The future of Nigeria’s fintech startups is rapidly becoming apparent, however, good observation will reveal that the future is bright for these startups.
Focusing on Nigeria’s fintech startups and their revenues in the future. Research shows that these startups in Nigeria are projected to reach unimaginable millions of dollars by 2022, this is driven by increasing smartphone penetration and a large population of unbanked eager to adopt digital financial services, according to a new report by the Economist Intelligence Unit (EIU).
Recently, there is a report popularly titled “State of Play: Fintech in Nigeria”, this report focuses on examining key trends in Nigeria’s fintech sector and assesses industry drivers.
The future of Nigeria’s fintech startups is gaining attention as it is seeming promising. According to the study, Nigeria is home to a burgeoning fintech startup community and is rapidly emerging as one of Africa’s fintech leaders. McKinsey estimates that there are currently over 200 fintech standalone companies in the country, in addition to fintech solutions offered by banks and mobile network operators as part of their product portfolio.
Following the progress of these startups in Nigeria, there is a clear evaluation showing that these players are attracting the attention of international investors who are now pouring millions into the country’s most promising startups. Between 2014 and 2019, fintech companies in Nigeria raised over US$600 million in funding with the most of that amount (US$460 million) being raised in 2019 alone. This showcases that much of the industry’s growth has happened over the past year or so. Deals included Migo’s US$20 million Series B, Paga’s US$10 million funding round, and Lidya’s US$6.9 million Series A.
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Conclusively, Nigeria is home to Africa’s largest economy which assures a great future for fintech startups in Nigeria.