Nigeria’s banking industry is experiencing a “full-blown financial crisis” as failed fiscal and monetary policies lead to a credit crunch, according to Arqaam Capital.

Unity Bank Plc and Skye Bank Plc are close to being insolvent, while lenders FBN Holdings Plc and Sterling Bank Plc “will need a dilutive capital hike,” Jaap Meijer and Tarek Sleiman, analysts at the Dubai-based investment bank and brokerage, said in an e-mailed note on Monday. Capital ratios are set to worsen because of currency depreciation and souring loans, they said. Calls to Unity weren’t immediately returned and Skye didn’t reply to questions.

The central bank in July replaced the management of Skye after the lender breached liquidity thresholds, spurring concerns about the health of small- and medium-sized lenders, and reviving memories of bank rescues by the government after the financial crisis in 2009. Nigerian banks are grappling with a devaluation of the naira, rising bad loans and an oil-dependent economy that’s set to record its first annual contraction in more than two decades.

“Our acid test reveals seven under-capitalized banks” with a deficit of as much as 1 trillion naira ($3.2 billion) in the financial system, Meijer and Sleiman said. A stress test identified FBN as the most under capitalized lender with Unity, Diamond Bank Plc, Skye, FCMB Group Plc, Sterling and Fidelity Bank Plc also showing deficits if they were to fully provide for non-performing loans, according to Arqaam.

“Our bank is strong,” Ikechukwu Mike Omeife, a spokesman for Diamond Bank, said by phone from Lagos. “Our capital-adequacy ratio and non-performing loans are within the statutory requirements.”

Source: Bloomberg

Samsung reportedly suspended production of the Galaxy Note 7. Over the weekend four consumers reported that their newly purchased Galaxy Note 7 replacement phones overheated, suggesting that the company’s recall is ineffective. Two US carriers have ceased selling the phones altogether, and an unnamed supplier told South Korean media Samsung has temporarily stopped making the device.

Sure, Samsung Group is a huge. Do not be surprised if the smartphone business collapses with all these unforced errors.

The National Information Technology Development Agency (NITDA) has lined up 16 Startups carefully chosen by the Office for ICT Innovation and Entrepreneurship (OIIE)  to feature, learn and sell themselves at the world’s most global startup innovation event inside the GITEX Technology Week, the largest technology exchange and marketplace for Middle East & Africa, which holds annually in Dubai, United Arab Emirates.

The 16 Startups will be among 400 Startups from over 60 countries that will gather at what is already touted as the largest line-up of young entrepreneurs from across the globe.

The 16 Startups include

• Rotors & Pilots which builds customized and modularized drones locally;
• Astrosand, an automobile Black Box, Intelligent Security and Emergency Home Monitoring System;
• ChowHub, which helps people discover great places to eat;
• CloudBurst offers a fast way of accessing and  reading books;
• DIYlaw which seeks to create access to legal services and resources online;
• Genii Games which develops interactive Mobile Apps and Animated Videos for Children  to learn native Nigerian languages, ethics and etiquette in a unique way;
• GoMyWay, an online ride share platform that connects car owners that have spare seats to share with others that need a ride and are going in the same direction;
• Jara Mobile which enables consumers make routine payments like airtime (talktime) and mobile data purchase and for each transaction.
• Logical Address which physically connects Nigeria, unlocking commerce through enhanced logistics, saving lives through improved emergency services;
• Mobidoc enables doctors to remotely give private consults to patients with the use of smartphones and connect them with other doctors;
• Phinnx provides tools with which everyone can connect to every other person in all Nigerian and
• Pinfoot, an online social network that connects football lovers.
•  ArtNigeria, an online gallery focusing on original art works;
• Transforia, a software defined cellular network in a box that makes it easy for anyone to setup and deploy a mobile network;
• Wecyclers, a waste management and sanitation company, collect waste from subscribers using a fleet of low-cost bicycles called “wecycles; and
•  Zobreus which allows patients to manage and control all of their healthcare data in a structured, mobile electronic medical record (EMR) so that the information is easily accessible to them and their doctors as needed.

The 16 Nigerian Startups will be participating at the largest-ever GITEX Technology Week primed to drive the world’s smart digital transformation, and support young entrepreneurs.