Nigerian fintech startups attracted investment worth $122 million in 2019, according to the 2019 African Tech Startups Funding Report.
However, funding in the Nigerian fintech sector decreased by 21.8 percent when compared to 2019. Investments in other sectors such as logistics, transport, ecommerce, agritech, and healthtech saw substantial growth.
Reportedly, there are around 210 to 250 different players in the Nigerian fintech startup landscape.
According to Frost and Sullivan, a business consulting firm involved in market research and analysis, and corporate training across multiple industries, Nigeria’s fintech revenue is expected to reach $543.3 million in 2022 from $153.1 million in 2017.
Nigeria’s fintech sector also received funding from various global investors in 2019. According to the 2019 African Tech Startups Funding Report, the number of investors in African tech startups jumped grew by 61 percent in 2019 to reach 261.
According to the Enterprise Development Centre (EDC) of the Pan African University, Nigeria will lead the growth in non-cash transaction volume across Africa. The EDC further revealed that non-cash transaction is expected to reach 17.8 percent of total transaction volume in 2023 from 4.7 percent at the end of 2018. This is attributed to the development of Nigerian fintech startups.
Nigeria also established itself as the African capital for fintech investment and digital finance startups. Nigeria toppled Kenya which earlier held the top spot due to its mobile money revolution which was led by M-Pesa.
The report also pointed out that African tech startups as funding grew by 47 percent when compared to 2018. Also, the number of startups has increased by 50 percent during the same period. A total of 311 tech startups across Africa amassed $491.6 million in funding last year.