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How fintechs raised N410.8bn investments in 6 yrs – CBN

Disburses N343bn to MSMEs   By Chris Agabi, Sunday Michael Ogwu & Faruk Shuaibu   The Nigerian financial technology providers, fintechs, have attracted at least…

  • Disburses N343bn to MSMEs

 

By Chris Agabi, Sunday Michael Ogwu & Faruk Shuaibu

 

The Nigerian financial technology providers, fintechs, have attracted at least $1 billion (about N410.82 billion) investments in six years.

This figure was disclosed at the 31st Seminar for Finance Correspondents & Business Editors in Enugu.

The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele said at the seminar that based on the high level of confidence in Nigeria’s payment system, between 2015 and 2020, the industry attracted the investment of about $500 million in firms run by Nigerian founders.

Mr. Akeem Olujinmi Lawal, the Divisional Chief Executive Officer, Payments Processing Division, Interswitch Group, collaborating what the CBN Governor said between 2020 to date, additional $500m has crept in, raising the figures to $1bn.

Mr. Emefiele who was represented by the Deputy CBN Governor, Corporate Services, Mr. Edward L. Adamu said the rise in fintechs is also deepening financial inclusion even though he said the access isn’t robust enough.

“In spite of these gains, about 36 percent of adult Nigerians still do not have access to financial services. Improving access to finance for individuals and businesses through digital channels can help to improve financial inclusion, lower the cost of transactions, and increase the flow of credit to businesses.”

He said the e-naira will also impact the financial inclusion numbers. “With the deployment of the eNaira, Nigerians in remote areas can conduct financial activities using their digital as well as features on phone devices. Partnering with our stakeholders in the financial industry, I believe that more Nigerians will be financially included.”

The CBN Governor also said the rise in payment systems has also led to a rise in risks and thefts in spite of measures to stop the same. He assured of CBN’s readiness to confront the high fraud risks of fintechs, including stiffer regulatory prescriptions.

Meanwhile the apex bank said it has disbursed N343.21bn to 123,468 Micro, Small and Medium Enterprises (MSMEs) to cushion the effect of the COVID-19 pandemic on businesses.

This, it said, was through its Targeted Credit Facility (TCF) to help sustain businesses and economic shocks that followed the health crises that crippled economy over the world.

Speaking at the 16th Abuja International Trade Fair yesterday in Abuja, Director Corporate Communications Department, Mr. Osita Nwanisobi, said the beneficiaries comprised 602,730 households.

Nwanisobi said the bank is taking active steps and policies to encourage growth and sound financial system, to foster economic development and restore confidence in the economy.

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