Regulation, policy seen driving local investments in tech

Experts in the technology sector have called for the right legal and regulatory framework, policies and enabling environment to attract local investments in Nigeria’s tech sector.

This was revealed at the DETAIL’s private equity and tech business series which took place last month in Lagos.

“The fintech space in Nigeria has been experiencing a lot of growth in the last few years, and with that growth, there is also the need to have the right regulatory structures, the right legal structures to ensure that we continue to drive growth and continue to protect the investments as well as the user’s Fintech products,” Ladi Asuni, partner at emerging technology, data & analytics, KPMG, said.

He said with the trend of funding in the space, a lot of the capital has been coming from external sources, but there is a unique opportunity for Nigerians to also participate by having the right framework and enabling environment.

Read also: Nigerian fintechs jostle for talent amid market boom

“We can see that from the intervention of the Nigerian Exchange Limited creating opportunities for Nigerians to also mobilise local investments into this thriving sector,

Yvonne Johnson, co-founder of Indicina, said innovation usually goes ahead of regulation and policy, but regulation and policy are important because you want to create a healthy ecosystem, especially to allow some of these startups to get to scale.

“So, the best way I think the government can tap in is just implementing the right policy that allows these startups, these fintechs, to continue to innovate and, eventually, to get to scale.”

Read also: How fintechs are changing Nigerians saving culture

According to Temidayo Bello, partner at DETAIL Commercial Solicitors, getting the right regulations is key to pushing the county’s tech industry forward.

“As we know, regulation is always lagging behind. Innovation occurs before regulation. There have been a lot of regulatory reforms that have gone on in the tech ecosystem in the last three years that are sort of putting the structures that the tech ecosystem needs to fully evolve in the country.

“Yes, there have been some nuances, but we think that once we have stakeholders sit together and have actual engagement with the government, we will be able to get the right regulations to push ourselves forward,” she added.