- Andrew Uaboi – Vice President and Head of West Africa
Q: How has the Nigerian fintech sector grown in recent years?
A: The Nigerian fintech sector has experienced remarkable growth over the past few years, positioning itself as a key player in the global financial technology landscape.
This growth, driven by increased investment, regulatory support, high mobile penetration, financial inclusion efforts, and innovative solutions, has resulted in significant funding, a rising number of startups, and a growing user base.
Nigerian startups have consistently emerged as global winners, showcasing their ability to develop innovative solutions with global impact. For example, ThriveAgric, a Nigerian agritech startup, won the global title in the Visa Everywhere Initiative (VEI) in 2022, while Drugstoc secured the title in 2023.
Q: How can government regulation support the growth of Nigeria’s payment ecosystem?
A: Government regulation plays a pivotal role in fostering the development of Nigeria’s payment ecosystem. By creating a conducive regulatory environment, the government can encourage innovation, ensure consumer protection, and promote financial inclusion. Clear and consistent regulations provide fintech companies with the confidence to invest and innovate, knowing that there is a stable framework in place. Additionally, regulations that promote interoperability among payment systems can enhance efficiency and reduce costs for consumers and businesses alike. By working closely with industry stakeholders, the government can ensure that regulations are both forward-looking and adaptable to the rapidly evolving fintech landscape. This collaborative approach will help Nigeria’s payment ecosystem thrive and contribute to the broader economic development of the country.
Q: What are the key challenges facing Nigerian fintechs, and how can they turn these challenges into opportunities?
A: Regulatory uncertainty can be daunting, but it also presents an opportunity for fintechs to engage with regulators and help shape the regulatory landscape. By participating in policy discussions and providing feedback, fintechs can advocate for regulations that foster innovation while ensuring consumer protection.
Limited access to funding is another challenge. To overcome this, fintechs can explore alternative funding sources such as venture capital, crowdfunding, and strategic partnerships. Building strong networks and demonstrating clear value propositions can attract investors who are looking for innovative solutions in emerging markets.
Infrastructural deficits, such as unreliable internet connectivity and power supply, can hinder operations. However, fintechs can turn this challenge into an opportunity by developing solutions that are resilient and adaptable to local conditions. For instance, creating offline functionalities for digital services can ensure continuity even in areas with poor connectivity.
Q: How can Nigerian fintechs attract more foreign investments?
A: Nigerian fintechs can attract more foreign investments by clearly demonstrating their value proposition, showcasing their impact on financial inclusion, and highlighting their unique solutions. Building strong networks and partnerships is essential, and participating in programs like the Visa Africa Fintech Accelerator can provide valuable exposure and mentorship. Maintaining transparency and good governance practices will build trust with investors. Additionally, leveraging success stories, such as winning global competitions like the Visa Everywhere Initiative (VEI), can further attract investment by demonstrating the potential for global impact.
