By Emmanuel Ogbodo
Dr. Stanley Jacob, President of the Nigerian Fintech Association (FintechNGR), has called on fintech companies in Nigeria to shift focus from offering free services to prioritizing profitability to ensure long-term sustainability.
In a recent interview with Arise TV, Jacob emphasized the financial strain faced by many fintech firms, warning that offering free services is an unsustainable practice in today’s economic climate. “Fintechs must prioritize profitability without compromising their social responsibilities. While free services may attract customers, there are significant costs involved, and this could ultimately jeopardize the long-term viability of these businesses,” Jacob said.
He also highlighted the challenges posed by Nigeria’s volatile currency, particularly for fintech companies that receive foreign currency funding while earning revenue in Naira. “Many fintechs are funded in foreign currencies, but their earnings are in Naira. This mismatch exposes them to currency risk, which is a major concern,” he explained.
Looking ahead, Jacob anticipated ongoing regulatory changes and macroeconomic pressures that will continue to shape the fintech landscape in 2024. Despite these challenges, he expressed confidence in the resilience of fintech players, predicting that their adaptability will sustain the sector.
Jacob’s remarks come at a pivotal time for Nigerian fintechs, urging them to strike a balance between innovation, growth, and financial sustainability.
