Nigeria’s fintech ecosystem secured over $2 billion in investments in 2024, according to the 2024 Economic Report released by the Office of the Special Adviser to Nigeria’s President on Economic Affairs, within the Office of the Vice President.
The report identified telecommunications and ICT, particularly fintech, as one of the key sectors driving Nigeria’s economic growth in 2024, with the potential to sustain or even double this performance in 2025.
“Nigeria’s telecommunications and ICT sector is one of the fastest-growing in Africa, contributing approximately 18.9% to GDP in 2024.
Nigeria’s fintech ecosystem, which attracted over $2 billion in investments in 2024, will continue to flourish in 2025, as digital financial services such as mobile banking, digital lending, and e-commerce expand,” the report added, highlighting fintech as a key driver of economic growth for 2025.
The report also stated that Nigeria’s technology startup ecosystem is expected to continue drawing substantial foreign investment with projections indicating it could exceed $3 billion by 2025.
The fintech sector, which boasts approximately 3,360 startups, the highest number in Africa, will play a crucial role in generating high-paying jobs for Nigerians and driving innovation.
“Telecommunications and ICT, a major growth driver, contributed approximately 19.78% to GDP at this time in 2024, up from 19.54% recorded in the same period in 2023 and higher than in the first quarter of 2024 at 17.89%,” the report added.
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The most common source of funding in the last 10 years were angel investors (including friends and family) at 43%.https://t.co/gBW9BMs4BW pic.twitter.com/FfrlPuLGXA
— BitKE (@BitcoinKE) November 20, 2024
The report, which included input from the federal government, the Nigerian Economic Summit Group (NESG), and Global Analytics Consulting, stated that with ongoing growth, ICT’s contribution to Nigeria’s GDP could reach 22% by 2025.
However, it also highlighted several challenges facing the fintech and communications sectors, such as infrastructure constraints, regulatory issues, limited purchasing power, and a constrained industry.
On the other hand, with the rollout of 5G networks and the expansion of internet penetration, the telecommunications and ICT sector is projected to grow by 8-10% in 2025.
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