The Nigerian FinTech Industry has experienced exponential growth with new FinTech start-ups emerging and disrupting the traditional financial models. By the end of 2023, over 200 start-ups had emerged in Nigeria, catering to the needs of underserved populations and small businesses. Fuelled by increasing internet and smartphone penetration, Nigeria’s FinTech industry is expected to see further growth in e-payments. However, challenges like infrastructure limitations and cybersecurity concerns remain. A noteworthy trend is the increasing number of FinTech firms acquiring licences to compete more directly with traditional banks. This could lead to a more innovative and customer-centric financial landscape. Consolidation through mergers and acquisitions is also shaping the industry, potentially creating dominant players offering a comprehensive range of services.
Despite a slight dip in funding in recent years, Nigeria remains Africa’s FinTech investment leader. Venture Capital (VC) plays a vital role, attracted by Nigeria’s large, young population and supportive regulatory environment. Looking ahead, VC involvement is expected to continue, focusing on high-growth areas like InsurTech and blockchain solutions. With continued investment and innovation, Nigeria’s FinTech sector is poised for a bright future. A comprehensive understanding of these factors is crucial for informed decision-making and have been highlighted in the report.
This report provides current information on the attributes and performance of the Nigerian Financial Technology Industry (“the Industry” or “FinTech Industry”). The report includes:
