongoing digital transformation efforts could eventually lessen reliance on foreign banks.

The revelation underscores the challenges facing Nigeria’s fintech sector as it seeks to expand regionally and globally.