According to a Reuter’s report vice President Yemi Osinbajo, last week launched a US$618 million fund under the Investment in Digital and Creative Enterprises (iDICE) to support tech and creative sectors and provide funds for young investors who struggle to raise capital. The fund will have African Development Bank US$170 million, Agence Francaise de Development (US $116) and a Islamic Development Bank (US$70m) as contributors. The government through the Bank of Industry will provide US$45 million while the private sector will provide US$217 million. The fund is targeted at 15 to 35-year-olds. iDICE was launched by the government to promote innovation and entrepreneurship in the digital tech and creative industries and especially targeted at job creation. Nigeria has one the largest number of startups in Africa - mostly in tech and fintech. 

At a time when technology is disrupting the global financial services industry, Nigeria has not been left out of the change. Although a cash-based economy, Nigeria's financial system has been receptive to the new transformations in the financial system, especially the introduction of technology. Nigeria’s fintech landscape consists of c.250 fintech companies, key stakeholders (banks, telecom companies, and the government), enablers and funding partners (i.e., universities and research institutions, investors, incubators, technology, and consumers). Nigeria’s fintech revenue has grown considerably over the past few years. 

Based on data from CB Insights, global fintech funding reached US$75.2bn in 2022, 46% down when compared to 2021, but up 52% when compared to 2020. Deal volume was also down 8% y/y. Funding and deals declined gradually throughout 2022, with Q4 2022, seeing US$10.7bn in funding — the lowest level since 2018. Africa-based fintechs however saw a record 227 deals in 2022, a 25% increase y/y. Africa was the only region to see a y/y increase in fintech deals with 89% of them being early stage. 

Nigeria’s fintech industry has received funding from various global investors over the last few years. In 2018, Cellulant, a payment platform infrastructure service provider, received capital inflow. The payment infrastructure company obtained equity funding worth US$47.5m from The Rise Fund and Endeavour. In 2019, Interswitch, a payment platform infrastructure service obtained equity funds worth US$200m from Visa for 20% stake in the company at an implied valuation of US$1.0bn. Branch received funds of US$170m from Foundation capital and Visa while OPay also raised US$ 170m in two funding series led mostly by Chinese-backed VCs. Last year, Moove, the world’s first mobility fintech raised US$30m through its first sukuk issuance arranged by Franklin Templeton Investments . Maplerad, a fintech as a global BaaS player with a focus on Africa, raised US$6 million in seed funding.