What is innovation? And what is an “interest”? For the second one, I will explain using data from INEC registrations in Sokoto and Zamfara States. The two states which have been unable to register secondary school students, in public schools, to take WAEC exams, for two years running, are outperforming many states on voter registration per capita. In other words, Sokoto and Zamfara States can mobilize people to register to vote but cannot find ways to register students to take WAEC exams despite the students having prepared for the same exams for 6 years!

For the first part, I take you to the performance of Nigerian banks, using Nairametrics data. Interestingly, the old innovator and the god-zilla of excellence, GTBank*, seems to have lost grounds. It is unbelievable that you can have a plot in Nigerian banking where GTBank* is not in the top three on the innovation side.

Below are the leading banks between March 2022 and December 2021.

Total Assets growth

• First position – Fidelity Bank (+22.9%)
• Second position – Zenith Bank (+18.9%)
• Third position – Stanbic IBTC (+13%)
• Fourth position – Unity Bank (+9.7%)
• Fifth Position – Wema Bank (+7.7%)

Customer Deposits growth

• First position – Zenith Bank (+27.8%)
• Second position – Fidelity Bank (+18%)
• Third position – Unity Bank (+17.4%)
• Fourth position – Wema Bank (+8.8%)
• Fifth Position – Access Bank (+7.8%)

Customer Deposits growth

• First position – Zenith Bank (+27.8%)
• Second position – Fidelity Bank (+18%)
• Third position – Unity Bank (+17.4%)
• Fourth position – Wema Bank (+8.8%)
• Fifth Position – Access Bank (+7.8%)

Loan book growth

• First position – Fidelity Bank (+28%)
• Second position – Zenith Bank (+25%)
• Third position – Unit Bank (+11.9%)
• Fourth position – UBA (+7.1%)
• Fifth Position – Stanbic IBTC (+6.4%)

Profits After Tax (PAT) growth

• First position – Wema Bank (+119%)
• Second position – First Bank (+108%)
• Third position – Sterling Bank (+47.9%)
• Fourth position – FCMB (+44.6%)
• Fifth Position – FBNH: (+33.9%)

Cost-to-income ratio performance

• First position – First Bank (-12.48%)
• Second position – FCMB (-6.83%)
• Third position – Wema Bank (-5.5%)
• Fourth position – Stanbic IBTC (-5.4%)
• Fifth Position – Sterling Bank (-2.1%)

Return on Equity (ROAE)

• First position – Access Bank (21.39%)
• Second position – UBA (20.4%)
• Third position – GT Bank (19.3%)
• Fourth position – Zenith Bank (19.2%)
• Fifth Position – Wema Bank (15.96%)

From what we can see here, the following are evident

• Fidelity Bank is looking amazing, outflanking to outperform.
• Wema Bank – the preferred bank for Nigerian fintech startups – is showing great promises. This bank could be exceedingly profitable when most of its leverages begin to compound.
• Zenith Bank has solidified its position as Nigeria’s leading banking institution.

The past is history, the future is unborn and full of promises.  Commit to innovate, with the right interest,  because the future is unbounded.

Comment on LinkedIn Feed

Comment: Prof Ndubuisi Ekekwe, Great insight! I particularly love the discuss on innovation. What amazes me is how Wema Bank Plc. has carved a good spot for themselves in the Nigerian fintech space effectively being the banking layer for a lot of startups. Their position means as these startups grow in revenue, they grow in profits.

Quick question prof, is Wema bank’s strategy part of your fintechnolocalization postulate?

My Response: Since it is a bank, we cannot use fintechnollization for it. It is already a financial services provider. Nonetheless, I see “two companies” in Wema Bank – the bank with those buildings and the Wema Platform which powers fintechs. If Wema Platform is a seperate company, it can command more than $1 billion in New York. At Tekedia Capital, we will be open to invest in it at a valuation of at least $1 billion. 

The fintechs of the future live on Wema Platform and what that means is that Wema will extract the profit layers of many fintechs, “taxing” them at scale. That is where you want to be. Wema is a “software-banking” company which is a solid platform. I admire it. But it has to unlock leverages and compound them better.

Across many cities in Africa, Tekedia Institute learners are registering local alumni associations. Tekedia Institute approves those – and whenever they come to you for any benefit which non-profit alumni associations deserve, give those to them.

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Though dominated by fintech, Africa’s tech economy is carving out a new market that is showing signs of massive growth. The mobility sector is increasingly attracting investment interests from around the world.

Moove, Nigerian mobility startup has secured $20 million, 4-year structured credit investment from the British International Investment (BII), the UK government’s Development Finance Institution (DFI), formerly known as CDC Group.

Founded in 2019 by British-born Nigerians Ladi Delano and Jide Odunsi, Moove is democratizing vehicle ownership in Africa by providing revenue-based vehicle financing to mobility entrepreneurs.

BII said the new funding would enable Moove to purchase and import brand new fuel-efficient cars into Lagos, which will be leased to drivers who can then earn their way to asset-ownership over a three to four-year period. It added that the funding is aimed at alleviating one of the key blockages to the development of ride-hailing transportation infrastructure in Nigeria’s commercial capital.

The investment was announced at a business reception co-hosted by Catriona Laing, British high commissioner to Nigeria and Nick O’Donohoe, chief executive officer of BII, on Wednesday in Lagos.

The event was held to celebrate the launch of DFI’s new name and reiterate its ambition to scale up investment that will boost economic sectors in Nigeria.

Speaking at the event, Laing said BII formed an important part of the UK’s package of tools and expertise to help Nigeria build their pipeline for investment and scale up infrastructure investment, in particular to achieve clean, green growth. She added that the UK government looked forward to seeing BII’s support expand and diversify in Nigeria.

In his keynote speech, O’Donohoe highlighted BII’s 74-year history in Nigeria, from its first investments in 1949 in West African Fisheries and Cold Store, to the organization’s pioneering role in supporting Nigeria’s first private equity fund — African Capital Alliance’s Capital Alliance Private Equity Fund I (CAPE I).

On how BII’s new five-year strategy is driving its investment in Moove, O’Donohoe said: “Investing in the prosperity of Nigeria’s growing population requires innovative new partnerships that can leverage the country’s abundant capabilities and expertise.

“I am delighted that not only will BII’s investment help to create jobs and provide entrepreneurial self-starters with the means to own their vehicles, but Moove’s clear focus on gender diversity will foster inclusive economic opportunities for women, both within the company’s workforce and among its drivers.”

In 2020, the transportation services industry group in Nigeria, Africa’s largest economy, had total revenues of $5.1bn, representing a compound annual growth rate (CAGR) of 5.4% between 2016 and 2020, according to data from market research firm Research And Markets.

Road transport accounted for 99.1% of the overall revenue, making it the most valuable segment of the market.

With a growing population of over 200 million people, whose mobility is narrowed to road transport, investors are seeing untapped goldmines in the emerging transportation market.

“We’re incredibly proud to welcome onboard a world-class partner such as BII, whose strategic support will play a key role in our mission to build the world’s largest integrated vehicle financing platform for mobility entrepreneurs,” Delano, co-CEO at Moove said about the investment.

“With our new funding, we’re now in an even stronger position to use our technology and productivity data in creating a more inclusive financing ecosystem, whilst also tackling the unemployment problem affecting over a third of Nigerians by generating the opportunity for more seamless and sustainable employment,” he added.

A tech hub is a community that fosters innovation, and offers support, facilities to tech entrepreneurs, consisting of incubators, accelerators, technology parks, etc.

Tech hubs have continued to gain massive recognition in so many countries across the globe, which is a potential catalyst for the promotion of economic growth across all sectors.

According to findings, there are about 50 technology tech hubs in Nigeria, as technology in the country continues to expand.

Just like Silicon Valley which is the world’s tech powerhouse, home to the world’s biggest technology companies. Establishing tech hubs in Nigeria will no doubt develop the tech sector which will give room for the creation of more start-ups that will positively impact the country’s economy.

These hubs create an environment that encourages experimentation with certain technological advancements which also help firms to network efficiently. Currently, Nigeria is the continent’s leading home of tech hubs that nurtures economic growth through creativity, innovation, and entrepreneurship.

With the number of tech hubs in the country rapidly increasing, it has no doubt transformed business operations in the country, as different disruptive technologies are evolving with a newer approach to solve age-old problems of business operations.

It is interesting to note that Nigeria has recently been witnessing a significant increase in the number of tech hubs in the country, which has led to the creation of so many tech startups. In the process, these have created a lot of jobs for unemployed youths in the country.

Recall that the bank of industry (BOI) last year announced its plans to establish tech hubs in the country to tackle the issue of unemployment in the country.

The bank further disclosed that it would sponsor tech hubs in recognition of talented youths in the society, which will channel these youths to be more productive and impactful to society, rather than subscribing to social vices.

Infusing technology into business in this present digital world will no doubt make businesses and the country more competitive, also the tech industry can be a major pillar of a diversified economy.

These tech hubs will provide spaces where high-tech business growth would be accelerated, thereby bringing prosperity to communities. A Forbes report disclosed that Africa has over 643 tech hubs that have spearheaded the launch of hundreds of tech start-ups. Impressive!

Once these start-ups are created, they can play a very significant role in the economic growth of the country. Start-ups no doubt create more jobs for a lot of unemployed youths.

When a large percentage of youths are actively engaged it automatically means an improved economy. These start-ups also inspire individuals to be more inventive thereby creating more entrepreneurs.

An innovative society is important to the advancement of the country’s economy, as It’s responsible for solving collective problems in a sustainable and efficient way, usually with new technology.