Nigerian tech firms raise $ 417.5 million in nine months

Technology Startups in Nigeria have raised around $ 417.5 million in nine months, we learned.

This is based on analysis of fund announcements on TechCrunch, TechCabal and Nairametrics.

The $ 417.5 million raised so far is higher than the $ 300 million raised in 2020.

While fintech companies accounted for 90.78% of the $ 417.5 million raised so far this year, education technology companies, health technology companies, and communications technology organizations represented the remaining 9.22% of the amount raised.

Nigeria has the highest number of startups in Africa, most of them operating in the financial services industry due to the large number of underbanked and unbanked populations in the country.

This is according to the ranking of the African technological ecosystem of the future 2021/2022 established by fDi Intelligence of the Financial Times, in collaboration with Briter Bridges.

According to an Enhancing Financial Innovation & Access report, around 38 million adults are financially excluded from Nigeria’s 200 million people.

Between 2014 and 2019, the Nigerian fintech space raised more than $ 600 million. According to the FinTech Association of Nigeria, investments in the financial services ecosystem are expected to exceed $ 400 million in 2021, and its revenue base is expected to grow to $ 543 million by 2022.

To further strengthen the status of the startup space, the president, Major General Muhammadu Buhari (retired), recently said, “Our young people are our most precious natural resource, at home and abroad.

“Their ingenuity, creativity, innovation and entrepreneurial spirit are evident to everyone. We will partner with the legislature to develop an enabling environment to transform their passions into ideas that can be nurtured, nurtured, and scaled. ”

This is what inspired the formation of the “Startup Bill”, which must be presented to the National Assembly before the end of 2021.

According to the “Startup Bill” website, the project is a joint initiative of Nigeria’s tech startup ecosystem and the Presidency to harness the potential of the digital economy through co-created regulations.

“The bill will ensure that Nigeria’s laws and regulations are user-friendly, clear, planned and work for the tech ecosystem. We believe this will help create an environment conducive to growth, attraction and protection of investment in tech startups, ”the promoters said.

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