These days, you hear a lot about Artificial Intelligence, or AI, which is like giving computers the ability to learn and make smart decisions. In Nigeria's busy fintech scene where companies use phones and apps to do banking and payments. AI is no longer just a fancy idea. It has become an important, everyday tool. According to a new report from Nigeria's Central Bank (CBN), these fintechs are using AI mainly to solve three big problems: stopping fraud, helping customers, and deciding who can get a loan. This move from just testing AI to actually using it shows how Nigerian tech is growing up, focusing on fixing real issues for millions of people.

The number one job for AI in Nigerian fintech is fighting fraud. Think of fraud as online stealing, where criminals try to take people's money through fake transactions. This has been a huge problem. In just one year (2023), over 17 billion Naira was lost this way. Fintechs are often targets. So, what are they doing? A large majority nearly 9 out of every 10 fintech companies now use AI tools like smart watchdogs. These AI systems quietly look at thousands of transactions every second. They learn what normal spending looks like for each user, and can immediately spot when something strange happens, like a very large payment from a new device. By catching these red flags early, the AI helps block the fraud before the money is gone. This protects both the customer's money and the trust they have in the fintech app.

The second major use of AI is for customer service. Imagine a fintech app that suddenly gains a million new users. If all those people have questions, how can a small support team answer everyone quickly? The answer for most fintechs is an AI-powered chatbot. These are not just simple automated replies; they are clever programs that understand questions and can guide users to solve common problems. For example, if you type, "Why hasn't my payment gone through?" the chatbot can check your transaction and explain the reason, or even help you fix it step-by-step. This means customers get help instantly, day or night, without waiting on hold. For the fintech company, it means they can help a huge number of people without having to hire an impossibly large and expensive customer service team. It’s a smart solution that keeps everyone happy as the business grows bigger.

The third exciting use of AI is in credit scoring. In many countries, banks decide to give you a loan by checking your long history with other banks. But in Nigeria, many hardworking people and small business owners don't have this formal "credit history." They are invisible to the old system, even if they are trustworthy. This is where AI changes the game. Fintechs can now use AI to look at different information, like how regularly you top up your phone, how you move money in your app, or even how you run your small business. The AI studies all this data to build a picture of how reliable you are with money. Based on that, it can help the fintech decide to offer you a small loan. This is very powerful. It means a market woman who sells goods or a young graduate starting a business can get the financial boost they need, thanks to the smart analysis of the AI. The CBN report even shows that since using AI for this, fintechs are giving out more loans than before.

Looking ahead, Nigerian fintechs want to do even more with AI. Many have told the Central Bank they are interested in special testing programs (called "regulatory sandboxes") to try new AI ideas in a safe space. This shows they are thinking about the future. But they also face two big challenges. First, they need clearer rules from the government about how to use AI properly. Second, they need more Nigerian engineers and data scientists with the skills to build these complex AI systems.

In conclusion, the story of AI in Nigeria is not about robots taking over. It is a practical story of smart technology being used to build a safer, more helpful, and more inclusive financial system. By focusing on stopping fraud, serving customers better, and lending to those left out, Nigerian fintechs are using AI as a powerful tool to solve real Nigerian problems.