Nigeria, Binance in talks to patch up relations after arrests
Binance, the world’s largest crypto exchange, wants to patch its relationship with Nigerian authorities following recent regulatory tensions. In a statement released on Thursday, Binance emphasized its commitment to compliance and collaboration with Nigerian authorities. The exchange detailed its extensive cooperation with Nigerian law enforcement, claiming to have responded to over 626 information requests from Nigerian authorities since 2020, with an average response time of less than 38 hours. This information reportedly assisted investigations into financial crimes such as scams, fraud, and money laundering. Furthermore, Binance claimed it conducted dedicated training sessions for officials of Nigeria’s Economic and Financial Crimes Commission (EFCC) in August 2023, focusing on cryptocurrency investigations and internal operations. These initiatives, demonstrate Binance’s commitment to fostering collaboration with Nigerian authorities. The company also claims it has been cooperating with the Nigerian Financial Intelligence Unit (NFIU) and the Nigeria Police Force to discuss continuous training initiatives and operational cooperation. The statement comes against a backdrop of increased scrutiny towards cryptocurrencies by the Nigerian government. Last month, the Nigerian government detained two Binance executives—Tigran Gambrayan, an American citizen and former US federal agent, and Nadeem Anjarwalla, Binance’s Kenya-based regional manager for Africa—who had flown into the country to resolve the exchange’s banned website. The arrests stem from the Nigerian government’s crackdown on forex speculation, triggered by the naira’s volatility after the removal of artificial exchange rate controls. Despite not being a top market for the exchange, Binance acknowledged Nigeria’s burgeoning crypto adoption, ranking second globally according to Chainalysis.
Read MoreAccess Corporation names Aigboje Imoukhuede Board Chairman
Access Corporation, the parent company of Nigeria’s biggest bank by assets, has appointed Aigboje Imoukhuede, a pioneering CEO of the bank, as the Non-Executive Chairman. Imoukhuede returns to the bank he retired a decade ago; exactly one month after the death of Herbert Wigwe, his friend, business partner, and former Group Chief Executive Officer (GCEO) of the bank. He will replace Abubakar Jimoh, the erstwhile board chairman. According to a statement by the bank, Imoukhede’s appointment was a unanimous decision welcomed by the board to steer the bank in the right direction. The erstwhile chairman, Jimoh, will remain on the bank’s board, serving as an Independent Non-Executive Director. “Mr Aig-Imoukhuede’s appointment to the Board and subsequent election as Chairman is a landmark development for Access Holdings,” said Jimoh. “All our board members are excited about our future.” Reacting to the appointment, Imoukhuede said he is “thrilled to be back in active service to the Access Group ecosystem.” “I am confident that working with our directors, our exceptional team of executives and our best-in-class banking and finance professionals. We will deliver outstanding value to shareholders,” he added. Imoukhuede is no stranger to the banking world, and Access Bank Holdings, boasting 22 years of industry experience. He served as the GCEO of Access Bank for 11 years, until Wigwe succeeded him in 2013. Under Aig-Imoukuede’s leadership, Access Bank became a tier-1 bank, growing its presence in over nine countries and its customer base to over six million. The bank boasted an asset base worth $12 million under Imoukhuede’s tenure that began in 2002. As Board Chairman, he promised all customers, employees, and stakeholders a promising future under his leadership. He promised to take the group to a new chapter of sustainable success. Today, the bank’s shares grew 2.45% at the end of trading to ₦23 per share, signifying a silver lining for the shares that are beginning to peak after it closed last month at ₦19.15. Imoukhuede co-founded the Tengen Family Office Limited which oversees a significant portfolio of investments and business in banking, finance, real estate, technology and energy. He also owns Coronation Group Limited, an investment holding and trading company for a group of companies that provide a wide range of financial services.
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👨🏿🚀TechCabal Daily – Telkom loses 800,000 subscribers
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’re often missing TC Daily in your inbox, check your Promotions folder and move any edition of TC Daily from “Promotions” to your “Main” or “Primary” folder and TC Daily will always come to you. In today’s edition Nigeria’s space plan is on hold Airtel Money eyes IPO Telkom loses 800,000 subscribers Interswitch merges with M-Kudi The World Wide Web3 Opportunities Space Nigeria’s satellite launch plans put on hold While Nigeria’s space ambitions face a temporary setback, its achievements shouldn’t be forgotten. Launched in 2003, NigeriaSat-1, Nigeria’s first earth observation satellite supported disaster responses in Argentina, Paraguay, and West Africa before its decommissioning in 2014. Its impact also extended to vital mapping projects in the Amazon rainforest and Vietnam’s coastlines. Nigeria’s space programme has a history of reaching out a hand from beyond Earth’s atmosphere. However, ambitious plans to launch a Nigerian astronaut and a domestically-built satellite in 2025 have been put on hold. Why? The Director-General of Nigeria’s National Space Research and Development Agency (NASRDA), Dr Halilu Shaba, disclosed that the agency’s ambitious plan to launch a satellite by 2025 hit a financial roadblock. Additionally, launching an astronaut into space is currently deemed economically unfeasible. NASRDA anticipates it may take up to five years to secure a launch slot, making immediate astronaut training impractical. Despite the delay, NASRDA maintains its 25-year plan to send a Nigerian astronaut into space and launch an indigenous satellite from Nigeria. The agency projects significant growth potential for Nigeria’s space industry, aiming for a valuation of up to $1 billion. Zoom out: Meanwhile,NigeriaSat-2, another earth observation satellite launched in 2011, remains functional, providing high-resolution imaging for various purposes. NASRDA utilised it for estimating population and partnered with China to monitor earth tremors in Nigeria and across Africa. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Telecoms Airtel Money eyes IPO African mobile mobile money providers have experienced a surge in investment in recent times. Two years after its $100 million investment in Airtel Money, Mastercard acquired a minor stake in MTN’s mobile money arm. In 2021, Airtel hinted at a possible public offering for its fintech arm after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion. Now, Airtel’s mobile money arm might be ready to go public. Yesterday, Bloomberg reported that Airtel Africa is exploring taking its mobile money unit public, with a potential valuation surpassing $4 billion. Talks of the IPO are in preliminary stages and the company may decide against going public. Airtel Money is Airtel Africa’s fastest-growing arm. While Airtel 2023 profits plunged by almost 99%—recording $2 million in profits compared with $523 million it made in 2022—due to currency devaluation, its mobile money arm recorded a 31.8% revenue growth. The telecom currently offers its mobile money services in 14 African countries. In Nigeria, it competes with MTN Momo, while it is dwarfed by competition from Kenya’s mobile money giant, MPesa. Last year, it received approval to allow customers to transact up to KES 500,000 ($3,400) up from KES 300,000 ($2085) which it was previously allowed to do. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Telecom Telkom loses 800,000 subscribers Telkom’s race to become Kenyans telecom choice has hit another roadblock. Over the years, the telecom has tried to keep pace with Safaricom—who holds the largest market share with 65 million subscribers—and Airtel with 18 million subscribers, for the largest slice of Kenya’s telecom market. However, financial troubles and a declining user count means that the dream is fast becoming out of reach. Between March 2022 and June 2023, Telkom lost 1.62 million subscribers due to a crackdown on irregularly registered SIM cards. New reports show that Telkom has lost about 800,000 more subscribers due to unpaid leasing fees to American Towers Corporation (ATC). ATC switched off 246 Telkom towers in February after it defaulted on leasing fees. Currently Telkom owes the ATC about KES 7.1 billion ($51.7 million). Both parties entered an agreement two years before. ATC asked Telkom for an initial payment of KES 500 million ($3.6 million) and a monthly payment of KES 150 million ($1.09 million) to reactivate the towers. Telkom said it was unable to pay the debts due to its financial struggles. Telkom’s mobile subscribers count as of December 2023 had dropped to 1.3 million down from 3 million. Before now, Telkom owned and managed its towers before it sold about 723 to the ATC in 2018. At the time, the telecom said the move would “enhance the quality and reliability of our network to benefit our customers.” It now appears the move might have served the wrong purpose. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → Fintech Interswitch merges with M-Kudi, eyes PSB licence in Nigeria Africa’s fintech leader, Interswitch, isn’t content with just being a payments powerhouse. After its surprise foray into Nigeria’s telecom sector via a Mobile Virtual Network Operators (MVNO) licence acquisition in May 2023, its ambitions haven’t stopped there. Its latest move involves a merger with mobile money provider M-Kudi, to acquire a Payment service Bank (PSB) licence from Nigeria’s central bank. What’s the deal? Currently, Interswitch focuses on processing payments. The merger with M-Kudi—subject to regulatory approval—will allow Interswitch to create accounts and hold customer deposits. With a PSB license, the company will also be able to receive foreign currencies for its customers and offer agency banking services. Aside getting regulatory approval for the PSB licence, a challenge Interswitch will have to face is convincing Nigerians
Read MoreTelkom Kenya loses 800,000 subscribers following a dispute with tower partner
Telkom Kenya, the country’s third-largest telco, has lost about 800,000 subscribers in the last three months, months after the American Towers Corporation (ATC) switched off its network towers. By December 2023, Telkom’s mobile subscribers had dropped to 1.3 million. ATC switched off 246 Telkom towers due to unpaid leasing fees in February 2023, worsening a disagreement dating back two years. Telkom Kenya’s debt ballooned to KES 7.1 billion ($51.7 million) by October 2023. According to Business Daily, ATC demanded an initial payment of KES 500 million ($3.6 million) and a monthly fee of KES 150 million ($1.09 million) to reactivate the towers but Telkom cited financial constraints preventing it from meeting its debt obligations. Telkom Kenya owned and managed its towers before ATC acquired 723 towers in 2018. At the time, the telco said the move would “enhance the quality and reliability of our network to benefit our customers.” As of June 2023, ATC Kenya had 3,643 towers nationwide, including nine distributed antenna system sites.
Read MoreAirtel Africa eyes IPO for its mobile money arm
Airtel Africa is exploring taking its mobile money unit public, with a potential valuation surpassing $4 billion, according to a new Bloomberg report. Talks of the IPO are in preliminary stages and the company may decide against going public. Airtel Money is Airtel Africa’s fastest-growing arm. While Airtel 2023 profits plunged by almost 99%—recording $2 million in profits compared with $523 million it made in 2022—due to currency devaluation, Airtel mobile money recorded a 31.8% revenue growth. In 2021, Airtel hinted at a possible public offering for its fintech arm within a few years, after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion. The telecom currently offers its mobile money services in 14 African countries. In Nigeria, it competes with MTN Momo, while it is dwarfed by competition from Kenya’s mobile money giant, MPesa. Last year, it received approval to allow customers to transact up to KES 500,000 ($3,400) up from KES 300,000 ($2085) which it was previously allowed to do. Airtel’s planned mobile money IPO follows a trend of investment in African mobile mobile money providers. Two years after its $100 million investment in Airtel Money, Mastercard acquired a minor stake in MTN’s mobile money arm.
Read MoreInterswitch seeks PSB license following merger with M-Kudi
Interswitch, the Visa-backed Nigerian payments giant, has merged with M-Kudi, a mobile money provider, as it seeks a payment service bank (PSB) license from the Central Bank. The merger, subject to regulatory approval, will allow Interswitch to create accounts and hold customer deposits, making it the first time the fintech would offer non-payment services. This follows the fintech’s acquisition of a mobile virtual telecoms licence. “The PSB use case for these companies (payment companies) is the same: to keep some float of their transaction volumes in-house and consolidate on their already established strengths,” an industry insider told TechCabal. “A PSB is the sensible consolidation for them (Interswitch) even if it means they bank themselves,” he added. Interswitch declined to comment on any part of this story. With the PSB licence, Interswitch, which brought in $42 million in revenue for its 2023 fiscal year that ended March 31, will be able to receive foreign currencies for its customers and directly offer agency banking services. Nevertheless, Interswitch has to offer innovative services to convince Nigerians, famous for user inertia, to use its remittance or agency banking services. Interswitch’s tenured presence in Nigeria, where it derives 94% of its revenue, would be useful. With ₦1.1 Trillion in transactions, Firstmonie is the biggest bank-led agency banking service The CBN introduced regulations for payment service banks in 2018 with a remit to increase financial inclusion in rural. Those license holders are to offer 25% of physical activity in “rural areas with a high unbanked population.” Interswitch, which derives most of its revenue from offering services to its banking customers, will have to invest in a nationwide physical network of agents. Mobile money operators are also limited from participating in the revenue-driving segments of other banks, as they cannot directly give out loans, hold foreign currency deposits or participate in foreign exchange transactions except for receiving remittances. These restrictions severely affect the attractiveness of PSBs in Nigeria. Fintech giant Interswitch eyes telecoms market with $1 million MNVO license
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👨🏿🚀TechCabal Daily – An Unlimited expansion
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Apple is loosening its grip around the iPhone in the European Union. First, the EU forced it to replace its lightning ports with the USB-C, and now, EU regulations are pushing the company to allow users download apps directly from websites. It’s not set in stone yet, but later this year, iPhone users will be able to download apps from sites other than just the Apple Store which has been the only legal way to download apps on the iPhone for over 15 years. In today’s edition Nigeria wants info on top 100 Binance users Interswitch expands into telecoms Stanbic IBTC pauses Kenyan subsidiary launch Unlimit expands to Tanzania The World Wide Web3 Opportunities Crypto Nigeria grills Binance for info on top 100 users On February 26, the Financial Times confirmed the arrest of two Binance executives in Nigeria who had flown into the country to resolve the ban on the company’s website. Latest reports indicate that Nigeria is now grilling the detainees for information on the top 100 Binance users in the country as well as other data including a six-month transaction history. The country also wants Binance to settle any tax liabilities which it has in Nigeria. While both executives were previously unidentified, a new Wired report has now identified the two arrested executives as Tigran Gambaryan, a former crypto-focused US federal agent, and Nadeem Anjarwalla, Binance’s Africa regional manager. Both executives have been held in Nigeria’s capital city Abuja by the office of the National Security Adviser (NSA) after moving into Nigeria two weeks ago to resolve a ban on their website. Gambaryan and Anjarwalla were stripped of their passports upon entry into the country and neither has been charged with any criminal offence. Nigerian authorities are yet to disclose new information about their arrest, but the duo’s relatives are now calling on the US government to negotiate their release. A crypto crackdown? While Nigeria has had a public lifting up of crypto since the resumption of crypto transactions in the country last December, other significant changes have hinted at a casting down. Regulators blocked access to the websites of several exchanges, aiming to curb speculation and prevent the unofficial exchange rates set on these platforms. These websites have become a popular alternative for trading the Nigerian naira and have unofficially established a market-driven exchange rate. Binance was accused of operating illegally and handling $26 billion in unidentified funds. With this latest report, the country might also be considering action against crypto users who have facilitated the transfer of these funds. While Binance’s executives remain in detention, the company has paused trading of the naira against bitcoin and tether digital coins on its exchange. The executives, per Nigerian law, were set for release yesterday, Tuesday, March 12, but a court order set for today, March 13, might see an extension. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Telecoms Interswitch acquires $1 million MVNO licence Interswitch is known for quite a few things. It was one of Africa’s earliest unicorns reaching the $1 billion valuation as early as 2019. It’s also one of the very few payments companies which processed over 1.2 billion transactions across Nigeria in March 2023. But like Oliver Twist’s hunger, these successes aren’t enough for the fintech giant. Now, it’s doubling down on telecoms. The Visa-backed company reportedly entered Nigeria’s telecom sector in May 2023, after it acquired a Tier 5 Mobile Virtual Network Operator (MVNO) license for $1 million from the Nigeria Communications Commission (NCC). Why diversify? Interswitch has a large customer base and has issued over 50 million debit cards through its payment services. It aims to leverage this customer base and utilise its MVNO licence to offer combined payment and telecom services to both business-to-business (B2B) customers and consumers. Their strategy focuses on a low-capital-expenditure virtual telecoms model. Interswitch holds the highest tier license—a unified virtual operator, which allows them to partner with existing telcos and leverage their infrastructure to offer cheaper mobile services—including 4G/5G—and expand reach to underserved areas, especially in rural regions. The big picture: Nigeria’s telecom regulator issued 25 MVNO licences in 2023 to boost competition. Despite the country’s large population—200 million—only 60% have access to mobile connectivity, less than 5% have access to 4G, and 0.8% have access to 5G. If Interswitch’s fintech ambition is any pointer, Nigerians will see stronger connections in the future. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Fintech Stanbic pauses launch of Kenyan fintech subsidiary In recent times, Nigerian commercial banks have been borrowing from the playbook of fintechs and establishing their fintech subsidiaries. GTCO launched Habari Pay in 2018. Access Bank Plc, Nigeria’s largest commercial bank by asset, launched Hydrogen in 2021. Stanbic IBTC Holdings, in 2022, launched Zest, its fintech arm. Other countries appear to be gleaning from this playbook. In its 2022 financial report, Stanbic Holdings disclosed it was looking to partner or acquire a fintech or mobile network operator to expand its business. The company also stated, the year before, that it was seeking partnerships with Chinese financial technology firms to boost trade between Kenyan traders and Chinese vendors. Stanbic Holdings believed Chinese fintech partnerships would enable Kenyan traders to source quality goods and settle transactions conveniently. Now, Stanbic Holding has hit a pause on its attempt to launch its fintech subsidiary in Kenya. The company had earlier obtained regulatory approval from the Capital Markets Authority (CMA) to begin operations in Q4 2023, but the bank’s board has decided to put a hold on operations. While the exact reason for stalling operations remains unclear, the latest disclosure means Stanbic might be reneging on its
Read MoreFlutterwave’s COO leaves fintech giant after several other high-profile exits
Flutterwave’s chief operating officer, Bode Abifarin, has left Africa’s largest startup after six years of leading the startup’s operations, in the latest high-profile exit from the payments giant. “It’s been a cocktail of highs, lows, victories and failures, hitting milestones, losing milestones, all wrapped up in a story of resilience with the ultimate satisfaction of solving payment problems for our customers,” Abifarin wrote in a LinkedIn post on Tuesday. Her resignation comes after other high-profile employees like Oneal Bhambani, the former chief financial officer, and Ted Oladele, a former vice president of design and innovation, left the company in recent months. Jimmy Ku, the company’s head of growth for the United States, also left the company in February. Abifarin joined Flutterwave after 15 years at KPMG Nigeria, where she was an associate director. With almost two decades of experience, she built Flutterwave’s operations, including internal processes, as it attained unicorn status and helped steady the ship through a series of allegations against its leadership in 2022. “Since our inception, Bode has been the heartbeat of our operations, infusing her passion and dedication into every aspect at Flutterwave,” Gbenga Agboola, Flutterwave’s CEO, said in a LinkedIn post. She will “continue to nurture new businesses” and “focus on building, teaching and education,” after leaving Flutterwave. Abifarin’s exit comes as the payment giant touts itself as an IPO candidate with a rumoured listing that has been in the works since 2022. Although the recent exit of high-profile employees raises questions about these stock listing plans, the startup has made progress on other fronts. After a tumultuous fraud allegation by Kenyan authorities, Flutterwave has been cleared of financial impropriety in the East African country, which threatened to dent its reputation. The startup also hired five new executives across its risk, compliance, and expansion departments one month after Bhambani left the company. Two weeks ago, Flutterwave also added a new board member, Nigerian architect Olajumoke Adenowo, as part of its efforts to drive its international expansion strategy. The startup is also reassessing its product strategy. Last year, it relaunched its international remittances product, Send App, and launched other offerings to help local businesses swap international currencies. Last week, the company shut down the struggling Barter, a virtual card and international payments service it launched in 2017, as it trimmed its focus on the more successful Send App, which has fueled growth.
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Fintech giant Interswitch eyes telecoms market with $1 million MNVO license
Interswitch, the Visa-backed Nigerian payments giant that reported $42 million in revenue for its financial year ended March 31, will enter into Nigeria’s telecommunications sector after acquiring a Tier 5 MVNO (Mobile Virtual Network Operators) license for ₦500 million ($1.08 million) from the Nigeria Communications Commission (NCC) in May 2023. “The company is investigating the launch of a low level of capital expenditure virtual telecoms model using the license, combining payments and telecoms services to B2B customers and consumers,” read the company’s financial report. Nigeria, Africa’s largest phone market, awards MVNOs on a tiered basis, specifying the services they can provide. Interswitch, which has the highest tier licence—the Tier 5 (unified virtual operator) license— can negotiate with one of Nigeria’s four telcos and provide asset-light telecom services in underserved areas. The five tiers under which MVNOs can operate Interswitch will ride on the infrastructure of these telcos to bring value-added services to consumer segments that have been ignored or underserved by the telcos. With this license, Interswitch can provide cheaper 4G or 5G services to Nigerians or provide telecommunication services to rural areas. Last year, the country’s telco sector witnessed a decline in growth—its first in 5 years— after foreign investment declined, which led to reduced capital expenditure from Nigeria’s existing telcos. The NCC issued 25 MNVO licenses in 2023 as it looked to increase competition in Nigeria’s telco sector. Nigeria is home to 200 million people, but only 60% of the population can access mobile connectivity, while less than 5% have access to 4G, and 0.8% have access to 5G. The payment startup would rely on its access to a large base of customers—Interswitch, through Verve, has issued more than 50 million debit cards—to offer an alternative to the entrenched options that Nigeria has in telecommunications. Interswitch would have to offer improved telecommunications services to its customers and carefully select a telco to partner with it to capture market share in Nigeria’s mobile sector, which is estimated to have more than 200 million subscribers. The payments startup would also have to introduce innovative ways of communicating and value-added services if it hopes to compete in Nigeria’s telco sector.
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Fintech giant Interswitch eyes telecoms market with $1 million MNVO license
Interswitch, the Visa-backed Nigerian payments giant that reported $42 million in revenue for its financial year ended March 31, will enter into Nigeria’s telecommunications sector after acquiring a Tier 5 MVNO (Mobile Virtual Network Operators) license for ₦500 million ($1.08 million) from the Nigeria Communications Commission (NCC) in May 2023. “The company is investigating the launch of a low level of capital expenditure virtual telecoms model using the license, combining payments and telecoms services to B2B customers and consumers,” read the company’s financial report. Nigeria, Africa’s largest phone market, awards MVNOs on a tiered basis, specifying the services they can provide. Interswitch, which has the highest tier licence—the Tier 5 (unified virtual operator) license— can negotiate with one of Nigeria’s four telcos and provide asset-light telecom services in underserved areas. The five tiers under which MVNOs can operate Interswitch will ride on the infrastructure of these telcos to bring value-added services to consumer segments that have been ignored or underserved by the telcos. With this license, Interswitch can provide cheaper 4G or 5G services to Nigerians or provide telecommunication services to rural areas. Last year, the country’s telco sector witnessed a decline in growth—its first in 5 years— after foreign investment declined, which led to reduced capital expenditure from Nigeria’s existing telcos. The NCC issued 25 MNVO licenses in 2023 as it looked to increase competition in Nigeria’s telco sector. Nigeria is home to 200 million people, but only 60% of the population can access mobile connectivity, while less than 5% have access to 4G, and 0.8% have access to 5G. The payment startup would rely on its access to a large base of customers—Interswitch, through Verve, has issued more than 50 million debit cards—to offer an alternative to the entrenched options that Nigeria has in telecommunications. Interswitch would have to offer improved telecommunications services to its customers and carefully select a telco to partner with it to capture market share in Nigeria’s mobile sector, which is estimated to have more than 200 million subscribers. The payments startup would also have to introduce innovative ways of communicating and value-added services if it hopes to compete in Nigeria’s telco sector.
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