It was a great business model on paper: have a fintech solution that will make it possible so that when African diasporas visit their homelands like Nairobi, Lagos, Accra, etc, they can use the same credit cards they have used in America, Germany, UK, etc to pay for things!

But there is a problem: payments in our part of the world have always attracted more chargebacks*. And in sub-Saharan Africa, we have taken that to an unfortunate level with severe implications for merchants, fintechs and the broad ecosystem.

For example, a bank in East Africa which provides the API that enables some of these payments lost its partnership with a leading payment processing and issuing company because of the unusual level of chargebacks in the continent. But startups did not give up as they continued on how to serve the diaspora market.

But what we’re reading on what happened in Nigeria in December 2024 is extremely unfortunate: some people used hotel services, restaurant services, paid with their foreign cards, and upon returning to their foreign bases called their banks that the payments were paid without their approvals.

Typically, in US, Canada and most Western European countries, the banks are expected to refund them unless the merchants can provide compelling evidence to support that they actually approved those payments. 

That is how banking works there: banks are there to protect you when bad things happen. Of course, that does not include approving spending, getting services, and then wickedly asking for a refund.

This falls to the #1 challenge for fintech companies in Africa and specifically Nigeria, as I noted: ‘Good People, Nigeria should declare a financial state of emergency on “Cyberfraud, Identity Theft & Wire Fraud” in the nation. In the last three years, many fintech startups have failed, not because of market conditions, but because of this fraud vector.” Indeed, for this Detty December issue, some of the fintech companies which have facilitated these sales will see their licenses revoked by their US, Canadian and European partners, for enabling an ecosystem with more than average chargebacks.

Yet, if you are a merchant, this is your defence: always request for your customers to sign their card payments and print a copy of that payment. And any purchase above $200, ask that person for an ID and copy the last 4 digits of his or her driver’s license or passport and write on that receipt. 

If you do have that copy, present it to the payment processing partner. When you do that, you will not be open to this chargeback risk as that person knows you have enough evidence to win the dispute. But where you have nothing, you could lose money.

*A chargeback is a reversal of a debit or credit card transaction. It happens when a cardholder or their bank disputes a charge and the dispute is resolved in the cardholder’s favor.

The National Orientation Agency (NOA) has unveiled plans for the General Multipurpose National Identity Card (GMPC), promising a streamlined solution for identification and service access.

The GMPC is designed to consolidate multiple identification cards into one, simplifying access to government services, financial transactions, and travel-related needs. NOA emphasized the card’s role in easing the burden of carrying multiple forms of identification, describing it as a step toward modernizing Nigeria’s identity management systems.

In a statement on Sunday, the agency explained: “The GMPC will serve multiple purposes, combining several existing cards into one. This new card will eliminate the need for citizens to carry multiple forms of identification, making it more convenient for everyday use.”

However, the announcement has been met with mixed reactions, as many Nigerians are skeptical about the initiative’s potential to deliver meaningful change.

While the initiative is being positioned as a landmark achievement, many Nigerians are not overly excited, citing past experiences with similar programs that failed to live up to expectations. The rollout of national identity cards in Nigeria has a long history of lofty promises, with little to show for the billions of naira spent over the years.

President Goodluck Jonathan launched a new national identity card on August 28, 2014, to replace the earlier version introduced in 2003 under President Olusegun Obasanjo. The 2014 initiative, a collaboration between the Nigerian Identity Management Commission (NIMC) and MasterCard, was touted as a revolutionary solution for identification and financial inclusion. Despite the grand launch, the system failed to gain widespread adoption, with many citizens unable to access the card or its promised benefits.

For many Nigerians, this latest effort to introduce the GMPC feels like déjà vu. Many believe that each new administration presents a different version of the national ID card, often abandoning the previous system, rendering earlier investments wasted.

Expressing their frustration, many have asked: Every new government wants to start a fresh ID card project. Why can’t we improve on what we already have instead of spending billions on the same thing every few years?

Others have also raised concerns about the likelihood of this program being sustained beyond the current administration. Given Nigeria’s history of abrupt policy changes, many fear that a future government could discard the GMPC, just as previous systems were phased out. This lack of continuity often leads to wasted resources and public disenchantment.

The financial burden of launching a new identity card system is another contentious issue. It is believed that funds allocated to the GMPC could be better spent on pressing national concerns such as education, healthcare, and infrastructure.

Additionally, challenges related to accessibility and implementation remain unresolved. In rural areas, many citizens lack access to the National Identification Number (NIN), a prerequisite for obtaining the GMPC. Past initiatives have often struggled with logistical bottlenecks, raising questions about the feasibility of delivering the GMPC to every Nigerian.

While the NOA has positioned the GMPC as a game-changer, public perception paints a different picture. For many Nigerians, the initiative appears to be another expensive exercise with little guarantee of success.

However, the NOA insists that the GMPC will improve access to financial services and government programs, reduce reliance on foreign payment systems through the AFRIGO card scheme, and bolster national security. Applications for the GMPC can be made through NIMC offices, participating banks, or online, with card issuance managed by applicants’ banks.

The NOA emphasized that transparency will be a cornerstone of the program, promising to publish weekly updates on issuance and utilization.

President Donald Trump’s return to the Oval Office has been anything but conventional, marked by an aggressive push to reverse the policies of his predecessor, Joe Biden.

Within hours of his inauguration on Monday, Trump signed a sweeping array of executive orders and initiated personnel changes that signal a stark departure from the progressive ideals championed by the previous administration.

A Blitz of Executive Actions

In just his first 24 hours, Trump about 100 executive actions, overturning several landmark Biden-era policies. These actions span a wide range of issues, including climate change, energy production, immigration, and foreign relations.

Trump has also made 115 personnel decisions, replacing key officials across government agencies with individuals aligned with his agenda. These orders reflect his bold commitment to dismantling key aspects of the Biden administration’s legacy and charting a new path for the United States. Here’s a detailed breakdown of the most significant actions taken so far:

1. Withdrawing from the Paris Agreement: Effective immediately, the U.S. has exited the Paris Climate Accord. Trump justified the decision by stating that the agreement unfairly disadvantaged American workers and industries while providing little tangible environmental benefit. He pledged to focus on domestic energy policies that prioritize economic growth over international commitments.

2. Emergency Price Relief: In an effort to address inflation and rising costs, Trump ordered all executive departments and agencies to deliver emergency price relief to the American people. The directive emphasizes increasing the prosperity of American workers while adhering to applicable laws.

3. Temporary Hiring Freeze: Trump imposed a temporary hiring freeze across the federal government until his administration is fully operational. Additionally, within 90 days, the Office of Management and Budget (OMB), in consultation with other federal offices, must submit a plan to reduce the federal workforce through efficiency improvements and attrition.

4. Regulatory Freeze: Trump issued a sweeping halt to all pending regulations, stating that no department or agency may propose or issue any new rules until they are reviewed and approved by a presidentially appointed agency head. This move is intended to reduce bureaucratic red tape and streamline governance.

5. Return to In-Person Work: Federal agencies must terminate remote work arrangements and require employees to return to full-time, in-person work at their duty stations. Agency heads are permitted to grant exemptions when necessary. Trump framed this as a step toward restoring normalcy and efficiency in government operations.

6. End the Weaponization of Government: The Attorney General has been tasked with reviewing the enforcement activities of all federal agencies to ensure that they are free from partisan bias. This initiative aims to rebuild public trust in federal institutions.

7. Restoring Freedom of Speech: Trump emphasized his commitment to protecting constitutionally guaranteed free speech. He stated that federal policies must uphold the right of Americans to express their views without fear of censorship or retaliation.

8. Rescinding Biden Executive Orders: Trump nullified 78 executive orders issued during Joe Biden’s presidency. While details of the revoked orders were not specified, the move signals a broad rejection of Biden-era priorities.

9. Pardons Related to January 6th: Trump granted unconditional pardons to individuals convicted of offenses related to the January 6th Capitol events. Critics argue this could undermine accountability, while supporters view it as a step toward reconciliation.

10. Extending the TikTok Deadline: Trump ordered the Attorney General to delay enforcement actions against TikTok for 75 days to allow his administration to determine the best course of action regarding the app’s operations in the U.S.

11. Withdrawal from the World Health Organization (WHO): Citing concerns about transparency and effectiveness, Trump ordered the U.S. to withdraw from the WHO, a move he had previously initiated during his first term.

12. Restoring Accountability: Federal employees in politically sensitive roles must implement administration policies without expressing personal or political opposition. Failure to comply will be grounds for dismissal.

13. Election Interference Accountability: Trump revoked security clearances for 51 former intelligence officials, including John Bolton, who allegedly spread misinformation about Hunter Biden’s laptop during the 2020 election. This order aims to prevent the Intelligence Community from engaging in partisan politics.

14. National Emergency at the Border: Trump declared a national emergency at the southern border, authorizing the use of military personnel, including the National Guard, to assist the Department of Homeland Security in achieving full operational control.

15. Resolving Security Clearance Backlogs: To address delays in security clearance processing, Trump ordered expedited reviews for individuals awaiting access to critical facilities and information.

16. Trade Policy Reforms: Trump directed the investigation of an External Revenue Service (ERS) to streamline tariff and trade-related revenue collection. He framed this as a step toward addressing unfair trade practices.

17. Energy Independence: Trump reignited his push for energy exploration on federal lands and offshore areas, calling for abundant and reliable energy supplies. He also rescinded mandates promoting electric vehicle (EV) adoption, emphasizing the need for public input and scientific analysis in energy policy decisions.

18. Refugee Admissions Overhaul: Trump tightened refugee admission criteria, requiring applicants to demonstrate their ability to fully assimilate into American society. He also emphasized preserving taxpayer resources for U.S. citizens.

19. Restrictive Citizenship Policy: New restrictions on citizenship documentation were introduced, primarily targeting children born to non-citizen parents in certain circumstances. This policy aligns with Trump’s broader efforts to limit birthright citizenship.

20. Water Resource Redistribution: Trump ordered increased water transfers from the Sacramento-San Joaquin Delta to areas in California suffering from water shortages, prioritizing human needs over environmental conservation.

21. Restoring the Death Penalty: The Attorney General has been instructed to seek the death penalty for severe crimes. Trump cited this as a necessary deterrent for heinous offenses.

22. Architectural Reform: Federal buildings must reflect traditional and classical architectural styles. Agencies have 60 days to submit recommendations for implementing this policy, aimed at beautifying public spaces.

23. Border Security Enhancements: Trump reaffirmed his commitment to securing the U.S.-Mexico border, including resuming construction of the border wall and expediting deportations of undocumented immigrants.

24. Accountability in Military Operations: The Armed Forces have been directed to prioritize protecting U.S. sovereignty and territorial integrity, particularly along national borders.

Trump’s early actions underscore his determination to reshape the federal government and its policies in line with his vision of “America First.” While supporters hail his decisiveness, critics warn of potential overreach and deepening divisions. The coming months and years will determine the long-term impact of these sweeping reforms.