Answer ... N/A

Answer ... Fintech players in Nigeria are generally financed by debt and equity funding/investment. The funds are provided by the federal government, venture capitalists and private equity firms. Some fintech players also raise funds through crowdfunding platforms and initial coin offerings.

In 2017, 30 Nigerian companies raised $63.3 million between them. The number of Nigerian start-ups securing investment increased by more than 90% in 2018 and total funding jumped by 50% (connectingafrica.com).

Answer ... Fintech companies are largely well positioned in the broader financial services landscape, as both regulators and traditional financial services companies are increasingly receptive to their services. This is evidenced by the growing use of fintech in service delivery (eg, most banks in Nigeria now use AI-powered bots) and the provision of loans and infrastructure to support the development of the industry.

Answer ... Because a number of fintech companies do not have the capacity in the early stages of their development, they tend to outsource some of their back office functions, such as regulatory compliance, accounting and IT services.

There is no general legislation that regulates outsourcing in Nigeria, although there are some laws that affect some sectors. For example, the Central Bank of Nigeria Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria provide that financial institutions that intend to engage in agent banking must assess the adequacy of their controls for outsourcing activities through regular audits.