Nigerian Fintechs Account for Nearly 91% of $417.5 Million Raised by Tech Startups in the Country – Fintech Bitcoin News

An analysis of the $417.5million raised by Nigerian startup tech companies during the first nine month of 2021 revealed that Fintech firms made up about 379 million (or 90.78%) of this total.

Nigerian Fintechs dominate the African Continent

A local report claims that Nigerian fintechs account for over 90% of $417.5million raised by startups in the first nine months 2021.

The Punch report notes that $417.5million is significantly more than $300 million raised for 2020. However, the report acknowledges that fintech organizations are responsible for this increase in funding.

The report shows that fintech startups raised $600 million between 2014-2019. To prove that the fintech space has grown rapidly since 2020, the report makes reference to the Fintech Association of Nigeria (FAN)’s belief that investment in the financial service ecosystem will exceed $400M in 2021. FAN predicts that revenue will rise to $543M in 2022, in addition to record investments.

The Government supports

Besides accounting for the majority of funds that were raised by tech startups, Nigerian firms also account for the lion’s share of funds raised by fintech startups that operate on the African continent. News previously reported that of the 277 fintech financing rounds monitored by Disrupt Africa, between 2015 and mid-2021 108 went to Nigerian-based startups.

This means that Nigerian fintechs were responsible for 53.4 per cent of all funds raised in the first tracking period. This is significantly more than the $216,124,000.800 raised by South Africa’s second-ranked startups over that same time period.

Meanwhile, Punch newspaper also reported that President Muhammadu Buhari’s government has since taken note of the space’s growth and is now keen on boosting this further by creating an environment that allows the country’s youth to turn their passions into ideas.

The report added that a “Startup Bill,” which is a joint initiative between Nigeria’s tech startup ecosystem and the Presidency, is now set to be tabled before the Nigerian legislature sometime before the end of 2021.

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