Nigeria’s Journey to a $1 Trillion Economy: FintechNGR President Stanley Jacob Highlights Fintech’s Transformative Role
President of the Fintech Association of Nigeria (FintechNGR), Dr. Stanley Jacob, has emphasized the pivotal role of the fintech sector in propelling Nigeria toward its ambition of becoming a $1 trillion economy. In an exclusive interview with Arise News, Dr. Stanley highlighted the transformative power of fintech in driving financial inclusion and revolutionizing various industries.
“We cannot achieve the $1 trillion economy without fintechs,” he stated, underscoring the industry’s significance despite Nigeria’s challenging macroeconomic environment.
He noted that Nigeria’s fintech industry has maintained remarkable growth, with the number of startups surging from 74 in 2017 to over 217 by 2023. This expansion has been driven by factors such as increased mobile penetration, a youthful population, and the sector’s capacity to innovate across industries like payments, healthcare, agriculture, and insurance.
“Fintech has gone beyond just naira and kobo. It has now gone into medicine, healthcare, agriculture, and elsewhere,” Stanley remarked, highlighting its role in creating new opportunities within “micro-markets” and fostering greater financial inclusion.
Despite high poverty levels and economic hurdles, he pointed to Nigeria’s youthful population as a unique asset. He credited fintech’s ability to deliver digital financial services as a key factor in expanding accessibility and inclusion across the country.
“Our youthful population also presents a unique opportunity for us, for fintechs, and for investors in this space,” he said.
Mr. Stanley however acknowledged several challenges that could hinder the industry’s progress:
- Governance: He stressed the importance of robust governance structures to sustain growth.
- Foreign Exchange Risks: Funding in foreign currencies while earning revenue in Naira he said, exposes fintechs to FX volatility.
- Profitability: Many fintechs prioritize social good over financial sustainability, which he warned could threaten their long-term viability.
- Cybersecurity: With the increasing digitization of services, he highlighted the need for strong data protection measures and compliance with regulations like the Nigeria Data Protection Regulation (NDPR).
Mr. Stanley however called for greater collaboration between fintech companies and the government to address these challenges and ensure sustainable growth. Looking ahead, he expressed optimism about the sector’s potential to expand into new areas, including health tech, property tech, and agritech.
“The future of fintech is quite bright,” he concluded, urging resilience and adaptability to overcome the hurdles posed by the current economic climate.
