Nigerian digital lender Lidya has officially ceased operations after nine years, citing severe financial distress that made it impossible to continue business.
In an email to customers, the company announced:
“Despite best efforts to restructure and sustain operations, the company has encountered severe financial distress and is no longer able to continue in business. As a result, the company has ceased all operations.”
Founded in 2016 by Tunde Kehinde and Ercin Eksin, both part of Jumia’s founding team, Lidya emerged as one of Nigeria’s earliest fintechs offering fast, collateral-free loans to small and medium enterprises (SMEs). The platform leveraged data-driven credit assessments, enabling loan approvals within 24 hours for amounts ranging from $500 to $50,000.
Over the years, Lidya sought to diversify and expand. In 2020, it launched operations in Poland and the Czech Republic, with an ambitious plan to disburse €1 billion in SME loans within five years. It also raised $16.5 million in total funding from investors including Alitheia Capital, Accion Venture Lab, and Flourish Ventures.
However, by 2023, Lidya shut its European operations to refocus on Nigeria. It launched Lidya Collect, a repayment and debt recovery tool for businesses. But the platform soon faced operational issues, with customers reporting frozen funds and failed transactions.
“Our money is stuck. We’ve layered millions of transactions on the platform, and now that it’s failing, we have to recover those debts manually,” one customer told reporters.
The company’s shutdown followed months of internal turmoil, marked by unpaid staff, executive exits, and the disbanding of its Portugal-based technology team. Co-founder Tunde Kehinde and CTO Cristiano Machado resigned in 2024 amid growing instability.
In its final message, Lidya confirmed that it could no longer process refunds or settle outstanding claims, effectively bringing an end to one of Nigeria’s pioneering fintech startups.
