Nigerian fintechs account for almost 91% of the $417.5 million raised by tech startups in the country – Fintech

Fintech firms accounted for about $379 million or 90.78% of the total, according to an analysis of the $417.5 million raised by Nigerian tech startups in the first nine months of 2021.

Nigerian fintechs dominate the African continent

Nigerian fintechs currently account for more than 90% of the $417.5 million raised by tech startups in the first nine months of 2021, a local report says.

While Test report, compiled by local media outlet Punch, notes that the $417.5 million is already significantly higher than the $300 million raised in all of 2020 and acknowledges that this growth in fundraising is largely due to fintech groups.

To illustrate, the report points out that between 2014 and 2019, $600 million was raised by fintech startups. To prove that the fintech space has grown rapidly since 2020, the report points to the belief of the Fintech Association of Nigeria (FAN). that investments in the financial services ecosystem will reach $400 million in 2021.

Government support

In addition to the majority of funds raised by tech startups, the lion's share of funds raised by fintech startups also occurs on the African continent. As before reported from Bitcoin.com News, of the 277 fintech funding rounds tracked by Disrupt Africa between 2015 and mid-2021, 108 of those rounds went to Nigerian startups.

These rounds, totaling $467,901,000 in investment, mean Nigerian fintechs accounted for 53.4 percent of the funds raised since the tracking began. This figure is much higher than that of second-place South Africa, whose startups raised a total of $216,124,800 during the same period.

Meanwhile, Punch Newspaper also reported that President Muhammadu Buhari’s administration has since taken note of the growth of the space and is now keen to take it further by creating an environment where the youth of the country can translate their passions into ideas.

The report added that a “Startup Bill”, a joint initiative of the Nigerian tech startup ecosystem and the Presidency, is now expected to be presented to the Nigerian legislature sometime before the end of 2021.

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