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Piggybank.ng Secures $1.1M Seed Funding

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Piggybank.ng, an online and mobile app savings platform targeted at African Millennials, has announced that it has closed on Seed Funding of $1.1M, from High Net Worth Individuals, led by Olumide Soyombo, founder of LeadPath Nigeria, and with participation from International and Pan-African investors Village Capital and Ventures Platform.

The company will deploy the VC investment for license acquisition and product development.

Piggybank.ng has recorded 20 – 35% m-o-m growth in user traction over the past 12 months; primarily from peer-to-peer recommendations, its referral program -Piggybank Stories, and grass-roots social media campaigns.

The startup will also invest in additional marketing spend, to accelerate its growth trajectory. Having completed accelerator programs with Blackbox, the CcHub’s Pitch Drive, powered by Google for Entrepreneurs, and Google Launchpad Africa,

Piggybank.ng has built a savings community of over 53,000 registered users of which approximately 60% are Nigerian Millennials, who have saved in excess of $5M, with a savings growth of 3000% between 2016-17.

Founded in 2016 by Somto Ifezue, Odunayo Eweniyi and Joshua Chibueze, graduates of Covenant University, Nigeria, Piggybank.ng is positioned to fill a void for tens of millions of Nigerians, who have no access to credit, in a country where up to two years’ rent is often required upfront to secure a home.

Targeting low-middle income savers in Nigeria, of which there are 26.5M with a market size of $2.2Bn, the fintech start-up is an automated savings platform where savers manage their finances by depositing small amounts of money [starting from as little as USD$1/day] on a daily, weekly or monthly basis, depending on their saving target, free of charge.

Savers can expect to earn on average 6% per annum on automated savings or 10.95% per annum on the fixed deposit product, Safelock and can withdraw funds once per quarter. Piggybank.ng generates its revenues through asset management, which currently stands at 5 – 7%.

Odunayo Eweniyi, Co-Founder and COO of Piggybank.ng says: “In a country such as Nigeria, almost everything has to be paid in advance. The majority of Nigerians struggle to save their income, manage cash flow and build credit, which is a huge problem as around 80% of Nigerians need to save a minimum of 40% of their monthly income, in order to survive.

This is the sheer scale of the challenge we are embracing; to actively promote a savings culture in Nigeria and act as the savings infrastructure to millions of people who want a safe, transparent and innovative platform to assist them in managing their finances, on their journeys to financial freedom.”

Joshua Chibueze, Co-Founder and CMO of Piggybank continues: “Today’s announcement allows us to expand and capitalise on the many opportunities that the market presents us with.

Our growth so far has been stimulated almost entirely by peer-to-peer advocacy and our investment in the highest quality customer service, so we know the market is there, and the product has been built, modified, tested and ratified by users.

With this fundraise; we can invest significantly in our people and products, as we build a digital financial warehouse accessible to millions of Africans whose savings woes we want to put firmly behind them.”

Olumide Soyombo, Co-Founder Leadpath adds: “Piggybank.ng is a leading example of how Africans are innovating to solve African problems.

In this case, the team is applying technology and innovation to solve a problem facing millions of Nigerians; how can they accrue enough money to make down-payments on so many ‘life events’, in a market where there’s little to no access to credit? Led by a solid and experienced executive team, who have recorded significant growth after two years of bootstrapping, and have built a product that is ready to scale, I’m excited to have led other local angel investors this investment round, and to now work closely with the team to grow the platform”

In addition to securing its Seed Funding of $1.1M, Piggybank.ng has recently acquired a micro-financing license from the Central Bank of Nigeria [CBN], which provides the relevant regulatory cover, allowing them independence from partnering with banks.

As of June 2018, the company will also be expanding its product range to include Smart Target, a group savings tool, that can be scaled from family-size to large corporations, based on the age-long West African tradition of ajo or esusu to leverage the power of communal savings and harness the network effect of accountability.

Available on iOS and Android, Piggybankers save an average of N20,000 per month [approx USD$55] and in contrast to conventional bank savings accounts, the platform restricts withdrawals until an agreed date or users can withdraw their savings on a quarterly basis, whereby savings drawn outside of  the agreed day attract a 5% early withdrawal fee.

A recent survey conducted by Piggybank.ng, which saw 5,000+ responses, revealed that the top 5 areas Nigerians are saving for include investments, starting a business, rent and unforeseen circumstances e.g health and vacations. Co-founder and CEO, Somto Ifezue concludes,

“The research reveals that our savers are hardworking, focused, and serious about reaching their savings goals.

Already, we are seeing thousands of our users reaping the benefits of addressing their financial future by weaving Piggybank.ng into their daily lives, making it a savings ritual.

We’re looking forward to helping thousands more in the coming months and years reach their financial goals”.


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E-Financial

NAICOM, World Bank Explore Opportunities for Collaboration

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The National Insurance Commission (NAICOM) and the World Bank have collaborated to explore opportunities for the latter’s growth and development.

During a courtesy visit, the Commissioner for Insurance, Mr Olusegun Ayo Omosehin, highlighted the National Insurance Commission’s dual role in regulating the insurance industry and driving growth and development in Nigeria.

Highlighting developments in the sector, the Commissioner emphasised the importance of the New Insurance Consolidated Bill, which has been passed by the Nigerian Senate and awaiting concurrence from the Federal House of Representatives.

He expressed optimism that the bill would receive presidential assent once passed by both chambers. He acknowledged the challenge of changing the public perception of insurance in Nigeria, citing past experiences of non-claim payment.

He introduced the Commission’s new mantra, “find a reason to settle claims,” which has led to increased compliance from industry players.

On penetration and enforcement, the Commissioner discussed the recent collaboration with the Nigeria Police Force and other relevant agencies on compulsory insurance enforcement, which began on February 1, 2025.

He also highlighted NAICOM’s efforts to educate the public on the benefits of third-party insurance through various media channels.

He also emphasised NAICOM’s commitment to supporting President Bola Tinubu’s vision of a $1 trillion economy.

In his part, the Deputy Commissioner, Technical, Dr Usman Jankara, added that NAICOM aimed to operate on a value proposition, meeting the needs and aspirations of Nigerians through sustainable insurance products.

He unveiled NAICOM’s plan to develop cyber insurance guidelines and engage stakeholders. The Commission identified insufficient actuarial capacity in the Nigerian insurance sector as a major challenge.

Responding, the World Bank delegation leader, Mr. Mehnas S. Safavian, promised to consider NAICOM’s requests for assistance, including capacity building, automation, and capital market development.

The meeting marked a significant step towards fostering collaboration and growth in Nigeria’s insurance sector.


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Blockchain Technology Will Aid Market Regulation – SEC

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Dr. Emomotimi Agama, director-general, Securities and Exchange Commission
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Dr. Emomotimi Agama, director-general, Securities and Exchange Commission (SEC), has emphasized that the deployment of blockchain technology will improve efficiency and aid the regulation of the capital market.

Blockchain Technology Will Aid Market Regulation – SEC

Agama stated this during a session with a delegation from Algorand Foundation, at the Commission’s headquarters in Abuja.

Essentially, blockchain is a decentralized system that enhances trust and security by allowing multiple parties to independently verify and validate transactions without needing a central authority.

Agama said in Africa, where there are significant issues such as financial exclusion, lack of transparency, and inefficiencies in public and private sectors, blockchain presents an opportunity to build a future where the challenges can be addressed as blockchain is a digital ledger technology that securely records and verifies transactions across a network of computers.

Furthermore, the SEC DG said the commission is consistently aligning with international best practices by collaborating with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO), adding that this ensures that the commission’s regulatory framework remains robust, adaptive, and aligns with global standards, enabling cross-border collaboration and fostering investor confidence.

He disclosed that the SEC has introduced several measures to ensure that these innovations are harnessed responsibly: Accelerated Regulatory Incubation Program (ARIP) and Regulatory Incubation (RI) Program: The ARIP and RI Program were designed to on-board firms operating in the digital asset space and provide a controlled environment to test new models, products, and services.

These programs, he stated, foster innovation while ensuring that robust consumer safeguards are in place adding that the recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programs is a testament to our commitment to enabling innovation.

According to him, in this era of technological innovation, the question is not whether Africa will adopt blockchain, but how it will shape its adoption to maximise its benefits for all the people.

“We want to activate the blockchain in our efficiency; we want to be able to use it to regulate our market. My dream is to have all of the information we need to do our work in a block chain. We want to bring technology into our system for effectiveness where we can work seamlessly and everything that we do will be traceable.

“So wherever there is a toxin in the block chain we will find it and deal with it. We will extend it to the point where review of applications will be done on the block chain so whoever drops the ball will be seen. Each transaction is grouped into a block, and these blocks are linked together in a chronological chain. This structure ensures that once information is added to the blockchain, it cannot be altered or deleted, providing a transparent and tamper-proof record.

“We want to leave a legacy that each one of us will be proud of when we leave this Commission. But in getting that to happen, we must all be educated enough to drive that course,” Agama said.

The DG disclosed that the Commission being the apex regulator of the capital market cannot be left out in technological advancement hence the need to engage Algorand Foundation to explore the Commission’s needs and potential application and benefits of blockchain technology.

“It is very interesting that we are having this opportunity to do this for our organization, this is a knowledge-based institution and I am leading from the front. All our staff must begin to retool themselves because as regulators, we have to be on top of our game.

“As we begin our steps in moving the commission forward together, the foundation of everything that we do requires deep knowledge and understanding, without knowledge we cannot get it done. No matter what I say, without you all being part of that train we cannot get the work done. There is no way I can do everyone’s job; we all have to be equipped to regulate this market,” he added.

In his remarks, Mr. Eric Wragge, global head, Business Development, Algorand Foundation, said the team is in Nigeria to democratize technology and assist interested organizations and businesses take advantage of the numerous benefits of implementing blockchain technology in their operations.

“It is an honour to be here. We are here to tell you what block chain is all about and how it can help your work. We are here to democratize the technology, it’s free to use, anybody can use it. Our job is to go round the world, discover where the technology can be used and help people implement,” he stated

 

 

 


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E-Financial

Active Bank Accounts Hit 312m as @ 2024

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As of December 2024, the number of active bank accounts in Nigeria has reached 311.65 million, marking a significant increase from 202.6 million at the end of 2023.

Active Bank Accounts Hit 312m as @ 2024

This represents a growth of approximately 48.89 per cent over the year, with around 102.34 million new accounts activated during this period.

In addition to the rise in active accounts, there has also been an increase in dormant accounts, which reached about 19.7 million, and closed accounts, which totaled 25.49 million by December 2024.

The data reflects ongoing efforts towards enhancing financial inclusion within the country, driven by initiatives from the Central Bank of Nigeria and the Nigeria Inter-Bank Settlement System (NIBSS).


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