Kenyan mobile phone-based money transfer service M-Pesa has announced plans to launch a direct remittance feature that will enable global customers to send funds directly.
The feature promises to revolutionize the remittance landscape by eliminating the need for third-party services.
Speaking on the launch of the remittance feature, at the Future of payments in East Africa roadshow, Reuben Simiyu, Manager of Global Acceptance at M-PESA Africa said, this initiative is part of the company’s vision, aimed at serving its millions of Kenyan customers better. He noted that currently, M-Pesa does facilitate for remittances to Kenya, but does this through integration with other financial services such as PayPal, and Wise, amongst others.
Mr Simiyu described the journey of M-PESA Africa and its purpose to continuously drive financial inclusion across. He revealed that the launch of M-Pesa Virtual Visa card, a virtual card that enables M-Pesa users to make payments to international online sites for goods and services, was pushed by global merchants’ sites’ insistence on card services.
Meanwhile, the date for the launch of the direct remittance feature was not disclosed, hence, once it is rolled out, Kenyans abroad with M-Pesa can send money straight to their friends and family using M-Pesa wallets.
M-Pesa’s proposed launch of a direct remittance feature marks a significant shift in the realm of financial transactions. This innovation promises to revolutionize the remittance landscape by eliminating the necessity for third-party services. With this advancement, users will experience streamlined and more efficient transactions, cutting down on costs and potential delays associated with intermediaries.
By providing a direct channel for remittances, M-Pesa aims to enhance convenience and accessibility for its users, ultimately transforming the way people send and receive money across borders.
According to World Bank data, the remittance market in low and middle-income countries grew by 5% to reach $626 billion in 2022. With global remittances set to reach $5.4 trillion by 2030, M-Pesa wants to grab a piece of the pie.
The platform has made financial services accessible to millions of people who previously lacked access to traditional banking services, and has transformed how people in Africa handle their money. Last year, M-Pesa’s parent companies Safaricom and Visa launched the ‘M-Pesa GlobalPay’ virtual card that enables customers to use M-Pesa to shop at more than 100 million merchants across 200 countries for the first time.
Notably, M-Pesa wants to be the platform of choice for Africans in the diaspora, sending billions back home. This approach will see the payment platform build on its existing expertise and relationships while leveraging the knowledge and resources of local partners to ensure a smooth roll-out of its direct remittance feature.
The Centre for the Promotion of Private Enterprise (CPPE) has raised alarm over the adverse effects of the newly introduced cybersecurity levy and a barrage of other taxes imposed by various tiers of government in Nigeria.
In a statement signed by Dr. Muda Yusuf, the CEO of CPPE, concerns were raised regarding the detrimental impact of these levies on the capacity of businesses to stimulate economic growth, leading to job losses and inflationary pressures across the nation.
Dr. Yusuf highlighted the burden imposed by the cybersecurity levy, noting its potential to exacerbate hardship for citizens and hinder investment prospects. He pointed out that businesses and investors are already grappling with a plethora of taxes, including education tax, value-added tax (VAT), company income tax (CIT), stamp duty, and various other levies.
The introduction of yet another levy contradicts the objectives of streamlining taxes, as advocated by the Presidential Committee on Fiscal Policy and Tax Reforms.
“Businesses and the generality of citizens are yet to recover from the shocks of current reforms. Inflationary pressures have not abated, high cost of living is still a major worry, operating and production costs for businesses remain elevated, amidst weak consumer purchasing power. This is not a good time to impose an additional levy both on businesses and citizens,” he said.
“Meanwhile, businesses are already saddled with the following federal taxes: Company Tax, Tertiary Education Tax, Stamp Duties, NITDA levy, Value Added Tax, NASENI Levy, Police Trust Fund Levy, among others. Still in works are NYSC Levy and Tertiary Health Levy. There are also a plethora of taxes and levies imposed by states and local governments.”
Furthermore, Dr. Yusuf raised concerns regarding the projected revenue generation from the levy, questioning the rationale behind the proposed amount. With electronic payment transactions amounting to N600 trillion in 2023, a 0.5% deduction would translate to N3 trillion, surpassing the budget allocated for infrastructure in the 2024 Appropriations Act. Such exorbitant figures raise doubts about the feasibility and sustainability of the levy’s implementation.
Moreover, Dr. Yusuf warned against the unintended consequences of such levies, noting that they could undermine the cashless policy drive spearheaded by the Central Bank of Nigeria (CBN) and potentially drive individuals towards cash-based transactions, negating efforts to promote financial inclusion and combat illicit financial activities.
The backdrop of these concerns lies in the recent mandate issued by the CBN, compelling banks and payment service providers to deduct 0.5% of the total value of electronic transactions and remit the proceeds to the National Cybersecurity Fund, managed by the Office of the National Security Adviser (ONSA).
While ostensibly aimed at boosting cybersecurity efforts in line with the Cybercrime Act of 2024, the imposition of additional levies further strains businesses already grappling with financial burdens.
The concerns raised by the CPPE echo broader apprehensions within the business community regarding the potential ramifications of such fiscal measures. Beyond the immediate economic impacts highlighted by Dr. Yusuf, the cybersecurity levy carries multifaceted implications that warrant careful consideration.
Business leaders have warned that the imposition of additional taxes and levies, including the cybersecurity levy, adds to the administrative burden faced by businesses, particularly small and medium enterprises (SMEs). Compliance with complex tax regulations requires significant resources in terms of time, manpower, and financial investment, diverting attention and resources away from core business activities. For SMEs operating on thin profit margins, the added cost of compliance could stifle growth prospects and inhibit job creation, exacerbating unemployment and dampening economic productivity, they warn.
Furthermore, the cybersecurity levy introduces uncertainties surrounding its utilization and effectiveness in addressing cybersecurity challenges. While boosting cybersecurity infrastructure is undoubtedly crucial in an increasingly digitalized world, questions linger regarding the transparency and accountability of funds allocated to the National Cybersecurity Fund.
Without clear mechanisms for oversight and evaluation, anti-graft advocates warn that there is a risk of mismanagement or misallocation of resources, undermining the intended objectives of the levy and eroding public trust in government initiatives.
Moreover, the cybersecurity levy intersects with broader policy objectives related to financial inclusion and digital transformation. Nigeria has been actively promoting initiatives to expand access to financial services and promote cashless transactions as part of efforts to foster inclusive growth and enhance economic resilience.
However, the imposition of levies on electronic transactions runs counter to these objectives, potentially disincentivizing individuals and businesses from embracing digital payment platforms. This, many believe, could impede progress toward achieving universal financial access and drive a resurgence in cash-based transactions, perpetuating inefficiencies in the financial ecosystem and hindering efforts to combat illicit financial activities.
Additionally, experts have noted that the cybersecurity levy underscores the need for a coordinated approach to cybersecurity governance and collaboration between public and private stakeholders. They say that effective cybersecurity requires not only financial investment but also robust regulatory frameworks, capacity-building initiatives, and public awareness campaigns.
This means that the success of cybersecurity initiatives hinges significantly on the ability to foster synergies between government agencies, industry associations, and technology providers to address evolving threats and vulnerabilities in cyberspace.
In light of these considerations, the CPPE’s call for the suspension of the cybersecurity levy and stakeholder deliberation on its implementation resonates with broader calls for evidence-based policymaking and holistic approaches to fiscal reform.
There are many things in our world that are both easy and hard to define. The human innate ability to interpret anything, alive or nonliving, according to one’s own cultural background and personal orientation, accounts for its simplicity. The challenge is in clinging to one’s beliefs without an open mind to consider other people’s points of view. Consequently, the consensus among academics and experts in the area of sociology has been that social contact shapes people’s experiences, resulting in realities that are socially produced.
Over time, two key ideas that have been employed to comprehend and regulate diverse social realities within man-woman relationship have been marriage and divorce. Marriage is an institution that bonds partners through life’s ups and downs. It is human nature to desire to live in pairs and establish bonds with one’s family and relatives. Divorce is a concept that refers to the termination of a marriage. Infidelity, financial troubles, loss of intimacy, substance addiction, domestic abuse, a lack of commitment, moral or religious differences, and just growing apart have all been highlighted as significant contributors to the global divorce rate.
While filing for divorce is not a bad idea, what is really surprising nowadays is the speed at which couples are dragging their marital challenges to the digital sphere, especially social media such as Facebook, Tiktok, X among others. In recent years, social media has been flooded with stories of celebrities and non-celebrities who dissolved their marriages and considered it appropriate to report to ‘online-in-laws’. Direct and indirect followers are now brothers-in-law, sisters-in-law, mothers-in-law daughters-in-law and fathers-in-law to many couples.
Social media, which could be said to have been primarily created for expanding friends beyond physical settings and staying in touch with loved ones, has now been transformed into a family arena in which couples directly or indirectly regard their followers and users as ‘in-laws’ and marriage counsellors.
Numerous high-profile celebrity weddings in Nigeria and throughout the world have, for no apparent reason, been mocked or brought before the social media court, according to one of the country’s major newspapers. Our analyst believes that this indicates that couples are seriously harming their reputations and may be contributing to the eventual destruction of their children’s personalities. It is instructive to state that non-celebrity couples who approached and were featured on programmes on conventional media outlets have equally attracted a significant amount of public attention, despite the fact that several studies, like the one done in a Global North country, note that celebrity divorces have attracted the most attention online in the past ten years.
Because they might impact marriages in two different ways, in-laws play a vital role in spouses’ social networks. First of all, it is not a natural fit for spouses to create familial ties with non-blood relatives. Second, for spouses who have strong emotional and psychological attachments to one another, in-laws can breed animosity and tension.
However, the rise of social media and couples’ desire to communicate their problems on these platforms is redefining the first method and establishing it as the new normal in family dispute resolution. Our analyst observes that, while some ‘online-in-laws’ may offer reasonable comments or ideas on how to manage difficulties in marriages, many of them, particularly those who have never married, are more inclined to give counsel based on feelings rather than experiences. This is the fact that couples who have taken their marital problems to digital platforms must deal with since couples function in a social environment and are vulnerable to the effects and demands of their social networks.
Tekedia Capital has invested in dozens of companies around the world. In Nigeria, we have a deep presence across sectors. In short, today, a village boy received a call from the Presidency for our works in investing in the visions of the future. We’re super-excited on the promises of our startups. And I ask you to join us at Yakubu Gowon Stadium in PHC, Nigeria, on June 8 2024, as one of our portfolio companies, Egoras, launches its first electric vehicle, Egoras APEX 28. About 300 new jobs are being created in PHC and Aba for this mission.
Egoras will start taking pre-orders on that date. Egoras APEX 28 is connected to Egochain blockchain, and it is the world’s first car which rewards drivers via its indigenous tokens (traded in many coin exchanges) as you accumulate EV miles via blockchain-delivered carbon credits. Yes, the car rewards drivers with its tokens, offsetting some charging fees.
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Tekedia Capital has invested in dozens of companies around the world. In Nigeria, we have a deep presence across sectors. In short, today, a village boy received a call from the Presidency for our works in investing in the visions of the future. We’re super-excited on the… pic.twitter.com/cfO2QQgFc0
The relationship between Binance and Nigeria has never been straight forward. At different points along the way, different agents claiming to be ‘Binance’ have been conducting business in Nigeria, only for Binance itself, authorities, or both to come forward disowning and distancing themselves from various activities associated with the name ‘Binance’
At one stage there could have been the question – ‘Will the real ‘Binance’ please stand up?’
I’ve stayed out of this argument up to now, as I am no big fan of Binance.
I am of the view some Eth based developments, especially ERC 20 spawned some income strands that have brought the cryptocurrency/blockchain/web3 business into serious disrepute. Binance is heavily leveraged on EVM Compatibility for its success.
Weaknesses and exploit conditions of multiple kinds exist wherever there are ‘0x’ strings and Solidity code, irrespective of if they are in stand-alone solutions, linked to Ethereum, or extending exotic cross-architecture services with other things.
Binance in particular has been mired in disputes. The previous leader was forced to step down. Changpeng Zhao, a Canadian citizen born in China, was recently jailed for four months in Seattle.
In a separate statement Anton Golub said Changpeng Zhao (with a wealth of $33 billion) is now the richest person ever sent to a US prison
Nevertheless, this is not a case of holding oil personnel to ransom as in the last millennium. Our sector is a very fluid one, and (except a tiny club around Zhao), the links between operatives and any notion of corporate family or corporate responsibility ceases to exist.
Firstly, it’s important to understand in the EFCC context, Binance has merely been a service tool, presiding over ‘instruments’ through which unconnected parties can store ‘value’ or trade.
There is an old saying about ‘If only this 100 dollar bill could tell a story’… instruments leveraged through Binance are no different. What would happen if EFCC could prove $USD had been used by Nigerians in the conduct of illegal criminal activities? Whether Federal Reserve have knowledge of it or not, is not an issue. They can’t NOT be aware, cases of $USD being used in illegal criminal activities is a matter of public record since time immemorial! Do EFCC go after Federal Reserve (its retail actors/distributors or agents)? Well I’d like to see how that works out for them. Simply being ‘easier’ to go after a corporate rather than sovereign target for the same thing, doesn’t make it OK.
What people also routinely ‘forget’ in reporting was that at one stage EFCC legal custody expired and despite the absence of judicial authority, retained custody anyway.
That, purely on its own, is enough to force case dismissal, complete with double jeopardy clause, completely irrespective of cast iron strength around what can otherwise be proven.
Other reports hint at inter agency rivalry between EFCC and FIRS (Federal Inland Revenue Service). FIRS lawyer, Moses Ideho, claimed they made attempts to charge Tigran Gambaryan while in EFCC custody in Abuja and were denied access.
Tigran Gambaryan leaving the Federal High Court in Abuja in EFCC custody
Journalistic narratives paint pictures of clandestine ‘devious’ methods of ‘escape’ during the window, however, this tells more about feelings of safety, and confidence in ‘due process’ and authorities in Nigeria, than it does about culpability of those detained.
What is new, is a quote from Samuel Nwite’s article yesterday.
Richard Teng, CEO; dropped the clanger: “To invite a company’s mid-level employees for collaborative policy meetings, only to detain them” has set a dangerous new precedent for all companies worldwide,”
This is a bit of where my mind has been headed all along.
‘Mid Level?’ What a gross embellishment! They are far less significant to Binance than that!
Now some may say, if the Job Title fits, wear it.
But, over decades of work in Nigeria and exposure to privileged corporate content, I’ve seen past Expatriate Quota records where job titles created for NIS (Nigerian Immigration Service) consumption have little or no bearing on what many foreign employees actually do for their employers day to day. Some records are so bizarre they make works of pure Science Fiction read like Empirical Truths.
Having spent so long in the ‘Global South’ expatriate space, I’ve learnt that North American and European businesses over time have learnt to ‘protect’ themselves by not assigning from the domestic job pool to ‘Global South’ territories where they have strong intel, there is a risk of relationships with authorities ‘going south’. They are afraid of domestic rights laws. Some Chinese businesses on the other hand have equal worries, but mostly because corporate activities forced under the microscope of the Polit Bureau don’t end well.
If they can’t find the right non locals with tested metal in the field, they often source from South Asia, North Africa or The Middle East, who will have weaker legal redress against the company, and frankly, they view as being expendable, and will cut the lifeline on the first sign of local authorities starting to show ‘interest’.
It’s profoundly obvious the detained folk are absolutely nowhere in the Binance food chain.
Tigran Gambaryan, one of the detained, formally issued a decline of receiving ‘legal service’ on behalf of Binance. His legal representative, Mark Mordi, responded that Gambaryan doesn’t posess the authority from Binance to represent them in the matter.
Gambaryan is just a corporate policy advisor and voluntarily came to Nigeria, accepting an invitation as a benign request. It clearly had ulterior hidden motives. This could only be got further wrong by arresting the dude that changes the roll in the Binance office toilet in Gambaryan’s home of Armenia.
In court, Mr Mordi said his client declined to accept service of the charge on behalf of Binance because he is not a representative of the company in Nigeria.
The ruse began earlier this year, as the Naira to Dollar rate went into freefall with no obvious end in sight. Binance appeared as a fathomless scapegoat to the absence of strategic leadership responsible for the demise.
Trying to tackle the vehicles of value movement is merely dealing with symptoms, and any that are removed will only make space for new ones to appear. Rather than looking to ‘medicate’ against symptoms, FGN and agencies need to address the PROBLEMS (which follow).
Financial Services Actors (such as Binance) have no role in tackling violet crime and terrorism; enabling reliable, plentiful and affordable electricity; removing corruption in civil authority ecosystems; strengthening agricultural and manufacturing output; and proportionately improving sovereign passport index, and attracting more FDI though improving ‘Ease to Do Business’ index.. all things that ACTUALLY impact the exchange rate.
There were other statements made by Teng alluding to approaches by authorities for Binance to pay a bribe for charges to ‘go away’. These will not be dealt with here.
However, this kind of ‘wing and a prayer’ ‘grandstanding’ by authorities costs taxpayers money to action and prosecute. They seem committed to lumping these burdens on the impoverished citizenry for the many ill thought-out ruses they lose, as they find something to selfishly ‘eat’ on the rare occasions they win.
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