Our Policies Attracted $600m Funding For Fintech Companies—Trade Minister

The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, has attributed the recent capital inflows recorded by Nigeria’s fintech firms to the role the ministry has played in building the right infrastructure and regulatory environment.

Adebayo disclosed that based on government’s efforts, Nigerian fintech firms have attracted over $600m in the last five years.

He, however, claimed that the country is currently among the best investment destination in the continent.

Adebayo disclosed these on Thursday at a media briefing on the status of some of the signed African Continental Free Trade Agreement (AfCTA), it’s impact on the economy of the Nation and other key investment updates regarding the Federal Government of Nigeria in support of the Buhari-led Administration push on Growing The Economy.

He said, “The Federal Ministry of Trade and Investment has achieved great strides in implementing its mandate of industrialising Nigeria’s economy, improving the business climate, attracting foreign investment and ensuring the growth and development of SMEs.

“The testament that the business environment has improved is the recent capital inflows achieved in the tech sector. Nigerian fintech firms have attracted over $600m funding over the last five years and have seen an almost 200 per cent growth in investment over the last three years.

“Nigeria moved up 15 places in the 2020 World Bank ease of doing business ranking primarily due to reforms introduced by this government. It also emerged as one of the only two African countries to be named among the top ten most improved economies in the world.

“Nigeria’s ranking stood at 131st in 2020 and has moved up by 39 places since 2016. Nigeria also moved up 11 places in the World Economic Forum Global Competitiveness ranking in 2019.”

The minister’s comment of an improved business climate in the country is coming despite dropping out of the top ten in the latest report by Rand Merchant Bank where Egypt emerged first.

Nigeria dropped from the second-best country to invest in Africa in 2014 to number fourteen in 2021. The country dropped from its 5.62 scores in 2014 to a 5.13 score in 2021.

But the minister in his argument said that the recent drop in the ratings was connected to the rising insecurity in the country.

Adebayo said, “Well there are various factors, the major one being the security problems that we have in the country. And as you are well aware, the Federal Government is making effort to resolve the security problem so that we will go back to the position of being the preferred destination,”

He said that he has received feedbacks from foreign governments that Nigeria’s position is getting better.

“As time goes on, we will begin to see an improvement in that situation,” he added.