Nigerian Government Aims to Boost Fintech Funding through Improved Regulatory Environment and Infrastructure

By Ekemini Last updated Sep 25, 2023

The Nigerian Ministry of Communications, Innovation, and Digital Economy plans to create a conducive regulatory environment and enhance digital infrastructure to facilitate fintechs’ access to funds, particularly from angel investors. This initiative aligns with efforts to encourage innovation and entrepreneurship in the country. Additionally, the government is open to collaboration with the Nigerian Exchange Group (NGX) to offer tailored listing options for startups through the exchange technology board.

Key Points:

The Ministry of Communications, Innovation, and Digital Economy in Nigeria is focusing on creating a regulatory framework and enhancing digital infrastructure to enable fintechs to access funding, especially from angel investors.
The Securities and Exchange Commission (SEC) approved rules for listing on the NGX tech board in December 2022, aimed at boosting investment in indigenous fintech companies across Africa.
Nigerian fintechs have attracted significant funding from venture capitalists in countries such as the United States, United Kingdom, Switzerland, and Belgium, totaling over $876.5 million between 2016 and 2022.
The African fintech sector received $1.45 billion in funding in 2022, a 39.3 percent increase from the previous year, making it the most attractive sector for investors in the continent.

Analysis: The Nigerian government’s efforts to create a conducive environment for fintech funding and innovation are crucial for the growth of the sector. By prioritizing technology and entrepreneurship, Nigeria aims to diversify its economy and reduce dependence on the oil sector. Additionally, fostering collaboration with the NGX and encouraging local participation in capital formation are positive steps towards strengthening the fintech ecosystem.

Background: The Nigerian fintech sector has shown significant promise, attracting substantial investments from both domestic and international sources. The government’s focus on providing the right regulatory framework and infrastructure will likely further accelerate the growth of this dynamic industry.