Nigerian Fintech Lidya Shuts Down After Nearly a Decade

Key Takeaways

Lidya’s shutdown underscores the funding and sustainability challenges facing fintech lenders in emerging markets. Despite early investor enthusiasm and expansion beyond Africa, the company was unable to reach the scale or loan performance required for long-term viability. Its closure follows a broader slowdown in venture funding across African fintechs, where rising credit defaults, limited local capital markets, and tighter global liquidity have exposed fragile unit economics. Lidya’s experience also highlights the difficulty of balancing growth and credit risk in SME lending—one of Africa’s most underserved but high-risk segments. The company’s collapse may mark a shift toward more cautious, data-driven lending models and partnerships with regulated financial institutions. For Nigeria’s fintech ecosystem, Lidya’s exit represents both the end of an early-stage pioneer and a reminder that even well-funded startups must adapt to shifting investor priorities and macroeconomic constraints to endure.