Kenya overtook Nigeria as Africa’s top destination for startup funding, attracting $800 million compared to Nigeria’s $410 million, in 2023, and by mid-2024, Kenyan startups led again with $244 million, while Nigeria followed with $172 million.
Nevertheless, Nigeria’s fintech sector bolstered, securing $2 billion in 2024 and contributing 18.9% to GDP, driven by mobile banking, digital lending, and e-commerce.
Furthermore, the ICT sector’s share of GDP grew from 17.89% in early 2024 to 19.78% by year-end, with 5G and expanding internet access expected to boost growth by 8-10% in 2025.
On the other hand, infrastructure gaps, regulatory hurdles, and low purchasing power are challenges that still persist. The Economic and Financial Crimes Commission (EFCC) has also raised concerns over fintech fraud due to weak Know Your Customer (KYC) protocols.
Nigeria’s fintech and ICT sectors remain vital and pivotal for economic growth seeing the geometrial boom in global technology, but overcoming these challenges is essential for sustained progress.
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