The year 2024 was pivotal for Nigeria’s tech and business sectors, marked by regulatory challenges, funding breakthroughs, innovation, and economic headwinds. Here’s a detailed look at the year’s major developments:
1. Funding and Investments in Nigerian Startups
Despite a global funding slowdown, Nigerian startups showed resilience, securing critical funding rounds across various sectors.
- Moniepoint Becomes a Unicorn:
Moniepoint hit the billion-dollar valuation mark, joining the prestigious unicorn club. The fintech giant continues to lead Nigeria’s payments landscape, processing billions in transactions monthly. - Juicyway Raises $3 Million Pre-Seed:
The cross-border payments startup secured funding to address FX challenges for businesses. Its innovative platform connects liquidity providers and seekers seamlessly. - Billboxx Secures $1.6 Million:
The Nigerian fintech offering invoice financing for SMEs raised pre-seed funding to expand operations, highlighting the growing focus on SME financing solutions. - PBR Life Sciences Raises $1M:
The healthcare analytics company expanded its AI-powered solutions for pharmaceutical companies and planned its entry into Ghana and Kenya. - Foreign Funding Resurgence:
Startups like Tyme Group raised significant funds, with the South African digital lender securing $250 million in a Series D round. Nigerian startups remained strong participants in African tech funding conversations.
2. Regulatory Challenges and Central Bank Scrutiny
- Fintech Fines:
The Central Bank of Nigeria (CBN) imposed fines on fintechs Moniepoint and OPay, alleging compliance lapses. This marked a growing trend of CBN tightening its regulatory grip on the fintech ecosystem. - Naira Redesign Fallout:
A failed naira redesign policy and persistent cash shortages continued to strain businesses and consumers. Banks faced fines for selling newly minted notes to currency hawkers, while the CBN sought to restore order through increased spot checks. - Interest Rate Hikes:
The CBN raised interest rates to 27.5%, its highest in decades, to combat soaring inflation, which hit 33.8% in October 2024. The move, however, raised borrowing costs, impacting business operations and consumer spending.
3. Landmark IPO Announcements
- Tizeti Plans NGX Listing:
The internet service provider announced plans to go public on the Nigerian Exchange (NGX), potentially setting a precedent for Nigerian tech companies choosing local listings over foreign exchanges. - Investor Push for Local Listings:
Industry leaders like Iyin Aboyeji advocated for startups to list on the NGX instead of foreign exchanges, emphasizing sustainable growth and local investor participation.
4. Banking and Financial Sector Developments
- GTBank’s Core Banking Switch Crisis:
GTBank’s switch to Finacle caused a seven-week service disruption, leaving millions of customers unable to access their funds. The incident sparked conversations about the operational risks of digital transformation in the banking sector. - Union Bank Salary Hike:
Union Bank implemented a 40% salary increase to help employees cope with Nigeria’s inflationary pressures, mirroring similar moves by other commercial banks. - POS Agent Regulation:
The government ordered 1.9 million POS agents to register with the Corporate Affairs Commission (CAC) in a bid to regulate the burgeoning agency banking sector.
5. E-Commerce and Retail Growth
- Jumia Black Friday Success:
Jumia recorded 2.6 million orders during its month-long Black Friday campaign, an 18% year-on-year growth despite operating in two fewer markets compared to 2023. - Palmpay-Jumia Partnership:
Palmpay integrated its platform with Jumia, allowing users to pay directly from their accounts. This partnership reflects the growing adoption of pay-by-bank features.
6. Telecom and Infrastructure Expansion
- MTN Nigeria’s 5G Leadership:
MTN emerged as the fastest network in West and Central Africa, achieving 95.62 Mbps download speeds after investing over $120 million in its 5G network. The telco expanded its 5G coverage to 11% of Nigeria’s population. - Pan African Towers’ New Leadership:
The telecom infrastructure provider secured funding and announced plans to triple its tower footprint, strengthening its role in bridging Nigeria’s connectivity gap.
7. Media and Entertainment Developments
- Netflix Denies Nigeria Exit Rumors:
Netflix refuted claims of exiting Nigeria despite filmmaker Kunle Afolayan suggesting otherwise. The platform reaffirmed its commitment to Nigerian content. - People Daily Goes Digital-Only:
The 32-year-old Kenyan newspaper ended print operations, opting for a digital-only model, signaling the increasing dominance of digital media.
8. Cross-Border Payments and FX Challenges
- CBN FX Policy Impact:
A lack of FX liquidity continued to hinder Nigerian businesses reliant on international trade. Startups like Juicyway and traditional businesses struggled with the naira devaluation, which surpassed 70% in 2024.
9. AI and Technology Trends
- AltSchool Africa Expands to Europe:
The edtech startup launched operations in Malta, marking its entry into the European market. It plans to offer hybrid learning models and AI-driven courses. - AI in Healthcare:
PBR Life Sciences integrated AI and generative analytics into its healthcare solutions, providing pharmaceutical companies with better insights into African markets.
10. The Rising Threat of Fraud
- First Bank Fraud Case:
First Bank was hit by a ₦7 billion fraud incident, raising concerns about internal controls and cybersecurity vulnerabilities in Nigeria’s banking system.
Conclusion
2024 was a transformative year for Nigeria’s tech and business ecosystems, with advancements in funding, fintech innovation, and technology adoption. However, challenges like regulatory pressures, naira devaluation, and infrastructure gaps remain hurdles to sustained growth. As Nigeria enters 2025, collaboration between regulators, startups, and investors will be key to navigating these challenges and unlocking the country’s economic potential.