MOFI's Ume Takang calls for greater local investor participation as GITEX MINT AFRICA launches

CEO Murphy: Nigeria start-ups are profitable, but wealth flows overseas

Dr. Armstrong Ume Takang, speaking to a packed audience at GITEX Nigeria, revealed a pain point that many insiders whisper about but rarely confront on the public stage. He lamented the historic reality of Nigeria's chronic low capital participation in the country's booming start-ups.

His argument is simple and sharp: Local founders build excellent solutions, but when these start-ups achieve profitability or achieve liquidity events, huge value-added space is often quickly captured by offshore angel investors and venture capital institutions.

This is not a hypothetical scenario. Independent market data shows that Nigeria leads the African continent with venture capital inflows of approximately US$1.18 billion in 2024, accounting for nearly one-third of the continent's US$3.6 billion venture capital pool. The technology industry alone absorbed 82% of all venture capital activity in the country between 2020 and 2024.

However, due to the severe under-participation of local capital in the early financing stages, the financial returns of these successful companies bypass the domestic economy. Innovation is local, but the wealth generated is exported.

Takang believes that this dynamic situation is a huge missed opportunity. As he spoke, the sense of missed returns resonated strongly among founders and local investors present. The conversation quickly shifted from sighs to structural blueprints for regaining control of the financial benefits of local innovation.

GITEX MINT AFRICA and the Local Ownership Blueprint

This structural blueprint has become the focus with GITEX's official announcement of MINT AFRICA. Launched under the broader theme of the future of banking and finance, the platform is scheduled to debut in 2027. MINT AFRICA will pool capital, innovation, new technology and transparency to accelerate the transformation of the continent's financial economy.

The platform will bring together regulators, institutional investors, banks and digital asset innovators at a critical turning point, when funds are becoming programmable and real-world assets are being tokenized. For Takang, the shift to programmable assets provides a direct solution to the problem of capital loss.

He enthusiastically called for the tokenization of government assets to widely benefit domestic investors. "When we create digital tools to tokenize assets and allow investors to hold them widely, will Nigeria continue to stay out of it and watch others discover value, invest in and benefit from added value?" Takang asked the audience,"Or will we become active participants in the evolving digital asset ecosystem?"

This driving force is seamlessly integrated with MOFI's aggressive expansion strategy. The agency recently launched a partnership with the Nigeria Stock Exchange to ambitiously increase its assets under management from 18 trillion naira to 100 trillion naira over the next decade. Tokenization of national assets can provide the mechanisms needed to democratize wealth creation, allowing ordinary citizens and local institutions to hold stakes in high-value national resources.

Lagos State: Anchor of the Financial Revolution

Other key figures at the event also emphasized the urgency of this transformation. Lagos state has eloquently argued its role as the undisputed anchor of this financial revolution. Nigeria remains Africa's largest fintech ecosystem, while Lagos sits at the intersection of market size, entrepreneurial talent and capital.

Tunbosun Alake, Honorary Commissioner of the Lagos State Ministry of Innovation, Science and Technology, reinforced this narrative. He pointed out that Africa is not short of financial innovation, but rather a lack of specific dialogue to transform original innovation into signing and executing deals. "The Future of Finance" is clearly committed to bridging this gap, focusing on deal completion rather than mere celebration.

Engr, Special Advisor to the Governor of Lagos State on Technology, Broadband and Innovation. Ganiyu Oseni made a pragmatic assessment of the city's preparations. He pointed out that you can't just make the digital economy emerge from thin air through regulation; it needs fundamental support from infrastructure. Over the past seven years, Lagos has invested heavily in building the core pillars of connectivity, power, identity and talent.

Oseni also sent a very direct message to the international investors who packed the venue: "Lagos requires you to price us correctly." He said,"We would rather have your capital than your admiration; we would rather have your operational presence than your capital." He emphasized that Africa's programmable, cross-border future of finance will eventually materialize somewhere, and that rightly should be Lagos.

Deepening the financial sector and seizing trillion-dollar opportunities

The African Development Bank estimates that reforms covering deeper capital markets and public-private partnerships could unleash up to US$1.43 trillion in financing potential annually. Capturing this value requires closing significant gaps.

Although Nigeria's adult account ownership rate has increased from 45.3% in 2021 to 63.3% in 2024, only 9.1% of the population borrows through formal financial channels. Dr.. President's Technical Advisor for Economic and Financial Inclusion Nurudeen Abubakar Zauro emphasized that to achieve Nigeria's goal of a US$1 trillion economy, the financial sector must be deeply deepened and the informal sector must be formalized. MINT AFRICA will focus on turning these gaps into tangible economic opportunities.