“Growing the Nigerian Technology Ecosystem through the Capital Markets” explained that listing on the NGX would provide fintech firms with access to affordable funding and other benefits. The NGX has established the Technology Board, which offers less stringent listing requirements and important information for issuers, sponsors, investors, and advisors.
The financial technology (fintech) sub-sector has emerged as the dominant force in Nigeria’s technology landscape, with the e-commerce ecosystem following closely behind.
In a recent report by leading audit firm PwC, it was revealed that fintech holds the largest share of Nigerian tech startups at 36 percent, with a strong focus on payments and consumer lending.
PwC attributed this growth to several factors, including the identification of gaps in the market by entrepreneurs. These gaps include inadequate banking services, especially in rural areas, a young population, increasing smartphone usage, and regulatory efforts to promote financial inclusion.
The firm highlighted that fintech companies have seized the opportunity to offer improved financial propositions across the value chain. Their innovative solutions address challenges related to affordable payments, quick loans, flexible savings, investments, and more.
In some cases, fintechs collaborate with traditional banks, leveraging technology to seamlessly deliver financial services to customers. Partnerships with established players like Verve and Mastercard have further contributed to the expansion of the sector.
PwC also emphasized the potential for Nigerian fintech companies to thrive by listing their stocks on the Nigerian Exchange (NGX) Limited.
The company’s report titled “Growing the Nigerian Technology Ecosystem through the Capital Markets” explained that listing on the NGX would provide fintech firms with access to affordable funding and other benefits. The NGX has established the Technology Board, which offers less stringent listing requirements and important information for issuers, sponsors, investors, and advisors.
According to the report, the Nigerian fintech landscape is dominated by payment and remittance solutions, accounting for 26.6 percent. Lending and financing services make up 19.7 percent, while blockchain technology contributes 11.0 percent.
Investtech, focusing on investment-related solutions, represents 10.4 percent, and personal finance platforms account for 8.1 percent. Other notable sectors in the tech ecosystem include e-health startups at 9.4 percent, recruitment and HR platforms at 9.1 percent, and mobility and logistics solutions at 7.3 percent.
The rise of the fintech sector in Nigeria showcases the country’s potential for technological innovation and its commitment to improving financial services for its citizens.
With favorable regulatory support and the potential for capital market listings, Nigerian fintech companies are poised for further growth and disruption in the financial industry.
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