Nigeria’s recognition as a leader in real-time payments and digital payments in Africa and beyond, is a sign of a resilient banking and fintech solutions, says tech expert, Cynthia Alabi.
In 2021, Nigeria ranked sixth in the world’s most developed real-time payments markets, with 3.7 billion real-time transactions.
As of 2023, Africa’s fintech market is valued at approximately $31 billion and is projected to reach $54 billion by 2027, growing at a CAGR of 13.2%, in line with Statista’s 2023 report.
Furthermore, Nigeria accounts for about 27% of this market, with a robust payment services sector driven by mobile payments and digital wallets.
The Central Bank of Nigeria promotes financial inclusion and digital payments, attracting significant investments; for instance, Nigerian fintechs raised over $1.5 billion in 2021, according to TechCrunch, 2021 report.
With increasing access to digital financial services, Nigeria continues to play a crucial role in the African fintech landscape and is expected to expand further.
The above must have informed the position of Cynthia Alabi, a Revenue Growth Expert when airing her views at the Techeconomy Business Series.
Cynthia noted that Nigeria’s tech industry has been at the forefront of innovation and facilitating the realization of financial inclusion in Nigeria and Africa.
In her words:
“In the last decade, during which I have been privileged to be in the tech industry, I have seen a lot of innovation in the industry. I will say that technology has driven a lot of things. For instance, in the payment space, we all know how cumbersome it was for us to move money and handle collections, especially with traditional banks. But having some fintechs come in, we have seen what can be done in space, and they have done a beautiful job in that regard, which has then given birth to a lot of players.
“I am proud of what we have achieved in terms of innovation, especially in the payments sector. One can say Nigeria has one of the best systems in terms of payment and innovation in the tech space. We are doing a lot more in terms of payment than many countries.
Especially in the payment and technology space, we have moved forward, and we are getting better. I have also seen innovation in other industries, like logistics. I remember when the some fintech came in, and we have seen others as well. Nigerian entrepreneurs are starting similar initiatives and making transportation much easier. Now we see the Lagos State Government starting LAGRIDE.
There are a lot of successful startups, and while many have yet to progress to the IPO stage, almost a billion or more is being generated by the likes of Moove, which is also doing great things in logistics and contributing to the economy. I think the startups in Nigeria have also helped in terms of employment, but we can do more, especially in terms of expansion. So I would say that we have companies like startups emerging; we have many of them, and they are coming up. I think we can do more, especially in terms of managing investments and ensuring that the growth we have achieved is sustained. I would also like to see software-as-a-service companies emerging in the startup space.
I believe that we are going to improve, and the reason for this is that while we are seeing more government support, we are also seeing individuals taking the bull by the horns. If we continue, I think a lot will happen in the future for Nigeria. We would reach a point where Nigeria would be referred to as a place of opportunities in technology. Some opportunities are already being tapped, and in the distant future, we will start seeing people reap the rewards of these opportunities.
Artificial Intelligence will be a game changer, and there is going to be a lot happening where tech companies will excel beyond traditional companies. I believe that is where we will see much innovation, with people creating more things that AI can do for them, making life easier and better for us as a country. Yes, the future of technology is bright in Nigeria, and in terms of game changers, I think Artificial Intelligence is worth looking out for.
Aside from business and innovation, especially for those from non-technical industries, I always mention in every space I speak that they should not think that because they are non-technical, they do not add any value to how Nigeria is growing or to the tech industry. There are many opportunities, but it may require learning more about the industry and products. You do not have to be a founder to start a business. If you find yourself in a situation where you need to build and contribute in the tech space, whatever field you are working in, you can easily transition into tech and add value.
While noting that Artificial Intelligence will set the pace for future innovation, Cynthia also predicted that the Nigerian tech industry is going to improve with government support. “Artificial Intelligence will be a game changer, and there will be a lot happening with tech companies compared to what we have seen with traditional companies.
I think there will also be much innovation as people create more things that AI can do for them, making life easier and better for us as a country. Yes, the future of technology is bright in Nigeria, and in terms of game changers, I think Artificial Intelligence is worth looking out for.
The reason for this is that while we are seeing the government becoming more supportive, we are also witnessing individuals taking the initiative. If we continue, I think a lot will happen in the future for Nigeria.
We will reach a point where Nigeria will be referred to as a place of opportunities in technology because there are opportunities already being tapped. In the distant future, we will start seeing people reap the rewards of these opportunities.”
