Chief Financial Officer at Kora, Ayodeji Solomon Osisami, has outlined key considerations investors must assess before committing funds to Nigeria’s rapidly expanding fintech sector, cautioning that not all startups are likely to succeed.
Speaking at the Nairametrics Money Fair, WISE 1.0, held on March 18, 2026, at the Landmark Event Centre in Lagos, Osisami shared insights during a panel titled, “Investing in Nigeria in 2026: Asset Classes, Timing Windows, Digital Tools, and Risk Navigation in a Reformed Economy.”
He emphasized that while the fintech industry continues to attract significant funding and competition, investors need to make deliberate choices, with the founding team being the most crucial factor in any investment decision.
“As with any investment, when you are doing an investment, you are not investing in anything. The core thing you are investing in is the person. So you look at the founding team, the CEO and the management team, it’s very important. What lifestyle are they living? How are they structured? What is their track record? That’s the first thing you look at,” Osisami said.
The second factor, he noted, is evaluating financial performance and business metrics. He urged investors to go beyond transaction volumes and examine revenue, profitability, and value retention.
“It’s not only about the companies transacting in the billions. How much are they making from that? How much are they keeping from that? Because that speaks to operational efficiency. The thing about Nigeria is, we are growing, investments are coming in, but the market is not so liquid like that. If you are not profitable in a short while, you will go down,” he explained.
Osisami’s third recommendation is ensuring a fintech startup has a clear niche rather than spreading across multiple segments without depth.
“Has that fintech covered a particular market? Even if it’s payment, everybody’s doing payment, but there must be a niche they have mastered before you do an investment. That will guarantee consistency and imply the business is on a sustainable path,” he said.
Addressing risks in the sector, Osisami noted poor planning as one of the biggest threats, warning that the ease of launching startups today—especially with technologies like AI—has resulted in many businesses without clear structure or long-term strategy.
“A bad plan is better than no plan, because a bad plan is what you can correct,” he said, stressing that the absence of a business plan signals difficulty in assessing direction, scalability, and sustainability.
Osisami concluded by cautioning that fintech startups that burn cash without a clear path to profitability, relying on continuous funding, are particularly vulnerable in markets like Nigeria, where access to capital can quickly tighten.
