I had it in mind to do a thread on the #Fintech and #epayment landscape in Nigeria since about 2 weeks now. I had extracted the data and even analysed them. But never got around to sharing them. Too many distractions. 😊 So this is a data dump. Let's analyse together.

A THREAD!

Within the last 3 years there has been significant increase in epayments. For instance, the volume on NIPS (Nibss Instant Pay) went up by 372% from 154 Billion transactions in 2016 to 730 Billion in 2018. And value went up by 111%, from N38Trillion in 2016 to N80Trillion in 2018.

For POS transactions, the story is similar. Transaction volumes went up by 349% from 64 Billion in 2016 to 286 Billion in 2018. While in terms of values, it went up by 206% from N758 Billion in 2016 to N2.3 Trillion in 2018.

The story is similar with other epayment platforms like Mobile and EBills-Pay. Which had increased volume of 27% and 2% respectively and increased values of 61% and 47% respectively between 2016 and 2018.

The one data that seem to show how much this epayment revolution is gradually taking shape is the data on Cheques. Cheque volumes declined by 23% (from 12 billion to 9 billion) between 2016 and 2018 and by 14% (from N6 Trillion to N5 Trillion) in values during the same period.

In summary, total volume has moved up by 290% from 278 billion in 2016 to 1.1 trillion in 2018. (Daily average of 3 billion transactions). While total value has moved up by 95% from N46 Trillion in 2016 to N90 Trillion in 2018 (Daily average of N245 Billion).

That is not all the story. On the #FintechNG landscape, there has been steady increase in investment into that space in recent times. Nigeria Fintech companies have been able to attract outside and domestic investors and it seems to be happening in spite of the economy.

Why is this the case?
1. Population of Nigeria
2. Population of Young people
3. Mobile Density
4. Increased epayments volumes
5. Broadband internet
6. Increased emphasis on financial inclusion (policy and regulatory)

All these come together to create a potential ecommerce market

Just recently, we learnt that out of 458 deals amounting to $725.6m from Venture Capitalist in Africa, (a 300% leap in total funding amt from 2017), Nigeria got 136 (30%) of the deals out performing South Africa and Kenya which got 107 and 73 respectively. weetracker.com/2019/01/04/wha…

So far, reports from @Techpointdotng shows that as at Q3 2018, Nigeria #Fintech companies and start ups have already attracted about $120m. It is looking like the investment inflow in 2018 will surpass all inflows in the previous years.

techpoint.africa/reports/

While it must be said that what is coming to Africa and indeed Nigeria is a far cry from global investments in FinTech which was over $31 billion in 2017, the exponential leap in deals and investment shows an increasing interest in the continent and indeed in Nigeria.

Why is this subject matter important? Jobs! Jobs! Jobs! Given that the largest sub-set of our population are between the ages of 18 - 35 and the vast number of people we are adding to the labor force each year, we need to look at sectors like this as means of creating jobs.

There are millions of jobs that can be created around the #Fintech ecosystem. Just take a cue at what countries like Kenya are doing. The challenges here is not just about policy, it is also about regulation. A case in point is the new CBN guidelines on payment service banks.

In conclusion, it's not all gloom & doom. There is a disruption going on & it's coming from Fintech Startups. As more money pours in, it's gaining ground & soon enough, it'll be the order of the day. You can either read this as a political gladiator or as a potential investor. 😊

ADDENDUM!

Please note that the initial analysis didn't include data for ATM, WEB, NEFT, REMITA, M-CASH and NAPS because I had incomplete data for 2018. However, for reference purposes, I have decided to add them them here just to give a fully picture of the epayment landscape.

In addition, I have also attached the chart for CENTRAL PAY which is simply the web equivalent of a physical POS terminal. Volume increased by 1700% from 70m in 2016 to 1.3 billion in 2018. While value increased by 462% from N1.4 Trillion in 2016 to N8.1 Trillion in 2018.

If you want to know more about the Fintech landscape in Nigeria, read this article by @segunhq. It tells you all you need to know about the evolution of tech in Nigeria, the regulatory challenges and what the next level for tech looks like. Cc @proshare

proshareng.com/news/Fintech/A…

ADDENDUM 2

I did say this is a data dump. 😊

For those who have asked for data for a longer period, please find attached the chart for POS, NIPS, Mobile and Cheque from 2012 - 2018. The charts are self explanatory.

Also attached are charts for Ebills Pay, Central Pay, Web and NAPS from 2012 - 2018

Note: Depending on the payment type, some starts in 2013, 2015 and end in 2017.

The remaining charts from 2012 - 2017 are for ATM, NEFT and REMITA. Also included is the data table for analysis.