Take advantage of Nigeria’s FinTechs space, Onyema urges investors

Speaking at a FinTech forum in Lagos, Onyema said the increasing rate of cash inflow into FinTech sectors around the world (especially in developing countries), is testament to the fact that financial technology is an important economic catalyst in the Fourth Industrial Revolution.

However, he is unhappy about the fact that many Nigerians have failed to take advantage of the opportunities that abound in the sector.

“According to KPMG’s 2018 global analysis of investment, equity investment into global fintech companies almost tripled from $18.9 billion to $50.8 billion between 2013 and 2017 and has continued to gain traction. Surprisingly, foreign investors seem to be seeing these gains better than local investors as statistics show that they have dominated capital raise for indigenous start-ups in the last couple of years.”

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Oscar Onyema also disclosed that the NSE plans to cater to segment the market by introducing a Growth Board that will cater to companies that have shown growth prospects. These companies will include financial technology firms, especially those just emerging from venture capital management and in need of public investment and corporate consolidation.

“This approach, in our opinion, would assist companies with high growth potential, leverage public finance for growth and expansion. fintech offers the opportunity to deepen capital market activities and also achieve sustainable economic growth by empowering a larger portion of the populace to access financial services; unlock efficiencies in product and service delivery for financial institutions and increase transparency and resilience of the Nigerian capital market and larger financial ecosystem.”

Speaking further, Onyema disclosed that the NSE is planning to explore new technologies including blockchain and Distributed Ledger Technology (DLT) for capital raise.