Nigeria’s fintech sector is experiencing a surge of growth and innovation as startups compete to offer digital solutions for the country’s large and underserved financial market. However, this also means that the demand for skilled talent is outstripping the supply, creating a fierce war for talent among fintech companies.
According to a report by Disrupt Africa, Nigeria has the most active fintech scene in Africa, with 210 startups raising over $600 million in funding between 2014 and 2019. Some of the leading players include Flutterwave, Paystack, Interswitch, PiggyVest, and Kuda Bank, which offer services such as payments, savings, lending, and banking.
These startups are tapping into the huge potential of Nigeria’s financial market, which has a population of over 200 million people, of which only 40% are formally banked. Moreover, Nigeria has a high mobile penetration rate of over 80%, which enables fintech companies to reach customers through smartphones and USSD codes.
However, these startups need to hire and retain talented professionals to develop and maintain their products and services to sustain their growth and innovation. This task is difficult, as the pool of qualified candidates is limited, and the competition is intense.
According to a survey by Techpoint Africa, 70% of Nigerian tech startups face challenges in hiring software developers, while 57% struggle to find product managers. The survey also found that the average salary for a software developer in Nigeria is $1,500 per month, which is higher than the national average of $222.
Fintech startups have to offer competitive salaries, benefits, equity, training, and career growth opportunities to attract and retain talent. Some also have to source talent from abroad or outsource some tasks to freelancers or agencies.
However, these strategies are not enough to solve the talent gap in the long term. There is a need for more investment in education and skills development for the local talent pool and more collaboration between the private sector, the government, and academia.
One example of such collaboration is the Fintech Association of Nigeria (FAN), established in 2017 to foster the growth of the fintech ecosystem in Nigeria. FAN works with various stakeholders to promote policy advocacy, capacity building, research, and networking among fintech players.
Another example is Decagon, a tech talent accelerator that trains software engineers and connects them with local and global employers. Decagon claims its graduates can earn up to $3,000 monthly after completing its six-month program.
These initiatives are crucial for developing Nigeria’s human capital and ensuring that the fintech sector can continue to thrive and innovate. As FAN’s president, Dr. Segun Aina, said: “Fintech is not just about technology; it is about people.”
Source: BusinessDay
