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Home Blog Page 5196

MTN Granted License For Mobile Money Banking Service In Nigeria

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Multinational mobile telecommunications company MTN has been granted the license to operate a mobile money banking service in Nigeria. Their license was approved by the Central Bank of Nigeria for its Mobile Money (MoMo) payment service bank in Nigeria, extending its services to wider operations.

The CEO of MTN Ralph Mupita disclosed that granting the company the approval to commence the MoMo bank was an important milestone for the company’s ambition 2025 strategy unveiled a year ago. In January MTN revealed that its mobile money service had attracted 9.4 million active users since launching in August 2019, a growth the company said provided a solid foundation for the upcoming establishment of the bank. The volume of transactions performed through the service rose by 167% to 137.5 million in the 2021 full financial year.

It is also important to note that Nigeria, which has the largest population in Africa, is still MTN’s largest market. Witnessing the Fintech boom in the country, with Nigerian fintech startups raising an estimate of $800 million in 2021, it is obvious that many mobile communications companies also want to tap into the resources in the region, as a lot of them are already venturing into various fintech based services primarily to diversify their income, with banking services being a key area for growth.

Not only has MTN decided to introduce a banking service, but telecommunications company Airtel has also disclosed plans to venture into the fintech space to offer mobile money services (smart cash) in Nigeria. After Airtel issued its first set of payment service Bank (PSB) licenses to local telcos in August last year, the Central Bank granted an approval in principle to Airtel Africa. It is pertinent to note that despite the fintech boom in Nigeria, the fintech ecosystem has only scratched the surface, as it is estimated that about 40 million adult Nigerians are still unbanked.

With telecommunications companies launching their mobile money service, this will catalyze the inclusion of poor people especially those in the rural areas of the country who do not have access to financial services, to transact quickly and conveniently. There has been an estimate that Airtel Africa could double its mobile money revenues when it finally commenced its operations in Nigeria.

A local newspaper, business day stated that the telecom grant to operate mobile banking could earn an additional $405m, an estimate it arrived at by multiplying the telco’s average mobile money revenue per user in the African markets where it already operates by the potential number of mobile money users the telco have in Nigeria. Banking in Nigeria is indeed a very lucrative sector because, despite the fintech boom in the country, there is still a vast majority of underserved consumers.

A lot of people in the country still lack access to financial services, which has spurred a few telecommunications companies to diversify into mobile banking to make profit, as well as bridging the gap between those who have no access to financial services in mobile banking. With few telecommunications companies venturing into the fintech space, no doubt these companies could pose a significant challenge to some fintech startups, including some incumbents because these telecom operators already have a large user base and also sit on a trove of data that could help them hit the ground running on time with ease.

Improving The Nigeria’s Labour Market Via Tech

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 Despite the frantic efforts of successive governments to ensure they aren’t trapped in the pothole cruelly dug by joblessness among the teeming citizens, they still overtime encounter its ruthless scourge, apparently signifying that their effort isn’t good enough or that something is really wrong somewhere.

      However, my last visit to one of the West African countries lately made me understand that Nigeria isn’t exceptional while discussing unemployment or that the term is not peculiar to the acclaimed giant of Africa.

      But, it seems the degree at which it parades its tentacles and elbows in Nigeria is so enormous that the country is ostensibly taking the lead in the comity of nations. This is the sole reason many are deeply concerned and bothered over the anomaly, hence the need for drastic measures towards cushioning the excruciating effects.

      It’s noteworthy that unemployment is not a personal plight but a general one, thus the essence of a societal approach in a bid to tackle it. This is why countless schools of thought have overtime shown great concern over the lingering nature of the cankerworm as well as aired their views on how best to tackle it.

      Though unemployment isn’t a convincing excuse to indulge in any crime, hence no discerning mind encourages people to resort to it, it’s worth noting that its scourge remains one of the prime reasons all sorts of criminal activities have escalated in recent times.

      Another disturbing occurrence that’s apropos of unemployment is the employability status of our present days’ graduates. It’s not anymore news that most of these youths are obviously unemployable, thus posing a threat to the labour market and their chances of being meaningfully employed.

      The plight as stated in the above paragraph is mainly attributable to lack of adequate knowledge as acquired from their respective institutions of learning, or inability of our various undergraduates to stick to the needful while on campus.

      Taking a painstaking study of all these issues, it’s needless to assert that the ongoing unemployment crisis in Nigeria is not unconnected with dilapidated learning environment cum facilities, decline in the country’s value system, and insufficient employers of labour, among others.

      Though nepotism is highly condemnable and unacceptable, those who attribute unemployment to it might be making a big mistake because if there are sufficient firms or employment opportunities, such a practice like favouritism or what have you would hardly be detected by anyone.

      Before now, or in the olden days, Nigerians were gainfully engaged with various works simply because the jobs were readily available and the population was conspicuously far lesser than what we could witness now.

      But with the growing lack of sustainability of various government-owned establishments coupled with the astronomical growth of the country’s population, the job spaces abruptly became overwhelmed by the number of people in the labour market.

      A lot has really gone wrong in the system, but the good news is that, we can once again get it right if the needful is done by the relevant authorities. This can only be actualized by revisiting the drawing board.

      It would be very wonderful for the government to comprehend that the endless unemployment issues can aptly be addressed by truly comprehending the real value of technology, hence embracing its measures. It’s worthy of note that only technological approach could significantly alleviate all crises that are apropos unemployment.

      First, we need to revamp the country’s education sector. The current educational system of the Nigerian society has really deteriorated that an urgent, candid and apt measure is required towards its revitalization.

     We must be ready to train our young ones with a view to becoming self-reliant in their respective abilities. Since the population is growing by the day and the firms aren’t increasing meaningfully, there’s a compelling need to prepare these Nigerians so they could emerge as entrepreneurs or employers of labour rather than seekers.

       Our various technical colleges, which have apparently gone into moribund, must be revived in earnest to keep the ground running. Those days, graduates of these institutions – even without proceeding to a higher level of learning – could stand on their own as well as comfortably raise wonderful families with their earnings.

       The governments at all levels ought to endeavour to equip the various tertiary schools in their respective jurisdictions, so that, the graduates can defend themselves in any setting and equally start up something meaningful without ‘giraffing’ for the availability of any form of white-collar job as it is currently the case.

      In view of the above, the schools’ authorities must strengthen the value of the ongoing Students Industrial Work Experience Scheme (SIWES), which was primarily set up by the government to aid the technical upbringing of the learners irrespective of their disciplines.

      Hence, it’s high time the Industrial Training Fund (ITF), the body imbued with the powers to service the SIWES and sustain its viability, started doing the needful. The authority must endeavour to face priorities squarely at the expense of frivolities, as I rightly mentioned in my previous works.

      They must deploy a functional mechanism that would ensure thorough monitoring of the industrial trainees from time-to-time as long as the training lasts. This proposed task mustn’t be shortchanged for any reason whatsoever if we truly want the SIWES to be result-oriented.

      Our engineering graduates, just as it’s being observed in the medical and law fields, ought to be mandated to undergo a compulsory one-year national programme strictly on further industrial workshop training. This should serve as a prerequisite to the ongoing National Youth Service.

      Inter alia, the governments need to provide an enabling environment to enable all tech-driven talents to thrive as well as ensure that the available patents of the numerous institutions domiciled in their jurisdictions are duly commercialized. Research works in any quarter must also be given due attention since technology is strictly dependent on research.

     Conclusively, it would be sacrilegious to beat about the bush while discussing tech-driven matters, because technology is all about facts. Hence, the government needs to acknowledge that the suggested measures can never yield significant and tangible results if we continue to relegate the power supply issue to the background.

      We must understand that only uninterruptible electricity can encourage entrepreneurship to a great extent as desired by the people. Therefore, this technological factor requires the highest sincere attention.  

My “3T2030 Plan for Greater Nigeria” Will Unleash Prosperity, Strong Rural Economy and Abundance for All

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Good People, never doubt the capacity of Nigerians to fix the current paralysis in the nation. This nation used to work. Many things seem like fictions these days but just decades ago, we were on the path to the mountaintop. Remember, decades ago, Nigerian scientists were creating vaccines approved by WHO (check cholera) out of our universities. Today, we have to wait for Pfizer, Modena, etc to save us! We will fix that because we’re as smart as those guys.

As I welcome Prof Osinbajo (he declared for Presidency this morning)  and other politicians into the arena for the next President of Nigeria, I make it clear that Nigeria can cut poverty by half, deepen industrial competitiveness, elevate rural Nigeria,  etc within 4 years. I have no party affiliation but “running” for a federal ministerial position. In my 3T2030 Plan for Greater Nigeria, I posit that we can create millions of low middle class citizens in Nigeria within two years. How?

Go back to any plot of gross world product (aggregate of global GDPs) over the last 2,000 years. There is one thing that is consistent: property rights. No nation has developed without property rights and until nations have built that capacity, they cannot advance. The efficiency of the utilization of factors of production has always tracked strengthening of property rights.

My plan is simple: expand the national balance sheet by unlocking dead assets in rural Nigeria. We will put property rights on all lands, farmlands and properties, enabling transferable velocity in them.

I will do that within the first few months, using startups to grow and map lands. Each local government area will use its young people to do this job, and we will provide a market-driven process that will not cost the government anything. The plan is to make it easier for people with land assets to have access to credits even as we improve the ease to buy and sell these assets.

The ministry of lands under the existing land use act will receive immense technology evolution by bringing innovators to drive property rights in Nigeria. I expect to unlock massive wealth and open new vistas for a dynamic rural economy in Nigeria. Yes, anyone with land  or property will suddenly become rich! I want those properties to show in the national balance sheet; today, they are invisible!

If we do that, I expect at least 5 million families to move into the low middle income class. Imagine inheriting 100 hectares of land which will now show up in the national “balance sheet” of Nigeria giving you the opportunity to access credits in your local bank for your business, or even easily sell one hectare to educate your children.

More so, with stronger property rights, developments will come to rural areas and agriculture will blossom. How do you expect someone to invest long-term in assets he does not have legal rights? Part of the problems with agriculture could be traced to our property rights. That would be fixed.

As Your Federal Minister, I Will Fix Nigeria’s Educational System

 

The Death of Mrs Osinachi Nwachukwu: The need for the declaration of state of emergency on Domestic violence in Nigeria.

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The famous gospel singer, Sis Osinachi Nwachukwu was reported to have “joined the saints” last week. The report claimed she died of cancer while her family members and close friends/ associates are clamoring that she died of domestic violence from her husband. Some gave a vivid report on how her husband had turned the late gospel singer into a punching bag landing her in the hospital on numerous occasions before she finally gave up the ghost.

Although, these reports are merely speculations and accusations; legally speaking, they are just accusations against the husband of the late singer until the law enforcement agents carry out an intensive investigation to determine the veracity of this accusation.

But this is not the first time reports are making around the media of a wife being murdered by her husband. Not quite long, a traditional ruler in Ondo state physically assaulted and sent one of his wives to her early grave. It seems we have forgotten about that and the case and swept it under the carpet.

Every day, there are incidents of family violence in Nigeria, the ones that make it to the media are the ones we know about.

Last year, specifically on the 27th of February, 2021, the Guardian Newspaper reported that at least once a week, there’s a case of a man beating, maiming, or killing his wife in Nigeria. 

Domestic violence is a big deal in Nigeria and it doesn’t seem to be ending any time soon because it appears that some cultures and religions have accepted and approved some form of domestic violence. For instance, some cultures and religions encourage a man to beat up his wife as a way of cautioning her, even the penal code legalizes a man beating up his wife as a way of correcting  her if she “misbehaves”. S 55(1)(d)  of the penal code made this provision: “Nothing is an offense which does not amount to the infliction of grievous hurt upon any person which is done by a husband for the purpose of correcting his wife…”.

Also, Spousal rape which is another form of domestic abuse/ violence is yet to be criminalized. That spectrum of domestic abuse by one partner having a forced carnal knowledge of another partner is not a crime or an offense in as much as the parties are married. It is not recognized or is yet to be recognized as a crime or offense in Nigeria for the husband to sexually abuse or rape the wife and vice versa.

Importantly, it is noteworthy that When we talk about domestic violence as a concept, it is not limited to physical assault by one partner on another partner. In its broadest sense, domestic violence also involves violence against house help/maids, children, parents, or the elderly. It can come in different forms, including physical, verbal, emotional, economic, or sexual, and it can also include the use of technology to stalk harass, control, monitor, or hack a spouse a family member. It is this wide and encompassing.

Western countries like the UK and the US have made several legislations criminalizing the offense of domestic violence and gender-based violence with stiffer punishments. The Uk has made a lot of legislations like The Domestic Violence, Crime and Victims Act 2004, the Domestic abuse act, The Council of Europe Convention on preventing and combating violence against women and domestic violence, which is known as the Istanbul Convention passed in 2011 which the UK is a signatory to are some of the notable laws in the countries that are made specifically to protect the weaker partners in the marriage institutions against physical assault and abuse.

In the USA as well, the Violence Against Women Act (“VAWA”) and many other legislations recognize that domestic violence is a federal crime.

Despite the high rate of domestic violence in Nigeria, It seems that the country is yet to legally step up and do the needful in terms of making stiffer legislation and making sure such legislation is enforced in the fight against domestic violence.

What needs to be done to stop or reduce the cases of domestic violence in Nigeria?

The Nigerian lawmakers should make law(s) that concerns itself specifically with Domestic violence and abuse which provide stiffer punishments for the offense.

Some of these laws that encourage domestic violence like the penal code should be amended. Those specific sections of the penal code like s.55(1)(d) that subtly advocated for domestic violence should be abolished.

Customs and traditions that promote domestic violence should be held to be repugnant to natural justice, equity, and good conscience and therefore cannot stand.

Domestic violence should be treated as a violation of the fundamental right of an individual thereby making it a criminal offense against the state.

Women who are the most known victims of this violence should be encouraged to speak up and taken into therapy and rehabilitation sessions.

These few recommendations should be implemented as soon as possible. 

In conclusion, I will not fail to mention that there are NGOs who are always ready to take up cases like this pro bono; for instance, The International Federation of Women Lawyers (FIDA) is very notable for their  fight against gender based violence, spousal abuse and any form of domestic abuse. They have offices scattered all over the country With their head office located at Block 1, Flat 1, Ankpa Close Ogun Street Area 2, Garki, Abuja. Email:fidanigeria@yahoo.com
Phone: +234 708 849 6115  and their Lagos office is located at 14/16 Makoko Road, Off Herbert Macaulay Way, Yaba, Lagos.

The Cleen Foundation is also one of the notable NGOs doing a lot advocating against domestic abuse in Nigeria. Their headquarters is located at 26, Bamenda Crescent, Wuse Zone 3, Abuja, Nigeria.
Phone number:  +234-7067899368

These and many more are some of the NGOs that are established to fight against domestic violence and abuse in Nigeria. 

If as a victim of domestic violence and any of these NGOs are inaccessible or unreachable to you, you can approach the nearest police station and lay your complaints or can approach any lawyer. Many lawyers including myself (the writer) are always ready to come through and take up any case of this nature Pro Bono. I will always be ready to pull whatever resources necessary to follow up and handle any case of this nature that comes my way; you just have to speak up. My personal email address is infoitooknow@gmail.com

On the victim’s part; speak up, seek help, leave the relationship and stay alive. 

 

As Your Federal Minister, I Will Fix Nigeria’s Educational System

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I am not running for President of Nigeria but I desire to be a federal minister in our nation. There are many ministries that I can  transform. If I make it into the ministry of education, I will work to redesign the architecture of our educational systems.

My #1 priority will be to deepen primary & secondary education attainment and quality. China hits close to 99% primary education enrollment with less than 10% university attainment. They put all the good money in basic education because it is the bedrock of any nation. America does the same (90% attainment). 

In Nigeria, we largely  flip it, massively subsidizing university education (which is great) but, unfortunately, paying little attention to basic education. That is why a primary school teacher earns $50 per month! 

Under the direction of the soon-Mr. President, we will put massive resources into basic education, drawing from the current budget structure. But as that money goes, we will measure outcomes and drive accountability.

There are many areas we will fix. Looking at the universal basic education fund, you see disparities; some states have literacy rates below 20% while some hit more than 90% but the funding mechanism is largely the same per child, across the nation. So, what happened in some states? We will close that loophole. If Nigeria is sending the same amount per child to states, we expect outcomes to correlate and equilibrate.

Looking at this plot from the government, released a few years ago, there is no way you can spend the same amount per child, and have this type of outcome. That would be fixed.

literacy rate Nigeria (NBS)

At the university level, we will work and present a bill to adjust Nigeria’s tax system with some special deductions for education. Every partnership or donations to universities will become tax deductible, instead of just pure expense. My goal will be to use that vehicle to attract at least $5 billion into the university system purse, by making it easier for local and global firms to work with Nigerian universities (overall, we can hit $10 billion across all levels of our educational systems). If Huawei works with UNN and commits $10m in a partnership research, it can deduct 100% of that; if Microsoft partners with ABU for $20m, it will deduct, etc. Our tax model will activate interests to partner with schools, by stimulating new incentives for companies.

My strategic goal will be encouraging companies to become partners with universities by bringing taxation into their planning models. In other words, if Microsoft wants to set up a design center for $100m, can it spend that money in Nigeria and still deduct it by working with FUTA, FUTO, FUTMinna consortium instead of going alone?

More so, I believe that we can unlock billions of naira internally via local companies through tax structuring. If we do these things and more ideas I will present to Mr. President, the university system will have resources, and our economy will become more dynamic as university-industry relationships will deepen.

Think about it this way: if Innoson Motors wants to hire 1,000 technicians for its Owerri Naze factory. Today, the firm has to recruit and train them outside the university/polytechnic system. Let us assume that the training will cost $2 million; that will be an expense in the balance sheet. 

But under my plan, Innoson Motors can partner with The Polytechnic Nekede to train those 1,000 young people. It will spend that $2 million with the school but in its tax form, it can still deduct that, essentially reducing its taxable income. Magically, you have created an incentive for Innoson to partner with Poly Nekede, and the school will then have the resources it needs.

You can also see this within the window of tax credit which will offset corporate tax even if it is not deductible on  taxable income. 

Restructuring our tax code will unlock $$millions, and as your minister, we can rebuild many fundamental architectures in Nigeria.  ASUU will have resources but it has to work. We will not have strikes anymore as our educational system will become a virtuoso circle of innovation and human development. Today’s structure makes no sense and we will replace it!

The full and comprehensive ideas are contained in my 3T2030 Plan for A Greater Nigeria where I have articulated how to grow Nigeria’s economy from its current sub-$500 billion to $3 trillion by 2030. I will be sharing in piecemeal my ideas across sectors.

In my document, I explain how common sense policies can rewire the structures of our market systems. Under my plan, Microsoft’s planned $100m investment in Nigeria would not have been pure expenses in Redmond USA; I will get it to work with FUTO-FUTA-FUTM consortium ( for at least $20m), and use the tax code to make it tax deductible. That way, these schools will have resources, etc. If we do that, Microsoft can even commit $200m into Nigeria because the more it commits, the more it saves!

Comment on LinkedIn, FB Feeds

Comment: What about the introduction of Federal Student loan.

My Response: At primary and secondary, education has to be FREE. But at the university level, we will provide ways to help people that cannot pay. But it cannot be a “pure loan”. If you borrowed N1,000 in 1995 to attend UNN and you have to pay for it now, I am not sure you are fair to the lender. N1,000 of 2022 is not the same as N1,000 of 1995. (In FUTO, my tuition was N25 in 1998 to give an idea how things have crashed.)

So, looking at currency, you have to make sure the loans track inflation plus prime set by CBN, at least from the 4th year of the loan. With that, you will see lenders show interests unlike today where no one wants to do that because it makes no business sense. We will have policies and executive orders (plus fixes at the National Assembly) to make sure the system works. It will be actionable leadership from those who understand markets.

Comment 2: To reach 3 trillion USD dollars by 2030,  growth rates need to be almost 25% per year over 8 years.  I would be interested to have a look at your economic policies.

My Response: Of course, we have lost some years since I crafted it. But if I document all farmlands in Nigeria and make it possible that 100% are transferable with ease, I can unlock more than $100b in assets which can be used for credits within 6 months. If that happens, those classified as “poor” by the World Bank will become low middle class because most have farmlands they inherited. My model is that banks will move into rural areas, and using those new assets, those men and women can access credits. That translation will anchor a massive boom in rural stimulating economic opportunity. Nigeria’s wealth remains latent because the wealth has no velocity (easy to buy and sell). We will fix that.