E-commerce outlet, Konga has launched a new Unstructured Supplementary Service Data (USSD) feature on its payment platform. The new feature is designed for easy transactions and to enable card-less withdrawal from the ATM.

The Central Bank of Nigeria (CBN) has recently issued licenses to some operators of Fintech services in Nigeria who offer secure payment services to expand their services. Konga is one of those who secured the license and is putting it to good use.

Joshua Fatoye, the vice president of KongaPay, said at the launch of the new feature that the card-less initiative will give KongaPay account holders the opportunity to make withdrawal from ATMs nationwide without debit cards, apart from serving as an alternative to the web and mobile channels.

He also explained that Konga customers who wish to use the card-less services need to sign up on kongapay.com and make sure their accounts are well funded using any of their varying funding options. He said:

“All the customers are required to do is to sign up on kongapay.com and ensure that their KongaPay wallet is funded using any of the funding options. Then, the account holders need to log into their wallets via the web or app.”

How it works

Users who want to cash out will need to click on the cash-out feature on the app, fill in their mobile number or that of the intended recipient. The payment system functions on Personal Identification Number (PIN), and One Time Password (OTP). So the sender is required to use any of these security means as authorization for transactions, and the receiver does not have to be registered on Konga platform.

Fatoye explains: “The customer who initiates the transaction will receive a message thus: “your pay code request was successful,” and the beneficiary will get a SMS notification with the withdrawal code details.”

The receiver can then make withdrawal of the cash from any ATM using the card-less withdrawal function or pay code cash-out feature. But the recipient has to enter the 8 to 14 digit withdrawal code sent to him earlier via SMS to collect his instant cash.

The evolution of card-less ATM withdrawal is spreading rapidly in Nigeria, and many Fintech companies are working to make sure everyone gets on board. Although there has been little awareness about the technology today, there is hope the knowledge will become abundant in the near future.

Industry Redesign

In April, there was a report of a bank customer who was dragged to a police station by ignorant bank users for withdrawing from the ATM without a debit card in Ibadan. But the incident turned out to be an orientation, people who didn’t believe in the possibility of card-less ATM withdrawal learned that it’s no magic, and withdrawing money from the ATM without a debit card is not a crime.

However, the incident reveals that apart from Lagos, where many people can relate with the technique, several other states are yet to come into terms with card-less withdrawals. That beckons the responsibility on the banks and Fintechs to do more.

In 2016, Verve launched the system that can help anyone to make a withdrawal from an ATM without a card. Just by using codes generated through its app, even a third party can affect a card-less withdrawal transaction. Subsequently, banks and other payment platforms embraced the idea and started offering the service.

OPay and Flutterwave recently became part of the USSD family, among other services, helping in offering card-less withdrawal. But the increasing number of service providers in this feature of financial transaction is slow in bridging the gap between users, non-users and those who know nothing about the service: suggesting the need for awareness that will rid the fears of onlookers who need security assurance to make up their mind.

While the KongaPay will help, the onus is on the banks to educate the people because of the number of customers at their disposal, and the already existing trust that the card-less withdrawal service can be promoted upon.

In December 20, the management of Lafarge Africa Plc announced that its Group Managing Director/Chief Executive Officer (GMD/CEO), Mr. Michael Puchercos, is resigning from the company effective January 17, 2020.

The statement made available to the Nigerian Stock Exchange (NSE), and other stakeholders by the General Counsel & Company Secretary, Adewunmi Alode, reads:

“The Board of Lafarge Africa Plc hereby notifies The Nigerian Stock Exchange and the investing public of the resignation of Mr. Micheal Puchercos from the Company as the Group Managing Director/Chief Executive Officer with effect from the 17th of January 2020.

“Mr. Puchercos served the company as an Executive Director on the Board since the 1st of April 2016. During his tenure as the GMD/CEO, he implemented a successful turnaround plan for the business addressing the legal, financial and management structure of the company, Health & Safety improvements and the implementation of new operating processes.

“We wish him the best in his future endeavors.”

The statement also disclosed that Lafarge has replaced Mr. Pucheros with El dokani.

“The Board is pleased to announce the appointment of Mr. Khaled Abdelaziz El Dokani as the new Managing Director/Chief Executive Officer.

“Khaled Abdelaziz El Dokani joined Lafarge Holcim in 2004. Prior to taking over this position, he was country CEO of Iraq (2018-2019), Qatar (2016-2018), Saudi Arabia (2013-2016), Vice-President for Business Development and Strategy North America (2010-2013), CFO in Lafarge Algeria (2004-2010). He holds a Bachelor of Commerce degree from Alexandria University, Egypt.”

Prior to his resignation, Mr. Puchercos was one of the highest earning CEOs in Nigeria with annual income of N312 million, as of the year 2018.

A few days after Lafarge made this announcement, its rival, Dangote Cement announced that Mr. Puchercos will be resuming as its MD/CEO effective February 1, 2020. The same position he resigned from at Lafarge. According to the disclosure notice by Dangote Group, Mr. Puchercos appointment will be part of its agenda in its next annual general meeting for ratification by shareholders. The company said it is a standing procedure of Companies and Allied Matters Act.

Lafarge Africa Plc is a cement manufacturer with headquarters in Lagos Nigeria. It is controlled majorly by LafargeHolcim, that used to trade on the Nigerian Stock Exchange as Lafarge Wapco Plc before the merger of Lafarge and Holcim that consolidated the company’s assets in Nigeria and South Africa. The consolidation resulted in changing the companies’ name to Lafarge Africa.

It has since become one of Nigeria’s leading cement manufacturers, and distributes its products through its sub divisions that include Wapco, Lafarge South Africa, Ashaka Cement, United Cement Company and Atlas Cement. Lafarge’s brand products includes include Ashaka branded Portland limestone cement produced in Gombe State, Elephant and Superset cement produced by Wapco, Unicem, Readymix Concrete, building aggregates, and some other products from Lafarge South Africa which include artevia decorative concrete products, Buildcrete and duraBuild cement, Dura-pozz, Fast-Cast, Pozz-Fill, Powercrete plus and Superpozz.

On the other hand, Dangote Cement Plc is a Nigerian multinational publicly traded cement manufacturer that its headquarters is in Lagos Nigeria. The company is a subsidiary of Sephaku Cement and its parent company is Dangote Group. Dangote cement is known for cement production and distribution in Nigeria and nine other African countries which include Senegal and Tanzania.

These two cement companies have created impressive profiles competing to lead the way in Africa. With his 20 years’ experience, Mr. Puchercos guided Lafarge through thick and thin and led the company out of its major hurdles. So the sudden switch by Mr. Puchercos is suggesting that Dangote cement may be in deep trouble and needs the messiah in the CEO of Lafarge.

Since 2017, Dangote Cement’s stock has been struggling with losses, a situation that has been attributed to a significant drop in sales, and is obviously an indication of a need for a better hand at the helm of affairs. Considering experience and record of success in the cement business across Africa, Mr. Puchercos became the man who would wear the cap. The turnaround he effected at Lafarge has borne him a testimony to enabled Dangote Cement to snap him up.