How Nigeria's start-ups can attract private equity investment

The Nigerian start-up ecosystem is buzzing with excitement as the Start-up Act 2022 comes into effect, with stakeholders anticipating an influx of private equity investments. Tobi Amira, Vice President of Business Loans at Moniepoint, shared insights on the impact of the policy shift on CNBC Africa. 2022 was a notable year for the tech ecosystem in Nigeria, despite global economic challenges. Many start-ups with strong fundamentals managed to attract investments by focusing on profitability. While the Start-up Act 2022 is a welcome development, Amira stressed the importance of considering broader factors such as security and foreign exchange issues in attracting investments. He emphasized that investors look beyond the act itself to evaluate the overall operating environment. Nonetheless, the Start-up Act offers potential benefits for start-ups, although the immediate impact may be limited. Amira suggested that focusing on the fundamentals and enhancing the workability of the act could further support start-ups' growth. Moniepoint's rebranding to position itself as a business bank signifies a strategic shift towards providing a comprehensive range of financial services. Amira highlighted the platform's success in doubling revenue through pure transactions and its commitment to serving over 600,000 businesses. As Moniepoint expands its services, the company aims to ensure financial inclusion by leveraging its extensive distribution network to support businesses in digitizing transactions. Financial inclusion remains a key focus for Moniepoint, aligning with the Central Bank of Nigeria's efforts to promote cashless policies and enhance regulatory frameworks. While regulatory changes can pose challenges, Amira commended the CBN's responsiveness in revising policies to strike a balance that supports digitization. Moniepoint's strategy aligns with the shift towards digital payments, reflecting a broader industry trend driven by regulatory initiatives and market demands. As Nigeria's tech ecosystem evolves, start-ups are adapting to new opportunities and challenges, positioning themselves for growth amidst a rapidly changing landscape. The Start-up Act 2022 sets the stage for increased private equity investments, signaling a positive outlook for innovation and entrepreneurship in Nigeria.