Fintech vs Agritech What Should Investors Hurdle towards In Nigeria?



In Nigeria, the Fintech sector has evolved beyond money payment platforms, it now includes many forms of technological innovation in the financial sector.  The platforms can be grouped into:

  1. Payments
  2. Lending
  3. Merchant services
  4. Loyalty platforms
  5. Crypto currency
  6. Finance management
  7. Banking services.

The Fintech sector is fast becoming one of the most crowded sectors in the Nigerian Tech eco system, and because Fintech is perceived to be the future almost every commercial bank has a Fintech platform that they are backing up. Fintech is a rapidly evolving segment of the Financial services industry where technology focused start-ups and other new market entrants are disrupting how the industry operates. Fintechs function by innovating the traditional products and services provided by the financial service industry. This innovation is achieved by introducing technology-driven applications which transform customer expectations and create opportunities in underserved markets. While start-ups are redesigning the financial services processes with their high-end technological expertise, incumbent players are also following suit and investing heavily in creating new products of their own. The trend is increasingly shifting from start-ups seen majorly as disrupters to also being enablers of change. Hence, there is greater collaboration being seen and expected between different players of the ecosystem with the start-ups.

The Emergence of Fintech companies in Nigeria is a prelude to the transformation in payments, lending and personal finance that has manifested in significant investor interest in recent times. Fintech is enabling the entire value chain of traditional financial institutions to establish better connections with customers and to provide new market offerings. There are numerous start-ups cutting across various business segments and functions, predominantly in payments and lending.

In developed countries, Fintech startups disrupt traditional banking services, but in the African context Fintechs are trying to solve basic banking problems, like making it easier to transfer money, open a bank account, save some money, get a loan, and get insurance coverage. Rather than entirely disrupt, Fintech startups are sort of “building a whole new infrastructure of their own”.


Agriculture is a big business in Africa the sector employs about 65% of the continents labour force, and accounts for about 32% of gross domestic product (GDP) according to the World Bank. Yet it is beset by problems. Africa’s population is growing it is projected to reach two million by 2050 but farm productivity is low, as a result of weather changes, lack of technical equipment and expertise, and the movement of young people away from farming areas to cities. Help, however, is at hand. African entrepreneurs are increasingly seeing the inherent opportunities within the agriculture sector, developing solutions that do everything from help farmers increase their yields to providing better access to markets. In Nigeria there are peculiar challenges facing agriculture such as the fact that country is oil dominated, underinvestment to the agricultural sector, poverty among small- scale farmers and of course rural-urban migration that has robbed farm lands of workers. To address the challenges of agriculture in Nigeria a number of Agritech startups have appeared in a bid to use a range of tools to improve the livelihood of small farm holders. In essence Agritechs work with farmers and cooperatives to provide the best quality of commodities for international trading market.

Technology is helping to unlock the potential of the agricultural sector in Africa, as Agritech startups from the continent show growth while making an impact on African communities.

Agritech is subdivided into the following categories:

  1. Food Marketplace/Ecommerce
  2. Agricultural Biotechnology
  3. Farm management, sensing & IoT
  4. Novel farming systems
  5. Supply Chain technologies
  6. Bioenergy & Biomaterials
  7. Innovative Food
  8. Robotics, Mechanization& other Farm Eq
  9. Other

The continuation to this article can be found here