In a report published by The Economic Intelligence Unit, Ebehijie Momoh has revealed that the majority of venture capital investment in fintech comes from abroad. Momoh who is the Senior Vice President/General Manager, West Africa, MasterCard, made this known in a report titled: State of play: Fintech in Nigeria.
MasterCard and MTN sponsored the report that she delivered on a forum last week. The Economic Intelligence Unit, a service that examines and explains the important political and economic trends in Nigeria, organised the forum.
In her report, which THISDAY published, Ebehijie Momoh acknowledged how important the fintech market has been in Nigeria. She disclosed that the industry had lifted nearly 200,000 households out of extreme poverty. Also, it has helped over 200,000+ women enter the business space as well.
However, quoting an Ecobank research of 2020; Momoh says that while fintech will likely be worth $3 billion by the end of this year; majority of the venture capital investment comes from abroad. She stated that the industry needs to address these ‘shortcomings’.
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Another important information her report revealed is the lack of ‘fintech-specific law’. She disclosed that the industry needs a legal framework especially with new types of fintech coming to the fore. Once a framework is in place; Momoh says it will “accelerate fintech solutions for ‘insurtech’ and wealth management”.
She further said:
“As a global fintech leader, Mastercard is proud to support Nigeria and the rest of Africa in digitization efforts for a more inclusive economy.”
Ebehijie Momoh also said that MasterCard believes that fintechs are boosting digital transformation to improve the standard of living. Adding that the industry and financial inclusion “can drive growth and prosperity.”
“This is why we have pledged to bring a total of one billion people and 50 million micro and small businesses across the globe into the digital economy by 2025.
“As part of this effort, there will be a direct focus on providing 25 million women entrepreneurs with solutions that can help them grow their businesses,” she finished.
Momoh’s report and analysis is backed by many other sources. The Guardian mentioned that fintech companies have increased by 24 per cent between a decade (2009 to 2019). The article also disclosed that the industry speculates having a revenue of $543 million in Nigeria by 2022.
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