Technology
Top 10 Players in Nigerian Fintech Space
By Adedapo Adesanya
The Nigerian financial technology space, like the sky, is wide enough to accommodate many players as the ways of doing financial transactions have been disrupted by digital innovations.
Contrary to what many might believe, the Nigerian government saw the possibility of this and in 2007, the Central Bank of Nigeria (CBN) launched the Payment Systems Vision 2020 (PSV 2020). This singular vision from the apex bank can be viewed as the catalyst that spurred the need for fintech companies to start multiplying over the years.
This CBN’s activity of 2007 can be considered as the birth of another era. The PSV 2020 was the first time the CBN set forward a reasonable policy for a future cashless society.
Prior to this, there were technology companies in existence but then, they were not able to sit at the table with traditional banks, who had the largest share of the buffet. But within the space of 15 years, rapid growth has changed the narrative.
Now, the fintech space in Nigeria is very competitive as there are countless numbers of fintech startups/companies competing for market share. This means even the traditional banks are being forced to innovate to guarantee their survival amidst the spread of fintech startups or digital banks.
As at the past decade, the fintech industry was somewhat a $20 billion market but the estimated size as at now is $128 billion and this is expected to rapidly expand with an annual average of 24 per cent and could top $310 million in 2022.
In Nigeria, there are an estimated 250 fintech companies with their skin in the game, all jousting for offer services from agriculture technology to savings and investments to crowdfunding to mobile payments to cryptocurrencies.
The diversification of these offerings is making it possible to align with places where traditional banks may not be located and are pushing to achieve the CBN’s goal of financial inclusion. The CBN has said that Nigeria will attain 95 per cent financial inclusion by 2024 and one cannot but wonder the role which fintechs will play to ensure this.
Business Post has streamlined the long list of players to 10 game-changers who are driving digital transactions and offering solutions that will not only close the gap in banking but are revolutionising how Nigerians pay for services, save and borrow money, make international payments, and even improve financial relationships among companies and even countries.
Interswitch
Interswitch is one of the early players. It burst into the scene in 2002 and was founded by Mitchell Elegbe as a transaction switching and electronic payments processing company. Today, Interswitch’s technology processes over 500 million transactions a month while its Verve payment card is the largest domestic debit card scheme in the country and has expanded outside of Africa.
Interswitch created the first electronic switch whereby Nigerian financial institutions could communicate and thereby operate ATMs and point of sales operations. The company now provides much of the transaction systems for Nigeria’s online banking system.
In 2019, Interswitch confirmed a $1 billion evaluation after Visa, an American multinational financial services corporation invested $200 million for 20 per cent of its stake.
FlutterWave
As an umbrella fintech, Flutterwave founded by Iyin Aboyeji in 2014, completes payment services from more than 68 online payment gateways in Nigeria. It allows clients to tap into its application programming interface (API) and work with Flutterwave developers to customize payments applications.
The company majorly offers business to business (B2B) payments services for companies operating in Africa to pay other companies on the continent and abroad. Some of its customers include Uber, Booking.com and Jumia.
In 2019, Flutterwave processed 107 million transactions worth $5.4 billion, according to data on its website.
Paga
Founded by Tayo Oviosu and Jay Alabraba, the mobile payment company enables people to digitally send and receive money and creating simple financial access for everyone. In Nigeria, Paga has over 9 million customers and 17,000 agents.
It was initially launched in Nigeria to profit from the buildup of cash money in the financial industry and to execute financial services for all residents in Africa. However, it was one of the early birds to tap into mobile banking with customers able to access it multitudes of service offerings by dialling *242#.
PiggyVest
PiggyVest is an online savings platform that empowers savers to put away funds that they would prefer not to withdraw effectively. Founded by Somto Ifezue, Odunayo Eweniyi, and Joshua Chibueze, the fintech as at 2019 has over one million users and has saved up to $80 million.
PiggyVest doesn’t just allow users to save, it also allows them to invest their money while offering a return within a period. It offers between 10 – 15.5 per cent on savings. Investments can get up to 22 per cent returns in one year.
One key feature that has found home with users is the SafeLock feature which was modelled after treasury bill transactions, where a buyer is paid a fixed percentage of their capital depending on how long you permit the government to hold your money.
Business Post understands that the average amount in a Piggyvest SafeLock is about N500,000 and is typically locked for between 4 and 6 months.
Paystack
Founded by Ezra Olubi and Shola Akinlade, Paystack offers payment solutions to businesses in Nigeria. They are one of the leading online payment gateways in the county. The fintech company, which was founded in 2015, has quickly become one of the favourite payment solutions for tech startups in the country.
Its last round of funding came in August 2018 when they raised $10.2 million in Series A funding led by Stripe and had previously recorded four previous fundings in seeds and non-equity assurance.
eTranzact
Also, one of the early players, it was launched in 2003 as a multi-application, multi-network and multi-channel electronic payment platform that supports every significant network; including AMEX, VISA and MasterCard.
eTranzact is one of the Fintech companies in Nigeria designed as a credible option in contrast to all transaction which is either cash or cheque based. The platform capacity is with the end goal that any arrangement driven by customer payment can be automated on the platform.
eTranzact as a Switch processes payment requests from various channels – Web, ATM, POS, mobile-utilizing automated procedures.
The switching platform validates transaction requests subsequent to running security checks on the payment cards.
Nigerians use it to pay at cinemas, event shows, and for other payments. The company has tech solutions for players in various sectors of the economy including banking, education, the financial market, travel and transportation, telecommunications, and public administrations.
Paylater (Now known as Carbon)
Carbon is a mobile-only digital bank founded by Chijioke and Ngozi Dozie. It provides innovative financial services to the financially underserved. It was formerly known as Paylater. Carbon offers bill payments, fund transfer, and savings products, in addition to loans.
They offer instant loans to Nigerians without collateral. With a very competitive interest rate, they have dominated the fintech sector. The app is used by over 1 million people to secure loans and other financial solutions.
In 2019, they secured $5m debt investment from New York and Nairobi-based debt platform Lendable. Mostly known for giving instant loan, they have since diversified into many areas such as mobile top-ups, investment and digital banking.
Business Post reported earlier this year that as at last year, the fintech had disbursed over 975,000 loans. This boosted its revenue as it recorded over 25,000 loans top-up, bring about a N6.3 billion in revenue.
Remita
Remita made the cut because of its affiliations to small and medium scale enterprises, multinationals, state governments, government agencies, NGOs, schools and educational institutions alongside Individuals to receive and make payments electronically.
Developed by SystemSpecs, Remita processes over two million salaries per month for Nigerian companies. In 2016, Remita processed N1.36 trillion for the Nigerian government when it consolidated all federal ministry and agency accounts under the Treasury Single Account (TSA) scheme.
The company started out as a developer and reseller of human resources and accounting tools. It eventually developed HumanManager, an HR and payroll system for corporate environments. Its payroll system has since expanded to Ghana, Benin Republic, Equatorial Guinea, Sierra Leone, Zimbabwe and South Sudan.
Kuda Bank
Kuda is the first digital-only bank in Nigeria with a standalone license. Unlike others, it is not fintech that has a mobile wallet or a mobile app affiliated with an existing bank, it is a bank on its own.
Based in Lagos and London, following its banking license from the Central Bank of Nigeria (CBN), this gives it a status different from other fintech startups.
Part of its offerings includes: checking accounts with no monthly fees, a free debit card, savings and peer-to-peer (P2P) payments options on its platform.
Customers can open an account within five minutes and will get an account number and can request a physical debit card afterwards.
CowryWise
Considered the direct rival of PiggyVest, it was founded by Edward Popoola and Razak Ahmed. The fintech allows users to save for long-term goals including home, vacation, family, emergency, education, business, retirement, among others.
A user can invest in Nigeria’s money market via mutual funds. The platforms list funds like Afrivest Plutus Fund, United Capital Money Market Fund, Meristem Money Market Fund and more. Users can access Dollar mutual funds.
Cowrywise also offers between 10 – 15 per cent on savings while Mutual funds on its platform can get up to 20 per cent per annum.
By Dipo Olowookere
To tackle the critical cash flow challenges faced by Small and Medium Enterprises (SMEs) across Africa, investors like P2Vest, Norrsken Accelerator, Afrinovation Ventures, Kaleo Ventures, and 54 Collective (formerly known as Founders Factory Africa), have invested about $1.6 million into Billboxx.
The integrated billing-to-payment platform, founded in 2023, successfully closed the pre-seed funding round, which is a mix of debt and equity, due to its innovative approach and commitment to building a more financially secure future for SMEs – the backbone of the African economy.
Manual invoicing and deferred payments often result in delayed payments, stifling many SMEs, but Billboxx’s integrated billing-to-payment platform streamlines billing processes, reduces inefficiencies from manual invoicing and mitigates the impact of deferred payments.
By providing automated billing and invoicing, secure payment facilitation, and tailored cash flow financing, Billboxx empowers businesses to achieve consistent cash flow and focus on growth.
Since its inception, the company has facilitated over $4 million in invoice payments through its MVP launched in May 2023.
The platform boasts strategic integrations with a leading commercial bank in Nigeria, a prominent African payment gateway, and multiple lending partners, enabling seamless payment facilitation via bank transfers, cards, and financing options.
“Cash flow difficulties are the leading cause of business failures in Africa, with delayed invoice payments being a major contributor.
“Billboxx is dedicated to solving these issues with an integrated platform that ensures consistent cash flow and financial resilience for businesses.
“This funding round enables us to expand our impact and empower more SMEs to thrive,” the co-founder and chief executive of BillBoxx, Mr Justus Obaoye, said.
Another co-founder and chief technical officer, Mr Abdulazeez Ogunjobi, noted that, “Delayed invoice payments pose a significant threat to SME growth and survival.
“Our platform not only streamlines the billing-to-payments workflows but also offers strategic embeddings to expedite payments. We aim to alleviate payment concerns and allow SMEs to focus on their core business.”
One of the investors, Bongani Sithole of 54 Collective, said, “We’re enthusiastic about the innovative work the Billboxx team is building. These 3x founders with successful exits under their belts are leveraging their leadership and business experience to tackle a massive pain point for SMEs across Africa.
“We invested in the company due to the large market size of the opportunity, impressive early traction gained from strong early partnerships with notable large corporates and startups, and the solid tech product the team has developed. We’re delighted to back Justus and Abdulazeez as they continue to scale Billboxx.”
Mr Obaoye and Mr Ogunjobi previously co-founded two startups: Charistouch (Carido), successfully acquired by Cars45, and Fixit45, a spin-off from Cars45.
Their leadership experience in large corporations and scaleups such as Schlumberger, Bolt, and OLX add to their strategic insight and entrepreneurial prowess.
As technology advances, the internet is undergoing a revolutionary shift toward decentralization. Known as Web3, this next phase of the internet is redefining how we interact with digital systems by emphasizing transparency, user ownership, and autonomy.
At the heart of this evolution are Web3 developers—professionals whose expertise in blockchain and decentralized systems is driving innovation and creating exciting new opportunities. Pursuing a Web3 career is not just about adapting to industry trends; it’s about shaping the future of technology. In this article, we’ll explore why Web3 developers are in high demand and how you can step into this promising field.
What is Web3?
Web3 represents the decentralized evolution of the internet. Unlike its predecessor, Web2, where centralized platforms dominate, Web3 leverages blockchain technology to create an ecosystem that is transparent, secure, and community-driven.
Some of the defining features of Web3 include:
- Decentralization: Control is distributed among users rather than being concentrated in a single organization.
- Transparency: Blockchain technology ensures that all transactions and operations are open and verifiable.
- Automation: Smart contracts allow for self-executing agreements, reducing the need for intermediaries.
This paradigm shift has unlocked immense opportunities, particularly for developers who can create, manage, and enhance Web3 applications.
Why a Web3 Career is the Future
- Rapid Growth in Blockchain Technology
Blockchain is no longer just about digital currencies; its applications have expanded to include finance, healthcare, logistics, and gaming, among others.
This rapid adoption is driving an unprecedented demand for Web3 developers to build decentralized applications (dApps) and integrate blockchain solutions across various sectors.
- High Demand and Competitive Compensation
The demand for Web3 talent has outpaced supply, making it one of the most lucrative fields in tech. Web3 developers often earn significantly more than traditional developers due to their specialized skills.
Many roles offer remote and flexible working arrangements, enabling global opportunities.
- Opportunities for Innovation
Web3 is still in its infancy, making it a playground for innovators. From creating decentralized finance systems to building virtual economies in the metaverse, developers have the chance to work on groundbreaking projects that redefine industries.
Key Skills for a Successful Web3 Career
To excel as a Web3 developer, mastering certain skills is essential:
- Programming Knowledge: Proficiency in languages like Solidity, Rust, or Go, commonly used in smart contract and blockchain development.
- Blockchain Fundamentals: A deep understanding of how decentralized networks function and their architecture.
- Smart Contracts: The ability to design and implement self-executing contracts.
- Cryptography: Knowledge of encryption techniques to ensure security in applications.
Soft skills such as adaptability and problem-solving are equally important, given the fast-paced nature of the industry.
Benefits of Pursuing a Web3 Career
A career in Web3 comes with a range of unique advantages:
- Global Reach: The decentralized nature of Web3 opens doors to international opportunities without geographical limitations.
- Future-Ready Skills: Web3 expertise is increasingly sought after, offering a secure and sustainable career path.
- Collaborative Ecosystem: Unlike traditional tech environments, Web3 thrives on open collaboration and community-driven development.
- Freedom to Innovate: Developers have the flexibility to experiment and contribute to transformative projects.
Steps to Start Your Web3 Journey
Breaking into a Web3 career may seem challenging, but with a focused approach, it’s entirely achievable. Here’s how to get started:
Understand the Basics
- Learn the core concepts of blockchain technology, decentralized systems, and smart contracts.
- Explore educational resources, tutorials, and online communities for foundational knowledge.
Develop Technical Skills
- Master programming languages and frameworks commonly used in blockchain development.
- Familiarize yourself with Web3-specific tools and libraries to streamline your workflow.
Build Projects
- Start small by creating basic decentralized applications or experimenting with smart contracts.
- Showcase your work in a portfolio to demonstrate your capabilities for a potential employer.
Engage with the Community
- Join forums, developer meetups, and hackathons to network with others in the field.
- Stay updated on industry trends by following Web3-focused discussions and publications.
Continue Learning
- The Web3 space is constantly evolving, so staying up-to-date with advancements is crucial.
- Seek out certifications or courses to deepen your expertise and credibility.
Challenges and Future Outlook
While the opportunities in Web3 are immense, they come with challenges. The fast-evolving technology requires developers to continually upskill. Additionally, the regulatory landscape for blockchain and decentralized systems is still developing, which may introduce uncertainties. A Web3 career offers more than just a job—it provides a chance to shape the next wave of technological innovation. As industries embrace decentralization, the demand for Web3 developers will only grow. Whether you’re a seasoned tech professional or someone looking to enter the field, now is the perfect time to explore this exciting career path. By stepping into the world of Web3, you’re not just advancing your skills—you’re becoming part of a movement that’s redefining how we connect, transact, and collaborate online. The future of technology is here, and it’s decentralized. Will you be part of it?
By Adedapo Adesanya
HubPharm has emerged as the winner of First City Monument Bank (FCMB)’s HERccelerate Showcase Day held recently at Hub One, FCMB’s Innovation Hub in Yaba, Lagos.
The tech accelerator, powered by FCMB’s SheVentures and Hub One and delivered by 8thGear Hub & Venture Studios, was designed to empower women-led startups in Nigeria with the skills and resources needed to secure funding and scale.
HubPharm was the best out of 10 finalists with Midddleman, a platform simplifying payments for African e-commerce businesses sourcing from China coming second, while Onit, a productivity tool designed for African SMEs, secured third place.
The Showcase Day brought together the finalists selected from over 1,000 applications who pitched their innovative solutions to a panel of judges.
Ms Tope Kareem, the co-founder of the startup explained that HubPharm is a digital platform with a retail pharmacy chain which has delivered over 100,000 medications across 15 cities, ensuring 98 per cent on-time delivery with AI-driven logistics.
We plan to explore more options and ensure Nigerians, both at home and abroad, know the importance of prioritizing their health. This funding will enable us to keep growing and making an impact,” she noted.
Speaking on the HERccelerate initiative, Mrs Nnenna Jacob-Ogogo, Group Head of SheVentures, described it as “a testament to what we can achieve when we invest in women. While this is the first pilot of its kind, it is clear that women in tech have the talent, resilience, and vision to drive innovation.”
She also highlighted SheVentures’ broader impact, noting that over the past five years, they have “scaled businesses through four key pillars: access to finance, knowledge, markets, and networks. Our Zero Interest Loan program has provided over N800 million in funding to women entrepreneurs so far, an unprecedented achievement in the industry.”
The top 10 finalists will get free access to Hub One’s coworking space for a year, valued at over N5 million and will also be supported to scale their businesses.
FCMB’s HERccelerate programme is setting a new standard for supporting women in tech, with plans to accelerate over 200 startups in the next five years. By fostering innovation and inclusion, FCMB is shaping a brighter future for women entrepreneurs in Nigeria.
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