By James Emejo
Forward of the implementation of the African continental Free Commerce Settlement (AfCFTA) subsequent yr, President, Fintech Affiliation of Nigeria, Dr. Segun Aina has urged the federal authorities to increase funding grants to fintech operators as a way to encourage native entrepreneurship and innovation in addition to restrict exterior financing choices which is “detrimental to the economy”.
He mentioned whereas native fintech and innovation funds remained crucial for the expansion of the sector, the present state of affairs whereby financing help from Overseas Direct Funding (FDIs) dominated fintech investments is dangerous to the economic system and doesn’t promote native entrepreneurship.
Talking throughout an internet convention on the NG-AfCFTA Workshop (Commerce in Providers), he mentioned Nigeria accounted for $663 million out of the $1.34 billion in Africa FDI funding in fintech corporations in 2019 in addition to $137.5 billion globally.
In line with him, Nigeria’s management and useful participation within the settlement may solely be enhanced by means of an agile fintech ecosystem with a robust fee infrastructure and help from stakeholders.
Aina, mentioned the federal government and regulators wanted to rapidly develop and promote progressive laws and insurance policies to drive the method of Nigerian fintech corporations to scale to different international locations with ease notably enterprise passporting rights.
The AfCFTA implementation had been postponed from July 2020 to January 2021 because of the world impression of the COVID-19 pandemic.
Nonetheless, in his presentation titled: “Growing Nigeria’s Trade in Services in Africa with AfCFTA- Perspectives and Expectations of the Fintech Industry”, the Fintech president recognized lack of affected person capital for the fintech start-ups at seed stage and scaling, regulatory points and price of licenses, price of operations particularly a number of registrations in different African international locations as key challeges dealing with the event of the sector.
Additionally, he mentioned lack of cross border overseas foreign money settlement system in addition to paperwork of working/organising throughout borders within the continent remained obstacles which wanted to be addressed going ahead.
However he mentioned there are expectations that as operationalisation of the commerce settlement looms, Nigeria is predicted to champion enterprise passporting rights which allows the nation’s service corporations to determine and function in different international locations with out want for native incorporation and different operational challenges
He additionally predicted a digital currencies regime the place Nigeria is primed to guide as the largest economic system in Africa.
He mentioned fintechs are presently supporting and quick monitoring Nigeria and the continent’s digital transformation with 10-year goal achieved in 90 days, largely influenced by the COVID-19 pandemic.