Nigerian fintech moves from growth to sustainable infrastructure

Babatunde Akin-Moses, founder of digital lender Sycamore, says Nigerian fintech has moved from a growth-at-all-costs story to a sustainability and institutionalisation phase. Speaking to Nairametrics, he explained that early conversations focused on user numbers, transaction volume and funding speed, while today's questions centre on customer acquisition cost, lifetime value, liquidity management, cost of capital, FX exposure and regulatory resilience. He noted that many mature fintechs are evolving into banks, financial holding companies or broader financial services firms to gain control over the infrastructure they depend on, rather than remaining pure app-layer players.

Akin-Moses added that the economics of very small loans—roughly ₦5,000 to ₦10,000—have become far tougher because originating, underwriting, monitoring and recovering hundreds of tiny loans drives up operational costs, which are then compounded by fraud, recovery challenges, funding costs and shifting customer behaviour. He stressed that solving a real problem is necessary but not sufficient; success now requires distribution, access to capital, regulatory capacity, strong governance and trusted branding.

Looking ahead, he warned that the real contest in African fintech is shifting from the app layer to the underlying financial infrastructure - credit data, identity, risk management, payments systems, compliance, liquidity and capital markets. The companies that thrive will be those that understand customer economics, manage risk properly and can survive without constantly needing fresh growth funding. Will Nigerian fintechs prioritize building resilient infrastructure over chasing user numbers?

SOURCE: https://nairametrics.com/2026/08/30/why-nigerian-fintechs-want-to-become-banks-sycamore-ceo/