Nigerian fintech startups currently account for over 90% of the $417.5 million raised by tech startups during the first nine months of 2021, a local report has said.
According to an analysis, fintech firms accounted for about $379 million or 90.78% of the total $417.5 million that was raised.
The report states that the $417.5 million is significantly higher than the $300 million raised in the entirety of 2020, and it’s largely thanks to fintech groups.
To prove that the fintech space has experienced growth since 2020, the report makes reference to the Fintech Association of Nigeria (FAN)’s belief of the investment in the financial service ecosystem exceeding $400M in 2021 as opposed to the $600 million it recorded between 2014-2019. In addition, FAN has predicted a revenue base of $539M by 2022.
Asides sweeping majority of funds raised by tech startups, Nigerian firms also account for the huge chunk of funds raised by fintech startups that operating on the African continent.
According to a previous report, 108 of the 277 fintech funding rounds monitored by Disrupt Africa between 2015 and mid-2021 went to Nigeria startups.
Considering the growth in the space, reports have it that that President Muhammadu Buhari’s administration is keen on creating an environment to allow the youth turn their passion to ideas.
As of writing, a startup bill which is a joint idea between Nigeria’s fintech startup ecosystem and the Presidency has been agreed on to reach the legislature before the end of 2021.
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