Fintechs in Nigeria Tap VC Funding for ‘Buy Now, Pay Later’ Expansion in 2025

Nigeria’s fintech ecosystem is charging ahead in 2025, with Buy Now, Pay Later (BNPL) services emerging as a powerhouse for consumer credit amid booming e-commerce. The BNPL market is projected to surge 13.8% this year, hitting $1.62 billion, up from $1.42 billion in 2024, driven by partnerships with giants like Jumia and innovative credit models. Venture capital is fueling this growth, as investors bet on scalable solutions that bridge financial inclusion gaps for the unbanked.

A standout deal came in April 2025 when Lagos-based OmniRetail secured $20 million in Series A funding, led by Norfund and Timon Capital, with participation from Ventures Platform, Aruwa Capital, Goodwell Investments, Alitheia Capital, and Flour Mills of Nigeria. The B2B e-commerce platform, operating in Nigeria, Ghana, and Côte d’Ivoire, integrates BNPL via its Omnipay tool, disbursing over ₦19 billion ($12 million) monthly in low-default loans to small retailers. Proceeds will accelerate expansion into new West African markets, enhancing embedded finance offerings and AI-driven risk assessments to serve more SMEs.

This influx mirrors broader trends: Nigeria captured 44% of Africa’s $455 million fintech funding in H1 2024, with credit infrastructure—including BNPL—leading categories. Players like CredPal and Easybuy are scaling operations, partnering with e-tailers for seamless installment plans on everything from gadgets to groceries. Despite regulatory hurdles, such as Central Bank guidelines on digital lending, optimism reigns—early-stage deals rebounded to $1 billion continent-wide in H1 2025.

As mobile penetration hits 50% and consumer spending rises, BNPL isn’t just convenience—it’s a catalyst for economic empowerment. With VC backing, Nigerian fintechs are poised to redefine retail, projecting a $2.61 billion market by 2030. Investors, take note: Africa’s BNPL wave is just beginning.