Accelerating investments in Nigeria's fintech space

Nigeria, known for its vibrant fintech industry, is currently facing key macroeconomic challenges that need to be addressed to boost investor confidence and accelerate investments in the country's fintech space. According to Tosin Eniolorunda, the Managing Director at Team Apt, logistics and infrastructure issues remain crucial in propelling fintech growth on the continent. Speaking at an event hosted by Zenith Bank, Eniolorunda highlighted the importance of collaboration between traditional banks and fintech companies to drive innovation and growth in the industry. He emphasized the need for traditional banks like Zenith Bank, which is one of Nigeria's largest and most profitable banks, to support and invest in early-stage fintech startups. By identifying strong leadership talents and fostering a collaborative environment, traditional banks can play a pivotal role in advancing technological innovations in the financial sector. One of the major challenges facing both fintechs and banks in Nigeria is the scarcity of talent. The competition for skilled professionals is intensified by mass emigration and the lure of higher salaries offered by foreign organizations paying in foreign exchange. Eniolorunda stressed the importance of addressing macroeconomic issues such as establishing a single window for forex exchange rates to enhance investor confidence and facilitate fundraising for fintech companies. Despite these challenges, Eniolorunda remains optimistic about the opportunities in Nigeria's fintech space, citing the country's growing population and GDP as promising factors for growth. He also highlighted some of the unique challenges faced by fintech companies in Nigeria, such as infrastructure limitations. Building a digital bank in Nigeria requires overcoming logistical hurdles, including the unreliable delivery systems for issuing cards and ensuring the reliability of payment processors. Additionally, access to funding remains a critical issue for fintech startups in Africa, as the continent is still relatively untapped by major capital investors. However, Eniolorunda noted a shift in interest towards African markets as investment opportunities in other regions become saturated. Despite these challenges, the fintech industry in Nigeria continues to evolve and innovate, driven by a resilient entrepreneurial spirit and a growing demand for digital financial services.