Business

Highlights That Shaped Nigeria’s Fintech in 2024

Published

3 days ago

Jan 2, 2025.

UNDP $1bn Timbuktoo Fintech Hub In Lagos
African Fintech Raise $600m
Fintech Companies Surged From 1,049 in 2022 to 1,263 in 2024

Amid the rapidly evolving African fintech landscape, 2024 witnessed substantial developments, including new regulations and strategic alliances.

Eko Hot Blog gathered that Fintech stands out as the most triumphant startup category, with eight out of nine ventures attaining over $1 billion valuations in the region.

EDITOR’S PICK

A recent report, ‘Finance in Africa,’ highlights that the number of fintech companies surged from 1,049 in 2022 to 1,263 in 2024, reflecting resilient entrepreneurial endeavors despite global economic uncertainties.

This trend further underscores the industry’s growth prospects.

Boston Consulting Group data forecasts that the global fintech industry will hit a valuation of $1.5 trillion by 2025, propelled by a 32 percent annual revenue growth rate in Africa.

“This growth is primarily fuelled by innovations in AI, digital payments, and customer-centric business models,” it said.

Here are events that shaped Africa’s fintech space in 2024:

TYMEBANK & MONIEPOINT COLLABORATION

TymeBank of South Africa and Moniepoint of Nigeria have recently raised funds, catapulting their valuations beyond $1 billion and earning them prestigious unicorn status.

These valuations not only indicate strong investor confidence but also demonstrate the success of their disruptive fintech models in a region where almost half of the population lacks access to traditional banking services.

Both companies focus on simplifying banking for individuals and businesses in two major African economies.

TymeBank initially offered low-cost accounts and savings products to retail customers before diversifying into business banking in South Africa.

On the other hand, Moniepoint started in Nigeria by assisting small businesses with various financial services such as accounts, payments, loans, and expense management tools, and has now expanded into retail banking.

Remarkably, both fintech companies are adopting a hybrid approach to banking, combining digital banking convenience with physical touchpoints.

BLOCKCHAIN TECHNOLOGY

In a significant development on July 10, 2024, Nigeria’s top banks—Zenith Bank, First Bank, and United Bank of Africa—joined fintech companies on Zone, Africa’s first regulated blockchain network for payments.

This move marks a pioneering step for traditional financial institutions in Nigeria, as they embrace blockchain technology.

The integration of blockchain by these banking leaders aligns with a growing global trend, as financial institutions worldwide increasingly explore the potential of blockchain.

Resilient, Growth: Highlights That Shaped Nigeria's Fintech in 2024

UNDP $1bn TIMBUKTOO FINTECH HUB IN LAGOS

In a significant move towards promoting financial inclusion and fostering innovation across Africa, the United Nations Development Programme (UNDP) has established Africa’s first innovation center and Timbuktoo fintech hub in Lagos, Nigeria.

This initiative aims to create an inclusive financial support innovation ecosystem, engaging both public and private sector partners.

According to UNDP Africa, eight Timbuktoo hubs will be set up in key startup ecosystems across the continent, including Accra, Nairobi, Cape Town, Lagos, Dakar, Kigali, Casablanca, and Cairo.

The hubs are expected to commence operations in 2023, with each hub focusing on a different priority sector, such as Fintech, Agritech, Healthtech, Greentech, Creatives, Tradetech and Logistics, Smart Cities and Mobility, and Tourismtech.

Each hub will house a Venture Builder and a Venture Fund, supported by a parent fund of catalytic grant capital.

The parent fund, formed in partnership with impact-focused catalytic partners, will finance the network of Hubs and HeadQuarters. Additionally, it will provide a minority share in each Hub Venture Fund, offered as guarantees or first-loss capital.