Nigeria's Fintech Frenzy: Onwards And Upwards

Africa’s biggest economy has a bright new star – its financial technology industry, which is attracting fresh funding and a raft of new startups, investors and venture capitalists. The unicorns are emerging, slowly but surely, in this hub that’s witnessing a revolution in its bustling financial services space.

- Peace Hyde

FINANCIAL TECHNOLOGY, OR WHAT IS popularly called ‘fintech’ , is the broad brush used to describe new technology that creates innovative solutions and automates the delivery of financial services. With banks and traditional financial providers going digital aggressively, fintech has over the years gained currency like never before. And with the Covid-19 pandemic having accelerated this adoption, there is no time like now to cover this evolving and growing industry.

The drive towards cashless societies and the consequent proliferation of apps and enterprises to help underserved communities in Africa access financial products and services have made this an industry ripe with opportunities, with a slew of new players hoping to cash in, as also create impact.

And where else to base this cover story than in Nigeria, Africa’s biggest economy and the hotbed of financial innovation on the continent today, not merely because of its population of over 200 million, but also for its sizeable appetite for currency and change.

According to a report by the Fintech Association of Nigeria in collaboration with Ernst & Young Nigeria, the fintech industry in Nigeria has emerged as one of the most important fintech ecosystems within the African continent and continues to attract attention globally.

The report estimates that the sector raised some $439 million in 2020 alone representing 20% of the capital raised by all African tech startups. The growth is down to a number of key factors, namely a youthful population, increase in smartphone penetration and a combination of new regulatory frameworks that has increased the use of cashless payments.