Nigeria’s fintech ecosystem continues to attract significant local and foreign investment, but navigating its complex and overlapping regulatory framework remains critical to deal certainty, change of control and exit planning. Cecilia Otse and Adekunle Soyibo of Jackson, Etti & Edu examine the regulatory considerations investors should assess when investing in Nigerian fintechs.
Nigeria’s fintech ecosystem is one of Africa’s largest and most dynamic, attracting significant local and foreign capital while contributing substantially to the growth of digital financial services and financial inclusion. Despite broader economic challenges, the sector has remained resilient and continues to present opportunities for investment.
In this article, Cecilia Otse and Adekunle Soyibo of Jackson, Etti & Edu examine the Nigerian fintech landscape and the regulatory considerations that can influence investment decisions, transaction certainty and exit opportunities.
The article explores the range of fintech services operating within the Nigerian market, including electronic payments and wallets, digital lending, digital insurance, investment platforms and digital compliance solutions. It also considers the multiple and sometimes overlapping regulatory requirements applicable to fintech businesses.
Importantly, investments and exits involving fintech companies may require approvals from multiple regulators. The applicable requirements can depend on the licences held by the fintech, the size of the proposed equity acquisition or divestment, and whether the transaction has cross border elements. Identifying the relevant approvals and planning the regulatory process therefore remains an important consideration for investors and transaction parties.
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