Nigerian startups raised $276.5m in the first seven months of 2021, with fintechs dominating. This is based on fund announcement analysis of TechCrunch and TechCabal.
Edutech, health tech, and communications each accounted for 4.05 percent of the amount raised.
Fintechs accounted for 95.95 percent of the amount raised within this time period, with Flutterwave’s $170m accounting for a large chunk of this.
Nigeria’s startup space is to receive a boost as a Startup Bill is set to be before the National Assembly in October
According to the African Tech Ecosystem of the Future 2021/2022 Ranking compiled by fDi Intelligence of Financial Times, in collaboration with Briter Bridges, Nigeria has the highest number of startups in Africa with most of them operating within the fintech sector because of the under-provision of banking services in the country.
Nigeria has a population of about 200 million; about 38 million adults are financially excluded according to an Enhancing Financial Innovation & Access report.
Nigeria’s fintech space had raised more than $600m in funding between 2014 and 2019 as it allows for banking opportunities to a large percentage of the country’s population.
In a report, the FinTech Association of Nigeria had said it expects investment in the financial technology ecosystem to top $400m in 2021 and its revenue base to reach $543m by 2022.
The $276.5m raised so far is close to the total amount of $300m raised in 2020. Of the total amount raised, 75.29 percent was raised in the first quarter of the year. Investments into the tech space witnessed a drastic fall in the second quarter of the year.
According to the National Bureau of Statistics, capital importation into Nigeria declined to $875.62m in the second quarter of 2021 from $1.91bn in the first quarter of 2021. This was a 54.06 percent decrease from Q1 2021.
Central Bank of Nigeria to regulate Fintech..