Fintech sector in Nigeria to increase by more than 60% among startups by 2026
A report on the state of fintech sector and regtech activity in Nigeria was published by RegTech Africa & Agpaytech. According to the research, African FinTech agreements totaled 60 transactions in the first half of 2023 and raised a combined $189 million in Q2 2023, a 64% decrease from the same time period in 2022.
Nigeria continues to have a number of FinTech deals and operations, mostly in the city of Lagos. As of H1 2023, Nigeria saw 25 deals, accounting for 42% of all deals in Africa. The payment-related industry in Nigeria housed the majority of FinTech goods and services. By 2026, however, it is anticipated that the number of startups in Nigeria’s FinTech sector would have increased by more than 60%, moving beyond payment services to include complete corporate integration.
At the end of 2026, the research projects that start-ups in Nigeria’s RegTech sector will have increased by 40%. AML and KYC procedures, as well as regulatory reporting and compliance, have seen a growth in the use of RegTech solutions, according to the report.
In addition to the financial industry, there are numerous unexplored RegTech prospects in fields such as healthcare facilities, the pharmaceutical industry, environmental organizations, the aviation and transportation industries, real estate and property, energy and utility compliance, automobile compliance, etc. In light of the enormous potential in the Fintech and Regtech sectors of Africa’s largest economy, this data-driven research will be an invaluable resource for businesses, according to Mr. Cyril Okoroigwe, CEO of RegTech Africa.
According to the study, leading policy initiatives like the Cashless Policy, Startup Bill, CBN and SEC’s regulatory sandbox, Bank Verification Numbering (BVN) system, Business Facilitation Act 2023, Banking, and other advantageous business conditions are largely to blame for the growth of Nigerian FinTech and potential returns on investment in H1 2023.
