E-Financial
Paga to Further Accelerate Growth with $10M Series B2 Investment
Paga, the leading mobile money company in Nigeria has announced that it has closed a $10 million growth financing led by the Global Innovation Fund.
Also participating in the round were existing investors Goodwell (managed by Alitheia Capital), Adlevo Capital, Omidyar Network and Unreasonable Capital. This new financing brings the total Paga has raised since inception in 2009 to $35 million.
The company commenced commercial operations in August 2012 and recently revealed that since then it has served 9 million customers and created over 10,000 jobs through its 17,000 agents who hire staff to run their stores.
“GIF is proud to lead Paga’s Series B2 round,” said Alix Peterson Zwane, GIF’s CEO. “Paga’s mission of helping people ‘make life possible” aligns with our core mission of supporting entrepreneurs and innovators that seek to improve the lives of those living on less than $5 per day. I am pleased that GIF will help enable Paga’s next phase.”
Nigeria is one of the fastest growing emerging markets in the world, and the biggest economy in Africa with $405 billion GDP.
Nigeria currently has a population of 186 million but is expected to become the 3rd largest country in the world (behind India and China) by 2050 with 411 million people. In Nigeria today, over 100 million adults find it difficult to transfer or leverage money for basic human needs.
This problem is one that exists even for those that are banked, and is something Paga’s team is passionate about solving.
The growth financing announced today will enable Paga further scale its business in Nigeria to drive the growth of Paga’s mobile wallet and agent network, and explore expansion opportunities in other markets where similar problems exist.
“Our belief in Paga as an effective platform to drive financial inclusion is unwavering,” says ‘Tokunboh Ishmael, Managing Partner at Alitheia Capital, “Paga has shown solid progress, and alongside other investments in our portfolio has played a huge role in our ability to demonstrate that enabling access to essential services for the broad population has both significant financial and developmental impact.”
Paga’s massive transformative purpose is “To make it simple for one billion people to access and use money.” With a nationwide network of 17,000 agents and more than 9 million users accessing funds in Nigeria, Paga is making strides by enabling efficient digital payments and building successful societies.
This has translated to over 57 million transactions processed worth approximately $3.6 billion, a business that is profitable and growing at 110% compounded annual growth rate (2016-2018).
“At Paga, we are building an ecosystem that enables people to digitally send and receive money, and creating simple financial access for everyone,” explains Tayo Oviosu, “We do not seek to be a bank, but rather to partner with banks and financial institutions in the markets we operate.
“We are proud to welcome the Global Innovation Fund as a partner on our journey. We were attracted to them because of their global focus, network to help us achieve our ambition and a clear alignment of values.
“It is also fantastic that our existing investors remain committed to our strategy and are demonstrating that by their additional investments.”
Paga’s mission is strengthened by the recent release of Paga’s new money transfer app that will drive use of the Paga wallet for person-to-person transfers and in-store payments.
In a country where digital financial services still leave much to be desired, Paga is staking a claim at being the Venmo of Nigeria. With cash still being king in emerging markets, and the general unreliability of POS services coupled with the sparsely located Banks and ATM’s, the company has created a viable solution for ease of payments: a simple app that allows you to send money to or request money from anyone only using their phone number or email address and a digital wallet to which you can link any debit card or bank account. In this sense, Paga is acting as a facilitator to provide a swift and reliable payment gateway for your already existing financial accounts.
This reinforces the idea that Paga is seeking to be the reliable access point to all relevant financial services for all people.
The core ethos of the Paga brand is “Making Life Possible”, so the decision to provide free money transfers was driven by the underlying desire to solve basic human needs and to ease the pain of not only person to person payments but payments for small to medium businesses, especially those trading through social media channels.
According to the 2018 Global Entrepreneurship Index, Nigeria ranks 12th in Africa for entrepreneurship, even with its uniquely challenging environment.
The high unemployment rate forces its citizens to be creative in order to thrive, and cultural barriers which sometimes prevent access to education and traditional workspaces means that a higher percentage of these entrepreneurs are female.
The company, which prides itself in aiding economic empowerment for less advantaged citizens, particularly in empowering women, notes that women are some of the highest performing agents.
Paga also prides itself on providing opportunities for small businesses to grow and create even more employment opportunities for others.
Nigeria is not the final frontier – Paga has already noted an important trend: the problem they are solving also exists in other markets. The platform is scalable and multi-currency, and the company has already begun considering opportunities in large countries such as Ethiopia, Mexico and the Philippines.
The growing tech ecosystem in Africa is garnering international notice, as evidenced by Mark Zuckerberg’s visit to Lagos and the opening of the Facebook tech hub; not too far from Paga’s office in an area that has been dubbed “Yabacon Valley”, and the exportation of African tech can be a big driver for the economy.
Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have announced a strategic collaboration to develop a robust Non-Interest Mortgage (NIM) ecosystem.
This significant move is part of efforts to address the nation’s massive housing deficit and deepen financial inclusion.
At a high-level meeting in Abuja of Friday, both parties agreed to create and regulate viable Sharia-compliant financing structures that will enable millions of Nigerians, particularly those excluded from conventional interest-based loans, to access affordable homeownership.
With Nigeria’s housing deficit estimated to be over 28 million units, the initiative is being hailed as a potential game-changer.
It directly addresses a key barrier to homeownership: the affordability and religious compliance of mortgage products for a significant segment of the population.
The successful implementation of this framework is expected to not only reduce the housing deficit but also stimulate the construction industry, create jobs, and foster greater financial inclusion, ultimately contributing to national economic growth.
Unlike conventional mortgages that charge interest, non-interest financing is based on principles of risk-sharing, asset-backing, and equitable returns. The models under consideration include:
Musharakah (Diminishing Partnership): The bank and the customer jointly purchase a property. The customer gradually buys out the bank’s share through periodic payments, eventually becoming the sole owner.
Ijara (Lease-to-Own): The bank buys the property and leases it to the customer for a fixed period. A portion of the rental payments goes towards the eventual ownership transfer.
Murabaha (Cost-Plus Sale): The bank acquires the property and sells it to the customer at a pre-agreed markup, payable in instalments.
Commenting on the development, Mr Emomotimi Agama, director-general of SEC, said his agency would provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk (imic bonds) and other non-interest capital market products to fund these mortgages.
“Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector. By creating a clear regulatory pathway for non-interest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area. This will create a virtuous cycle of funding, construction, and ownership,” he stated.
On his part, Mr Shehu Osidi, chief executive of FMBN, said the partnership marks a critical step in fulfilling the bank’s mandate to provide affordable housing for all Nigerians.
“For a long time, a substantial number of our citizens have been unable to participate in the National Housing Fund (NHF) scheme due to the interest-based nature of conventional mortgages.
“This partnership with SEC is a strategic response to that gap. We are committed to developing non-interest mortgage products that are not only ethical and inclusive but also financially sustainable,” he noted.
Nigerian Banks have recorded a N3.3 billion loss to fraudulent activities during the first quarter of 2025, a 603% year-on-year (YoY) increase from N468 million in the first quarter of 2024, according to The Financial Institutions Training Centre (FITC).
This is contained in a September 2025 report by FITC.
In its methodologies, FITC received 73 fraud and forgery submissions from Nigerian banks between January and March 2025.
The highest (25) was in March, which accounted for the highest volume with 25 submissions. Amid this, the total cases reported increased by 7.7% to 12,347 in Q1 2025.
Further breakdown shows that the most frequently reported incidents were tied to computer/web platforms (7,361 cases), mobile transactions (2,875 cases), and POS terminals (1,559 cases).
While computer/web-based fraud emerged as the most financially significant category in Q1 2025, it also accounted for N10.6 billion (47.7%)of the total amount involved in reported cases.
With a total case at over 12,000, the total amount involved surged by 645.4% to N22.27 billion.
The comparison shows that fraudsters are now targeting fewer but higher-value transactions.
This shows that perpetrators are bypassing banks’ systems of flagging volume anomalies and leveraging on their weak detection systems.
On a positive note, the first quarter of 2025 witnessed a reduction in outsider participation in fraud, with reported cases falling by 4.8% YoY to 10,896.
However, staff-related incidents increased with 63 cases recorded in the quarter compared to 47 in Q1 2024.
In addition, 28 employees are currently under investigation, and 23 staff members had their appointments terminated.
According to FITC, the report signals a pivot in fraud tactics and a switch from frequent small-value hits to targeted, high-impact operations. “Fraud is no longer a volume issue; it’s a value game. And staying ahead means thinking proactively and innovatively,” it added.
In terms of channels, card-based fraud accounted for 11,972 cases (N1.6 billion loss) while cash-related fraud accounted for 375 cases (N832.4 million). Also, cheque-related cases were 46, with a loss of (N837.7 million).
The FITC has advised Nigerian banks to strengthen their security protocols and systems to prevent unauthorised access to customer accounts and sensitive information, considering the rising fraud cases.
According to the report, this may involve incorporating measures such as multi-factor authentication, implementing strong encryption techniques, and ensuring regular security updates are in place.
They can also integrate fraud models that weigh transaction context, behavioural history, and device fingerprints.
“Financial institutions must adopt a layered, adaptive, and intelligence-first approach, supported by interbank collaboration, staff accountability, and informed customer behaviour,” it said in the report.
To curtail staff-involved cases and reduce internal risk, financial institutions must deploy role-based access management, ensuring limited data/system visibility per role.
Another corrective measure is the introduction of monthly digital footprints and outlier audits for staff handling high-risk operations.
PalmPay, Nigeria’s leading digital banking platform, has once again demonstrated its leadership in driving the nation’s payment revolution. In a landmark development for Nigeria’s digital economy, PalmPay, in collaboration with Wema Bank, completed the first live transaction on the Nigeria Inter-bank Settlement System (NIBSS) National Payment Stack (NPS), a next-generation infrastructure designed to redefine how money moves across the country.
The first live transaction, which happened at exactly 11:56 am on Friday, November 7, 2025, marks a new era in Nigeria’s financial innovation journey and reinforces PalmPay’s role as a trusted pioneer in the payment ecosystem.
This achievement rides on the back of the brand’s growing reputation as a fintech innovator, following recent global recognitions as Financial Times Africa’s Fastest-Growing Companies 2025 and CNBC and Statista’s Top 300 Global Fintech Companies for two consecutive years (2024 and 2025) for its impact, scale, and commitment to inclusive growth across emerging markets.
A Milestone that Redefines the Future of Payments
The National Payment Stack (NPS), powered by NIBSS, builds on the success of the NIP infrastructure, introducing greater speed, interoperability and real-time settlement across the financial ecosystem. Designed to meet international standards, NPS enhances cross-border payment capabilities while introducing more advanced security features, including digital signatures and multi-factor authentication to safeguard users and institutions.
Beyond its technical advancements, the National Payment Stack (NPS) sets a new benchmark for Nigeria’s leadership in Africa’s finance landscape. Through the ISO 20022 global messaging standards, Nigeria is now positioned as a regional hub for seamless and secure cross-border transactions.
Commenting on the landmark achievement, the Managing Director/Chief Executive Officer of the NIBSS, Premier Oiwoh, said: “We commend PalmPay for this historic achievement as one of the key collaborators in executing the first successful transaction on the National Payment Stack (NPS). This milestone reflects our shared
commitment to advancing a faster, safer and more interoperable payment ecosystem for Nigeria. The NPS represents the next frontier of innovation designed to power inclusion, efficiency and growth across the financial industry. We look forward to more institutions coming on board as we collectively shape the future of payments in Nigeria and across Africa.”
Also speaking, Jaipei Yan, Group Chief Commercial Officer at PalmPay, stated, “This achievement is a win for Nigeria and Nigerians. PalmPay is all about providing smarter banking solutions. Since our launch six years ago, we have focused on bridging the gap between innovation and everyday financial inclusion. It was an absolute delight to work with NIBSS and other stakeholders on this remarkable milestone.”
By pioneering this milestone, PalmPay not only strengthens its credibility but also reinforces its alignment with the Central Bank of Nigeria’s drive toward a digital, connected economy. From ranking among the world’s leading fintech brands to executing Nigeria’s first live transaction on a national payment infrastructure, PalmPay is proving that innovation, when purpose-driven, can transform economies.
Looking ahead, PalmPay aims to accelerate its vision of a connected, digital, and financially inclusive Africa, combining global standards with local relevance to build technology that truly empowers people and businesses.
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