Nigeria’s fintech industry once again proved its dominance in 2024, emerging as the largest recipient of technology investment in the country. Despite a challenging funding environment across Africa, fintech startups in Nigeria attracted 35% of total tech funding, translating to approximately $2 billion for the year.
Although this figure represents a decline from the 42% share recorded between 2019 and 2023, it underscores fintech’s continued leadership within Nigeria’s innovation ecosystem. More significantly, fintech accounted for an overwhelming 72% of all equity investments in the country, reinforcing its appeal to both local and international investors.
Nigeria also strengthened its position as Africa’s top venture capital destination, pulling in $520 million in equity funding, an 11% increase compared to 2023. Notably, fintech was the only African tech sector to record growth in both deal count (+16%) and total funding (+59%), at a time when overall tech funding on the continent declined sharply.
A standout moment came in October 2024, when Moniepoint raised $110 million in a Series C round, a deal that symbolized fintech’s continued resilience and scale. While other sectors such as healthtech, e-commerce, logistics, and cleantech lagged behind in funding volumes, many benefited indirectly from fintech-driven infrastructure and innovation.
1. Fintech
Investment Volume
Fintech remained the undisputed leader in Nigeria’s startup ecosystem in 2024, raising over $2 billion in total investments. In the first half of the year alone, Nigerian fintech startups secured $140 million across 24 deals, outperforming regional peers such as Kenya ($97 million), Egypt ($35 million), and South Africa ($34 million).
This performance is particularly impressive given that total African fintech funding declined by 77% year-on-year, highlighting Nigeria’s unique resilience.
Several high-profile transactions reinforced this momentum. In February 2025, Raenest raised $11 million in Series A funding, led by QED Investors, to expand financial services for remote workers and freelancers. Meanwhile, PiggyVest reported paying out ₦835 billion (approximately $547.3 million) to users in 2024 — a 53% increase compared to the previous year.
These developments collectively enabled fintech to capture 35% of Nigeria’s total tech funding.
Share of Total Tech Funding
While fintech’s funding share dipped slightly from its historical average, it still dominated Nigeria’s investment landscape. In 2024:
• 35% of all tech funding went to fintech
• 72% of total equity investments were fintech-related
Across Africa, fintech attracted 60% of total equity funding, amounting to $1.3 billion, further cementing its continental leadership.
Stage Focus
Investor preferences shifted noticeably in 2024. Seed-stage investments saw a 26% increase in ticket sizes, while Series A and Series B funding declined by 18% and 27%, respectively. In contrast, growth-stage funding increased, driven by fewer but significantly larger deals such as Moniepoint’s Series C round.
This trend reflects growing investor confidence in fintech’s revenue sustainability and scalability.
Revenue Potential
Nigeria’s fintech sector stands out for its strong financial fundamentals:
• 85% of fintech startups are post-revenue
• 76% are already profitable
• 57% generate more than $5 million in annual revenue
Market conditions further strengthen this outlook. Nigeria ties with Turkey as the global leader in mobile banking usage, with 83% of adults using mobile banking services. Yet, nearly 50% of the population remains unbanked, presenting enormous room for future growth.
Despite challenges such as tight regulations and market saturation, fintech remains the backbone of Nigeria’s technology ecosystem.
2. Healthtech
Investment Volume
Healthtech ranked as the third-largest sector by startup count in Nigeria in 2024. Although funding volumes were lower than fintech, the sector continued to attract strategic early-stage investments.
A notable example occurred in December 2024, when PBR Life Sciences raised $1 million in pre-seed funding. The round was backed by Launch Africa, XA Africa, and ARM Labs, with plans to enhance AI infrastructure and expand operations into Ghana and Kenya.
Stage Focus
Healthtech investment mirrored broader market caution. Seed and Seed+ rounds dominated, while Series A and B activity slowed significantly. Investors increasingly demanded clearer metrics, regulatory compliance, and scalable business models before committing larger capital.
Revenue Potential
Healthtech growth is closely linked to Nigeria’s broader ICT expansion. In 2024, the ICT sector contributed 18.9% to Nigeria’s GDP, with projections indicating a rise to 22% by 2025.
A young population, rising digital adoption, cross-border expansion into East and West Africa, and increasing use of AI and data analytics position healthtech as a strong long-term investment opportunity.
3. E-commerce
Investment Volume
E-commerce and Retail-Tech represent Nigeria’s second-largest tech subsector by startup count, with 58 startups, compared to fintech’s 173. However, funding remained concentrated at the seed and pre-seed stages.
In April 2024, food delivery and logistics startup Chowdeck raised $2.5 million in seed funding, backed by Y Combinator, Goldwater Capital, and the co-founders of Paystack. Shortly after, Renda, a logistics-focused retail distribution startup, raised $1.9 million in pre-seed funding, including $1.3 million in equity led by Ingressive Capital and $600,000 in debt from Factory Africa and SeedFi.
Share of Total Tech Funding
E-commerce startups account for approximately 12% of Nigeria’s total startup ecosystem, significantly lower than fintech’s 36% share. Between 2019 and 2023, fintech absorbed 42% of cumulative tech funding, highlighting the funding gap e-commerce continues to face.
Revenue Potential
E-commerce growth is tightly linked to fintech adoption. Nigeria recorded:
• 187 million mobile connections (90% penetration)
• A population where over 65% are under 35 years old
These factors, combined with expanding digital payments and lending, continue to drive online retail growth. The ICT sector’s rising contribution to GDP further supports this outlook.
4. Logistics and Mobility
Investment Volume
Despite having only 28 startups, Nigeria’s logistics and mobility sector secured some of the largest individual funding rounds in 2024.
The most prominent example is Moove, a mobility startup focused on vehicle financing for ride-hailing and logistics drivers. In the first half of 2024, Moove raised over $100 million, making it the only mega-round (>$100 million) recorded in Nigeria during that period. The round included a strategic investment from Uber, reinforcing confidence in fintech-enabled mobility models.
Stage Focus
Unlike fintech’s high volume of early-stage deals, logistics and mobility investments were fewer but significantly larger, with strong emphasis on growth-stage funding. Investors favored startups with proven revenue streams, particularly those integrating vehicle financing, embedded payments, and digital credit solutions.
Revenue Potential
Logistics and mobility startups benefit directly from Nigeria’s fintech ecosystem. For instance, OPay reports monthly transaction volumes exceeding $12 billion, much of which supports logistics-related payments.
Policy support also plays a role. In December 2024, the Nigeria Consumer Credit Corporation (CrediCorp) partnered with the National Automotive Design and Development Council to launch a ₦20 billion consumer credit fund aimed at promoting locally assembled vehicles — a move that strengthens the broader mobility ecosystem.
Conclusion
While diversification into sectors like healthtech, e-commerce, and logistics is accelerating, fintech remains the foundation of Nigeria’s tech economy. Its strong profitability metrics, deep market penetration, and ability to attract large-scale capital ensure it will continue shaping the country’s digital future.
Balancing investment across emerging sectors could reduce volatility, but for now, fintech remains Nigeria’s most powerful driver of innovation, capital inflow, and economic transformation.
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