The Rise Of Nigerian FinTech Industry

The Rise Of Nigerian FinTech Industry

Nigeria is set for additional development in fintech, with interests in foreign trade and digital payment services. 

David Bee, Head of Global Markets at Crown Agents Bank, features the advantages of new and imaginative innovation to monetary administrations in the nation – and the likely benefits for corporate treasurers.

Foreign Direct Investment (FDI) and portfolio investments in Nigeria dramatically increased in 2017, ascending to US$12.2bn – a sign of rising trust in the nation’s drawn-out financial possibilities, combined with the developing advancement of the Nigerian capital markets. 

In a similar period, some US$3bn of speculations was moved between budgetary resources, cultivated by currency showcase instruments. 

This assorted variety of inflow unmistakably mirrors Nigeria’s high development, high open door condition. 

As the hunger for progressively various speculation streams into the nation proceeds, development sought after for remote trade ascends pairs. 

However, for this development to proceed unrestricted, the twin difficulties of money illiquidity and instability must be tended to. 

New innovation as for the arrangement of remote trade appears to be one approach to guarantee smooth venture streams into and out of the nation. 

What’s more, the digitalisation of the FX advertisement is taking care of good faith. 

New online cash exchanging stages have helped fill the hole for nearby African monetary standards, for example, the Naira. 

These advanced cash exchanging advances (a genuine model is Crown Agents Bank’s ‘EMpowerFX’ stage which offers access to more than 500 money sets, with live incorporated news sources to follow showcase change) have improved the speed and proficiency of conveyance. 

Thus, this has created more noteworthy liquidity at increasingly serious costs, which guarantees access to neighbourhood reserves – and guarantees that focal and nearby business banks have a prepared gracefully of G10 monetary forms. 

Furthermore, associations – regardless of whether development organizations, NGOs, or business partnerships proceeding to work and put resources into Nigeria – stay subject to the speciality FX showcase and the correct exchange counterparties to tie down liquidity to help counterbalance working in an irregularly illiquid and unpredictable neighbourhood money advertisement.

Pretty much every edge of the world has been moved by FinTech in as meagre as 20-25 years of its reality with any semblance of PayPal charging at the front by helping individuals bring in consistent cash moves over the world and encouraging on the web instalments. 

In pretty much every notice of FinTech in Africa, the name m-Pesa is referenced under the equivalent relax. 

Established in 2007, M-Pesa assists Kenyans with bringing in all-cash moves and instalments online, even considering stores and withdrawals without any difficulty of a mobile application.

In Nigeria, the nearness of FinTech is similarly eminent, and like its ecosystem, there is a constant ascent in the number of FinTech startups hoping to offer preferable administrations over previous ones. 

FinTechs in Nigeria is hoping to extend the appendages of the monetary division to arrive at its un-banked populace of 60 million individuals (in excess of a fourth of its evaluated 200 million populace) through portable applications that make administrations. 

Additionally, they are hoping to make a variety of money-related services increasingly accessible to the banked populace by offering consistent types of assistance like promising premiums on reserve funds and venture more than conventional banking. 

It is evaluated that there are around 210-250 FinTech administrators/organizations working in the Nigerian space, and these players achieved the valuation of the business to $153.1 million out of 2017 and are anticipated to ascend to $543.3 million by 2022. 

Guidelines of FinTech in Nigeria are supervised by the Central bank. 

As a proportion of hazard to the executives, the CBN places a money related hindrance of at least $275,000 on section into the FinTech market to help secure assets and believability of administrators.

Categories of FinTech

As a prior notice, the term FinTech is an umbrella term. It is an ecosystem with numerous types of natural surroundings. 

These species are the various divisions in the account business from protection to banking to speculation to cash moves and other rising regions like cryptographic forms of money and Agritech. 

This paper centres around five classifications for the Nigerian market: Agritech, Savings, and Investments (money related instruments), Crowdfunding, Mobile Payments, and Cryptocurrencies. 

In positioning the top players in every classification, this paper will put together it’s positioning with respect to google play store’s information.


» Farm Crowdy

In FinTech, agrotech is the utilization of web innovation to close the financing hole and infrastructural shortfalls tormenting the horticultural area. 

They hope to assist ranchers with taking care of the world, cutting off brokers and making cultivating increasingly gainful. 

Most eminently, it is a crowdfunding stage that permits financial specialists to make momentary gathering cycle interests in farming and harvest high interests. 

As the primary advanced agribusiness stage in Nigeria, Farm Crowdy has prevailed with regards to keeping its first situation in the business by giving a stage that interfaces little scope ranchers with imminent financial specialists who don’t really need to think about horticulture to contribute. 

In apportioned assets to little scope ranchers that causes them to increment their yield by embracing capital concentrated/automated cultivating, giving them seedlings, preparing on crop yields, access to more farmlands, and giving protection to agric items. 

Since its dispatch in 2016, Farm Crowdy has helped 25,837 ranchers, gave more than 16,000 sections of land to cultivate, picked up almost 70,000 homestead sponsorships from financial specialists, raised more than 2.5 million chickens, and pays speculators 13-25% profits for their venture. 

On google play store, Farm Crowdy has positioned 3.5 stars with 265 surveys and has more than 50,000 downloads. In total, it has about a hundred thousand dynamic clients. 

Other Agritech stages that offer comparative administrations incorporate Thrive Agric, Growsel, Pork Money (which is crowdfunding for a pig ranch), Requid, Agropack, Releaf, FarmNGA, Probity Farms, among numerous others.

Savings and Investments:

» Piggyvest 

Fintechs in Nigeria offers venture stages that will in general scaffold the information hole in interests in money related instruments, killing data asymmetry, and decreasing the problems related to monetary instruments. 

In the Nigerian space, the reserve funds and speculation subsector is one of the most populated by fintech firms, among which the most prevalent element in this area is the Piggyvest application. 

Piggyvest offers clients the monetary opportunity to spare capability as well as put their reserve funds into utilization by contributing them. 

It propelled in 2016 as a reserve funds stage – Piggybank – and later rebranded to incorporate speculations – Piggyvest. 

It prides itself as the principal online reserve funds and speculation stage in West Africa and gloats of 350,000 dynamic clients. 

Piggyvest guarantees clients 10-13% loan fees on their reserve funds and up to 25% on interest in money related protections. 

At only two years into the business, Piggybank reported that it had brought $1.1 million up in seed store, and saw development in reserve funds rate by up to 3000% somewhere in the range of 2016 and 2017. 

On the Google app store, this app records over 500,000 downloads which are around twice as compared to it’s contenders. 

It additionally positioned 4.7 stars with 20,000 audits.


While the previously mentioned fintech organizations have made progress in the interest of fintech administrations, is bringing high-scale advancement into the market. 

As of late, it went into an association deed with Paga, one of the prevailing names in the cash move segment of the business, to improve the quality and productivity of administration conveyance. 

Among the business, there are not really any current associations, rather, each organization goes after client securing and better assistance. sees a business in an unexpected way. 10 years back, numerous individuals would excuse the idea of putting resources into monetary protections for the absence of satisfactory information on how it functions or comprehension of the patterns. has totally overcome this issue by including purchaser training as a feature of its administrations. 

With this, they walk likely financial specialists through each progression and give a variety of venture choices for every individual. 

Different players in the reserve funds and speculation subsector incorporate Afrinvest, Kudi, Investment one, Payday financial specialist, and numerous others.

Mobile Payments:

» Interswitch

This is no doubt the busiest in the FinTech business in Nigeria and one of the top FinTech regions all around. 

As indicated by the Central Bank, between January to December 2019, the volume of exchanges through portable monies remained at 377,265,208 which mirrors an exchange estimation of N5 trillion. 

The FinTech organization at the front line of this charge is Interswitch. In 2019, it offered a 20% portion of the organization to Visa for $200 million which carried the organization’s valuation to $1 billion (N360 billion) – a unicorn status. 

At this valuation, it outperforms goliath monetary houses like Access bank (N327 billion), and UBA (N227 billion). 

Not at all like reserve funds and venture stages that individuals use for investment funds every now and then – thus portable applications, mobile investment application are utilized for any semblance of service charges, money moves, stores, and withdrawals. 

Organizations utilize portable instalment stages for exchange purposes. 

In any case, on play store, Interswitch still gloats of more than 100,000 downloads in its quick teller application and more than 50,000 downloads in its quick teller operator application, which top other of its reciprocal instalment applications for Nigeria and other African nations.


» Quidax

To numerous individuals, digital currencies are as yet a delusion. In that capacity, putting resources into any type of digital currency would be viewed as inefficient speculation. 

In the Nigerian fintech biological system for digital forms of money, Quidax is helping cryptographic money spreading the information and bringing issues to light for cryptographic forms of money, and helping lovers and speculators make crypto ventures. 

Propelled in 2018, Quidax has made its foundation consistent for exchanging diverse cryptographic forms of money like Bitcoin, Ethereum, Ripple, Litecoin, and different digital currencies utilizing the naira. 

Its market approach of exchanging straightforwardly with naira and boycotting conversion scale varieties is a significant improvement in the crypto advertisement. 

One year after it began, CEO Buchi Okoro said they saw an exchange volume of more than $110 million from clients in 70 nations from 6 mainlandthe s. 

On play store, it has more than 10,000 downloads and appraised a 4.1 star.


» NaijaFund

As an option in contrast to raising assets for individual and business ventures like emergency clinic charges, school expenses, and the preferences, crowdfunding stages assist clients with sourcing assets from an ocean of ‘outsiders’ ready to save a few assets to assist. 

On a worldwide scale, GoFundMe leads other crowdfunding stages by guaranteeing a straightforward framework where individuals looking for monetary help could introduce their difficulties and get solidarity. 

Despite the fact that GoFundMe shares a solid nearness in pretty much every nation, it doesn’t stop other industry players from taking an interest. 

In Nigeria, NaijaFund introduces itself as one of the premier indigenous crowdfunding stages. Albeit essentially present as a web application, it has since its 2016 dispatch helped Nigerians connect the financing hole for individual and business ventures, in which it claims 10%total all-out assets raised.

Develop Your Very Own FinTech App

Developing a FinTech Application requires both creativity and hard work at the same time knowledge about the market conditions. 

Our team makes sure that your goals are turned into reality with utmost care and hardwork.

Our team can be of a great help and lend you a hand in developing a P2P FinTech Application for your business. 

Our research team keeps updates about each new technology coming up in the fintech industry. We can help you out based on your personalized business needs and get you the best possible solutions for technological problems.

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