🧾 Summary
Nigerian fintech Lidya, founded in 2016 to provide collateral-free loans to small businesses, has ceased operations following the resignation of its CEO and CTO, and mounting complaints from customers unable to access their funds. The company’s closure marks a dramatic fall from grace for one of Africa’s early digital lending pioneers.
📉 Leadership Shakeup and Operational Breakdown
Co-founders Tunde Kehinde and Ercin Eksin, both former Jumia executives, stepped down earlier this year amid growing internal turmoil. Lidya’s Portuguese tech team, which supported its backend operations, reportedly collapsed in mid-2024 after months of unpaid salaries Techpoint Africa.
The company’s flagship product, Lidya Collect, launched in 2023 to automate SME loan repayments via debit mandates, has been at the center of the crisis. For nearly a year, users have reported being locked out of their wallets, unable to withdraw funds or receive support Techpoint Africa startupresearcher.com.
đź’¸ Financial Distress and Shutdown
On October 24, 2025, Lidya confirmed via email that it had ceased all operations, citing severe financial distress. The company stated it could no longer process outstanding claims or continue business, leaving many customers without access to their funds Nairametrics naijapreneur.com.
Despite raising $16.45 million in venture funding—including a Series B round of $8.3 million—Lidya struggled to maintain solvency after pulling out of Poland and the Czech Republic in 2023 techparley.com.
⚠️ Sector Implications
Lidya’s collapse underscores the fragility of Africa’s fintech lending model, particularly in markets with limited regulatory oversight and high operational risk. Analysts warn that the incident could erode trust in digital financial platforms and prompt calls for stricter consumer protection frameworks.
Sources:
- Techpoint Africa – Lidya CEO, CTO exit while customers struggle to retrieve funds
- Nairametrics – Lidya shuts down after nine years
- Startup Researcher – Lidya Faces Crisis as Funds Freeze
- Naijapreneur – Lidya Shuts Down Amid Financial Distress
- Techparley – Lidya Shuts Down After Raising $16.45M
