• Andrew Uaboi – Vice President and Head of West Africa

Q: How has the Nigerian fintech sector grown in recent years?

A: The Nigerian fintech sector has experienced remarkable growth over the past few years, positioning itself as a key player in the global fintech landscape.

This growth, driven by increased investments, regulatory support, high mobile penetration, financial inclusion efforts and innovative solutions, has resulted in significant funding, a growing number of startups and a growing user base .

Nigerian startups have consistently established themselves as global winners, demonstrating their ability to develop innovative solutions with global impact. For example, ThriveAgric, a Nigerian agritech startup, won the Visa Everywhere Initiative (VEI) global title in 2022, while Drugstoc secured the title in 2023.

Q: How can government regulation support the growth of Nigeria’s payments ecosystem?

A: Government regulation plays a central role in promoting the development of Nigeria’s payments ecosystem. By creating a favorable regulatory environment, the government can encourage innovation, ensure consumer protection and promote financial inclusion. Clear and consistent regulations give fintech companies the confidence to invest and innovate, knowing that a stable framework is in place. Additionally, regulations that promote interoperability between payment systems can improve efficiency and reduce costs for both consumers and businesses. By working closely with industry stakeholders, the government can ensure that regulations are both forward-looking and adaptable to the rapidly changing fintech landscape. This collaborative approach will help Nigeria’s payments ecosystem thrive and contribute to the country’s broader economic development.

Q: What are the main challenges facing Nigerian fintechs, and how can they turn these challenges into opportunities?

A: Regulatory uncertainty can be daunting, but it also provides an opportunity for fintechs to collaborate with regulators and help shape the regulatory landscape. By participating in policy discussions and providing feedback, fintechs can advocate for regulations that promote innovation while ensuring consumer protections.

Limited access to financing is another challenge. To overcome this problem, fintechs can explore alternative sources of financing such as venture capital, crowdfunding and strategic partnerships. Building strong networks and demonstrating clear value propositions can attract investors looking for innovative solutions in emerging markets.

Infrastructural deficits, such as unreliable internet connectivity and power supply, can hamper operations. However, fintechs can turn this challenge into an opportunity by developing solutions that are resilient and adaptable to local conditions. For example, creating offline capabilities for digital services can ensure continuity even in areas with weak connectivity.

Q: How can Nigerian fintechs attract more foreign investment?

A: Nigerian fintechs can attract more foreign investment by clearly demonstrating their value proposition, showcasing their impact on financial inclusion and highlighting their unique solutions. Building strong networks and partnerships is essential, and participation in programs such as Visa Africa Fintech Accelerator can provide valuable exposure and mentorship. Maintaining transparency and good governance practices will strengthen investor confidence. Additionally, leveraging success stories, such as winning global competitions like the Visa Everywhere Initiative (VEI), can attract more investment by demonstrating the potential for global impact.