SPENN completes strategic joint venture agreement to accelerate its entry into Nigeria
SPENN Technology A/S (“SPENN”) signed an agreement to enter a joint venture with the Nigerian National Agency for Science and Engineering Infrastructure (Naseni). Naseni is a key Nigerian governmental agency, and this arrangement will greatly accelerate the penetration of SPENN products and services in the largest African market – Nigeria.
The joint venture, named Naseni SPENN, is building a full-fledged digital eco-system for disbursements. “This is a game-changer for us in Nigeria,” says Jens Glaso, CEO of SPENN. “We are thrilled by the opportunities this presents SPENN. Entry and distribution of SPENN services and products will be greatly accelerated in the most populous country on the great African continent,” says Glaso.
SPENN had earlier estimated that an entry into Nigeria could take 1 to 2 years, however, following this agreement with Naseni, SPENN expects to be operational in Nigeria within 6 to 12 months, according to Karl-Anders Grønland, Chairman of SPENN Technology.
The Nigerian National Agency for Science and Engineering Infrastructure (Naseni) is a governmental body created to amongst others establish and nurture an appropriate and dynamic science and engineering infrastructure base. The goal is to achieve home-initiated and home-sustained industrialization through the development of relevant processes, capital goods and equipment necessary for job creation, national economic well-being, and progress.
SPENN will provide Naseni with a digital disbursement solution for them to disburse certain national pension funds, agricultural and manufacturing disbursements as well as social intervention solutions. The disbursement will be rolled out to 10 million recipients in the first phase of the project to be launched in April 2023.
According to the agreement, SPENN owns 70% of the joint venture Naseni SPENN, while Naseni owns the remaining 30% of the company.
Nigeria is the most populous country in Africa with an estimated 216 million people. At the current growth rate, Nigeria is adding approximately 5 million people to its population every year. Nigeria is also one of the largest democracies in the World and in February 2023, elected its 5th president since the end of military rule in 1999, with the election of Bola Ahmed Tinubu of the governing APC party.
“We will work relentlessly to make Nigeria a huge market for SPENN. We are keen on exploring the opportunities for SPENN products and services in this great nation, and we are pleased to have come one step further in Nigeria. Building on experiences and results in our current markets, we are now able to plan a roll-out with larger public disbursement partners,” says Glaso.
SPENN App is currently the 3rd highest-ranked finance application in Zambia, another one of its leading markets.
Verdant Capital is currently raising equity funding for SPENN.