Report: Nigeria’s FinTech Industry Rakes in $293.2m in H1 2021

The first quarter (H1) of the Nigerian FinTech industry has generated $293.2 million with over 70 per cent being realised from foreign direct investment.

According to reports based on intelligence by Techpoint, the data and research arm of Techpoint Africa, it is estimated that Nigeria’s FinTech revenue will reach $543 million by 2022.

The report also showed that in 2018, Nigerian startups raised $178.3 million with 87 per cent of it being from foreign investors.

According to the report, in 2019, $377.4 million was realised and 94.8 per cent of it was also from foreign investors, while in 2020, $120.6 million with 71.2 per cent was raised from foreign investors.

As the industry continues to mature and grow, there is a lot of potential for people to come on board.

From the survey of about 290 startups conducted by Ernst & Young in collaboration with FinTech Association of Nigeria (FintechNGR), 57 per cent of FinTech startups (165) in Nigeria reportedly generated yearly revenue of over $5 million.

Since the beginning of 2021 there has been significant regulatory and legal developments in the framework for FinTechs in Nigeria as it has been an active year for the FinTech industry because the country embraced technology solutions following the COVID-19 lockdown. Regulators have been proactive in engaging with the FinTech ecosystem and have released several circulars, guidelines, and regulations, the report said.

Data from the National Bureau of Statistics (NBS) showed a 61 per cent year-onyear decline in foreign money flowing in Nigeria

This means fewer international customers for Nigerian businesses, and fewer investment capital for Nigerian companies.

The report further said international businesses and investors spent $2.8 billion in Nigeria in the first half of 2021 and in the first half of 2020, it was $7.2 billion.