Nigerian property startup Spleet lays off employees as inflation squeezes business
Spleet, a property tech startup that raised $2.6 million in 2022 from investors like MaC ventures and HoaQ Fund, will lay off an undisclosed number of employees as inflation and price increases from landlords it works with put the business under pressure. With 32 full-time employees, the layoffs will affect all employees not in core operations, one person familiar with Spleet’s business said. The company pushed back against this claim but declined to share specifics. “I cannot comment on the number of people that will be affected; we’re still in the middle of the process,” said Adetola Adesanmi, the company’s CEO. Founded in 2017, Spleet allows Nigerians to rent properties and pay monthly instead of the typical yearly rental charged in many parts of Lagos. The argument for property tech startups like Spleet is that monthly rental arrangements allow people to plan around their finances better. The asset-light model revolves around properties the company leases. “We’re letting go of some team members because when prices went up, landlords began renewing at 0.8 to 2.2x last year’s rent,” said Adesanmi. “Many of our tenants can’t afford that, and the best way to continue as a business is to lay off people.” The company told employees about the layoffs at an all-hands meeting on Tuesday, two people present at those discussions said. “There will be difficult decisions because of the present macroeconomic conditions,” one person at the meeting recalls the CEO saying. Another person also said the company’s revenues were under pressure last month, citing significant revenue dropoffs that TechCabal could not immediately confirm. In Nigeria, soaring inflation and massive currency devaluation is pushing property owners who partner with Spleet to demand more value for their property. Some of these properties are in prime areas of Lagos and already come at a steep cost relative to the city’s average monthly income. The property tech sector in Nigeria enjoyed attention and funding from 2018, with players like Fibre, Spleet and Muster pioneering a pay-per-month model they claimed would revolutionise Nigeria’s housing market and solve a worrying housing deficit. Yet, Nigeria’s real estate market has resisted disruption, with some of those startups eventually closing their doors. The website of Fibre, the pioneer startup that sent termination notices to tenants in 2021, is no longer reachable. “We still have a business,” Adesanmi said, refuting any insinuation that the company may be winding down. *This is a developing story
Read MoreAfrica’s mobility startups: Electric and global ambitions fuel funding surge
This article was contributed to TechCabal by Conrad Onyango via bird story agency. In 2021, Nigerian mobility startup Metro Africa Xpress (MAX) became Africa’s most-funded startup in the electric vehicle (EV) space after netting a $31 million round to expand into Ghana and Egypt. In 2023, Nigerian mobility startup Moove more than doubled that, netting $76 million in funding for its global expansion. Now, Uber is reportedly looking to back Moove with an additional US$100 million in a funding round that could take Moove’s total funding since it was founded, to US$335 million. According to a Bloomberg report, that would boost Moove’s valuation from US$650 million to $750 million and take it closer to becoming a mobility unicorn (a startup with a value of over $1 billion). So far in 2024, a $24 million in funding clinched by Kenya-based electric mobility standout Roam is the largest funding round in the sector. The funding is a blend of $14 million in equity and $10 million in debt, from the prestigious US government’s Development Finance Corporation (DFC). Roam said it will leverage the new funding to expand its production of locally designed and manufactured electric motorcycles and buses. “As Africa embraces the move toward electric vehicle technology, we are proud of our impact on the environment and livelihoods across Kenya and the wider continent. This funding is a critical step for Roam to achieve our strategic objectives in scaling up and increasing utility to our customers,” said Roam’s Chief Finance Officer, Rajal Upadhyaya. While some of Africa’s mobility startups are planning to bolster their offerings to include electric vehicle production, fleet purchase and financing, others are setting their sights on regional and overseas expansion to tap into a multi-billion dollar market being driven by rising demand for cheap, low-emissions transport. A recent raise of $10 million in new debt by Nigeria’s Moove was to fuel its overseas expansion in India, the mobility company said. The vehicle financing startup said the funding would strengthen its India presence by allowing it to expand operations to three additional Indian cities – Delhi, Pune, and Kolkata. The startup entered the Indian market in 2023, following a strategic partnership with Uber that targets the introduction of 25,000 electric vehicles in the Indian market. The company currently operates in Bengaluru, Mumbai, and Hyderabad in India and boasts a presence across nine markets in Africa, Europe, Asia, and the Middle East. Another Nigeria-based mobility operator, Shekel Mobility, recently announced securing $7 million in funding to propel its growth and expansion plans. Shekel is a B2B auto dealers’ marketplace that enables users to find, finance, and sell cars. The startup has an ambitious transaction goal of $10 billion annually, by 2025. Over its 20 months of operations, the startup said it has facilitated more than $56 million in auto dealer transactions and supported over 1,400 dealers. “We have positioned ourselves as a transformative force in the African automotive market. This infusion of $7 million in fresh funding is poised to enhance our financial services, expand into new markets, and sustain our impressive growth trajectory,” Shekel said in a statement. With Francophone Africa continuing to attract foreign startup investments, Senegalese startup, Mbay Mobility has also thrown its 10-year rollout plan into the mix. The startup, which began piloting electric vehicles in 2022, announced in January it was actively seeking funding to purchase a fleet of 33,000 electric taxis for rollout in Accra, Dakar, and Abidjan. The startup has yet to disclose its funding target. Earlier this year, Oliver Wyman, a global management firm, in a report titled ‘Shared Mobility’s Global Impact’ projected Africa’s shared mobility market size would grow from $4.2 billion in 2023 to $7.8 billion by 2030. Growth in the market will come from ride-hailing, e-bike and scooter rentals and car-sharing, driven by Africa’s fast-growing urban population on a continent with the world’s largest population under the age of 30.
Read More
Latest MTN MoMo Uganda withdrawal charges 2024
Mobile Money (MoMo) in Uganda provides a convenient and accessible means for individuals to send, receive, and manage money using their mobile phones. Among the various services offered by MoMo, withdrawal charges play a crucial role in determining the cost associated with accessing cash from one’s account. In this article, we delve into the withdrawal charges applicable to MTN MoMo users in Uganda, providing a clear understanding of the tariffs involved across different transaction amounts. Overview of MTN withdrawal charges Uganda MTN MoMo Uganda imposes withdrawal charges based on several factors, including the amount being withdrawn, the destination of the funds (such as other networks or bank accounts), and the method of withdrawal (agent or ATM). These charges are structured to ensure transparency and facilitate seamless financial transactions for users. Let’s break down the withdrawal charges according to the specified parameters: 1. Amount (UGX) This column represents the range of transaction amounts for which withdrawal charges apply. 2. Withdrawal charges for sending To MTN or Other Networks (UGX) Indicates the charges for sending money to MTN or other networks. 3. Sending To the Bank (UGX) Specifies the charges for sending money to a bank account. 4. Agent Withdraw (UGX) Denotes the withdrawal charges associated with withdrawing funds from an authorized MTN MoMo agent in Uganda. 5. ATM Withdraw (UGX) Represents the charges for withdrawing money from an ATM. 6. Senkyu Points Refers to the loyalty points earned through transactions. 7. Withdraw Tax (min) (UGX) / Withdraw Tax (max) (UGX) Specifies the minimum and maximum withdrawal tax applicable. 8. Payments To Various Services Indicates the charges for payments to specific service providers, including Azam TV, Ready Pay, school fees, Solar Now, UMEME, NWSC, DStv, StarTimes, NSSF, and Multiplex. 9. Voucher/Unregistered User Specifies the charges for transactions involving vouchers or unregistered users. Key highlights alongside MTN MoMo withdrawal charges in Uganda Taxes are automatically deducted from the user’s account during withdrawal transactions, ensuring compliance with regulatory requirements. Users enjoy free access to their MoMo accounts while roaming, as well as access to account statements via the MoMo App. Account limits include a minimum transaction amount of UGX 500, a maximum transaction limit of UGX 5,000,000, and a maximum account balance of UGX 20,000,000. Several services such as changing MoMo PIN, checking account balance, accessing mini statements, registering for MoMo on SIM, depositing MoMo, and purchasing airtime or bundles incur no additional charges. Users are advised against paying any agents for transactions, as fees are automatically deducted from their MoMo accounts. Final thoughts on MTN MoMo Uganda withdrawal charges 2024 Understanding MTN Uganda withdrawal charges is essential for users to make informed decisions regarding their financial transactions. By comprehensively examining the tariffs associated with different transaction amounts and destinations, users can optimize their use of MoMo services while minimising costs.
Read More
👨🏿🚀TechCabal Daily – Canal has no Choice
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday And our condolences to MTN users in Nigeria—including this writer—who, yesterday, found that the network was never where we go. The telecom, which holds the majority market share—about 38.7%—experienced an outage which left some of its 76.7 million subscribers unable to connect to the internet or make calls for over four hours. The telecom says the outage was due to damages to its fibre optic cables which it is “working hard to resolve”. For now, it seems that the service is slowly being restored to users whose not-so-patient bones are yellowing with distrust. In today’s edition Binance executives arrested in Nigeria Canal+ to make offer for MultiChoice Maliyo Games launches Disney’s first African game Bolt launches in Botswana The World Wide Web3 Opportunities Crypto Two Binance executives arrested in Nigeria Nigeria’s crypto industry is facing a significant regulatory upheaval. Last week, Binance, the world’s largest cryptocurrency exchange, restricted the sale of USDT—a stablecoin pegged to the US dollar—and imposed a fixed buying price of ₦1,802 ($1.12), reportedly under directives from the Central Bank of Nigeria (CBN) and other governmental entities, amidst a depreciation of the naira. Yesterday, the most recent development revealed the arrest of two Binance executives in Nigeria this week. Why? According to Premium Times, the executives flew to Nigeria after their website was blocked to negotiate with the government. Although their identities remain undisclosed, one is reportedly American and the other British-Pakistani. Talks with Nigerian authorities hit a deadlock as the executives refused to meet certain demands. What demands? The Nigerian authorities reportedly requested transaction data involving the Nigerian Naira on the Binance platform in the last seven years and also the removal of specific Nigerian-related data from the platform. However, the Binance executives insisted they would only comply after they were escorted to their respective countries’ embassies. Following their refusal, the government reportedly obtained a court warrant to detain the officials for at least 12 days, and the EFCC took over the investigation while they were held at a guest house near the office of the National Security Adviser. Central Bank continues to tighten grip: Adding to the anxiety, on Tuesday, during a monetary committee meeting, Yemi Cardoso, Nigeria’s CBN governor, disclosed that “illicit flows” totaling $26 billion had traversed through Binance Nigeria from unknown sources and users. The governor also hinted at stricter regulations and upcoming actions from security agencies. In response to recent regulatory scrutinies, some crypto exchanges have suspended USDT and USDC stablecoins purchases. Regulators also blocked access to the websites of exchanges like Coinbase, Quidax, and Binance. These restrictions are coming at the wrong time as cryptocurrencies—which several Nigerians have used to fight inflation—are resurging with bitcoin at a three year high at $62,000. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Streaming Canal+ gets greenlight to make offer to MultiChoice shareholders On February 6 2024, MultiChoice, Africa’s leading pay-TV company, turned down a bid from its biggest shareholder, Canal+, to acquire the remaining shares it didn’t already own. Canal+ offered R105 ($5.65) per share, but MultiChoice deemed this price too low and rejected the offer. At the time, Canal+ had 32.6% of MultiChoice’s shares. Now, the French broadcasting company has increased its ownership stake in MultiChoice to 35%, triggering a mandatory offer requirement under South African regulations. The news: The South African Takeover Regulation Panel (TRP) has ruled that according to the Companies Act of 2008 and JSE Listings Requirements, Canal+ must make a formal offer to buy shares of MultiChoice that it does not already own. The TRP also ruled that MultiChoice’s public disclosure of Canal+’s initial offer was unlawful but MultiChoice plans to appeal this decision. What does this mean for Multichoice? The takeover panel ruling could lead to a bidding war which Canal+ is likely to win, as its parent company, Vivendi, isn’t new to takeover battles. In October 2015, Vivendi acquired minority stakes in gaming firms Gameloft (6.2%) and Ubisoft (6.6%), eventually increasing ownership to 10% in both. Vivendi then executeda hostile takeover of Gameloft, obtaining over 30% before persuading other shareholders to sell. By June 2016, Gameloft had become a Vivendi subsidiary. If history is any pointer, Canal+’s moves could lead to a takeover of MultiChoice. The company has increased its focus on Africa in the past decade and has grown from 1 million African subscribers in 2016 to 7.6 million in 2023. Gaming Maliyo Games and Disney launch Rising Chef Yesterday, Disney’s first animated series set in Nigeria, Iwaju, premiered on the Disney+ streaming channel. Set against the vibrant backdrop of Lagos, Nigeria’s economic capital, the series tells the story of Simisola Gbadamosi, a young girl on the cusp of adulthood. Iwaju paints a futuristic picture of Lagos, imagining the usually trafficked roads and crowded markets with flying cars and other future tech stuff. Economics of scale: While Iwaju is not Disney’s first foray into African storytelling, accessibility concerns remain. Last year, it released Kizazi Moto, an animated sci-fi anthology that didnt gain much traction on the continent because people couldnt watch it. Currently, the Disney+ app is only available in South Africa. This limited reach raises concerns about the accessibility of these African stories for the very audience they represent. It’s also investing in gaming: In more news about Disney in Africa, Maliyo Games, a leading African game developer, yesterday, announced a partnership with Disney Games for the launch of its new mobile game, Rising Chef. Think of it as the African version of Cooking Fever, the fast-paced cooking simulation set in Nigeria’s local “Mama Put” and “Bukka” restaurants with players serving up hot plates of national Amala and Jollof Rice. The game also features characters from the Iwájú series as patrons. The game was reportedly developed by Maliyo’s team of developers who were trained
Read MoreMTN Nigeria blames hours-long outage on fibre cuts
A major service outage on Wednesday left millions of MTN Nigeria customers unable to make calls or connect to the internet. The outage, which lasted four hours, was caused by multiple fiber cuts, the company said in a statement. The telecom operator noted that the challenge was noticed in the afternoon and affected mostly subscribers in Lagos. Breaking: Binance and other crypto platforms suspend USDT, USDC purchases after CBN scrutiny “Our engineers are working hard to resolve with services gradually being restored in some areas,” Funso Aina, senior manager, External Relations, MTN Nigeria, told TechCabal. “A fiber optic cable cut refers to a complete or partial severing of the thin glass fibers that make up a fiber optic cable,” says one publication. “These cables transmit data over long distances using light pulses.” A major cause of fibre cuts in cities like Lagos is road construction and vandalism Fibre cuts are a constant headache for operators in the telecom industry. The industry spent ₦14 billion to fix around 59,000 fibre cuts between 2022 and 2023, data from the Nigerian Communications Commission (NCC) show.
Read MoreTwo Binance executives arrested in Nigeria following website ban
After multiple unconfirmed reports, the Financial Times has confirmed the arrest of two Binance executives in Nigeria this week. Both executives flew to Nigeria last week following a ban on their website and were arrested by the office of the National Security Adviser (NSA), the same report said. In an anxious week for Nigeria’s crypto industry, regulators made significant changes, blocking access to the websites of several exchanges and pegging USDT/NGN exchange rates. On Wednesday, several crypto exchanges barred users from buying the USDT and USDC stablecoins, TechCabal reported. Breaking: Binance and other crypto platforms suspend USDT, USDC purchases after CBN scrutiny The Nigerian authorities have been silent on the arrest. A spokesperson of the NSA told TechCabal he knew nothing about the arrest and it was likely that the action was taken by other security outfits. Olayemi Cardoso, the central bank governor, alluded to some actions by security agencies at the end of the monetary policy meeting on Tuesday and said those actions would soon be made public. He also said the regulatory environment was about to get stricter, warning speculators about consequences. Nigeria’s aggressive move against these crypto companies comes months after it reversed a long-standing ban that shut them out from banking services. One Binance employee also told this publication that their office had warned them against wearing Binance merchandise or sharing of any identifiers of their employers. *This is a developing story.
Read MoreMore Nigerians move to 4G, 5G as device financing push smartphone adoption
More Nigerians are moving to 4G and 5G networks thanks to more affordable and flexible smartphone financing, according to telecom industry experts who spoke to TechCabal. There were only 2.18 million 3G subscriptions in December 2023, while 2G usage, which accounts for more than half of mobile internet subscriptions (57.84%), also declined. The growth in 4G and 5G subscriptions happened despite supply chain disruptions and inflationary pressures that raised the prices of smartphones by 30%, data from GSMA showed. Nigerians are tapping into flexible device financing opportunities to be part of the evolving 5G community, according to Karl Toriola, CEO of MTN Nigeria. On Arise TV’s show ‘Tech into the Future’, the telco CEO noted that since the rollout of 5G technology in 2022, the coverage has quadrupled in the country. MTN is working with several partners across the continent to make it easier for consumers to access mobile devices by paying at their convenience. However, Toriola says while momentum may take a while to build, it has deployed its fintech unit, MoMo PSB to help predict behavioural patterns and creditworthiness. The number of 5G subscribers rose to 1.04% of the total internet subscribers in December 2023 for the first since the Nigerian Communications Commission (NCC) started to track the data. The 4G network also saw its biggest growth in December with 31.33& of the market. How smartphone adoption is growing The focus of telecom operators on pushing more investments in 4G and 5G network infrastructure means that vendors like TRANSSION, Samsung, Xiaomi, and many others are prioritising 4G and 5G-enabled smartphones. At least N613 billion was deployed into infrastructure by MTN Nigeria and Airtel Africa to expand their 4G and 5G networks by the end of 2022. MTN spent N504.33 billion on its network rollout while Airtel invested N108.79 billion in the same period. Those investments paid off in 2023. A December 2023 report by Canalys notes that the African region experienced an impressive 12% year-on-year growth in smartphone shipments, a total of 17.9 million units. As of January 2024, TECNO leads the smartphone vendor market with 26.03% followed by a sister brand, Infinix with 20.88%. Samsung is in third position with 11.43%, while Apple in fourth has 9.66% of the market. The devaluation of the naira, which has seen it tumble to record lows, is likely to affect the momentum of vendors in 2024. TECNO said it plans to release four smartphones this year compared to the seven it released last year. All the smartphones released by the brand in 2023 were 4G and 5G enabled. However, the company spokesperson said the phones also accommodate all the networks. With more Nigerians finding easier ways to purchase new smartphones, penetration figures for the industry rose to 51% in 2023 and are expected to reach 55% in 2024. How smartphone financing is driving growth Vendors also use innovative financing instruments to ease cost pressures on consumers in Nigeria and across Africa. Most smartphone financing takes the form of a Buy-Now-Pay-Later scheme which allows brand customers to purchase smartphones and pay the cost over a specified period. In 2022, for example, MTN announced a financing deal with Intelligra. The telco said its goal was to connect more Nigerians to the internet and create a Nigeria where people can achieve their dreams due to a lack of internet access. Airtel told TechCabal that it has a financing deal with iTel that encourages subscribers to purchase the brand’s smartphone ranges. “These deals are helping subscribers acquire 4G/5G devices and routers,” said Sam Adeoye, Airtel Nigeria’s head of public relations. Telcos winning the 4G/5G race MTN and Airtel are the biggest winners of the internet data market in Nigeria. Generally, MTN maintains its lead in the internet market in Nigeria with the number of subscriptions rising to 70.6 million in December from 69.6 million and January 2023. It also means the telco recorded 4.21 million subscriptions in 2023. Airtel is second in the internet market with 45 million subscriptions. The telco added 3.27 million subscriptions in 2023. The telcos leadership of 5G particularly may not come as a surprise to many Nigerians given that the two telcos are the only 5G operators in the country that have launched their services and are now deploying across the country. While MTN Nigeria has 5G in 13 cities, Airtel said it had deployed in four cities so far and is currently testing in Osogbo, the Osun state capital. In terms of 4G connectivity, MTN Nigeria leads other operators offering 4G coverage 75% of the time, and Airtel, in second place, offers 4G coverage 71% of the time.
Read MoreGITEX Africa wants 100 Nigerian startups to exhibit in Morocco
The Gulf Information Technology Exhibition (GITEX) wants to bring about 100 Nigerian companies to Marrakech, Morocco where the second edition of the event in Africa (GITEX Africa) is taking place in May 2024. Last year only seven tech startups from Nigeria, out of 450 global startups, participated in the event. At a stakeholders meeting on Tuesday 27 February 2024, the organisers, Digital Development Agency, said it was expanding Nigeria’s participation in the event because of the role tech companies from the country have played in the development of the ecosystem in Africa. The participating startups would have the opportunity to compete for a $100,000 prize money for the startup with the most compelling innovation. There are other prizes to compete for including the Young African CEO award which comes with a monetary prize. This year’s edition comes with the launch of World Future Health Africa, an initiative that seeks to bring more attention to the digital health space with the potential to provide affordable and accessible healthcare. Funding to digital health companies and projects on the continent is still very low due to the complex and divergent regulatory landscape, according to GITEX. This complexity dissuades potential investors and obstructs crucial financial support for the space. The 100 startups will be selected from accelerators and other stakeholders working with the Digital Development Agency, the event organiser. Dubbed the largest tech gathering in Africa, GITEX offers startups the platform to present their innovations to a diverse selection of investors from different countries including Nigeria. They also learn from the experiences of entrepreneurs and founders who have built global and local companies, as well as interact with regulators on the continent. As part of post-event onboarding, startups that attend GITEX Africa are often matched to investors according to the industry where they operate. The organisers also curate a program that enables startups to meet with potential clients, including government agencies looking for specific innovative solutions tailored to the challenges their countries face. While GITEX is sector-agnostic, organisers often follow market trends and seek startups that are providing solutions in the markets investors are focusing on. This often influences the criteria for startup selection. For example, the current trend favours startups working with artificial intelligence, fintech, agrotech, and healthtech startups. The organisers also prefer startups with products already in the market. However, for founders with ideas to pitch, they have to ensure the ideas are tested and are market viable. The founders need to have some traction to pitch to investors.
Read MoreFundus AI, XchangeBox win Gitex Africa 2024 Road Show, Abuja
On Monday, Gitex, the world’s largest tech and startup show, kicked off its 2024 Road Show in Abuja. The event featured a pitch competition focused on agritech, healthtech, and fintech, with 19 startups vying for top honours. Fundus AI, an AI-powered solution for diagnosing diabetic retinopathy co-founded by Abdulmalik Adeyemo, and XchangeBox Solutions, a fintech startup supporting rural SMEs with loans and digital records—co-founded by Abiola Jimoh, emerged as the winners in 1st and 2nd place respectively. Both winners will receive a trip to Gitex Africa 2024 in Morocco, including accommodation, an exhibition booth, and entry to the Supernova Challenge with a chance to win $100,000. The Road Show continues in Lagos and wraps up in Kaduna—Gitex Africa’s first-ever event in the city—on Thursday. Beyond the startup pitches, the event featured a breakfast meeting between industry leaders and Bilal Al-Rais, Vice President, Portfolio Growth Tech & Digital, Dubai World Trade Centre. A panel discussion which focused on fostering cross-border collaboration to drive business growth was held. Participants included Khalil Halilu, CEO of the National Agency for Science and Engineering Infrastructure (NASENI) and representatives from Nigerian agencies such as the National Information Technology Development Agency (NITDA), National Standardisation Agency of Ireland (NSAI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Wema Bank, and the Nigerian Export Promotion Council (NEPC). Startups outside Lagos and Abuja feel neglected With the Nigerian tech ecosystem being one of the fastest growing in the world, raising $398.2 million in funding in 2023, startups in the northern region still struggle to scale due to a lack of access to funding. At the Gitex Breakfast Briefing, discussions emerged on how to give visibility and resources to startups outside major cities like Lagos and Abuja. Usman Illiyas, co-founder of Startup Bauchi, a humanitarian development program that focuses on supporting startups, particularly in Bauchi, highlighted the disconnect between organic startups and government agencies. “The state government and government agencies are the first point of communication for Gitex and the likes when sourcing new talents and innovation. However, without proper communication between the state government and Nigerian startups, many startups lose access to gain the visibility they need,” Illiyas noted. Illiyas and many other participants suggested improving communication between the government and startups to ensure these startups have access to opportunities like GITEX Africa. Other upcoming Gitex events include GITEX Africa 2024, which will take place in Morocco from May 29-31, 2024, followed by GITEX Global in Dubai from October 14-18, 2024. GITEX will make its debut in Europe in 2025, scheduled for May 21-23.
Read MoreBreaking: Crypto platforms suspend USDT, USDC purchases after CBN scrutiny
A handful of crypto companies in Nigeria will no longer allow users to buy the USDT and USDC stablecoins with Naira after renewed scrutiny from the Central Bank of Nigeria (CBN). “There was a meeting of crypto founders on Tuesday morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told TechCabal. A second crypto industry player confirmed the meeting but declined to share details. At least two crypto exchanges have told their Nigerian customers about the new development. “We are suspending the buying and selling of USDT and USDC for Naira. This means you can’t buy or sell USDT or USDC with Naira,” said a notification sent by one exchange to customers. Crypto exchanges in crosshairs as CBN talks tough Binance and other exchanges have found themselves in regulatory crosshairs as regulators believe that crypto platforms encourage speculators to manipulate exchange rates. This week, users could not access the websites of crypto exchanges like Coinbase, Quidax, and Binance. Increased volatility in Nigeria’s FX markets has triggered several policy actions, and on Tuesday afternoon, Olayemi Cardoso, the Central Bank governor, claimed “$26 billion has passed through Binance Nigeria from sources and users we cannot identify.” An autonomous group, the Digital Currency Coalition, also claimed that the speculative trading on the platform significantly contributed to the “113.1% devaluation of the naira against USDT” since February 2023. Unconfirmed reports claimed two executives at a crypto company were arrested on Tuesday in a move to force the company to share its KYC data. Zakari Mijinyawa, a special adviser to Nigeria’s National Security Adviser, Malam Nuhu Ribadu, said he was unaware of any arrests and suggested that law enforcement agencies may have done them. Crypto exchanges are treading cautiously, three people who work in the industry told TechCabal. “The office asked us not to wear Binance t-shirts and caps and to not attend Binance-related events for now,” a Binance employee who asked not to be named told TechCabal, describing uncertainty and fear similar to last year when the Securities Exchange Commission announced that Binance was operating illegally in the country. At least five leading leaders in the crypto space declined to comment on this story, citing regulatory fears. “It is exactly as it was during the EndSARS protests in 2020,” an early-stage crypto investor in the country told TechCabal, adding that he has received warnings from peers to avoid attracting attention from law enforcement. *This is a developing story
Read More