Report: Nigerian Fintechs Account for Nearly 91% of $417.5 Million Raised by Tech Startups in the Country

According to an evaluation of the $417.5 million that was raised by Nigerian tech startups throughout the first 9 months of 2021, fintech companies accounted for about $379 million or 90.78% of the whole.

Nigerian Fintechs Dominate the African Continent

Nigerian fintechs presently account for greater than 90% of the $417.5 million that was raised by tech startups throughout the first 9 months of 2021, a neighborhood report has stated.

While the report, which was compiled by native media outlet Punch, notes that the $417.5 million is already considerably larger than the $300 million that was raised in the entirety of 2020, it acknowledges that this progress in funds raised is essentially because of fintech teams.

To illustrate, the report factors to the proven fact that $600 million was raised by fintech startups between 2014 and 2019. To show that the fintech house has grown quickly since 2020, the report makes reference to the Fintech Association of Nigeria (FAN)’s perception that funding in the monetary service ecosystem will exceed $400M in 2021. In addition to the anticipated report funding, the FAN has predicted that the income base will attain $543M by 2022.

Government Support

Besides accounting for the majority of funds that had been raised by tech startups, Nigerian companies additionally account for the lion’s share of funds raised by fintech startups that function on the African continent. As beforehand reported by News, of the 277 fintech funding rounds tracked by Disrupt Africa between 2015 and mid-2021, 108 of these rounds went to Nigerian startups.

These rounds, which totaled $467,901,000 in funding, imply Nigerian fintechs accounted for 53.4 p.c of funds raised since monitoring started. This determine is a a lot larger greenback whole than that of second-ranked South Africa whose startups raised a complete of $216,124,800 over the identical interval.

Meanwhile, Punch newspaper additionally reported that President Muhammadu Buhari’s authorities has since taken observe of the house’s progress and is now eager on boosting this additional by creating an atmosphere that permits the nation’s youth to show 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 earlier than the Nigerian legislature someday earlier than the finish of 2021.

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