Over the last decade, one of the brightest spots in Nigerian business has been the remarkable rise of fintechs. The fintech sector in Nigeria has fundamentally transformed financial services, most notably through the proliferation of mobile banking and digital payment solutions.
This transformation has significantly boosted financial inclusion across the nation, with user growth expected to reach an impressive 82.09 million by 2028, and has made substantial contributions to broader economic activity by enhancing productivity and fostering job creation. The fintech sector’s dynamism is further underscored by its attractiveness to foreign investment, likely exceeding that of other sectors in drawing startup capital.
In 2019, Nigerian fintechs secured $460 million, predominantly from foreign investors, and by the first half of 2021, the sector accounted for a staggering 92.6% of all startup funding ($271.61 million), a figure heavily dominated by foreign capital. This contrasts sharply with other sectors; for instance, oil and gas attracted minimal startup investment, recording only $5 million in Q2 2024, while agriculture tech also registered comparatively lower figures, highlighting fintech’s clear dominance in attracting foreign startup capital.
The Trailblazer of Nigerian Fintech
Among these fintech pioneers, Remita has played a major role, consistently driving innovation cycles within the sector. Remita, developed by SystemSpecs, is an innovative electronic funds and schedules remittance solution that has transformed payment management for organisations. Its journey began with providing solutions to organisations like the Petroleum Equalisation Fund (Management) Board (PEF(M)B) in 2017, where it streamlined financial operations, moving them away from inefficient manual processes to seamless, technology-driven systems.
Remita streamlines financial operations for businesses, replacing inefficient manual processes with seamless, technology-driven systems that save time and reduce errors. The platform’s digital approval processes and instant notifications streamline internal workflows, improving efficiency, and reducing delays in payment processing for organisations.
Remita’s key features, including a unified interface for viewing bank balances, historical transaction records, digital approval processes, and instant notifications, have consistently delivered robustness, flexibility, and real-time payment capabilities. The platform’s success with PEF(M)B laid the groundwork for its subsequent transformative impact on a national scale.
Remita played a crucial role in the implementation of the Nigerian government’s Treasury Single Account (TSA), a groundbreaking initiative that fostered significant improvements in public sector fund management and transparency. The TSA initiative was introduced in 2012 and gained full momentum with the directive of President Buhari’s administration in 2015.
Remita’s platform was instrumental in consolidating government revenues, eliminating multiple accounts, and providing a unified view of government finances, contributing to the overall success of the TSA initiative. It’s noteworthy that through Remita, the Federal Government was able to save the country a substantial N10 trillion from over a thousand Ministries, Departments, and Agencies (MDAs) in less than four years between 2015 and 2019, an achievement that should become a national legacy.
Remita provides a comprehensive suite of payment solutions to businesses, governments, and individuals, demonstrating its scalability and adaptability to diverse needs. Remita processes an estimated N65 trillion (US$42 billion) annually, showcasing its reliability and capacity to support the complex financial operations of large enterprises.
To truly understand Remita’s journey, one has to look at its roots. It springs from the vision of SystemSpecs, a technology company with a history stretching back to 1991 when John Tanimola Obaro founded it with the ambition to indigenously provide software solutions. SystemSpecs has grown into a Nigerian technology powerhouse, and Remita is one of its flagship innovations.
Under the leadership of ‘DeRemi Atanda, the Managing Director of Remita Payment Services Limited (RPSL), Remita maintains an active global partnership network and processes an estimated N65 trillion (US$42 billion) annually, providing a comprehensive suite of payment solutions to businesses, governments, and individuals. SystemSpecs’ story is one of continuous evolution, from its early successes with HumanManager to its more recent forays into lifestyle solutions with Whatadeal, with Remita firmly established as a cornerstone of its innovative legacy.
AI: The Next Frontier for Fintech Innovation
Remita isn’t resting on its laurels. Its recent white paper, “Unlocking the Power of AI in Nigeria’s Fintech Sector,” marks a bold step forward. Released at a pivotal moment, as Artificial Intelligence (AI) reshapes industries worldwide, the paper arrives amid a two-year wave of AI-driven strategic shifts. For fintechs, this isn’t a trend to watch. It’s a call to adapt or be left behind. Nigeria’s fintech scene is a continental powerhouse, claiming 29% of Africa’s venture capital in 2024, with 52% funnelled to fintech startups. Five of Africa’s eight fintech unicorns hail from Nigeria, thriving in an ecosystem of over 433 companies.
AI, Remita argues, is the spark to ignite the sector’s next leap. With Nigeria’s AI market forecast to reach $434.4 million by 2026 (a 44.2% compound annual growth rate), the white paper pinpoints five key opportunities. These include enhancing customer satisfaction, streamlining operations, tackling fraud, sparking product innovation, and fuelling business growth. Real-world examples back this up. Remita’s Payment Assistant has lifted customer experience by 40%, while its Developer Assistant slashes API integration times by over 50%. These aren’t pie-in-the-sky promises. They’re AI in action.
In a recent CNBC Africa interview, ‘DeRemi Atanda unpacked why AI is non-negotiable for Nigerian fintechs. “AI isn’t something tangible; you can see or touch,” he noted. “It’s an experience unfolding on an immense scale. In fintech, we’ve harnessed it to revolutionise payment processes, and this is just the start.” Atanda sees AI as a gateway to deeper digital inclusion, especially in a nation where mobile phone ownership is near-universal.
“With AI embedded in devices, the experience becomes seamless,” he explained. “You make a call, and intelligent suggestions guide you. It’s subtle, yet it’s pulling millions more into digital finance.” Atanda’s vision aligns with Nigeria’s unique strengths. A youthful, tech-savvy population and policies like the Central Bank’s cashless drive give Nigerian fintechs a head start.
Remita’s white paper doubles down, arguing that AI can supercharge an already thriving industry. While the $434.4 million AI market projection by 2026 leans on Nigeria’s NITDA 2024 strategy without concrete evidence, the message is crystal clear. AI isn’t optional. It’s survival.
A Legacy of Innovation
Remita’s white paper isn’t just a roadmap. It’s a gauntlet thrown to fintech leaders. The AI revolution is here, and Nigerian companies must embrace it to stay ahead. This means investing in AI research, forging ties between fintechs and policymakers, and daring to experiment with cutting-edge tech. The stakes are high. Nigeria’s fintechs aren’t just keeping up, they’re setting the pace for Africa.
The sector’s growth is fuelled by more than just tech. A young, digitally fluent populace and supportive regulations provide fertile ground. Remita’s report taps into this, arguing that AI can amplify an industry already firing on all cylinders. Critics might note the lack of hard data behind some projections, but the thrust is compelling. AI is the next big leap, and hesitation isn’t an option.
For over 20 years, Remita has shaped Nigeria’s digital finance landscape. From its TSA triumph to its AI-driven future, it’s a testament to innovation, security, and customer focus. As Nigerian fintechs grapple with AI adoption, Remita’s pioneering spirit offers a beacon. Its white paper isn’t just a plan. It’s a challenge to lead, not follow.
SystemSpecs’ evolution mirrors Nigeria’s tech ascent. From Obaro’s 1991 vision to Atanda’s AI ambitions, Remita embodies resilience and foresight. As the sector eyes a $434.4 million AI market by 2026, the path forward is clear. Collaborate, innovate, and act. Nigeria’s fintech future hinges on it, and Remita is lighting the way.
