FinTechs secured 63% of total funds raised by Nigerian start-ups in 2021 – Association
The FinTech Association of Nigeria says financial technology (FinTech) operators accounted for 63% of the $1.37 billion in funding raised in Nigeria in 2021.
The association’s president, Ade Bajomo, said so on Saturday in Lekki, Lagos, during a dinner held during the FinTech Platinum Awards ceremony.
Mr. Bajomo noted that Nigeria was well positioned in Africa and in the global fintech ecosystem.
He said that Africa currently boasts 10 unicorns of which seven – Jumia, Fluttwerwave, Andela, Chipper Cash, Airtel Africa, OPay and Interswitch – are Nigerian.
“In the same vein, Nigerian start-ups raised $1.37 billion of the $4 billion raised in Africa in 2021.
“Of these, the FinTech space alone accounted for around 63% of all funding, up from just 25% in 2020.
“Growing investor confidence in African FinTech reflects the continent’s enormous potential due to deepening mobile and internet penetration, a young population, growing consumer sophistication and rising incomes. , among many other factors.
“When you think of how far FinTech has come in Nigeria, you have to thank the amazing entrepreneurs who envisioned, launched and executed strategic moves that have now crystallized into strong and growing businesses,” Mr. Bajomo said.
According to him, despite the huge achievements, it is still necessary to look back and appreciate how far the FinTech ecosystem has come in the country.
He said FinTech in Nigeria raised around $600 million in funding between 2014 and 2019, compared to more than $1 billion raised in a single year.
Mr. Bajomo said that a few years ago, real-time payments and (fast) digital loans were almost impossible.
He added that Nigeria is now home to around 250 FinTech companies, despite huge infrastructural, regulatory and financial challenges.
The president of the association said that the trajectory must not slow down in any way because, by 2025, Africa will have 1.5 billion people, most of whom will have grown up with the Internet.
He said the continent’s demographics would include a large group of digitally literate but underbanked customers who could be tapped by local and foreign FinTechs.
Mr. Bajomo said the FinTech Platinum Awards aimed to create a world-class awards ceremony that would raise the bar for the best global awards in the industry.
He said the association is strongly positioned to play a strategic, critical and impartial role in creating an enabling environment for FinTechs to continue to thrive in Nigeria.
This, he explained, would be to provide leadership for developments in the FinTech ecosystem in the country and across the continent.
The award for “Female FinTech Trailblazer” was carried by Odunayo Eweniyi, co-founder of PiggyVest, for launching something revolutionary and at the same time a powerful force in the industry.
The “breakthrough achievement” award went to Carbon Microfinance Bank, one of the first organizations to do something innovative in its field, while adhering to ethical standards.
The Ecosystem Enabler award was given to Banwo & Ighodalo Company for providing significant resources and support to the Nigerian FinTech ecosystem.
The “Leadership Award” (organization and individual categories) was awarded to the Securities and Exchange Commission (SEC) and to Mitchell Elegbe, Group Managing Director of Interswitch.
It’s about leading the way on how things should be done in the FinTech space and constantly raising the bar.
Iyinoluwa Aboyeji, founder of Future Africa, received the Tech Advocacy Award for being at the forefront of promoting increased technological progress in the ecosystem.
He also received the award for fostering opportunities, networks and inclusion to make this a reality.
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