A few years ago, the FinTech industry in Nigeria was in its early stages, but it has since evolved into a significant player in Africa. It is gaining international recognition and experiencing increased adoption by consumers, forming stronger collaborations with established enterprises.
The industry is witnessing growth in various sub-sectors, contributing to the overall economy. Notable trends include digital payments, digital investment, digital capital raising, digital assets, and neo-banking.
Digital investment stands out as the largest market, projected to have a total transaction value of US$58.37 million by the last quarter of this year, according to Statistica. The average transaction value per user in the Digital Investment market is expected to reach US$15.78 in 2024, with the user base projected to reach 146.10 million by 2027. These statistics reflect the growing demand for low-cost and user-friendly investment options.
Digital payments have also experienced a surge in popularity, with consumers increasingly relying on mobile payment solutions for their daily transactions.
Despite the market’s size, rural areas are struggling to catch up, posing a threat to overall financial inclusion in the country. To address this, corporate organizations with economic development responsibilities are sponsoring innovations to deepen the financial sector. One such example is the telecom giant, MTN Nigeria, which recently awarded approximately $10,000 (N12 million) to three Nigerian tech start-ups with innovative ideas aimed at advancing the FinTech industry.
The contribution from MTN Nigeria fulfills promises made during the MoMo Hackathon, an event designed to generate solutions for accelerating financial inclusion and digitization of payments in Africa. The winner of the hackathon, Oluwapelumi Yusuf, received a grand prize of USD 5,000 for creating Rova Pay. This solution integrates MoMo APIs and offers transaction convenience through automated USSD, eliminating the need for internet services and manual code dialing.
Other notable participants in the hackathon included Marvis Igbokwe and Favour Ajie Divine, who secured second place with MoMo Cash, earning a $3,000 cash prize. Isaac Odinaka Franklin’s solution, Clique Plus Pay, claimed third place with a $2,000 cash prize.
The grand finale of the hackathon in Lagos attracted tech developers, entrepreneurs, and innovators from various sectors, all focused on developing solutions to accelerate financial inclusion and digitization of payments in Africa. Elsa Muzzolini, Chief Commercial Officer at MoMo PSB, emphasized the importance of the hackathon in the Nigerian FinTech industry, highlighting the collaborative effort to foster financial inclusion and provide developers with the tools to transform lives through innovative applications.
