Fintech has become the new craze

Here’s how people are cashing in

Nowadays, saying “I’m building a fintech” is almost a standard introduction in Lagos.

Every entrepreneur aims to create a payments app.
Every venture capitalist wants a piece of the next Flutterwave.
Every pitch deck begins with: “Africa’s unbanked population is…”

But here’s the problem:
We’re focusing too much on fintech and neglecting the areas that truly need development, which is holding back Nigeria’s progress.

The data speaks for itself:

1. By February 2025, Nigeria had 433 fintech companies, up from about 230 in 2022—a growth of 88% in just three years.

2. Fintech makes up over 40% of all Nigerian tech startups and attracted 42% of tech funding by mid-2023.

3. Nigeria accounts for 28% of all fintech companies in Africa and received 36% of fintech equity funding between 2020 and the first half of 2024, leading the continent.

4. The sector is growing rapidly—70% year-over-year growth in 2024; e-payments processing reached ₦18.3 trillion across 1.38 billion transactions, a 70% increase from the previous year.

Yet, sectors like power, healthcare, food systems, and education have seen little innovation locally.
We’ve developed many ways to transfer money.
But there are very few solutions for feeding people, powering homes, or treating malaria.

What does this mean for Nigeria?
Fintech is easy to pitch, replicate, and fund.
But it’s not solving our biggest challenges.

Meanwhile, founders working in difficult sectors like agriculture, health, or energy struggle quietly with limited funding and support.
The outcome?
“A startup ecosystem that’s noisy and active but not necessarily impactful.”

What we should focus on instead:

1. AgriTech → food security, logistics, farmer access.
2. HealthTech → diagnostics, rural healthcare, health insurance.
3. Clean Energy → solar grids, off-grid power, energy software.
4. SaaS & Local Industry Tools → for supply chains, procurement, education, and governance.

These sectors have the potential to create jobs, boost exports, and drive meaningful economic change.

Fintech has opened doors. That’s great.
But if we continue to funnel talent and capital into just one area, we risk missing the bigger picture.
It’s time to look beyond fintech.
I’m genuinely interested in building solutions that bring real change and address genuine problems instead of just complaining or waiting on the government.
Because Nigeria’s future won’t be saved by another digital wallet.

Is it time to acknowledge that fintech might be Africa’s biggest distraction?

What are you working on that represents real innovation? Share your thoughts in the comments. Let us know.

Source: Linkedin: Omatsola Eyeoyibo