Financial inclusivity or inclusion ensures everyone gets equal access to financial products and services. Most recently, this is exemplified by the United Bank for Africa's UBA Braille Account Opening Form — a first-of-its-kind initiative in the Nigerian and African market to cater to the financial needs of the visually impaired. This demographic has long been disadvantaged and can now independently initiate and complete the account opening process, ensuring seamless integration into the financial system.
At the same time, as financial technology continues to evolve in the country, agreements and partnerships must be established so that fintech companies can comply with local authorities and regulations. In May, the Central Bank of Nigeria revoked the operating licenses of more than a hundred financial institutions, including fintechs for non-compliance reasons. Experts suggest that tech players in the sector be open to regulations and regulators to manage the macro effects of innovations and their unintended consequences.
Fintech in Nigeria
Today, there is a strong fintech presence in Nigeria. In 2022, Nigeria's fintech revenue was expected to reach N418 billion — a significant growth from N117.8 billion in 2017. Of course, different fintech companies offer different financial products and services, from payments and lending to money transfers and trading.
For example, Nigeria-basedOnePipe reportedly raised N2.25 billion in seed funding. Currently, the fintech company boasts three flagship solutions: PaywithTransfer, Pay4me, and Benefits. OnePipe aims to expand its operations nationwide, offering payment services, virtual accounts, and credit and short-term cash loans.
For investors and traders in the industry, the powerful MetaTrader 5 is a multi-asset platform that features analytical tools, charts, and indicators. Platform users can develop trading robots and technical indicators through the specialized MetaEditor tool, using MetaTrader's unique programming language designed for trading languages, the MetaQuotes Language 5.
As such, some fintech platforms can empower their users to use fintech products and services, proactively contributing to a growing community. With tech continuing to improve and adapt, its users must be given opportunities and resources to control what they do and ensure their data and finances remain secure. As mentioned above, for fintech in Nigeria to thrive in the long run, companies, the government, and the users must work together to ensure compliance with regulations.
Nigeria's politics and economy
At the same time, a country's economy can also impact its fintech developments. In Nigeria’s case, for instance, the recent elections have brought significant changes to the country's economy. This includes policy reforms from the newly elected President Tinubu in hopes of fixing the country's currency exchange rates and his recently formed tax committee set to reform Nigeria's tax laws and fiscal policy. These policy reforms are implemented in response to rising inflation and other economic concerns in the country.
The recent reforms also leave matters such as petrol prices and the naira rate to the markets. While many are initially concerned about the consequences of this shift, this can also mean well for the growth of Nigerian traders and investors, supporting buying activities in the country. In fact, analysts expect the market to deliver a positive return of 25.8% by the end of the year.
With the continuing adoption of fintech products and services, the government can also work with fintech companies in the country to make financial services more accessible and efficient for Nigerians. The growth of fintech can also significantly impact work and labor opportunities, contributing to economic growth and development.
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