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.

Part of that focus involves realising the region’s data sovereignty.

Earlier this year, Nigerian President Bola Ahmed Tinubu signed the Data Protection Bill 2023 into law, concluding a years-long effort to effectively regulate the processing and protection of personal data.

The bill provides for data protection principles that are common to internationally recognised frameworks and obligations for “controllers” and “processors”, referring to organisations that gather and store personal data.

This should prompt enterprises to consider their data residency business strategies and how they can adhere to local and international laws.

While cloud computing in Nigeria may be on the rise, many local enterprises still face limited options. For many, a hybrid approach is the way forward.

Compliance is critical

Enterprises need to be fully compliant when handling other people’s data, including employees, clients, suppliers, and more.

As the term implies, data compliance refers to the applicable governance for data protection, security, storage, and other related activities.

Both public and private organisations need to ensure data is protected from unauthorised access and use.

Over the last several years, we have witnessed efforts to standardise data handling regulation, with notable frameworks such as the General Data Protection Regulation (GDPR) developed by the European Union (EU) and frameworks put forward by many individual nations.

Organisations that don’t comply or protect customer data face several risks. They can be more susceptible to data breaches, leading to cybercrimes such as identity theft and financial fraud.

Breaches can subsequently damage an organisation’s reputation and result in legal repercussions from affected parties and fines from regulatory bodies.

Even in the case of minor incidents, companies waste time, energy, and resources in repair and recovery efforts, resulting in lowered productivity levels.

A duty of care towards data

Nigeria’s leveraging of data comes at a time when cloud computing is becoming the new standard for enterprise IT.

Recent studies indicate that the approach has the potential to generate trillions of naira in additional economic value by the 2030s and enhance local enterprises’ internet-based database capabilities.

Cloud computing adoption is being driven by several factors, most significantly, new models of work and the emergence of the hybrid workforce, evolving customer needs, and a growing ecosystem of hyperscalers and integrators.

Organisations that use the cloud to store data may have a responsibility to store that data in the country of origin, depending on that country’s regulatory requirements.

This can be a concern for enterprises that use hosted services as they may not know where their data is physically located.

Under Nigeria’s new Data Protection Act, data controllers and processors must seek the services of a data protection compliance organisation (DPCO) to perform audits and ensure enterprises are meeting their regulatory obligations.

Remember, the cloud is flexible, meaning that the hardware on which specific data is stored can be located anywhere in the world.

In light of that, enterprises need to carefully consider their IT infrastructure and approach to migrating to cloud-based services and systems.

Taking control with the hybrid cloud

According to the Red Hat 2023 Global Tech Outlook, cloud infrastructure was in the top three of companies’ leading IT technology funding priorities, with hybrid cloud strategies continuing to dominate as companies look to transform digitally.

Hybrid cloud combines on-premise, third-party private cloud providers, and public cloud vendors to create a single entity capable of moving workloads between environments.

The hybrid cloud offers several advantages for enterprises, such as greater flexibility, cost savings, and security. However, it also offers a major advantage in adhering to data compliance and residency obligations.

With a hybrid cloud, an organisation can operate and move workloads according to the regulatory landscape.

Availability zones, such as those offered by major cloud providers such as AWS and Google Cloud, means Nigerian enterprises can assert further control over where their data resides.

A hybrid cloud is not the optimal solution for every organisation. But, as Nigeria’s digital landscape expands and organisations’ responsibilities to customers and data evolve, so too must the technologies we utilise to adhere to them.

By working with enterprise IT and cloud vendors, organisations can invest in the systems that best suit their needs and obligations and let them exercise full control over their data.