Connect with us

Economy

Payments, Trading and Crowdfunding are Boosting Nigeria’s Fledgeling Fintech Sector

Published

on

Crowdfunding

While Nigeria’s financial technology sector is not exactly booming, it shows steady growth signs with promise for the short, medium, and long term. Over the last 12 months, Nigeria has witnessed the fintech sector emerge and take significant strides, especially when compared to data from 2020. For example, the value of all instant payments made in 2021 was more than N241 trillion, almost double that of 2020’s figures.

But it is not just payments where there is growth and potential. Overall, in 2021, nearly $1 billion was pumped into the Nigerian startup sector, which was a whopping 501% more than in the previous year. It now ranks second in Africa in terms of funding and investment for startups, equivalent to 41% of what reaches the entire continent. Not only this, but three different Nigerian startups all hit a valuation of $1 billion, becoming what is known as a “unicorn”.

Trading companies

In the first four months of 2022, the top 10 Nigerian stock broking firms traded some NGN 579 billion in stocks, over 63% of the country’s total. The country has a population of over 200 million people, with more and more coming online every year. Recent figures from Statista show that over half of the population is online, meaning many are gaining interest in trading and other forms of investment. According to data from various trading stakeholders, domestic trading transactions accounted for a significant amount (78%) of the market, demonstrating the interest of locals.

There is widespread interest in various sectors such as forex, stocks, and of course, CFD trading. The latter, short for contract for difference, is popular due to the fact there is no need to purchase the asset or security, instead, the trader simply estimates how much they think the value will rise or fall. Various sources put the number of active traders in the country at around 300,000, a number which has shot up over the last two years and is expected to grow at a steady pace.

Payment companies

Digital payment companies have done exceptionally well over the last year. Out of the new Nigerian unicorns, Flutterwave made significant waves along with Interswitch, Moove and Quickteller. Flutterwave managed to raise some $250 million in funding back in February, while Moove raised $105 million. These kinds of sums are significant for the country and set a promising precedent for the years to come.

Other signs of positivity include collaborations with big names such as Flutterwave with Paypal, Paystack with Apple Pay, and Carbon with Visa. There is also growth in alternative banking models that aim to serve the unbanked and provide better access to financial systems to those living in rural areas.

Credit and funding platforms

Nigeria's Fledgeling Fintech Sector

Due to challenges with the unbanked and a lack of access to conventional lending solutions, many Nigerians look to other solutions for financing their startups. These include crowdfunding which has taken off in a big way in the country. As it can be expensive to borrow from traditional financial institutions, crowdfunding apps and platforms have become very popular with entrepreneurs.

In the agricultural sector, agritech companies are particularly fond of using such methods to raise all-important capital. There are many big crowdfunding companies in the country, such as ThriveAgric, Farmcrowdy, and Porkmoney. By the end of this year, Statista predicts it will be worth $1.98 million with a CAGR of almost 6% over the next few years.

The Nigerian fintech sector has plenty of potentials and shows signs of sustainable growth in the medium and long term. This will lead to a more financially literate society and more opportunities for entrepreneurs, startups, and the community as a whole.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Economy

Inflation in Nigeria Cools to 23.18% in February 2025

Published

on

nigerian inflation

By Modupe Gbadeyanka

In February 2025, inflation in Nigeria moderated to 23.18 per cent from the 24.48 per cent recorded in January 2025, data from the National Bureau of Statistics (NBS) on Monday revealed.

The agency disclosed in the report yesterday that on a year-on-year basis, the average prices of goods and services eased by 8.52 per cent from the 31.70 per cent achieved in February 2024.

In the Consumer Price Index (CPI) data, the NBS said last month, the headline inflation slowed due to decline in the average prices of food items like yam tuber, potatoes, soya beans, flour of maize/cornmeal, cassava, bambara beans (dried), etc compared with the prices in the first month of this year.

It stated that housing, water, electricity, gas, and other fuels accounted for 1.95 per cent of inflationary concerns, which education services contributed 1.44 per  cent, with health accounting for 1.40 per cent.

It added that clothing and footwear accounted for 1.17 per cent, information and communication contributed 0.76 per cent, and personal care, social protection, miscellaneous goods and services accounted for 0.76 per cent.

Further, furnishing, household equipment, and routine household maintenance contributed 0.69 per cent; insurance and financial services accounted for 0.11 per cent; and alcoholic beverages, tobacco, recreation, sport, and culture, sport, and culture contributed 0.07 per cent.

Also, food and non-alcoholic beverages accounted for 9.28 per cent, restaurants and accommodation services contributed 2.99 per cent; and transport accounted for 2.47 per cent.

The agency also revealed that last month, food inflation went down on a year-on-year basis by 14.41 per cent to 23.51 per cent from 37.92 per cent in the same period of last year.

On a month-on-month basis, food inflation was 1.67 per cent, with the average annual rate for the 12 months ending February 2025 over the previous 12-month average at 34.74 per cent, in contrast to 30.07 per cent in February 2024.

It stated that core inflation, which excludes the prices of volatile agricultural produces and energy, also declined by 2.12 per cent to 23.01 per cent, year-on-year in February 2025, compared to the 25.13 per cent in February 2024.

On a month-on-month basis, the core index stood at 2.52 per cent in February while the average 12-month annual inflation rate was 25.33 per cent for the 12 months ending February 2025, higher than 21.72 per cent in February 2024.

Continue Reading

Economy

SEC Suspends Centurion Registrars for Capital Market Infractions

Published

on

Centurion Registrars Limited

By Adedapo Adesanya

The Securities and Exchange Commission (SEC) has announced the suspension of Centurion Registrars Limited, including its directors and sponsored individuals from the capital market.

The suspension was announced by the commission in a statement titled Additional Enforcement Measures on Erring Capital Market Operators.

The SEC stated, “All clients of Centurion Registrars are advised to contact Africa Prudential Plc for guidance.”

This is not the first time Centurion Registrars has had issues with the Nigerian government as it was convicted in 2022 by a Special Offences Court in Lagos over fraud involving N206.5 million stocks after it was arraigned by the Economic and Financial Crimes Commission (EFCC).

The latest action of the SEC on the company is part of the agency’s broader efforts in 2025 to crack down on capital market operators it deems illegal to sanitise the investment environment in Nigeria.

Recall that the regulator revoked the registration of Mainland Trust Limited as a capital market operator, citing regulatory non-compliance and outstanding complaints against the company.

In a related development, the commission also said it would publish the names of Capital Market Operators who violate market regulations in its Name and Shame journal.

The SEC said the decision reflects a zero-tolerance policy for infractions in the capital market and aligns with newly revised enforcement strategies.

According to the notice, “The publication will be in addition to the sanctions and penalties for the respective infractions prescribed in the ISA 2007 and the SEC rules and regulations.”

Business Post had reported that the SEC listed mainstreaming the Nigerian capital market into the economy as its top priority in 2025.

Mr Emomotimi Agama, the Director General of SEC, said this in his New Year 2025 message to the capital market community on Monday.

He also said the commission would intensify efforts to eliminate Ponzi and pyramid schemes, thereby fostering an environment for genuine investment opportunities to thrive in 2025.

He said that protecting investors remained a cornerstone of the commission’s mission.

Mr Agama also said that the commission would prioritise key initiatives aimed at deepening market integrity, enhancing investor confidence and driving economic growth.

Continue Reading

Economy

MTN Anticipates Higher Earnings from Nigerian Operations After Tariff Hike

Published

on

MTN Subscribers

By Adedapo Adesanya

The MTN Group expects its Nigerian subsidiary, MTN Nigeria Plc, to witness a significant increase in revenue after the federal government, through the Nigerian Communications Commission (NCC), approved a 50 per cent hike in tariffs for data, voice, and SMS.

In a statement on Monday, the telecommunications group said it experienced increases across its service revenue, earnings, cash flow and leverage all improved in the second half of last year.

However, across the entire Africa spread, it reported a loss after tax of 11.2 billion Rand for its 2024 financial year, a significant decline from the 4 billion Rand profit in 2023, attributing this to the devaluation of the Naira and impairments relating to the conflict in Sudan.

Meanwhile, service revenue rose by 14 per cent in constant-currency terms but was down 15 per cent in reported Rand terms.

According to the numbers, MTN Nigeria’s service revenue was up by 35.6 per cent and is expected to increase in 2025 after tariff adjustments were implemented in February 2025.

Recall that following the approval granted by the Nigerian Communications Commission (NCC) in January, MTN revised prices last month, even going beyond the approved 50 per cent in some of its increments.

For internet data, MTN’s 1.8GB monthly plan is now 50 per cent higher than the previous rate at N1,500. Before now, the package was 1.5GB priced at N1,000.

In addition, the company has raised its 15GB plan to N6,500 from N4,500, while its 20GB plan has been adjusted to N7,500, up from N5,500.

Customers who use larger bundles will pay more comparatively as the 365-day 1.5TB plan jumped by 60 per cent from N150,000 to N240,000, and the 600GB 90-day plan also increased by 60 per cent from N75,000 to N120,000.

In Nigeria, the group said it renegotiated tower lease contracts, which allowed MTN Nigeria to better manage adverse macroeconomic impacts on the business.

“This underscores our dedication to transformation and creating shared value and remains integral to our future success,” the MTN Group President and CEO, Mr Ralph Mupita said.

Continue Reading

Trending