Nigeria: Fintechs are going to be bigger than the banks -Ex-CBN gov, Sanusi

The former governor of the Central Bank of Nigeria (CBN) Lamido Sanusi, has said he believes financial technology startups in Nigeria will become bigger than commercial banks.

Sanusi said his believes in Nigerian Fintech market iwhich s why he pushed for mobile banking through financial technology companies, which the former CBN boss described as new bank of the future.

The statement of the former Emir of Kano came two days after another Nigerian tech startup, Andela, became a unicorn, crossing the $1 billion company valuation due to a $200 million fundraising round.

Currently, there are now five Nigerian tech startups above the $1 billion mark, with Flutterwave, Jumia, OPay, Interswitch and Chpper Cash, which is the only one established outside Nigeria.

Speaking on the growth of Nigerian Fintech startups, Sanusi said, they are showing the country the way to go, “What has happened to the two or three companies we’ve seen, or the Fintech companies we’ve seen, is that they have chosen us the way that we need to move as a country.

“And one of the reasons I pushed for mobile banking for financial technology as governor of central bank is, I was convinced that’s the way to go.

“That the Fintechs are going to be bigger than the bank, the Fintechs are going to be the new banks of the century.” Sanusi told AriseTV on Friday.

Technology key to Nigeria’s human capital growth

He said technology is key to development of sectors in the country, reason why a Nigerian with developer or programmer skill working for a company in Argentina without living Nigeria.

“Technology is what is going to improve the services or productivity of manufacturing. You are moving into artificial intelligence.

“Even at the lever of individuals, today we’ve got platforms that basically creates a global market for skills. Today, if you are a developer, or programmer, you can sit in Kano or in Kaduna or in Lagos and be working every day for a company in Argentina or in Chile earning foreign exchange.

“And basically, there are people who make those contracts between you and your employees. And you don’t even have to move away from your country. You sit down, earn foreign exchange and pay taxes.

“So the opportunity and potential about technology are huge. And all the government needs to do is to provide the infrastructure and create an enabling environment.

“One of the things we fail in as a country is we fail to recognise technology and power as factors of production.”