On 15th October 2020, the news that Stripe had purchased Nigeria’s fintech, Paystack, for $200 million broke the internet. Now, we look at the clear signs that the country’s financial future (and even development) lies in the tech industry.

All over the world, and over recent years, tech companies have been the undisputed most valuable firms. Apple for example, recently hit a $2 trillion market valuation and while Saudi Aramco, an oil company, was the first to attain this feat, it is clear that tech companies are gaining in valuation. Also, consider that besides Saudi Aramco, no other company comes close to the tech giants.

Additionally, according to Forbes, the most valuable brands in the world in 2020 are Apple, Google, Microsoft, Amazon, and Facebook, in that order. All tech companies. The five of them have a combined value of almost $817 billion.

Also, Nigeria’s foremost tech investor, the Chairman of Zinox Group, Leo Stan Ekeh has hinted at tech being the future of a financially stable Nigeria. He told tech correspondents in August 2020 that Nigeria should be regarded as a global giant at its level of development.

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Paystack’s $200 million exit is already a clear sign that tech is the next big thing in Nigeria. The days of oil-focused investments are far gone. Big money tech startup purchases have always defined major advancements and growth.

Facebook had bought Instagram for $1 billion in 2012 and WhatsApp for $16 billion in 2014. Microsoft had purchased Skype for $8.5 billion in 2011 and LinkedIn for $26.2 billion in 2016. The list of major tech deals are clear indications that its financial opportunities cannot be exaggerated.

In June 2020, Ebehijie Momoh, VP MasterCard West Africa, shed light on the financial potentials of tech, especially fintechs in Africa. Momoh revealed that it had lifted nearly 200,000 households out of extreme poverty. Also, it has helped over 200,000+ women enter the business space as well. In addition, she speculated that by the end of 2020, the industry will be worth $3 billion.

As we have seen from the example of Paystack, this is a possibility. A Guardian article also said that the fintech industry in Nigeria could be raking in a revenue of $543 million by 2022. Beyond the financial benefits of fintechs, it will also be an avenue to reach more people in Nigeria with tech. Patrick Collison, Co-founder and CEO of Stripe, revealed that buying Paystack will allow it reach more people and increase online transactions in Nigeria and Africa.

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