Please join Tekedia Capital portfolio startup, Byte – Community & payments, as it presents in First City Monument Bank(FCMB)’s LAUNCH. The event will take place at Hub One (10, Hughes Avenue, Alagomeji, Yaba) :
See you at the LAUNCH by FCMB session. KHALID ISMAIL and team, good luck.
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Nigeria’s Central Bank Digital Currency (CBDC), the eNaira, has recorded over 700,000 transactions worth N8 billion one year after its launch, according to the country’s central bank governor Godwin Emefiele.
The digital currency was launched last October amidst the intimidating growth of cryptocurrency. The Central Bank of Nigeria banned regulated financial institutions from carrying out crypto transactions, and as alternative, created the eNaira.
Emefiele, who disclosed this at a conference to mark the one-year anniversary of the eNaira in Lagos, explained that the digital currency is part of the apex bank’s plan to make Nigeria fully a cashless economy. He added that in the coming days, the CBN and the Bankers’ Committee would unveil plans which would ensure the cashless policy is fully integrated across the county.
Outside the financial industry, the governor said the central bank will be collaborating with other government’s agencies, including the Ministry of Humanitarian Affairs, to push the digital currency as well as its cashless policy using targeted welfare programs.
“Since its launch, the eNaira has offered Nigerians endless possibilities in using financial services thus, living up to the chosen slogan, ‘Same Naira, More Possibilities,’ as well as achieving some set out objectives.
“Specifically, there has been overwhelming interest and encouraging response from Nigerians and other parties across the world with 33 banks fully integrated and live on the platform; N3 billion has been successfully minted by the bank, N2.10 billion has been issued to financial institutions and about one million (919,000) customers have been on-boarded.
“Over 3,305 merchants have successfully registered on the eNaira platform across the country including Shoprite, Sahad Stores, A.A. Rano fuelling stations, Fraser Suites, November Cubes, among others; over 700,000 transactions amounting to about N8 billion have been recorded on the platform and over 2.5 million daily visits to the eNaira website,” he said.
Besides its push to steer Nigerians away from cryptocurrency through the eNaira, which it has long-advocated against, the CBN’s next goal is to close about 40% gap that exists in Nigeria’s financial inclusion goal.
Emefiele said the journey has been to make Nigeria a predominantly cashless economy where transactions are done with limited, little, or no cash.
“Banks have incurred a lot of costs in an attempt to embrace a cashless economy. We also had collaborations with mobile networks and had payment service banks (PSB) using all sorts of channels.
“The destination as far as I am concerned is to achieve 100 per cent cashless economy in Nigeria. I know that those who doubt us will say that 100 per cent cashless is unattainable.
“Yes, it is true but Nigeria must move from being a predominantly cash economy to a predominantly cashless economy.
“I want to say we have provided all the needed infrastructure that will enable us make cashless a nationwide journey. It is not something that some of us will like, but we would in the coming weeks and months make pronouncements that must make cashless go nationwide. I believe part of those pronouncements will begin from tomorrow and there will be some breaking news tomorrow.
“Even the bankers’ committee will hold a special bankers’ committee meeting tomorrow to deliberate on this, so let us expect the news,” he said.
Recording 700,000 transactions in a year is considered a low for the eNaira that has been in the global spotlight as the first CBDC to be launched worldwide. But Emefiele explained that the task ahead in promoting the eNaira is still huge – and will require a lot of efforts including collaboration with other stakeholders, especially the big players in Nigeria’s financial sector.
“As with most digital revolutions, the eNaira is a journey that started five years ago, precisely 2017. It is not a one-off event, but a journey of possibilities.
“Thus, the bank would continue to refine, fine-tune and upgrade it. Therefore, Nigerians should expect to see additional functionalities in the coming months, including the on-boarding of revenue collection agencies to increase and simplify collections and collaborating with the Ministry of Humanitarian Affairs through the creation of sector-specific tokens to support the federal government’s social programmes and distribution of targeted welfare schemes in a bid to lift millions out of poverty by 2025.
“Let me reiterate that the success of the eNaira project could not have come without the active collaboration of several stakeholders inside and outside the government. Let me use this medium to acknowledge the partnership and unwavering support of the Ministry of Communications and Digital Economy through National Information Technology Development Agency (NITDA) and the partnership with the Ministry of Humanitarian Affairs. I would also like to commend the African Fintech Foundry and Merchants and Consumers for onboarding and conducting their transactions on the eNaira Platform.
“The CBN acknowledges the daunting task ahead. We therefore call on all relevant stakeholders, including the Financial Institutions, Nigeria Inter-Bank Settlement Systems (NIBSS), FinTech groups, Telcos and merchants to collaborate, innovate, deepen and enhance the value of eNaira to Nigerians and to Nigeria. It is the Bank’s hope that the eNaira will drive the digital economy agenda and foster a more prosperous Nigeria,” he said.
A recent study by Mastercard has revealed that the fintech industry in Africa is gradually emerging as the continent’s most vibrant sector. Africa has no doubt been at the forefront of financial innovation, developing use cases such as mobile money and using fintech as a vehicle for financial inclusion.
These Fintechs have become major players in the African financial services sector with some rivaling traditional banks in terms of size and value. Between 2020 and 2021, the number of tech start-ups in Africa tripled to around 5,200 companies with half of them as fintechs.
In 2020, Fintechs in Africa made an estimated revenue of around $4 billion to $6 billion, as experts disclose that the African region is experiencing a ‘fintech eruption’ which has caught the attention of both local and foreign investors.
In the Sub-Saharan Africa (SSA) region, fintech startups recorded 894% year-on-year growth in funding in 2021 – the second highest in the Middle East, Africa, and Pakistan region during the period, and the highest yearly growth rate over the past five years.
Africa’s most populous nation Nigeria emerged as a leading fintech hub across the Middle East, Africa, and Pakistan as startups in the country accounted for a third of all funding deployed into fintech in 2021. Within Nigeria, fintech accounted for 71% of all venture capital5.
In 2019, Fintech startups in Africa grew from 311 to 564 in 2021, with South Africa, Nigeria, and Kenya emerging as key hubs. The sector accounted for 27% of the record-high number of deals closed and 61% of the USD 2.7 billion deployed across Africa in 2021. The space was characterized by mega deals of more than USD 100 million each.
The rapidly growing sector comprises sub-segments of particular interest, including digital payments, e-money, international remittances, peer-to-peer (P2P) lending, and equity crowdfunding7.
Fintechs in Africa has made the region a hotbed for investment, with average deal sizes growing and the proportion of fintech funding increasing over the past years, which has led to the creation of jobs and enhanced African economies.
Despite a slowdown in funding in line with global trends, it has been predicted by experts that Africa will witness significant growth and value creation for the fintech industry.
Although, despite the influx of fintechs in the region, cash is still used in around 90 percent of transactions in Africa, which implies that fintech revenues have huge potential to grow.
An analysis by McKinsey estimates that Africa’s financial-services market could grow at about 10 percent per annum, reaching about $230 billion in revenues by 2025 ($150 billion excluding South Africa, which is the largest and most mature market on the continent).
As the fastest-growing start-up industry in Africa, the success of fintech in Africa has been attributed to so many factors such as; an increase in smartphone ownership, reduced internet costs, expanded broadband network coverage, as well as a young, fast-growing, and rapidly urbanizing population.
While fintechs have made significant inroads in Africa—notably in wallets, payments, and distribution, there is still plenty of room for expansion. As the market matures, unique white spaces are identifiable in almost all areas of financial services.
Despite the surge of Fintechs in Africa, experts disclose that the sector has not even scratched the surface, as there are still challenges of less developed financial infrastructure and a large percentage of the population still unbanked.
The challenge of financial inclusion is still rife with a great deal of innovation and technology needed to ensure that more Africans have access to financial services that can drive economic growth.
They have doubled their user base since Tekedia Capital invested in them this rainy season. And every quarter, they have been unveiling new products. They are now in Rwanda to serve the East African market. I just checked their website and AjoMoney has opened a playbook to create opportunities for people:
“For centuries, thrift collection in the form of community rotating savings and credit offerings has been a very lucrative business in Africa. Thrift contributions popularly called ‘Ajo’ or ‘Esusu’ or ‘Adashe’ started in the marketplaces and made it easy for traders to save and access Microloans.” Become a Digital Thrift Collector with AjoMoney.
Let more about this opportunity here
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Yes, the man who became a prime minister a few hours ago has formed his cabinet. In other words, he has selected members of the federal executive council. In my dear Nigeria, a president is elected at least 3 months before the swearing ceremony. Yet, despite that fair enough time to pick the team, most will spend months before forming the cabinet.
If we have to copy the British people, we need to copy their productivity. Of course, the fast formation of the cabinet comes because leaders are prepared; they debate and think over issues they would be going to fix on Day One.
On our own, we rarely do, and that is the reason we do not even know those who know what! Or we do know, but work hard to make sure they do not come close. #change
Comment 1: You have to also understand that most of the guys running for office in our case are not sure of winning, this uncertainty about winning stems from the fact that they are bereft of ideas and capacity. So, for them, the end is the campaign itself, not the governance.
When you analyze their supporters, you also see that not many people understand governance, and that creates an intractable dysfunction. Our people believe that Nigeria should be at the top, but how do we ascend to the top? Nobody knows! When we read history of nations, we selectively remember only the glories, and deliberately forget the sufferings and sacrifices.
We discredit and stop those who can actually do something, while doing everything possible to enthrone those who embody failure and mediocrity; only to come here and rant uncontrollably.
Nigeria is still seen like a conquered territory, so you rarely see people who are coming in to give, but rather to take from whatever that is left there.
We have a problem, but the problem is that we don’t even know our problem.
Comment 2: It’s really pathetic the situation in Nigeria.
Your last statement says it all. In fact, often, those who are good to do the job are known but will never be allowed to take the job.
Comment 3: Fair enough Prof. Ndubuisi Ekekwe but there are more nuanced issues at stake in the complex cross-cultural corrosion called Nigeria:
You’re the President and you’ve decided the ‘key’ members of your team. You submit that list to your party’s chairman and all hell breaks lose. You’re accused of not complying with federal character. So-so-and-so person isn’t even qualified to be the Finance Minister. That person didn’t observe the mandatory NYSC, and the list goes on and on.
You’re then left with two choices: call your party’s bluff and stick to your guns (risking a full blown intra-party crisis before Day One) or bend to their will and accommodate their concerns (which leads to a delay you complained about in this post).
Comment 4: What do you expect to get when square pegs are put into round holes. Even those you think should understand don’t. Recall when a minister boasts about exporting medical doctors to make foreign exchange when we have 1 doctor serving almost 1000 individuals in Nigeria. What about the flood that is caused by rainfall rather than the opening of the camerounian dam. It is a shame that these are the people put in leadership. People should resign if they are deficient on the job they are doing instead of embarrassing the nation
Comment 5: I think we concentrate more on politics in Nigeria rather than Governance. The politicians put all the energy and resources into political campaigns/elections but the moment they rig themselves into office, they feel it’s time relax and recoup their investments.
President Buhari has travelled more times out of the country than he has done within the country. No be juju be that? We even beg him to address the nation on critical national issues but he is always happy to Jet out of the country and read out speech.
Nigerian politicians have all the strategies to win elections but none for governance. It’s a pity.
Comment 6: Very Apt Sir. It shows the level preparedness and how efficient the system is over there compared to my beloved country where the reverse is always the case. Maybe for corruption purpose. How can a president lead a country without cabinet for 5 months if not for corruption.