The Fintech Association in Nigeria revealed that Fintech operators accounted for 63 percent of the $ 1.37 billion raised in Nigeria in 2021.
This was revealed by the president of the association Mr. Ade Bajomo who made this statement at the dinner event held at the fintech platinum award ceremony. Mr. Bajomo noted that Nigeria has been well positioned in Africa and the global fintech ecosystem.
In his words, “Nigerian start-ups raised $ 1.37 billion out of the $ 4 billion raised in Africa in 2021. Of these, the fintech area alone accounted for about 63 percent of all total funding, compared to just 25 percent in 2020.
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The growing investor confidence in African fintech reflects the continent’s enormous potential due to deeper mobile and internet penetration, a youthful population and increasing consumer sophistication and income, among many other factors.
When you think about how far fintech in Nigeria has come, you should thank the incredible entrepreneurs who envisioned, were pioneering and executed strategic moves that have now crystallized into strong and growing companies. “
There is no doubt that Nigeria has become a hotbed of Fintech innovation, with the country home to around 250 fintech companies. Despite the enormous economic, regulatory and infrastructure challenges, the sector continues to defy all odds by registering more groundbreaking achievements.
With 7 start-up unicorns in Africa, Nigeria is home to 5 unicorns that are doing exceptionally well. Impressive! You may be interested to know that the country is constantly witnessing a wave of fintech, as there is no decline in the fintech ecosystem. Statistics show that as of 2021, there were 144 fintech start-ups in Nigeria, making Nigeria the country with the highest number of fintech start-ups in Africa.
This path has been predicted not to slow down, that by 2025 Africa will be home to 1.5 billion people, most of whom would have grown up with the internet.
One might be tempted to ask why there are so many fintechs in the country, with more still showing up, since they all perform almost the same thing?
The truth is that the challenge of financial inclusion still exists even with all these fintech start-ups spread across the country. These fintechs solve the persistent problems of traditional banking in Nigeria. They usually focus on the myriad of problems that traditional banks are unable to solve.
According to the UN’s world population estimate, Nigeria’s population will reach 400 million by 2050, which means that the number of people without a bank will increase, and that is why the country needs many more fintech start-ups.
These fintech start-ups do exceptional things by offering faster, better and easier ways of doing things, especially in savings and mobile money transfer. They also make the process of obtaining a loan easy, with their ability to provide loans through a digitized loan process.
These fintechs offer personal reliable savings solutions available on mobile phones with companies such as Cowrywise and Piggyvest that do exceptionally well in that area.
Various global statistics have shown that fintechs around the world have a major impact on the growth of the nation’s economies.
Fintech has undoubtedly had a positive impact on Nigeria’s economy, and is also responsible for the most exponential growth visible in most Nigerian organizations and financial institutions.
With fintech, most of these organizations have been able to come up with fantastic products and services that make things easy for their customers, which has undoubtedly improved the organization’s revenue.
