Nigeria FinTech Landscape - Impact Assessment
Despite the progress made in the Nigerian FinTech ecosystem, there are
that stakeholders need to make concerted efforts to address (7/9)
5 Funding
Progress
■Increased inflow of foreign capital
in Nigeria, with over $400mn
invested in FinTech players over
the last 3 years focused on early
and growth stage players
Large ticket investments in 2019
include Interswitch ($200mn),
OPay ($170mn) and Palm Pay
($40mn)
Current gaps
Limited local participation
☐
☐
&
Opportunities
Limited number of tech focused VCs
LPs are mostly foreign (most Nigerian
investors have not fully embraced tech
investing)
Lack of education about the VC asset
class
Underdeveloped early stage investment
ecosystem
■
Only few angel networks exist
Many incubators/accelerators have
slowed down
Capability Gaps
Many founders have limited work
experience
■ A result of this is governance, controls
and reporting tend to be suboptimal
Support industries like tech law have
not taken off
still
gaps
Introducing incentives that encourage local
investment
E.g. Tax benefits/relief on certain amounts
invested
Education (e.g. through success stories) on what it
takes to invest in FinTech:
On the risk/return in this asset class compared to
others
Fostering provision of essential services to FinTech
through for example:
Sponsored capability building workshops on
reporting etc.
■ Subsidized legal and other professional services
SOURCE: Expert Interviews, Press Search
EFINA
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