Chief Financial Officer at Kora, Ayodeji Solomon Osisami, has outlined key factors investors must consider before committing funds to Nigeria’s fast-growing fintech sector, warning that not all startups will succeed despite the industry’s rapid expansion.
He made this known at the Nairametrics Money Fair tagged WISE 1.0, held on March 18, 2026, at the Landmark Event Centre in Lagos.
The insights were shared during a panel session themed “Investing in Nigeria in 2026: Asset Classes, Timing Windows, Digital Tools, and Risk Navigation in a Reformed Economy.”
What he said
Osisami said that while the fintech sector has attracted significant funding and increased competition, investors must be deliberate in their decision-making. He identified the founding team as the most important factor in any fintech investment.
- “As with any investment, when you are doing an investment, you are not investing in anything. The core thing you are investing in is the person. So you look at the founding team, the CEO and the management team, it’s very important.
- What lifestyle are they living? How are they structured? What is their track record? That’s the first thing you look at,” he said
The second major factor, he noted, is financial performance and business metrics. According to him, investors should go beyond transaction volumes and focus on revenue, profitability and how much value the company actually retains.
- “It’s not only about the companies transacting in the billions. How much are they making from that? How much are they keeping from that?
- Because that speaks to operational efficiency. The thing about Nigeria is, we are growing, investments are coming in, but the market is not so liquid like that. If you are not profitable in a short while, you will go down. So you need to look at those key things, you know, when doing an investment,” he said.
The third key factor is to ensure that a fintech startup has a clear niche and is not trying to operate across too many segments without depth.
- “Has that fintech covered a particular market? So, you know, the market is broad, but there are niches in the market. If you want to invest in any fintech, you have to be sure that they have covered it.
- Even if it’s payment, you know, everybody’s doing payment, but there must be a niche they have mastered before you do an investment, that will guarantee you consistency. It also implies the business is on a sustainable path,” he said
More details
Speaking further on the risks in the Fintech sector, Osisami noted that poor planning remains one of the biggest threats to companies in the sector.
He explained that the ease of launching startups today, especially with the rise of technologies like AI, has led to a surge in businesses that are built quickly without a clear structure or long-term strategy.
According to him, many founders are driven by opportunity rather than a well-defined business model, which increases the likelihood of failure.
- “A bad plan is better than no plan, because a bad plan is what you can correct,” he said.
He stressed that the absence of a business plan is a major red flag, as it makes it difficult for investors to assess direction, scalability and sustainability.
Osisami warned that fintech startups that continue to burn cash without a clear path to profitability, relying on constant funding, are especially vulnerable in markets like Nigeria, where access to capital can quickly tighten.
What you should know
The Nairametrics Money Fair WISE 1.0 is an investment and financial empowerment marketplace, bringing together Nigerians, financial institutions, and regulated investment products.
- It is designed to address the growing need for trusted and accessible investment information in Nigeria’s increasingly complex financial environment.
- The fair is structured around four key pillars, Wealth, Investment, Savings, and Endowment (WISE), which guide discussions and audience engagement across different segments of the financial market.
