Nigeria FinTech Landscape - Impact Assessment
Nigeria FinTech Landscape
The FinTech space is expected to continue to grow, particularly across 5 sectors
(2/2)
White
spaces
Offline
payments
MSME
lending
Why
Cash is still significant in the
Nigerian market but CBN push
for cashless is making cash more
expensive (e.g. NIP transactions
less than NGN 20k costs less
than an ATM withdrawal)
■ As mobile wallets become more
mainstream, people will need use
cases to drive more offline
transactions
■ Underserved market that is
growing
Increasing digitization of
payments (via both online &
offline payments) will make it
easier to lend to MSMEs
National asset registry will make
it easier to fund SMEs
Early indicators
POS payments are 6X the size and
growing faster than online payments at
40% CAGR (vs 28% for online
payments)
■ Consumers are already making retail
payments using mobile apps and
USSD, but process still has friction for
merchants
Retail lenders like Carbon are starting to
explore the MSME lending space
■ SME focused lenders like Lidya and
Lendigo are emerging, though still
relatively small in size
Opportunities
◉
Offline payments infrastructure
platform (similar to UPI¹)
Merchant acquisition
Merchant service providers (e.g.
POS, loyalty)
■ Invoice discounting
Value chain financing
Credit scoring & lending for
SMEs
1. Unified Payment Infrastructure
SOURCE: Expert interviews, Stakeholder interviews, web search, Team analysis
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