E-Financial
Expert Says Paystack Acquisition is Boost for Nigerian Tech Ecosystem
The acquisition of Paystack, a Nigerian FinTech company, by Stripe is a huge boost for the Nigerian technology ecosystem, according to Jide Awe, chief executive officer of Jidaw Systems Limited.
Awe who spoke with the News Agency of Nigeria (NAN) in Abuja while reacting to the development, said that a massive investment of this nature is a plus for Nigeria’s tech community, an incredible boost and source of pride even in this time of great volatility.
Paystack, a technology company solving payment problems for businesses, was recently acquired by Stripe, a U.S. FinTech company for over $200 million.
The deal will enable Paystack explore diversification to other African countries.
“It certainly rewards and encourages those who took a chance and invested in Paystack.
“Stripe’s investment is a welcome sign of investor confidence in Nigerian tech industry, it is a recognition of potential.
“It is a rebranding beyond words with the world beginning to recognise Nigeria as a tech nation not one identified with negative activities,’’ Awe said.
He further said that the partnership would encourage other global investors to pay attention to the technology sector in Nigeria and Africa.
Awe added that there was great potential in Nigeria that needed to be harnessed because the country’s ICT industry was growing at a very fast rate.
He said that the Paystack solution was workable, would be more beneficial with digitisation and the Fourth Industrial Revolution (4IR), as well as address more needs.
Awe further said that the deal would serve as motivation for Nigerian youths, adding that they had the capacity to build a better future.
He acknowledged that young people with entrepreneurial and mobile drive dominated the country’s population, hence the need to ensure digital inclusion, digital education, capacity building, enabling environment to unlock potential.
“The Paystack acquisition tells our young people to continue their work in tech, coming up with great ideas, continue creating and keep pushing boundaries and breaking barriers despite challenges in the environment.
“The enabling environment just needs to be in place in tech and in other areas.
“Coming at a time when there are protests against youth brutality, it highlights the importance of why the country must value youth and ensure practical youth inclusion,’’ he said.
He identified that the country had lots of promising startups but financing their ideas was a huge challenge.
According to Awe, Nigeria’s developmental challenges are opportunities.
“There are huge unmet needs and the right approach can open up promising and rewarding opportunities.
“It also sends a message to local investors that technology offers rewards.
“The world is becoming increasingly digital and technologies are disrupting industries and creating new structures.
“Investors will need to consider investing in tech startups not just in the traditional areas of real estate, construction, oil and gas, among others,’’ he said.
He added that young people constituted a significant number in Nigeria’s tech community and their experience should not be overlooked.
According to him, in the world of emerging technologies, the society needs to understand the youths, connect with them and support their innovations.
Awe pointed out that the country needs an environment that enables digital growth, transformation through supporting the provision of fast, reliable, affordable internet connectivity.
He recommended high quality digital education for all, strengthening of the local tech sector and promotion of innovation culture beyond policies.
The naira appreciated to N1,600 per dollar in the parallel market at the close of trading hours on Monday, strengthening from N1,610 per dollar recorded over the weekend.
Similarly, the naira saw a slight gain in the Nigerian Foreign Exchange Market (NFEM), trading at N1,605 per dollar compared to N1,606 last Friday, according to data from the Central Bank of Nigeria (CBN). This represents a marginal N1 appreciation.
As a result, the gap between the parallel market and official exchange rate widened slightly to N5 per dollar, up from N4 over the weekend.
Central Bank of Nigeria (CBN) spent N315.18bn on currency issue expenses in 2024, marking a sharp increase of 306 per cent compared to N77.67bn recorded in 2023, the apex bank’s audited financial statement for the year has shown.
Currency issue expenses cover the printing, processing, distribution, and disposal of banknotes.
The latest figures reveal that the CBN’s cost of managing physical cash spiralled dramatically during the year under review, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.
The surge in expenditure came as the country continued to deal with the effects of the naira redesign policy introduced in late 2022.
Despite efforts to stabilise cash circulation throughout 2023, Nigerians still faced queues at ATMs and difficulties in accessing cash in early and late 2024.
Faced with mounting public outcry, the CBN deployed several emergency measures to address the crisis.
Deposit Money Banks were directed to ensure consistent ATM loading and rural cash distribution, while the Bank also launched public hotlines for citizens to report cash scarcity incidents.
Also, the CBN ramped up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.
PalmPay, a full-service digital bank, has reaffirmed its dedication to advancing the future of payments in Nigeria by promoting the widespread adoption of contactless-enabled payment terminals.
This was made known during the recently concluded BusinessDay Future of Payment Conference, themed “Fintech Evolution: Gateway to Payments.” In his welcome address, BusinessDay Publisher, Frank Aigbogun, emphasized that the next phase of fintech innovation must be driven not only by speed, safety, and simplicity but also by trust, inclusion, and accessibility to ensure broad-based impact across all segments of society.
Talking about PalmPay’s impact in the panel session titled “The Next Wave of Digital Payments: Trends and Innovation,” Ifeanyi Uzoka, Senior Business Development Manager at PalmPay, discussed the evolving landscape of digital payments in Nigeria.
He noted that while regulatory frameworks have supported the introduction of contactless payments, the high level of cash dependency remains a key barrier to widespread adoption.
“At PalmPay, financial inclusion is central to everything we do,” Uzoka stated. “To support this mission, we’ve launched contactless-enabled debit and premium cards, ensuring our users have access to convenient and secure payment experiences. We also understand that trust is critical, which is why all contactless transactions on PalmPay’s platform include an additional layer of authentication for enhanced security.”
PalmPay continues to lead innovation in Nigeria’s digital finance ecosystem by delivering secure, user-friendly, and future-ready solutions. The company’s recently launched debit and premium cards in partnership with Verve are now serving its growing base of over 35 million users nationwide.
This move into contactless payments underscores PalmPay’s alignment with global payment trends and its ongoing commitment to building a more inclusive and digitally empowered economy.
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