The round was led by 8VC; a Silicon Valley venture firm founded by Palantir co-founder Joe Lonsdale, and included both global and African investors such as Valour Equity Partners, Lux Capital, SV Angel, Nova Global, Tofino Capital, Kaleo Ventures, and DFS Lab.

But to truly understand the impact, you need to look beyond the dollar figure and into what this means for Nigeria’s defence tech ecosystem, local manufacturing, and continental security resilience.

A Vote of Confidence in Local Tech and Talent

Terra Industries was founded in Abuja by Nathan Nwachuku and Maxwell Maduka, young engineers who built a technology platform that integrates autonomous drones, robotic ground systems and fixed monitoring towers to protect critical infrastructure across land and air.

The fact that globally recognised investors, particularly those with defence and technology sector experience, are backing an African company at this scale is notable.

It reflects a growing belief that African startups can build advanced hardware and software platforms, even in sectors traditionally dominated by foreign firms.

Why it matters: This is part of a broader shift where Nigeria’s engineering talent is increasingly trusted not just to use technology, but to create and scale it for global relevance.

Scaling Beyond Borders: Manufacturing and Innovation on the Continent

Unlike many startups that outsource hardware production, Terra’s strategy is to keep manufacturing on the continent. The company plans to expand its 15,000-square-foot facility in Abuja and to set up additional defence production facilities, while also growing its software and AI teams.

This approach has several implications:

Jobs and Skills Development: A local manufacturing footprint means high-tech jobs, from mechanical and aerospace engineers to AI and robotics developers, stay in Africa rather than being created abroad.

Localised Solutions: Technology tailored for Africa’s unique security challenges (from rugged terrain to diverse threat landscapes) is often more effective than off-the-shelf imports.

Export Potential: As infrastructure protection becomes a continental priority, Terra’s systems could become an African export, not just a domestic product.

Hard Tech is Emerging as a Frontier for African Tech Investment

Much of Africa’s startup narrative has focused on fintech, e-commerce, and digital services. Terra’s funding indicates that “hard tech”, robotics, defence systems, autonomous platforms, is now attracting serious capital.

Securing tens of millions at seed stage is rare in regions outside Silicon Valley, especially for hardware-centric companies.

By landing funding from major global players, Terra is helping broaden the types of tech that investors see when they think “African innovation.”

Impact: This lowers barriers for other deep-tech founders across the continent, potentially creating a new class of high-growth African tech companies.

Security and Infrastructure Protection as Economic Enablers

Terra’s solutions are not theoretical, they are already deployed at critical infrastructure sites, including power plants and mining operations, and secure assets worth billions of dollars across Africa.

In regions where industrial projects are frequently disrupted by militant activity, vandalism and theft, the lack of reliable security infrastructure can deter investment and escalate operational costs.

With locally developed autonomous monitoring systems:

• Energy and utilities become safer investments
• Mining and extractive industries can operate with improved continuity
• Governments have an alternative to importing expensive defence systems

Advancing a More Sovereign Security Tech Stack

Terra’s ambition mirrors global trends where countries aim to own and control key security technologies rather than depend on foreign suppliers. The company’s vision of a vertically integrated defence platform, hardware, software and data under one roof, mirrors what established firms like Palantir and Anduril are doing in the U.S.

For Africa, this kind of sovereign technology stack offers strategic advantages because the data generated on African soil stays under local governance; deployment can be customised for local threat profiles, and defense tech doesn’t become an import liability.

Potential Ripple Effects Across the Tech Ecosystem

Terra’s raise could create spillovers beyond defence . As the company expands its software and AI teams, it will require next-level engineering talent, pushing up training demand and specialised education.

Success stories like Terra can help form clusters, where startups, investors, universities and policymakers converge to build ecosystems.

More funding attention may flow to adjacent sectors like autonomous logistics, precision agriculture drones or smart infrastructure monitoring.

Summary

Terra Industries’ $11.8 million funding is more than a capital event, it is a signal of maturing tech entrepreneurship in Africa, especially in hard tech domains that blend hardware, software and national priority sectors.

Themed “Future Technologies & a Sustainable Lagos,” the conference reinforced AOT’s growing reputation as Lagos’ most influential platform for shaping policy-driven innovation, digital transformation, and long-term economic resilience.

Participants engaged in forward-looking discussions on artificial intelligence, smart infrastructure, digital governance, climate technologies, and inclusive innovation.

In his welcome address, Dr. Victor Gbenga Afolabi, Founder of Eko Innovation Centre and curator of Art of Technology Lagos, stressed that cities must adopt future-forward technologies to stay resilient, inclusive, and globally competitive.

He noted that cities produce 80% of global GDP yet account for 75% of carbon emissions, making technological integration essential for survival.

Delivering the keynote, Dr. Kadri Obafemi Hamzat, Lagos State Deputy Governor, reaffirmed the state’s commitment to building a safer, smarter, and greener megacity through technology, strong public-private partnerships, and sustainable infrastructure.

He highlighted key achievements, including the deployment of 2,500km of fibre-optic cables, smart traffic upgrades, expanded digital public services, and improved connectivity for over one million residents.

He also disclosed that LASRIC has invested nearly ₦2 billion in more than 75 startups across multiple sectors.

Dr. Hamzat announced the forthcoming Lagos Innovation Bill, which will strengthen IP protection, funding access, and cross-sector collaboration, alongside the creation of Nigeria’s first sub-national Cybersecurity Council.

Mr. Olatunbosun Alake, the Commissioner for Innovation, Science and Technology, also noted Lagos’ rise as Africa’s top tech ecosystem, attracting over $6 billion in startup funding between 2019 and 2024, representing nearly 80% of Nigeria’s 2,000 active startups. He further revealed the upcoming Lagos Innovation Deal, a major framework that will deepen collaboration among government, academia, and industry while accelerating AI adoption, strengthening data protection, and positioning Lagos as a global technology hub.

This year’s edition attracted an impressive lineup of global and regional thought leaders, including Sara Sabry, CEO of Deep Space Initiative and the first Egyptian and African Arab woman in space; Dr. Abba Aliyu, Managing Director of the Rural Electrification Agency; Seyi Akindeinde, Founder of Hyperspace Technologies Ltd, Lars Christer Johannisson, Chief Executive Officer, Rack Centre; Dr. Krishnan Ranganath, Regional Executive, African data Center; Tomi Davies, Collaboration in Chief, TVC Labs, Kola Masha, Founder, Babban Gona; Prof. Olumuyiwa Odusanya, Chairman, Lagos State Science Research and Innovation Council; Engr. (Mrs.) Ibilola Kasunmu, Permanent Secretary, Ministry of Innovation, Science and Technology, Lagos State among many others.

The conference featured high-level keynotes, panel sessions, exhibitions, and networking engagements, creating a powerful policy–innovation interface around inclusive development and sustainable economic growth.

Tech Ecosystem Awards 2025 Celebrate Nigeria’s Innovation Trailblazers

A major highlight of AOT Lagos 7.0 was the 4th Edition of the Tech Ecosystem Awards, held at 6:30 PM, celebrating individuals, startups, and organizations revolutionizing Nigeria’s technology landscape through creativity, sustainability, and innovation.

The ceremony drew a distinguished audience of industry leaders and government stakeholders, with Mr. Olatunbosun Alake, the Commissioner for Innovation, Science and Technology, in attendance. The event officially opened with a welcome address by Dr. Victor Gbenga Afolabi, who reiterated AOT’s commitment to recognizing excellence at the intersection of technology, business, and social impact.

2025 Tech Ecosystem Award Winners

• Women in Tech Award – Ada Nduka Oyom
• Technology Personality of the Year – Odunayo Eweniyi
• Tech Journalist of the Year – Frank Eleanya
• Sustainable Mobility Award – Maxdrive.ai
• Startup of the Year – Chowdeck
• Social Innovation Award – BudgIT
• Social Transformation Leadership Award – inDrive
• Local Investor of the Year – Oui Capital
• Inclusive Tech Award – Mamamoni
• FoodTech Startup of the Year – Foodstuff Store
• CleanTech Innovation Award – Creeds Energy
• Best Customer Service Startup Award – Bumpa
• AI & Robotics Excellence Award – CDIAL AI

The awards reaffirmed AOT Lagos’ role in spotlighting innovation that drives economic transformation, sustainability, and inclusive growth across Nigeria.

Art of Technology Lagos is an annual flagship platform that brings together government, industry, startups, investors, and global partners to shape the future of innovation, policy, and sustainable development in Lagos and beyond.

The report offers insights on what role Artificial Intelligence (AI) innovation can play in addressing Africa’s persistent youth unemployment challenges and shaping a more prosperous future for the continent’s workforce.

The report makes a compelling call for a unified and strategic approach from governments, academia, Big Tech, and investors to cultivate and transform Africa’s AI ecosystem.

In 2020, 60% of Africa’s population was under 25 and its tech-savvy youth population is set to double by 2030, making up 42% of the world’s youth.

This represents a significant opportunity to expand Africa’s tech talent pool, create broad-based jobs within the AI industry, and drive economic growth.

Africa’s AI ecosystem is home to more than 127 hubs with South Africa hosting the largest concentration (22%), followed by Nigeria (12%), Egypt (12%), and Kenya (10%) all of which play instrumental roles in overcoming barriers and accelerating economic and talent development.

The report highlights six components of a cluster driving AI innovations in Africa: grassroots AI communities, academia, human capital, policymakers, Big Tech, and investors.

Among them, grassroots AI communities comprising data scientists and AI professionals have emerged as a strong nucleus for Africa’s AI landscape.

Groups like Data Science Africa, Deep Learning Indaba, and Data Science Nigeria are shaping the future by building skills, showcasing African AI research globally, attracting investments, and creating jobs.

The communities bring people and ideas together, connecting local talent with global opportunities, from international events to everyday WhatsApp chats, sparking growth and innovation across the continent.

Using both qualitative and quantitative methods to uncover key insights, it is assessed that while the grassroots initiatives remain critical in bridging the continent’s AI skills gap, offering upskilling opportunities and job placements, limited resources constrain their potential.

This highlights a collective drive by all components of innovation clusters is essential to advance a thriving ecosystem.

To achieve this, the report offers the following recommendations:

• Academia should expand AI programs, train more professors, and align university curricula with industry needs.
• Policymakers and African governments should develop comprehensive national AI strategies that balance innovation with ethical safeguards.
• The government should also prioritise infrastructure development such as reliable electricity, affordable internet, and better data access to support AI growth.
• Big Tech should foster fair partnerships that empower local ecosystems, prioritize knowledge transfer, and protect data sovereignty.
• Investors should diversify funding beyond health and agriculture to unlock AI’s potential in other critical sectors like education and financial inclusion.
• Donors should invest heavily in human capital development initiatives, particularly those focused on youth employment. They fund training programs, scholarships, and fellowships that aim to build a pipeline of skilled AI professionals.

Commenting on the report, Abbie Phatty-Jobe, research & engagement manager at Caribou Digital, said:

“Artificial Intelligence, harnessed collaboratively, has the power to positively shape the African employment landscape and boost the economy. In collaboration with our research partners, we have explored  emerging  clusters within the distinct context of Africa to address critical challenges and accelerate development; their success depends on a collective strategic approach that tackles inclusivity, and targeted investment in local talent and infrastructure. By empowering grassroots communities, strengthening academia-industry ties, and fostering equitable partnerships, we can build an AI ecosystem that truly reflects Africa’s unique strengths and aspirations.”

Speaking about the key role of grassroots communities in driving innovations, Wadzi Comfort, a researcher and digital economy expert, said

“The emergent AI innovation clusters across Africa showcase remarkable ingenuity and potential in the face of scarce resources. Tech-savvy, motivated young people; – our greatest asset emerging from Africa’s youth population boom; are spearheading local AI-powered solutions to address local challenges, demonstrating exceptional agency and creativity. These innovations span a wide spectrum, including AI-powered diagnostic tools, Informal educational academies, Large Language Models (LLMs) in local languages, community-driven knowledge sharing platforms and collaborative tech convenings. These youth-driven initiatives and their innovators merit substantial support and resources to accompany their agency, and foster their growth and impact.”

Private investors, African governments, and donors not only provide crucial financial resources but also shape the direction of innovation by prioritising specific areas of investment.

Venture capital for DeepTech startups has soared from $86 million in 2015 to $1.2 billion in 2023, with over 300 investors—65% based in Africa—and 127 innovation hubs driving growth.

Key government initiatives, like Nigeria’s AI Research Scheme and South Africa’s AI Institute, alongside philanthropic support from the Mastercard Foundation and Bill & Melinda Gates Foundation, will keep creating an environment that addresses local challenges, drives innovation, and positions Africa at the forefront of AI technology.

The report employs the snowball research method to conduct in-depth interviews with 25 African AI experts, including policymakers, educators, and industry leaders, uncovering the state, challenges, and opportunities for AI innovation clusters.

It also highlights insights from 18 young tech professionals involved in AI or tech fields from Zindi, Africa’s largest data science community, on their skills, job prospects, challenges, and AI’s impact on employment.

Additionally, the report includes a comprehensive review of academic studies, policy documents, and reports on AI, innovation clusters, and youth employment across Africa.

This decline is attributed to growing worries about a possible recession in the United States, which has caused a ripple effect across global financial markets.

Investors are increasingly anxious about the health of the US economy, particularly in light of recent data showing continued sluggishness in manufacturing activity. 

This unease was further worsened by the US government’s decision to issue subpoenas to Nvidia and several other technology companies as part of an ongoing investigation into artificial intelligence (AI) practices. 

The market reaction was swift, with Nvidia’s stock losing 9.5% of its value, equating to a $279 billion (£212.9 billion) being wiped off its market capitalisation.

The broader tech sector also took a hit, with shares of major US technology firms such as Alphabet, Apple, and Microsoft experiencing sharp declines. 

On Tuesday, the Nasdaq index, which is heavily weighted towards technology companies, fell by over 3%, while the S&P 500 dropped by more than 2%. The slump in Nvidia’s stock is seen as a key driver of these losses.

The impact of this downturn was not limited to the United States. Asian markets opened on Wednesday with significant losses, led by Japan’s Nikkei 225, which fell by 4.4%. 

South Korea’s Kospi and Hong Kong’s Hang Seng Index also saw substantial drops of 3% and 1.3%, respectively. Major technology firms in the region, including Taiwan’s TSMC and South Korea’s SK Hynix, mirrored Nvidia’s losses, reflecting widespread investor concern.

The upcoming US non-farm payrolls report, due on Friday, is now a focal point for investors, who are looking for indicators of how the Federal Reserve might adjust interest rates in response to economic conditions. 

Market sentiment suggests that there is growing scepticism about the likelihood of rate cuts, further fuelling the downward trend in stock prices.

Swetha Ramachandran, a fund manager at Artemis Investment Management in London, noted that Nvidia’s sharp decline could also be tied to the US Department of Justice’s demands for the company to provide evidence related to antitrust issues. 

She suggested that this, combined with the firm’s own forecasted slowdown in growth—from 122% in the second quarter to an expected 80% in the third—has contributed to a realignment of investor expectations.

Meanwhile, oil prices have also been affected by the global economic slowdown. Brent crude fell to $73.14 per barrel, and US crude dropped to $69.72, both reaching their lowest levels since December. 

This decline reveals reduced demand expectations amid fears of a broader economic downturn, particularly in China, which remains the world’s largest oil importer.

The current market situation points to the fragility of the global economic outlook, with technology stocks like Nvidia bearing the brunt of investor apprehension. 

This event is the ultimate platform where African and international government representatives, visionary investors, trailblazing founders, esteemed academics, dynamic development partners, innovative inventors, and passionate tech enthusiasts converge to shape the future of technology on the African continent.

The premise of the GTA Conference is simple: “Bringing everyone to the table is essential to unlocking unparalleled growth opportunities and tackling the challenges facing Africa’s tech ecosystem.”

Returning for its second year with the theme “Global Collaborations, Local Transformations,” the GTA Conference this July promises an exciting lineup. Here’s some of what to expect:

Why attend the GTA Conference

• 10, 000 attendees across the week 
• 150+ panelists and speakers 
• 55 hours of content across 3 stages
• 1, 500+ startups and founders 
• 100+ Investors
• 100+ Regulators, Policy Makers, and Large Enterprises
• Special tech delegation from North America, Europe and across Africa  

A Bigger Conference with three Dynamic Stages:

• Epicenter: Where governments, corporations, and VVIP delegations explore opportunities and tackle issues affecting the continent’s tech landscape.
• Startup Stage: Featuring thought leaders and tech founders in panel sessions, roundtables, and workshops discussing important themes.
• Outsource Factory Stage: Dedicated to the future of Africa’s young talent with training, workshops, and outsourcing career connections for young African professionals.

2024 Themes:

1. Tech Investments – the GTA Deal Room presents a prime opportunity for startup founders and inventors seeking investments and strategic partnerships. [Apply to participate in the deal room …] 
2. AI Showcase: Join AI companies, data scientists, researchers, and businesses to explore Africa’s most innovative AI use cases. [Register to showcase an AI product …] [Register to attend …..] 
3. Healthtech and healthcare – Transforming African healthcare with insights on data storytelling, robust health systems, data governance, and sector transparency.
4. Cyber Security Roundtable – Addressing emerging threats and fortifying defenses, GTA’s roundtable will delve into the critical aspects of cybersecurity.
5. EdTech Showcase and Panel sessions –  Exploring cutting-edge educational technologies and transformative learning solutions available to close the gaps in education on the continent in collaboration with CCHUB, SchoolTry Sweden and VGG. 
6. The Future of FinTech, payments, and InsureTech in Africa – Unveiling trends driving advancements and shaping the future of financial technology, payments, and insurance in Africa. In collaboration with the FinTech Association Nigeria. 
7. Women in Business & Tech Master Classes: From high-powered panels to AI preparedness workshops, GTA will spotlight and empower women driving innovation in technology. In collaboration with the U.S. Consulate, NITDA.
8. Career Placement Opportunities: On-the-spot assessments, orientation sessions, and career placement opportunities for aspiring tech professionals and young African talents. In collaboration with the Ministry of Wealth Creation and Employment, Lagos State, and GFA Technologies. 
9. Capacity Building Workshops and Training For the entire value chain: Entrepreneurs, Founders, Middle-level executives, and young professionals.

No matter your role in the ecosystem, you’ll discover the insights, inspiration, and connections necessary for your success.

Startups and Founders

If you’re starting, building, or scaling your tech business, the GTA Conference is the place to be. Connect with leading VCs, CVCs, and angel investors from around the globe.

Hear inspirational stories from successful founders, and share ideas with fellow innovators. Meet enterprise tech leaders seeking solutions. Check out our partnerships brochure for extra visibility.

Investors

Discover the next big thing in tech at the GTA Conference. Connect with innovative start-ups and other investors. Gain insights from industry leaders and successful founders.

Participate in Deal Room sessions for exclusive investment opportunities and strategic partnerships. Find your next breakthrough investment here.

Large Tech and Business Enterprises

Drive innovation and growth at the GTA Conference. Connect with key stakeholders, from government representatives to tech innovators. Explore the latest industry trends and solutions in AI, cybersecurity, fintech, and more.

Engage in high-impact sessions and form strategic partnerships to stay ahead in the competitive landscape. Elevate your enterprise with insights and connections that matter.

Government Institutions

Engage with tech leaders at the GTA Conference to explore how technology can drive public policy. Connect with international and African government representatives and industry innovators.

Discuss regulatory environments, public-private partnerships, and tech-driven solutions. Shape the future of tech policy and governance.

Middle-Level and Senior Executives

Stay ahead in your industry at the GTA Conference. Connect with industry leaders and innovators to gain insights into the latest trends. Attend expert panels, workshops, and keynotes on AI, cybersecurity, fintech, and healthcare.

Lead your organisation to success with valuable knowledge and connections.

Young Aspiring Tech Professionals

Kickstart your tech career at the GTA Conference. Participate in sessions designed to equip you with essential skills.

Connect with mentors, industry leaders, and potential employers. The Outsource Factory stage offers training, workshops, and career connections. Be part of Africa’s tech future.

Register for limited passes across: 

• All stages – access to all stages  
• Epicenter Stage exclusively 
• Start-up- stage
• Outsource factory stage

Moderated by Napa Onwusah, advisory lead at Novastar Ventures and managing partner at PlacidCode Labs, the session delved into essential tips for startups seeking funding from investors.

Understanding the Stages of Fundraising

Tosin Faniro-Dada outlined the various stages of fundraising:

• Pre-seed Stage: This initial stage often involves having a Minimum Viable Product (MVP) and a few customers for testing. Funding at this stage ranges from $300,000 to $500,000, sometimes reaching up to $3 million.
• Seed Stage: At this stage, startups are expected to generate some revenue, even if not profitable. Funding can range from $1 million to $5 million, with larger rounds reaching up to $10 million.
• Growth Stage: This stage focuses on scaling the product, with a proven ability to monetize and a solid customer base.

Tito Cookey emphasized that at the growth stage, the focus shifts to market expansion or consolidation, aiming to become a market leader.

Paris VC Firm Breega Launches $75M Africa Fund to Back Early-Stage Startups

Defining Product-Market Fit and Revenue Strategies

Tito Cookey highlighted the importance of balancing revenue generation with key performance indicators (KPIs) such as customer engagement. Founders must determine when to monetize and explore different revenue streams, tailored to their industry and market.

Tosin Faniro-Dada discussed various monetization models:

• Freemium Model: Basic features are free, with premium features available for a fee (e.g., LinkedIn).
• Transaction Fees: Charging a percentage of transactions.
• Subscription Model: Recurring revenue from subscriptions.
• Direct Sales: Selling products or services directly to customers.

Key Criteria for Evaluating Startups

Tosin Faniro-Dada outlined the important factors investors consider:

• Team: Experience and problem-solving skills are essential. The ability to adapt and work with investors is indispensable.
• Timing: The market readiness and the relevance of the pain point the product addresses.
• Market Size: The potential for market expansion and scalability.
• Competition: Understanding the competitive environment and identifying how the product stands out.

Tito Cookey added that governance, delegation, and managing regulatory relationships are essential at the growth stage. He stressed the importance of traction, whether through KPIs or revenue, to demonstrate market leadership potential.

What Investors Look for in Founders

Tito Cookey prefers founders who are driven, operational, and visionary. He noted the importance of having a balanced founding team to ensure both operational efficiency and apt storytelling.

Tosin Faniro-Dada further emphasized transparency, honesty, and self-awareness. Founders should acknowledge their weaknesses and work with investors to address them.

Conclusively, the fireside chat gave startups the very key insights needed to scale through the fundraising sector, achieving product-market fit, and generating revenue. 

ATE 2024 enlightened startups with the required roadmap needed in their journey. This session in particular pointed to the importance of a strong, adaptable team, strategic monetization, and transparency in enabling successful investor-founder relationships.

However, there is a question not to be ignored — Is DeFi a revolutionary step towards financial inclusion, or a reckless gamble that leaves Nigerian investors exposed?

For many Nigerians, traditional financial institutions haven’t kept up with the country’s economic situation. High bank charges, limited access to credit, and cumbersome bureaucracy are major limitations. 

In contrast, DeFi platforms are built with a goal to make access to financial services easier, potentially boosting entrepreneurship and wealth creation. This innovation has attracted billions of dollars in investment, with a projection of high returns and innovative financial products. 

From decentralized exchanges to lending and borrowing platforms, DeFi has brought in new opportunities for investors and entrepreneurs. 

The borderless nature of DeFi is particularly attractive in a continent like Africa, where cross-border payments can be slow and expensive. Nigerian businesses and individuals can potentially connect with global markets and financial products through this innovation, bypassing traditional financial intermediaries. This could bring in new opportunities and stimulate economic growth across the continent.

Central Bank Digital Currencies (CBDCs): Boon or Bane for the Tech Industry?

The Dark Side of the Coin — Unregulated Risks in a Wild West

However, the lack of regulation inherent in DeFi is precisely what worries many. Unlike traditional banks, DeFi protocols operate outside the control of the Central Bank of Nigeria (CBN). This lack of oversight brings up several undeniable issues including:

Investor Protection

Recent high-profile scams and rug pulls in the global DeFi space reiterate the fact that without regulatory safeguards, Nigerian investors, many of whom are new to crypto, could be particularly vulnerable.

With no regulatory oversight, bad actors can easily manipulate prices, create artificial demand, and engage in pump-and-dump schemes. These activities can lead to huge losses for unsuspecting investors and undermine the credibility of the entire DeFi industry.

The anonymity associated with DeFi platforms can be attractive for criminals. This could potentially sabotage Nigeria’s ongoing efforts to combat financial crime.

Smart Contract Bugs and Hacks

DeFi relies heavily on smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. While smart contracts can potentially bring  greater automation and efficiency, they are not immune to bugs or vulnerabilities. 

Hackers have exploited these vulnerabilities to steal millions of dollars in cryptocurrencies, leaving investors with huge losses and questioning the security of the sector.

Consumer Protection and Financial Stability

The lack of regulation in DeFi also brings up the issue of consumer protection and financial stability. Traditional financial institutions are subject to strict regulations and oversight to ensure that they operate in a safe and sound manner. 

But on the contrary, DeFi operates in a regulatory vacuum, with no clear rules or guidelines to protect consumers or maintain financial stability.

A Need for a Balanced Approach — Regulation vs. Innovation

The CBN recently issued a cautionary note, highlighting the risks associated with cryptocurrencies. However, a complete ban on DeFi could hinder innovation and financial inclusion efforts.

Questions for Discussion

Here’s where we need your voice!

• How can Nigeria leverage the potential of DeFi while mitigating the risks?
• Should the CBN adopt a more subtle approach to crypto regulation, facilitating reliable innovation within a controlled framework?
• What role can financial literacy campaigns play in helping Nigerian investors to scale through the DeFi industry safely?

A Global Conversation

The increasing use of DeFi in Nigeria is an aspect of the global trend where developed nations like the US and the UK struggle with how to regulate this growing technology. Nigeria’s experience, successes, and challenges can inform the global conversation on the future of this digital asset.

Join the Discussion!

Share your thoughts on DeFi in Nigeria and the broader conversation on crypto regulation. Is DeFi a revolution waiting to happen, or a gamble that could backfire? Let’s work together to ensure a secure and inclusive financial future.

The event served as a demonstration of the leading payments technology company’s ongoing commitment to the growth and development of the fintech landscape.

Fast becoming one of the industry’s most anticipated tech gatherings, the forum brought together key representatives from the fintech community, commercial banks, microfinance banks, processors, investors, regulators, and the government, to discuss critical developments and trends in the Nigerian fintech landscape, delve into Mastercard’s strides in facilitating the ecosystem’s growth, and identify potential opportunities within the industry.

Fintech companies have been at the forefront of revolutionizing various industries, serving as powerful vehicles for locally relevant solutions, financial inclusion, and innovative partnerships between financial institutions, governments, merchants, and small and medium-sized enterprises (SMEs), both globally and locally.

This transformative role is underscored by the sustained investment in the industry, with the Nigerian fintech sector witnessing a remarkable surge, receiving over $1 billion in the last two years alone – more than triple the industry’s total figure and accounting for more than one-third of the $2.7 billion invested in African fintech since July 2021.

“Mastercard’s Fintech Forum has become an avenue to advance discussions on the development of the industry in Nigeria, and we are proud to be the vehicles of this change. The discussions this year underscored the pivotal role of collaboration and innovation in shaping the future of Nigeria’s fintech landscape. Mastercard remains unwavering in our commitment to power this positive change, offer support, and lead the evolution of the industry,” said Folasade Femi-Lawal, the country manager and area business head for West Africa at Mastercard.

The event also featured a fireside chat titled “Mastercard’s Role in Fintech Ecosystem Collaboration”. During this discussion, Dimitrios Dosis, President of Eastern Europe, Middle East, and Africa (EEMEA) at Mastercard, said: “Fintechs continue to stand as the trailblazers, pushing boundaries and reshaping industries. Their penchant for innovation is not just transformative, it is integral to the very fabric of our industry and the broader economy. Mastercard, as a driving force, is proud to champion the pivotal role of fintechs, recognizing their significance in fostering economic progress. As a leading technology provider, we will continue to innovate, and support and collaborate with them to drive locally relevant solutions and initiatives for maximized impact. We’re committed to being the catalyst that propels the ecosystem forward, facilitating a future where technology empowers individuals, businesses, and economies to participate in the global economy.”

The fireside chat was followed by a panel session titled “Digitization and Its Role in Nigeria’s Economic Development”, during which speakers delved into digitization, its role in enhancing efficiency across all sectors, opportunities, and the importance of balancing innovation and inclusivity to maximize its impact on Nigeria’s economic development.

During the session, Nasir Yammama, senior special assistant to the President, Innovation, said:

“Nigeria’s digital transformation and ever-evolving fintech and banking landscape presents exciting possibilities. The ongoing innovation boom acts as the cornerstone for advancing digital public infrastructure, fostering financial inclusion, and propelling economic growth. As always, the government remains committed to creating an enabling environment and collaborating with key industry players to drive more impactful innovations and pave the way for a future where every individual and business can thrive in a digital-first global environment through well-informed, inclusive policies and initiatives.”

Mark Elliott, division president, Mastercard Sub-Saharan Africa, closed the event and offered insights into the fintech landscape.

He emphasised the importance of the fintech industry and highlighted the significance of inclusive innovation and collaboration in driving sustained economic development.

“Mastercard is providing fintechs with the tools, resources, and support they need to thrive in the ever-evolving digital economy. Whether it’s through innovative solutions or strategic partnerships with key players in the industry, Mastercard has demonstrated its commitment to shaping the future of fintech and contributing to the growth and success of the broader ecosystem,” said Mark Elliott, Division President, Mastercard Sub-Saharan Africa.

The Mastercard Fintech Forum not only celebrated the achievements and advancements in Nigeria’s fintech sector, but also revealed a shared vision among industry leaders, which encompassed a future where strategic collaboration continues to be a driving force for positive change, innovation, and widespread financial inclusion, not only in Nigeria but on a global scale.

In 2023, female-led ventures in Africa raised over $200 million in funding, marking a 7% year-over-year increase, Africa: The Big Deal reports. This growth occurred amidst an overall funding decline of 39%, highlighting the resilience and potential of these startups. Even more encouraging, the share of total funding they captured jumped from 4% to 7%, demonstrating a growing recognition of their value.

Female CEOs are gaining ground in terms of venture numbers. One in five startups raising over $100,000 in 2023 had a female leader, up from 13% the year before. This progress signals increasing access to early-stage funding for women entrepreneurs.

However, the disparity becomes thicker when examining larger deals. Only 14% of million-dollar-plus ventures had female CEOs in 2023, and their average deal size was significantly smaller than their male counterparts’. This trend continues for even larger deals, where female-led ventures represent a mere 7%.

Bridging this funding gap requires a multi-pronged approach. Addressing unconscious bias, expanding access to networks and capital, and fostering diverse investor representation are key steps. Encouragingly, initiatives like female-focused VC funds and accelerator programs are emerging to address these challenges.

The African startup ecosystem is undeniably moving in the right direction regarding female-led African startups. While significant work remains, the positive trends and dedicated efforts give reason for optimism.

In capitalizing on these opportunities and tackling the persisting barriers, Africa can unlock the full potential of its female entrepreneurial talent and drive inclusive economic growth.

Oppenheimer Generations Research and Conservation (OGRC) supports a stronger, louder voice from Africa, and through its partners, has developed key programmes focussed on addressing and mitigating climate change. 

Global efforts to limit carbon emissions are falling short, developed countries have not coughed up the $100 billion promised to help developing countries meet targets, and the EU is set to impose carbon taxes that will hamstring Africa’s development ambitions.

Exactly how far countries have fallen short in meeting global climate goals and mitigating greenhouse gas emissions will be revealed by the first Global Stocktake due to be presented to delegates at COP28 in Dubai in early December.

In spite of these headwinds, OGRC research on ecosystem conservation, financing, carbon credits and wildlife economies will be highlighted at COP28 to show how African countries can put the brake on climate change while keeping the economy thriving.

As the world continues to heat up at an unprecedented rate, scientists grapple with trying to understand the global impact and the historical lack of decisive action. Climate has shifted temperatures and weather patterns, and although some of these changes are natural the dramatic fluctuations in temperatures and sporadic rainfall patterns are of great concern.

Scientists have persistently highlighted human activities, particularly the unbridled burning of fossil fuels such as coal, oil, and gas since the industrial revolution, as the primary drivers behind these observed changes.

“Freak weather events” – severe fires, changes in the rainfall patterns in tropical cyclones, heatwaves and flooding – have led to biodiversity loss, ecosystem degradation and mass extinctions.

These changes have damaged commercial agriculture, subsistence farming and household food security.

There is however hope. Government, business and industry are recognising that robust scientific data and recommendations from scientists are the solid base on which meaningful decisions are made.

At COP28, UAE, NGOs, politicians, scientists, youth, business, investors, civil society and frontline communities will engage in critical discussions and decision-making about global climate change.

The key themes to be addressed will include transforming climate finance by delivering on old promises, putting nature, people, lives, and livelihoods at the heart of climate action and fast-tracking the energy transition to slash emissions before 2030.

The aim is to limit the global temperature rise to below 2°C, preferably below 1.5°C, above pre-industrial levels. However, the latest Intergovernmental Panel on Climate Change (IPCC) report suggests that even with our best possible mitigation efforts, the chances of us limiting temperature rise to 1.5 degrees will not be achieved.

The Global Stocktake (GST) will provide a comprehensive assessment of progress made by countries to mitigate greenhouse gas emissions, adapt to the impacts of climate change, and provide support to developing nations in these endeavours.

Unfortunately, the developed world has fallen short of fulfilling its financial commitments of $100 billion in annual funding to assist developing countries reduce their emissions and manage the impacts of climate change.

The failure to fulfil financial commitments has further derailed the world in the ambition to reduce its emissions by 43% by 2030.

The financial commitment required to reach these reductions far outweighs what already heavily indebted developing countries require – yet undershoot the financial capacity the combined developed countries have the capacity to provide.

Yet, instead of meeting their obligations, the European Union has introduced the Carbon Border Adjustment Mechanism, a policy that imposes a carbon cost on certain imports based on the carbon emissions associated with the production of those goods.

The implications for African exports to the EU are substantial, potentially hindering the continent’s development ambitions and causing an annual GDP loss of around $31 billion.

The justification for the policy is to level the playing field for industries within the EU that are subject to strict emissions reduction requirements.

We have to question how this reasoning coming from nations that have benefited from fossil fuel use for over 250 years is justifiable, when they are yet to fulfil their commitments to ensure that we have the capacity to explore alternative greener technologies and transition from coal heavy industries to renewable energy sources.

In this context, it becomes evident that for any meaningful change to occur, Africa, where feasible, must assume a leadership role in shaping policies that not only articulate our needs but also position us advantageously in the global fight against climate change.

Recognising that climate change is a collective responsibility, Oppenheimer Generations Research and Conservation (OGRC) has committed to contributing to the global effort to combat the adverse effects of climate change. We view COP 28 as an invaluable platform to showcase the innovations and climate research done by our partners.

Our Future Ecosystems for Africa (FEFA) programme, in collaboration with AGNES (African Group of Negotiators Expert Support) and OGRC, has recognised the need to mobilise African climate science and evidence on the continent, to feed into important discussions and provide an integrated, technical summary of the potential synergies and trade-offs between climate actions and sustainable development.

This work focuses on developing viable and pragmatic solutions to contemporary climate-related challenges, derived in collaboration with numerous other research partners, with the overarching goal of enhancing decision-making processes in relation to climate change and development on the African continent.

In line with COP28’s core theme of “investing in climate solutions by committing and investments in nature-positive projects, policies and practices, OGRC has partnered with the African Wildlife Economy Institute (AWEI) to address these aspects.

Conserving Africa’s biodiversity and the ecosystem services it provides should be central to climate change responses, given the high dependence of people on these services.

The key finding of the Africa chapter of the last IPCC report was that reduced species representation in protected areas is predicted due to climate-induced range shifts, with range shifts impeded by increasing land transformation and fencing.

African countries urgently need complementary conservation strategies to mitigate the effects of climate change on biodiversity.

Wildlife economies present one such strategy, which involves increasing the extent of conserved ecosystems and their connectivity, while also contributing to livelihoods and food security through sustainable wildlife use, including hunting, harvesting, meat, and tourism.

Our research also shows that wildlife economies have more diverse revenue streams than conventional agriculture, which builds their resilience to disturbance and change.

Wildlife economies can simultaneously contribute to climate change mitigation and adaptation in Africa through sequestering carbon while conserving biodiversity and promoting resilient livelihoods.

Another OGRC-supported programme, the African Leadership Universities (ALU), School of Wildlife Conservation, states “you can’t manage what you don’t measure”.

The key concept here is to gather consistent, comparable data on the impacts of climate change on wildlife economies across Africa.

In Africa, climate action alone is unlikely to succeed, but if combined with development in a way that wildlife is seen as a key strategic asset, it will encourage investment and finance in conservation.

OGRC has further invested in Rewild Capital, a carbon credits company. Experts from Rewild Capital use their knowledge of international carbon market dynamics and integration into global networks to reduce transaction information asymmetry and secure the best prices and terms for landowners across the continent.

Their carbon and rangeland scientists deal with the complexity of meeting international carbon standards requirements. From start to finish they take care of soil carbon measurements and analysis.

These measures ensure that Africa can lead in the mitigation of climate change, while securing livelihoods in non-forested African ecosystems.

Some of the major messages that will emerge from COP28 are on workstreams that will attract climate investment and finance, as well as assessing mitigation and adaptation response measures.

Research tells us that finance gaps across Africa are huge and that new, additional money is needed.

There is a strong feeling that new, multinational, scaled finances for long-term goals are required. So, there will be focus on securing new financial pledges, while encouraging fulfilment of old promises.

There will be a focus on adopting high level targets with clear delivery indicators, including the enhancement of adaptive capacity, with a hope of doubling finance. Negotiators will also be pushing for a clear roadmap to achieve these outcomes.

There will be a focus on developing countries and ensuring that all are supported through delivering on promises made at COP27, with a focus on compensation and provision for historical loss and damage.

*Duncan MacFadyen is head of research, and Rendani Nenguda research associate at, Oppenheimer Generations Research and Conservation.