- Five Nigerian fintech startups shut down between 2023 and 2025 despite attracting investors and developing digital financial services
- Their closures were linked to challenges such as funding shortages, regulatory difficulties, weak customer adoption and financial distress
- Their experiences highlight the challenges fintech companies face in building sustainable businesses in Nigeria and beyond
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigeria's fintech sector has attracted millions of dollars in investment, with startups developing digital banking, payment infrastructure, cryptocurrency services and lending platforms.
However, not every business has survived the challenges of building and sustaining financial technology companies. Between 2023 and 2025, several Nigerian fintech startups shut down despite attracting investors and developing products for businesses and consumers.
Their closures highlight the difficulties startups face in securing funding, achieving sustainable growth and maintaining effective management.
Source: UGC
Here are five fintech companies whose shutdowns were reported between 2023 and 2025.
1. Lazerpay
Lazerpay, a cryptocurrency payments startup, announced its closure in April 2023 after struggling to secure funding.
Founded in 2021 by Njoku Emmanuel, the company developed technology that allowed businesses to accept cryptocurrency payments through an application programming interface (API).
Lazerpay said it could no longer sustain operations after efforts to raise additional capital failed. The company had also reduced its workforce in November 2022 as it attempted to manage costs.
During its 17 months of operations, Lazerpay reportedly served more than 3,000 businesses and received backing from investors, including Shola Akinlade, co-founder of Paystack.
The company asked customers to withdraw their funds before its April 30, 2023, closure deadline and offered to sell its intellectual property to interested buyers.
2. Pivo Africa
Pivo Africa, a fintech providing banking and lending services to supply-chain businesses, announced its shutdown in December 2023.
Founded in 2021 by Nkiru Amadi-Emina and Ijeoma Akwiwu, the startup developed financial products for logistics operators, haulage companies and other businesses involved in moving goods.
Its services included Pivo Capital, which provided financing, and Pivo Business, a digital banking product. The company sought to address cash-flow problems affecting businesses that often needed money to complete transactions before receiving payments.
Pivo's closure came about a year after it raised a $2 million seed round backed by investors, including Y Combinator and Ventures Platform.
Although the company did not initially provide a detailed public explanation, subsequent reports linked its collapse to disagreements between its co-founders.
3. Thepeer
Thepeer, a Nigerian payment-infrastructure startup, announced in April 2024 that it was shutting down after struggling to achieve sustainable growth.
Founded in 2021, the company developed APIs that enabled businesses and fintech platforms to facilitate payments between digital wallets.
The startup raised a $2.1 million seed round in 2022, with plans to connect wallets across different financial technology platforms.
However, its founders identified regulatory compliance difficulties and slower-than-expected adoption of wallet-based payments as major obstacles.
Thepeer said its technology alone was insufficient to build a sustainable business without stronger market demand. It subsequently returned part of its remaining capital to investors as it completed the shutdown.
4. Okra
Okra, one of Nigeria's prominent open-banking startups, wound down operations in May 2025.
Founded in 2019 by Fara Ashiru Jituboh and David Peterside, the company developed APIs that enabled financial institutions and businesses to access customers' banking information securely with their permission.
Its technology supported financial applications that needed to connect with bank accounts to verify transactions and provide services.
Okra attracted approximately $16 million in funding and built partnerships across Africa's financial services industry.
However, the company eventually discontinued its core open-banking business and its Nebula cloud-infrastructure product. Co-founder Jituboh subsequently left the company.
The shutdown marked the end of a startup that had played a significant role in promoting open banking in Nigeria.
5. Lidya
Lidya, a digital lender that provided financing to small and medium-sized enterprises (SMEs), officially ceased operations in October 2025.
Founded in 2016 by Tunde Kehinde and Ercin Eksin, the company offered businesses access to loans through its digital platform. It later expanded into European markets, including Poland and the Czech Republic.
Lidya reportedly raised $16.45 million during its journey, but its funding and expansion efforts did not prevent its eventual collapse.
In an email to customers, the company cited severe financial distress and confirmed that it could no longer continue operating. It also said it was unable to process funds or settle claims because of its financial position.
Reports preceding the shutdown highlighted unpaid salaries, the departure of senior executives and the disbandment of its technology team.
The closure ended nearly a decade of operations in digital lending.
What the shutdowns reveal
The experiences of these five fintechs show that raising investment and developing innovative products do not guarantee long-term survival.
Funding difficulties, regulatory requirements, limited customer adoption and internal management disputes all featured in the companies' struggles.
For Nigeria's fintech industry, their exits underline the importance of sustainable revenue, effective governance and business models capable of surviving beyond the initial investment period.
Baxi shuts down PoS operations in Nigeria
Meanwhile, Legit.ng earlier reported on Onafriq’s decision to close its Baxi agent banking operations in Nigeria, citing inflation, naira depreciation, rising costs and competition.
Agents have 30 days to transfer their funds, while affected employees will receive support during the transition.
Onafriq says it will continue its wider payment services and card-issuing operations in Nigeria.
Source: Legit.ng