Nigeria’s fintech sector attracted over $2 billion in investments in 2024, the Office of the Special Adviser to the President on Economic Affairs in the Office of the Vice President, has disclosed.
The Economic report, dated November 2024, was launched on Friday in Abuja.
The report highlighted that Telecommunications and ICT, especially fintech, constituted one of the key sectors that drove the nation’s economic growth in 2024, with the potential to replicate or double the same feat in 2025.
The report which also featured contributions from the federal government, the Nigerian Economic Summit Group (NESG), and Global Analytics Consulting, stated that with projections indicating continued growth, ICT’s contribution to GDP could reach 22 per cent by 2025.
“Nigeria’s telecommunications and ICT sector is one of the fastest-growing in Africa, contributing approximately 18.9 per cent 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, citing fintech as a key driver of economic growth for 2025.
The report also projected that the telecommunications and ICT sector is expected to surge by 8-10% in 2025, with the rollout of 5G networks and the expansion of internet penetration.
It further stated that Nigeria’s technology startup ecosystem is projected to continue attracting significant foreign investment, surpassing $3 billion by 2025.
The report forecasts that the sector will be pivotal in creating 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.
However, the report also highlighted some challenges facing fintech and communication systems in Nigeria including infrastructural constraints, regulatory issues, purchasing power limitations, and a constrained industry.