In an insightful report on the state of the Nigerian Fintech and RegTech sectors, RegTech Africa & Agpaytech have provided an in-depth analysis of digital innovations and regulatory developments spanning the first half of 2023. Projections indicate significant growth in both sectors, with Nigeria at the forefront of these transformative changes.

Key Highlights:

• African FinTech Deals: In the first half of 2023, African FinTech transactions totaled 60, securing a combined funding of $189 million in Q2 2023. While this represented a 64% reduction from the corresponding period in 2022, it underscores the dynamic nature of the FinTech landscape.
• Nigerian Dominance: Nigeria emerged as the epicenter of FinTech activities in Africa, with Lagos leading the way. The country recorded 25 deals, constituting a substantial 42% share of total African FinTech transactions in H1 2023. The payment-related sector accounted for the majority of Nigerian FinTech products and services.
• Future Expansion: The Nigerian FinTech sector is poised for substantial expansion, encompassing not only payment services but full-scale business integration. It is anticipated that such integration will increase by over 60% among all Nigerian startups by 2026.
• RegTech Advancements: The RegTech sector is also on a growth trajectory, with a projected 40% increase among Nigerian startups by the end of 2026. The report highlights the proliferation of RegTech solutions, particularly in areas such as regulatory reporting and compliance, anti-money laundering (AML), and know-your-customer (KYC) processes.
• Untapped Opportunities: Beyond the financial sector, the report identifies numerous untapped RegTech opportunities in various industries, including healthcare, pharmaceuticals, environmental agencies, aviation, real estate, energy, automotive compliance, and more. These opportunities present fertile ground for innovation and growth.

Mr. Cyril Okoroigwe, CEO of RegTech Africa, emphasized the report’s value in aiding businesses seeking to leverage the vast potential within Africa’s largest economy, both in the Fintech and RegTech sectors.

The report attributes the growth in Nigerian FinTech, coupled with promising returns on investment in H1 2023, to proactive policy initiatives. These initiatives include the Cashless Policy, Startup Bill, regulatory sandboxes established by the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC), the Bank Verification Numbering (BVN) system, Business Facilitation Act 2023, and other favorable business conditions.

The full report can be accessed for download via the following link: State of Fintech & Regtech in Nigeria.

About RegTech Africa: RegTech Africa Insights offers data-driven industry research, assisting leading companies in making informed technology decisions based on data. This influential platform focuses on insights, trends, and opinions within the realm of data-driven technologies, providing organizations with comprehensive data, expert insights, and management tools for informed decision-making. For more information, visit www.regtechafrica.com.

About AGPAYTECH LTD: AGPAYTECH LTD. is a pioneering company in the Fintech space, specializing in robust technologies for e-commerce card processing solutions for Payment Service Providers (PSPs). Additionally, they offer Compliance and Regulatory Umbrella services, Remittance-as-a-Service, Banking-as-a-service, Foreign Exchange, Cross Border Payments, and digital currency technology. AGPAYTECH also provides practical white paper research support to central banks, governments, private institutions, economic organizations, and NGOs in Africa. For more information, visit AGPAYTECH LTD.