Nigerian digital asset startup, NectarFi, has raised $170,000 in a pre-seed funding round as it looks to address fragmentation in the crypto ecosystem and expand its product offering across multiple markets.
The raise announced by the company on Wednesday comes at a time when early-stage funding for African crypto startups remains selective, with investors increasingly backing infrastructure and utility-focused platforms rather than speculative trading products.
The company said the funding will support product development and expansion following months of private testing across markets, including Nigeria, South Africa, Kenya, Ghana, Brazil, and Indonesia.
What they are saying
Founded by Felix Daniel (CEO) and Stephanie Okeke (COO), NectarFi said it is positioning itself as a unified financial platform that combines multiple crypto use cases into a single application.
- Users typically rely on separate platforms for storing assets, trading, payments, and cross-border transfers, a structure that has defined the crypto ecosystem for years.
- The startup said it aims to consolidate these functions, offering services such as asset storage, payments, trading, and access to tokenised investments within one interface.
- It also seeks to address a longstanding limitation of the inability of crypto users to build verifiable financial histories that can be used to access credit.
The company disclosed that it has processed over $7.2 million in transaction volume since its private launch phase, with more than 1,000 users onboarded during that period.
Get up to speed
NectarFi’s entry adds to a growing pool of Nigerian startups attempting to streamline access to digital financial services using crypto rails.
Companies such as Bundle Africa and Quidax have focused on simplifying crypto trading and payments, while platforms like Busha and Yellow Card are expanding across African markets with similar cross-border payment use cases.
More recently, startups are moving beyond basic trading services to offer integrated financial tools, including savings, payments, and investment products, in a bid to deepen user engagement and unlock new revenue streams.
This shift is also happening alongside increased regulatory scrutiny in Nigeria, where authorities are tightening oversight of digital asset platforms, pushing startups to align more closely with compliance requirements.
What you should know
Despite recent moves by the Nigeria Securities and Exchange Commission (SEC), fintech stakeholders said the regulatory atmosphere for cryptocurrency in Nigeria still lacks clarity.
- According to a Fintech Report recently released by the Central Bank of Nigeria (CBN), fintech operators in Nigeria want the apex bank to clearly define which cryptocurrency-related activities are permitted for licensed institutions.
- The report shows that while fintechs increasingly recognise the relevance of crypto assets to Nigeria’s financial system, ambiguity around regulation remains one of the biggest friction points limiting responsible participation in the market.
- According to the report, fintech stakeholders believe cryptocurrencies have strong potential to support cheaper cross-border payments, expand financial inclusion, and unlock new digital asset markets.
However, they argue that the lack of regulatory clarity continues to slow adoption and restrict licensed institutions from participating meaningfully.
