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Why Fintech Companies Are Closing Shop in Nigeria

Tech investors in Africa's No. 1 economy are doing a reset following the failure of many start-ups they thought would help open up opportunities in the continent.

Business closing hanging sign.

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By Fred Ohwahwa

What’s at stake:

Tech investors who doled out what is beginning to look like ‘easy money’ to start-ups in Africa’s leading economy are discovering the enterprises need more than funds. Now that some of the companies have ended belly up, investors are taking stock and trying to figure out how much handholding future investments will need.

Amid the global challenging economic environment, many start up tech companies in Nigeria folded up in 2023. At the last count, eight of such companies went under.

In a country with astronomically high unemployment rate – estimated at 33 percent by some projections – this is a significant development considering the country’s leading position in fintech across Africa.

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