RegTech Africa and Agpaytech has released a report on the State of Fintech and Regtech activities in Nigeria. The report indicates that in the first half of 2023, African FinTech deals reached 60 transactions and raised a combined $189 million in funding during the second quarter of 2023, a 64% reduction from the same period in 2022.
Nigeria remains the country with several FinTech deals and activities mostly in the city of Lagos, saw 25 deals, a 42% share of the total deals in Africa as of the first half of 2023. Most FinTech products and services in Nigeria were found to be focused in the payment-related sector. However, the FinTech space in Nigeria goes beyond payment services to full business integration, which is expected to increase by more than 60% among all startups in Nigeria by 2026.
According to the report, the RegTech sector is also on course to rise by 40% among the start-ups in Nigeria at the end of 2026. Besides, the report found an increase in RegTech solutions mostly in regulatory reporting and compliance, anti-money laundering (AML), and know-your-customer (KYC) processes.
“There are several untapped RegTech opportunities not only in the financial sector but other areas like healthcare facilities, pharmaceutical business, environmental agencies, aviation and transportation, real estate and property, energy and utility compliance, automotive compliance, etc. This data-driven report will therefore serve as a valuable resource for businesses looking to take advantage of the huge potentials in the Fintech and Regtech sectors of Africa’s largest economy,” said Cyril Okoroigwe, the CEO of RegTech Africa.
The research attributed the growth in the Nigerian FinTech and potential returns on investment in the first half of 2023 largely to spearheading policy initiatives such as the Cashless Policy, Startup Bill, CBN and SEC’s regulatory sandbox, Bank Verification Numbering (BVN) system, Business Facilitation Act 2023, Banking, and other favorable business conditions.
RegTech Africa Insights provides data-driven industry research that helps companies make smarter technology decisions with data, not opinions. It is an influential platform dedicated to insights, trends, and opinion from the world of data-driven technologies.
Agpaytech is a pioneer in the Fintech Space with a focused approach to building robust technologies for e-commerce Card Processing Solutions for Payment Service Providers (PSPs). Additionally, it provides Compliance and Regulatory Umbrella, Remittance-as-a-Service, Banking-as-a-service, Foreign Exchange, Cross Border Payments, and digital currency technology.