Nigerian fintech FairMoney reported impressive growth in 2024, with gross revenue up by 62% to ₦121.9 billion and profit after tax rising to ₦7.9 billion, according to its unaudited financial report. A key driver was its reliance on customer deposits, which funded 56% of its loan book, up from just ₦2.9 billion in 2021 to ₦72.9 billion in 2024, a massive 1,467% increase.
This shift helped FairMoney reduce its reliance on expensive borrowings, cutting its dependence from 80% in 2020 to under 5% in 2024. Most revenue came from interest on loans, which hit ₦116 billion. However, the fintech still spent ₦41 billion in operating costs and recorded a high cost-to-income ratio—spending ₦78 to earn ₦100.
Despite strong growth, loan impairments rose by 30% to ₦59.4 billion, pushing the impairment ratio to 45.7%, although FairMoney attributes this to its conservative accounting method. The fintech’s net interest margin stands at a strong 81.7%, but this depends heavily on high-interest loans, raising concerns about credit risk.
FairMoney’s growth story is compelling, but sustainability hinges on improving risk management and reducing costs.
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