Lagos drivers reveal the most profitable ride-hailing apps
When Uber launched in Lagos in 2014, drivers like Kayode Olaniyan made as much as ₦300,000 a week. Today, the story is different. Ride-hailing has become a survivalist hustle, with drivers juggling multiple platforms to maximize earnings amid rising fuel costs, high platform commissions, and relentless fare cuts. Uber, Bolt, inDrive, and Rida all compete on pricing, and sometimes, these strategies to win market share disadvantage drivers, who shoulder the costs of maintaining and fueling their vehicles. So, which platform pays best? We spoke to six ride-hailing drivers who frequently switch between apps to find out. Bolt offers the best deal for driver earnings For Collins and several other drivers who spoke to TechCabal, Bolt offers the best deal. Its commission is as high as Uber’s (25%), but its fares are generally higher. The lowest fare on Uber is 26% less than Bolt, a difference that adds up over multiple trips. Drivers say Uber has increased its commission to 30% while slashing fares to compete with InDrive. The result? Lower take-home earnings. “They don’t own the cars, they don’t maintain them, yet they take so much,” Collins said. InDrive and Rida, on the other hand, allow passengers to negotiate fares, which often forces drivers to accept unreasonably low prices to stay in business. Despite InDrive’s lower 10% commission, many drivers feel it’s a race to the bottom. “You will see someone order a ride for ₦2,000, and when you arrive, they’re cramming four people into the car,” says Akhigbe, a gig driver. “If each of them took a bike, the total fare would be much higher. Ride-hailing is a luxury service—not everyone needs to afford it.” Shrinking earnings are compounded by rising fuel prices and vehicle maintenance costs, making platform commissions even more concerning. The cost of staying on the road When Tunde, a Lagos-based Uber driver, completes his 16th trip of the day, he tallies his earnings: ₦36,000. But after spending ₦20,000 on fuel and factoring in Uber’s commission, his take-home pay is far less than expected. “With Bolt, I can make ₦50,000 to ₦60,000 in a day and have more money left,” he says. But even Bolt’s slightly higher fares aren’t enough for many drivers. Akhigbe recalls that in three months, Bolt deducted ₦900,000 in commissions from his earnings—but he didn’t even have that amount in savings. “I earned about ₦3 million, but after fuel and maintenance costs, I barely kept anything,” he says. One major cost driver is fuel. Some ride-hailing drivers spend ₦180,000 per week on fuel alone, plus an additional ₦30,000 for periodic vehicle servicing. “They should increase the prices. Is it not better for me to do fewer trips and have a good profit than to run around doing so many cheap trips and be left with nothing?” Akhigbe asks. Another driver who works across multiple platforms told TechCabal that the rising cost of spare parts and oil makes profitability even more difficult, especially for those who lease their cars. “The car owners keep increasing the weekly payments to make a profit, so drivers end up making even less,” he said. Olaniyan, the former Uber top earner, now drives a Moove-financed vehicle, which requires him to pay ₦9,400 daily to Moove, plus Uber’s 25% commission. After all deductions, his take-home pay is around ₦15,000 per day. “If this car were mine, I’d be making a lot more,” he admits. The weekend hustle is Uber’s edge? For some, Uber still offers the best earnings—especially on weekends. Adebayo, an Uber driver who also runs a restaurant, drives only on weekends and says he earns around ₦350,000 every weekend from about 35 trips. “If I didn’t have my restaurant, I could still afford my annual rent of ₦2.6 million just by driving on Uber every weekend.” His earnings are significantly boosted because his car is categorized as a “priority car” on Uber, which charges riders 46% more than UberGo, the cheapest option. Uber also has other pricing tiers—UberX and Uber Comfort—where fares are adjusted based on ride acceptance rates and car quality. A trip from Somolu to Ikeja costs 63% more on Uber Comfort than on UberGo, making car category selection a major factor in driver earnings. The verdict: which platform pays best? Bolt driver Akhigbe believes there is no one-size-fits-all answer. “Every app is different, and the best choice for a driver depends on their personal philosophy, ambitions, education level, and, ultimately, whether they understand that these companies are here to make a profit.” Conversations with drivers reveal distinct platform preferences: Bolt: Best overall balance of higher fares and manageable commission. Uber: Best for weekend drivers and those who can leverage premium car tiers. InDrive & Rida: Attracts drivers who want high trip volumes but offers the lowest fares. There is no perfect ride-hailing platform—only trade-offs. Drivers who adapt and switch based on demand stand the best chance of maximizing their earnings. There is a battle for fares and drivers bear the brunt Collins, a journalist turn ride-hailing driver, is blunt: “InDrive is ridiculous. A trip that cost ₦40,000 on Uber or Bolt in the past goes for ₦15,000 on InDrive. That amount can’t even cover fuel needed to cover the distance.” InDrive and Rida allow passengers to negotiate fares, which often forces drivers to accept unreasonably low prices. Even with its lower 10% commission, many drivers feel it’s a race to the bottom. Uber, meanwhile, has steadily increased its commission—now at 30%—while simultaneously slashing fares to compete with Indrive. “They don’t own the cars, they don’t maintain them, yet they take so much,” Collins said. In response, the drivers have protested, some moving to another app like Bolt where the price slash is relatively lower. For Collins and one other driver who spoke to TechCabal, Bolt offers a middle ground. Its commission is as high as Uber’s, 25% but its fares are generally higher than other platforms. The lowest fare on Uber is 26% less than Bolt, and that can make a huge difference
Read MoreMoniepoint raids Access and Stanbic Bank for top talent as it expands its business
Moniepoint, the Nigerian fintech unicorn, has been aggressively hiring top talent from Access Bank and Stanbic IBTC since 2023, deepening its bench as it scales operations. The recent hires span compliance, risk management, sales, and product roles—functions critical to scaling financial services. Notable hires include Michael Afolabi, former acting Chief Information Security and Data Protection Officer at Oxygen X, Access Bank’s digital lending subsidiary, and Bayo Olujobi, a former Stanbic IBTC executive now serving as CFO. According to LinkedIn, at least 19 employees have left Access Bank for Moniepoint in the past two years, with half of them joining in the last six months. Similarly, six Stanbic IBTC employees have switched in recent months, including Ikenna Ndugbu, who now leads Moniepoint’s compliance team. “Moniepoint’s hiring strategy is industry-agnostic,” said Didi Uwemakpan, the company’s vice president for corporate affairs . “We believe mastery is paramount, and we’re committed to attracting the brightest minds, irrespective of their industry experience.” Access Bank did not respond to a request for comments. Stanbic IBTC did not respond to a request for comments. A strategic hiring spree While fintech companies poached talent from banks during the post-pandemic exuberance when many startups were flush with cash, Moniepoint’s recent wave of hires stands out because of its focus on hiring senior-level banking talent. According to a person familiar with the matter who asked not to be named discussing a confidential matter, Moniepoint poached the compliance team of a top remittance startup. These moves followed closer scrutiny of fintech by the Central Bank as their retail base expanded. The company has also engaged with the Central Bank of Nigeria (CBN) about securing a commercial banking licence. The fintech’s recent strategic investment from global payments giant Visa further underscores its ambitions. Strong regulatory expertise will be critical as it scales into new areas like contactless payments and more complex financial services. Moniepoint’s hiring spree is part of a broader shift in Nigeria’s financial sector, where fintechs are increasingly luring senior banking professionals. Fintechs rely on ex-bankers to bring deep expertise in financial systems, compliance, and risk management—capabilities that are crucial for scaling operations. Money is also a key factor. Industry insiders say fintechs frequently offer significantly higher salaries than banks, sometimes doubling compensation for senior roles. The migration has forced traditional banks to review their pay structures. In February, Sterling Bank raised salaries by over 35% across several roles after a modest 7% increase in January failed to satisfy employees. GTBank, Union Bank, and Wema Bank have also implemented salary adjustments in response to the growing talent war. If banks can’t match the salaries and flexibility fintechs offer, they risk losing more top talent to upstarts like Moniepoint. Fintechs aren’t just competing with banks for customers anymore—they’re coming for their best people. And they’re winning.
Read MoreMTN Nigeria recovers ₦32bn in USSD debt—₦42bn still unpaid by banks
MTN Nigeria has recovered ₦32 billion from Nigerian banks as part of the ₦74 billion outstanding debt owed to the telecom operator for Unstructured Supplementary Service Data (USSD) service charges. However, ₦42 billion remains unpaid, highlighting ongoing tensions in the long-standing dispute between banks and telecom companies. The recovery follows an intervention by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in December 2024. The regulators ordered banks to pay ₦212.5 billion—85% of a total ₦250 billion owed to telcos—by December 31, 2024. Banks were also required to settle 85% of new invoices within one month and agree on a repayment plan by January 2, 2025, to clear 60% of outstanding debts before accessing telecom USSD platforms. Failure to comply would attract sanctions, including fines and service restrictions. MTN Nigeria stated that while the recovered ₦32 billion contributes to its cash flow, the outstanding ₦42 billion is still classified as receivables, expected to be settled in 2025. This USSD fee standoff dates back several years, with banks resisting payments over claims of disputed charges and revenue-sharing disagreements. Despite multiple regulatory interventions, including a 2021 NCC directive mandating direct deductions from customer accounts, settlements have remained inconsistent. While banks have begun repayments, it remains unclear if any have missed the regulatory deadline and whether CBN or NCC will impose penalties. The telecom sector has long pushed for stricter enforcement, arguing that inconsistent payments threaten financial sustainability. The debt recovery slightly boosted MTN’s earnings for the full-year 2024, contributing 3.1% to its service revenue, which grew by 35.9% to ₦3.3 trillion in 2024, up from ₦2.4 trillion in 2023. However, despite revenue growth, MTN Nigeria reported a staggering after-tax loss of ₦400.44 billion in 2024—nearly triple its ₦137.02 billion loss in 2023—primarily due to the naira’s depreciation. The loss was worsened by rising tower lease costs and foreign currency obligations, which ballooned due to FX volatility.
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TechCabal Daily – Fawry makes a splash
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Our friends at Founders Connect have produced a documentary exploring the Nigerian banking industry. It features Sterling Bank—a tier-2 commercial bank—tracing its origins from a merger of multiple banks and how it leveraged technology to redefine banking services in the country. You can watch it here. Flutterwave, the fintech giant, has acquired a Payment System License from the Bank of Zambia to expand its payment solutions in the country as it continues its relentless growth march across the continent. Fawry buys stakes in three tech startups for $1.6 million Africa’s internet is one cable cut away from chaos Showmax slashes subscription to ₦1,000 for Nigerians Funding Tracker World Wide Web 3 Events M&A Fawry acquires stakes in three tech startups for $1.6 million Image Source: Google Fawry, Egypt’s fintech unicorn, has invested EGP 80 million ($1.6 million) to acquire stakes in three Egyptian tech firms: Dirac Systems (51%), Virtual CFO (56.6%), and Code Zone (51%). The move is part of its broader strategy to strengthen its B2B fintech vertical, Fawry Business. Dirac Systems, which counts large retail chains like Coca-Cola among its clients, specialises in enterprise resource planning (ERP) solutions that streamline business operations. Virtual CFO offers financial management services tailored for startups and SMEs, providing expertise without the overhead of a full-time CFO. Code Zone is a strategic tech infrastructure acquisition meant to enhance Fawry’s technological capabilities. Fawry’s latest move is part of a bigger shift seen across fintech companies in Africa: chasing enterprise clients over consumers. For example, Nigeria’s Flutterwave laid off 24 employees, about 3% of its staff, to double down on enterprise and remittances—two of its biggest revenue drivers. South Africa’s Stitch acquired ExiPay, an offline payment infrastructure provider, to entrench its value offering to the enterprise market it already serves. For Fawry, there’s a strong incentive: it’s where the money is. In its 2024 half-year results, “Fawry Business,” which includes banking services, financial solutions for SMEs, and supply chain digitization, emerged as its biggest revenue driver. Banking services, which cover card payment solutions via POS for large enterprises, saw a 70.2% year-on-year (YoY) increase, bringing in EGP 932.1 million ($18.4 million). Financial services, including SME lending, employee insurance brokerage, cash management, and payroll card solutions, recorded the highest growth at 113% YoY, though it generated less overall—EGP 377.7 million ($7.5 million). Meanwhile, supply chain solutions, which help merchants, suppliers, and sales agents digitise transactions, added EGP 160.1 million ($3.1 million) to the business. With numbers like these, it’s clear why Fawry is doubling down on enterprise services. B2B is proving to be the company’s strongest growth engine, and its latest acquisitions only reinforce that direction. With these acquisitions, Fawry will deepen its services to large and small enterprises, and financial institutions, expanding its potential revenue basket. Despite what seems like positive news, investor sentiment is saying otherwise; Fawry ($FWRY) traded at EGP 8 ($0.16) on the EGX at the close of market on Thursday, declining by 0.12%. However, the fintech giant will hope that this is only a minor slump as it picks up pace in the coming weeks leading to the announcement of its full-year financial performance. Fawry currently has a market cap of EGP 26.49 billion ($523 million), nowhere near the $1 billion valuation that made it Egypt’s first unicorn before it went public. Yet, it remains one of the country’s most important fintechs. Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Telecoms Africa’s internet is one cable cut away from chaos Image Source: Google Fixing a damaged submarine cable takes anywhere from five to fifteen days in Europe or North America. In Africa? Try six weeks—or longer. And when it does get fixed, it costs about $2 million per repair. MainOne Equinix Solutions, Nigeria’s first private-led submarine cable operator, has suffered three major fiber cuts since its launch. Each repair dragged on for weeks, disrupting internet access in key cities like Lagos. Meanwhile, in March 2024, an underwater landslide off Côte d’Ivoire’s coast damaged four critical cables, leaving 13 West African countries—including Nigeria, Ghana, and South Africa—scrambling for months before full restoration. Africa doesn’t have enough repair ships nearby, meaning vessels must be sent from other continents, wasting precious time. Governments don’t make things easier either—permits for repairs can take months and cost up to $1 million. While North America and Europe have dozens of backup cables, Africa is dangerously reliant on just a handful. The continent has only 74 submarine cable systems, compared to Europe’s 152 and the U.S.’s 88. Worse, 90% of African countries don’t even have a single dedicated cable, making every break a potential catastrophe. Solutions exist: regional investment in repair ships, faster government approvals, and more private-sector funding. The International Telecommunication Union (ITU) and the International Cable Protection Committee (ICPC) are pushing for better policies, but until governments and businesses act, Africa’s internet will remain one cable cut away from another blackout. You can now integrate Paystack with GiveWP GiveWP makes it easy to create donation pages and accept online donations on your WordPress site. With Paystack, you can securely receive payments for your donations effortlessly. Find out more here→ Streaming Showmax slashes subscription to ₦1,000 for Nigerian users for one month Image Source: Bird Story Agency If you are Nigerian, here is a list of things you can do with ₦1,000 ($0.67): buy 2 pairs of the newly launched gala sausage rolls, tip a taxi driver or subscribe for the new Showmax mobile package. On Thursday, Showmax, the streaming service owned by MultiChoice, introduced a new mobile plan in Nigeria, as it courts new subscribers. From February 28 to March 31, 2025, Showmax will offer a promotional deal called “Showmax Shikini Season.” New and returning subscribers can sign up for the General Entertainment (GE) Mobile
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$2million per fix: The hidden costs of Africa’s fragile internet infrastructure
MainOne Equinix Solutions, which deployed Nigeria’s first private-sector-led submarine cable infrastructure in 2010, has suffered three major fiber cuts since its launch. Each repair took an average of six weeks or more—one of the longest timelines globally—causing prolonged internet disruptions in key cities like Lagos. Globally, submarine cable repairs are typically completed in five to fifteen days, but in Africa, months-long delays have become the norm. When the BCS East-West Interlink cable between Lithuania and Sweden was damaged on November 17, 2024, it was repaired in just 11 days. By contrast, MainOne’s past three fiber cuts took an average of six weeks each, exposing a critical weakness in Africa’s digital infrastructure. Why do repairs take so long? At the Submarine Cables Resilience Summit in Abuja, organized by the International Telecommunication Union (ITU), industry experts identified the biggest obstacles: Limited Access to Repair Ships: Unlike Europe and North America, which have dedicated repair vessels stationed nearby, Africa lacks specialized ships, leading to delays in mobilization. Bureaucratic Red Tape: Obtaining government permits for repairs can take months. A single permit in Africa can cost up to $1 million and requires navigating multiple agencies. High Repair Costs: Each fix costs around $2 million, but many operators lack the financial resources to respond swiftly. The Côte d’Ivoire cable crisis On March 13, 2024, an underwater avalanche off Côte d’Ivoire’s coast severely damaged four major submarine cables—ACE, MainOne, South Atlantic 3, and WACS—crippling internet connectivity across 13 West African countries, including Nigeria, Ghana, and South Africa. The West Indian Ocean Cable Company (WIOCC) attempted to reroute traffic but faced long delays due to intergovernmental red tape. The result? A continent-wide disruption that lasted for over two months, with final repairs completed only on May 16, 2024. In contrast, North America and Europe have strategic cable redundancy—multiple cables backing each other up. Africa, by comparison, is dangerously reliant on just a few international cables, making each failure disproportionately damaging. Africa currently has 74 submarine cable systems, far fewer than Europe’s 152 or the 88 that connect the United States alone. Worse, about 90% of African countries lack even a single dedicated submarine cable—a gap that makes the continent more vulnerable to disruptions. Most cable damage is caused by human activity—fishing trawlers and ship anchors account for 70–80% of incidents. Other causes include seafloor currents, equipment failures, and natural disasters like the one that struck Côte d’Ivoire. Image Credit: internetsociety.org The cost of inaction Regional collaboration to invest in repair ships stationed closer to African waters. Faster government approvals to cut down unnecessary delays. Incentives for private investment to strengthen Africa’s internet infrastructure. “We need to have regional conversations on submarine cable deployment and protection in Africa,” said Jane Munga, Fellow at Carnegie Endowment for International Peace. “Without better policies, Africa’s internet will remain fragile.” Solutions exist, but progress remains slow. Image: ITU summit. The ITU and the International Cable Protection Committee (ICPC) have launched a new advisory body to improve global resilience in submarine cable networks. Co-chaired by Nigeria’s Minister of Communications, Bosun Tijani, and Portugal’s Sandra Maximiano, the panel aims to accelerate solutions. But without aggressive reforms, Africa risks remaining the world’s most vulnerable region for internet blackouts—one cable cut away from another months-long digital shutdown.
Read MoreBeyond Chowdeck and Glovo, here are 10 startups shaping Nigeria’s food delivery space
Nigeria’s food delivery scene is booming, but beyond dominant players like Chowdeck, Glovo, and Food Court, a new wave of startups is emerging. These companies are focused on hyperlocal needs, from campus-specific cravings to regional delicacies unavailable on mainstream platforms. While the big players dominate major cities, these challengers thrive by going where others won’t. Some specialize in serving university students with affordable late-night meals, while others focus on delivering beloved local dishes to customers outside their native regions. They’re proving that in Nigeria’s massive food market, success isn’t about reaching everyone—it’s about reaching the right people. Campus-focused food delivery Startups CHAO Chao targets students with food, groceries, and medicine delivery across campuses. Currently operating at the University of Port Harcourt and Pan-Atlantic University, with plans to expand to 12 more locations, Chao’s web app features local vendors and major chains like Kilimanjaro and Chicken Republic. Founded in 2021 by Gift Akobundu (CEO) and Melvin Senne-Aya (COO), Chao has grown rapidly since its launch at Babcock University in 2022. It has remained bootstrapped so far and has processed ₦70 million in gross merchandise value across 25,000 orders. Its self-reported revenue for 2024 was ₦17.5 million ($11, 669) and it disbursed ₦10 million to riders. The startup’s advantage? Proximity to students, which enables faster delivery and stronger brand loyalty. BelaChow BelaChow, formerly known as Belarush, is a campus-based food delivery app serving Lead City University in Ibadan and Redeemer’s University in Ede. It caters to student favorites, from street food like mai shayi and akara to meals from major chains like KFC, Burger King, and Item7Go. Beyond food, BelaChow also offers laundry services to students, with basic plans starting at ₦7,000 for ironing and ₦10,000 for full-service washing, folding, and ironing. Meal deliveries start as low as ₦1,000, with delivery fees from ₦250. Information on its founders and funding remains undisclosed. Yabatech Food Yabatech Food Delivery serves students in and around Yaba College of Technology and the University of Lagos. The platform focuses on hyperlocal delivery, allowing students to order meals from nearby restaurants for as little as ₦1,000. Unlike its competitors, it operates without a mobile app, relying on a web-based ordering system. Regional & hyperlocal startups Ogwugo Based in Enugu, Ogwugo has built a strong following in Eastern Nigeria, particularly in Nsukka. The platform mixes mainstream chains like Chicken Republic with local favorites specializing in Eastern delicacies like ntachi osa, nkwobi, and oha soup. Founded in 2017 by software developer Ugochukwu Aronu, Ogwugo has raised $51,000 in funding, with backing from the Ford Foundation. Food prices range from ₦1,400 to ₦5,000, with free delivery in some areas, though service fees vary. Olili Founded in 2019 by Nweze Ikechukwu Emeka, Olili operates in Asaba and Warri, featuring an extensive selection of local restaurants. By 2021, the startup had processed over 14,000 orders and attracted 3,400 users. The startup raised $125,000 in seed funding in 2020, fueling its early expansion. A key differentiator for Olili is its wide selection of local foods. A typical delivery from Asaba Mall to Asaba Terminal costs ₦1,950. Dado Food Dado operates in Enugu and Abuja, offering delivery from restaurants, local markets, grocery stores, and pharmacies. The platform adjusts its offerings based on the city: Enugu customers get access to Chicken Republic, while Abuja customers see a heavier focus on local eateries. Founded in 2017 by Ugome Chukwuebuka, Isaac David Mayowa, and Chukwu Chinasa, Dado charges a delivery fee of ₦6,510 for orders from a restaurant in 6th Avenue, Gwarinpa, to Abuja Continental. Foodelo Founded in November 2021 by Eunice Anthony, an alumna of the Federal University of Agriculture, Abeokuta, Foodelo offers on-demand food delivery in both Lagos and Abeokuta, Nigeria. The platform is accessible via web and mobile app and currently features a wider variety of local restaurants in Lagos, while Abeokuta’s selection is still expanding. Lagos based startups ChowCentral Originally launched as 500Chow, ChowCentral is a cloud kitchen that gained traction during the COVID-19 lockdown. The YC-backed startup generates over $80,000 in monthly revenue and primarily serves Lagos, focusing on Lekki, Oniru, Victoria Island, Surulere, Ajah, and Yaba. Founded by Tosin Onafuye, Christopher Obasi, and Adeyemo Onafuye, ChowCentral sells meals starting at ₦2,000 and is available on platforms like Chowdeck, Glovo, and Pocket by Piggyvest. UrbanEats After spending nine years in the UK, Halima Kasumu returned to Nigeria with a mission: bring high-end restaurant meals straight to customers’ doors. Founded in 2023, UrbanEats operates in Lekki, Ikoyi, and Victoria Island, featuring premium restaurants like Ikoko, Chow City, Cindy’s, and Adun Kitchen. UrbanEats encourages customer retention through a meal points system—you’ll earn ₦10 for every ₦4,000 spent. For instance, if you spend N4000 on your order, you get ₦300 Mealbot points. OjaNow Founded by three Nigerian friends—Demi Hastruup, Jamal Kasumu, and Alvin Ukpeh—OjaNow is an on-demand delivery startup offering groceries, alcohol, electronics, and gifts. The service operates 24/7 in Lagos, with prices starting at ₦250. In 2024, OjaNow raised $150,000 in pre-seed funding at a $6 million valuation. The company stocks over 300 products in strategically located storage facilities to ensure rapid delivery. .
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TechCabal Daily – Sterling Bank raises salaries again
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-TGIF! Nigeria wants Flutterwave on the Nigerian Exchange (NGX), but the $3 billion fintech and a cash-hungry stock exchange don’t seem to be the perfect match. The NGX loves profits, Flutterwave loves growth—one of them has to compromise, and it won’t be the startup. Flutterwave listing on the NGX sounds great, until you realise the stock market might not have enough cash to make it work. We detail why it makes business sense for Flutterwave’s IPO to land somewhere else—if it happens at all—despite Nigeria making passes at it. Sterling increases staff salary by 35% Edukoya, a Nigerian edtech platform, shuts down South Africa’s inflation quickens to 3.2% in January World Wide Web 3 Events Banking Sterling increases staff salary by 35% Sterling Financial Holding Company/Image Source: Sterling Bank via Proshare When the Japa wave—Nigeria’s mass exodus of talent—began, one of its most significant consequences was brain drain. Many industries lost top professionals, and the banking sector was hit particularly hard. For Nigerian banks, the challenge was twofold: they were losing talent not just to emigration but also to fintechs, which offered competitive salaries—sometimes double what banks paid. Now, banks are responding. In January, we reported that Sterling Bank, a tier-2 Nigerian bank, raised staff salaries by 7% and paid a cost-of-living adjustment (COLA) stipend; however, the meagre increase did not sit well with its employees who have seen other banks like GTBank, Union Bank, and Zenith Bank all increase salaries by 20%–40% in the last few months. In response, Sterling Bank increased salaries again by 35% on Wednesday. These pay hikes come at a crucial time when Nigeria is grappling with its worst cost-of-living crisis in decades, with inflation soaring; retaining talent has never been more urgent. But for Sterling Bank, these salary adjustments aren’t just about retention—they are central to its broader vision. While best known for its banking operations, Sterling is aggressively expanding into fintech, asset financing, and even electric vehicles. Leadership sees talent retention as critical to executing this strategy. Under the new structure, executive trainees (entry-level employees) will now earn ₦528,000 ($352) net monthly. Assistant Banking Officers (ABO) will take home about ₦850,000 ($567), while Banking Officers (BO) will see their salaries rise from ₦700,000 ($467) to ₦1,030,000 ($687). Senior Banking Officers (SBO) will now earn ₦1.1 million ($733), and Assistant Managers (AM) will receive ₦1.3 million ($867) per month. These raises reflect the bank’s commitment to attracting and keeping the best talent as it deepens its footprint in fintech and asset financing. But the big question remains: Will this be enough to stop top talent from leaving? Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Startups Edukoya, a Nigerian edtech platform, shuts down Image Source: Google Edukoya, a Nigerian edtech startup that set out to revolutionise K-12 online learning, has shut down. The company, which raised Africa’s largest pre-seed funding of $3.5 million in 2021, cited market readiness issues, limited access to devices, and challenging economic conditions as reasons for shutting down and returning investor capital. The startup also faced a balancing act between attracting parents and paying tutors. Edukoya paid over ₦200,000 ($134) per month to tutors, a competitive wage aimed at maintaining quality. This was higher than the average ₦60,000 ($40) that underpaid teachers in peri-urban and rural schools earned, making Edukoya’s offer enticing. With this structure, it was clear Edukoya hired top tutors, passing the shared cost of paying them and maintaining their operations onto parents. Yet, the company’s inability to scale profitably suggests that it either did not have enough paying users or priced its service too high for mass adoption. Founded in 2021, Edukoya entered an already competitive Nigerian edtech market but struggled to establish a strong foothold. Unlike established players like uLesson and Tuteria, which refined their pricing and targeted specific customer segments, Edukoya took a broad approach, offering a freemium model that failed to convert free users into paying customers. It also faced stiff competition not just from other edtech startups but from Nigeria’s deeply rooted offline tutoring system, where many parents and students still preferred in-person learning. Students were returning to classrooms post-pandemic, so the urgency for digital education diminished. Edukoya also offered a freemium model which didn’t allow it to monetise instantly. Thus, without a product compelling enough to drive willingness among parents to pay, Edukoya faced monetisation challenges that ultimately stalled its growth. Yet, it’s not just Edukoya. Globally, K-12 edtechs have struggled; Byju’s, an Indian edtech unicorn which was valued $22 billion at its peak, went from hero to zero after scaling too fast and failing to prove the effectiveness of its product. Meanwhile, skill-based edtech platforms like AltSchool Africa, Product Dive, and Utiva are thriving by selling directly to adults. These businesses tap into a market where learners control their own spending and see clear economic benefits from upskilling. Edukoya’s shutdown poses a new question for Nigerian edtech operators: Is the market ready for broad K-12 edtech at scale, or are they better off targeting other customer verticals? The opportunity seems to tilt toward providing a practical, career-driven education where students—not parents—make the purchasing decisions. You can now integrate Paystack with GiveWP GiveWP makes it easy to create donation pages and accept online donations on your WordPress site. With Paystack, you can securely receive payments for your donations effortlessly. Find out more here→ Economy South Africa’s inflation quickens to 3.2% in January Image Source: Reuters South Africa’s inflation rate accelerated by 20 basis points (bps) to 3.2% in January, following a revision in how the consumer price index (CPI) is calculated. The change, made by Statistics South Africa, the country’s statistics agency, adjusted the weighting of household expenses in the inflation basket to reflect current spending habits more accurately. Notably, the
Read MoreAccess Bank’s phased software update promised stability but customers are struggling
When Michelle logged into her Access Bank app on Wednesday, she couldn’t see her transaction history. Afeez Tunde, another Access Bank customer, can’t even open his bank app. Days after Access Bank finalised a core banking upgrade that caused a service downtime over the weekend, many customers are having trouble accessing digital banking services, questioning the bank’s much-hyped phased approach to the upgrade. “My USSD transactions kept failing for two days after the upgrade,” complained Chioma Alex, a trader based in Lagos. Nigeria’s largest bank by assets hoped to avoid the catastrophic core banking upgrades that were a feature of 2024. GTCO, Sterling, Zenith, FCMB and other commercial banks upgraded or switched their core banking software at great pain to customers. For over four weeks, Sterling and GTBank customers could not use banking services without problems. Upgrading their core banking software in stages was expected to solve the problem. “We understood that a one-size-fits-all upgrade wouldn’t work given our diverse markets and operational complexities,” said a bank employee familiar with the upgrade who asked not to be named so he could speak freely told TechCabal on Friday. The final stage of Access Bank’s upgrade—an enhancement of its existing Oracle Flexcube platform—was completed on February 23, 2025, following temporary downtime of its digital services from 2 AM to 1 PM. But despite assurances that this strategy would minimize disruptions, some customers say they are still dealing with frustrating glitches. “I thought it was a glitch, so I uninstalled and reinstalled the app, but the issue persisted,” Michelle told TechCabal. “My bank app hasn’t been opening. I had to look for alternative ways to make payments. If this was a phased upgrade to prevent disruptions, it didn’t work well for me,” Afeez Tunde added. Access Bank has not publicly addressed these complaints. A spokesperson did not immediately respond to requests for comment. The upgrade is part of Access Bank’s broader push for digital transformation. The bank allocated ₦68.62 billion ($51.3 million)—20% of its latest capital raise—to technology infrastructure. With over 63 million customers across several African markets, the lender is betting big on digital expansion. But the real test isn’t how much Access Bank spends—it’s whether these investments translate into reliable service. For banks racing to modernize, the lesson is clear: No matter how carefully planned, system upgrades aren’t just about infrastructure—they’re about the people who rely on them.
Read MoreNigeria has been courting Flutterwave to list on the NGX since 2023. Can it afford the fintech?
Nigeria has been lobbying Flutterwave, its most valuable startup, to list on the Nigerian Exchange (NGX) since 2023. The government believes a high-profile IPO could energise the country’s capital markets and attract other startups to follow suit. But with Flutterwave’s profitability in question, a stock exchange that favours cash-heavy businesses, and a bigger issue—whether the NGX can provide the kind of exit liquidity that global investors expect—the odds of this happening remain slim. At its last public valuation of $3 billion, Flutterwave would be one of the most valuable companies on the NGX. However, unlike listed giants such as MTN Nigeria ($3.5 billion) and Dangote Cement ($5.4 billion), Flutterwave isn’t profitable—a major hurdle given that the NGX’s rules prevent loss-making companies from going public. The government’s push to list Flutterwave on the NGX dates back to September 2023, when CEO Olugbenga Agboola joined President Bola Tinubu and Minister of Communications and Digital Economy Bosun Tijani at the G20 summit in India. While the specifics of their discussions remain unclear, multiple sources told TechCabal that Nigeria has since intensified efforts to convince Flutterwave to list locally. Last Friday, President Tinubu’s special media adviser confirmed the push following a meeting between Tinubu and Agboola at the Presidential Villa. But Flutterwave has remained noncommittal, carefully sidestepping IPO discussions in its public statements. Nigeria has successfully nudged companies onto the stock exchange before. In 2019, MTN’s Nigerian subsidiary went public on the NGX after regulators reduced its $1.7 billion fine which paved the way for its listing. The NGX has long struggled to attract tech startups. It even launched a dedicated board for them in 2022, but only one startup, YC-backed Tizeti, has shown interest. Meanwhile, legacy players like Interswitch have delayed their IPOs due to Nigeria’s currency instability and foreign exchange shortages. The NGX wants Flutterwave to set a precedent and draw in younger retail investors unfamiliar with older, slow-growing stocks. But there’s a fundamental mismatch: Flutterwave, like most venture-backed startups, prioritises rapid scale over profitability, while the NGX requires companies to be profitable before listing. Beyond the government’s ambitions, an IPO is, at its core, a liquidity event for early investors looking to exit. And this is where the NGX faces its biggest challenge. Nigeria’s stock market has a total equity market cap of around $44 billion, with daily trading volumes below $15 million. A $3 billion Flutterwave IPO would represent 7% of the exchange’s total value, raising serious questions about whether the NGX has the depth to absorb such a listing. Global VCs like Tiger Global and Avenir have poured millions into Flutterwave, expecting high-growth exits. But the NGX, dominated by investors who prefer dividends and stable cash flows, might struggle to provide the exit they need as both MTN and Dangote Cement trade at price-to-sales ratios below 3%. Since the start of 2025, Nigerian investors have preferred low-risk stocks as trading activity fell compared to January 2024. Without a deep enough market to sustain a high-growth fintech stock, Flutterwave’s valuation could take a hit post-listing, making it a less attractive exit for investors. This liquidity challenge is one reason high-profile Nigerian startups have avoided the NGX. Interswitch, another fintech giant, has kept its IPO on hold, and even MTN Nigeria had to list through a public introduction rather than a traditional share sale to avoid liquidity constraints. A dual listing—where Flutterwave debuts on both the NASDAQ and NGX—is one workaround, but that would increase compliance costs and regulatory complexity. And if the NASDAQ listing attracts most of the liquidity, Nigerian investors could be left with a less attractive secondary market. Even if Flutterwave were willing, the broader market conditions are not encouraging. Stripe, one of the world’s largest fintechs, has shelved its IPO plans, and investor appetite for fintech stocks has cooled since the end of the zero-interest rate era. The NGX wants Flutterwave to be its poster child for tech listings, a success story that proves Nigeria can host billion-dollar startups. But if the exchange can’t provide the liquidity that Flutterwave’s investors need, the company’s IPO will likely land elsewhere—if it happens at all.
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iPhone 16e price in Nigeria, Kenya, and South Africa: Is it worth it?
Apple has completed the iPhone 16 lineup with the introduction of the iPhone 16e. Featuring the latest A18 chip, a 48MP Fusion camera, Apple Intelligence, and extended battery life, this new model is being positioned as Apple’s most affordable iPhone 16 series device. However, for African consumers, the big question remains: Is the iPhone 16e truly affordable when factoring in exchange rates, taxes, and reseller markups? In this article, we break down the features, pricing, and expert insights to help you decide if the iPhone 16e is worth buying in Nigeria, Kenya, and South Africa. iPhone 16e: Features & Upgrades The iPhone 16e features some of the latest Apple innovations while making a few trade-offs to keep its price lower than the iPhone 16 and 16 Pro. Key Features: Key features of iPhone 16e/Image Source: How-to Geek A18 Chip: Faster and more efficient, making AI-driven tasks seamless. Apple Intelligence: Features like Clean Up (removing distractions from photos), Image Playground (personalised image creation), and Siri integration with ChatGPT. 48MP Fusion Camera: A dual-purpose camera with high-resolution image processing. Battery Life: Up to 26 hours of video playback. USB-C Port: Universal charging for convenience. Action Button: Quick access to favorite apps and functions. iOS 18: Customisable home and lock screens. Durability: Ceramic Shield protection, Face ID security, and water and dust resistance. What’s Missing Compared to Flagship iPhones? No ProMotion (high refresh rate display) Lacks some advanced camera features like LiDAR scanning No telephoto or ultra-wide cameras Lower-tier materials compared to the iPhone 16 Pro iPhone 16e pricing in the U.S. vs. African countries The iPhone 16e will be available in the U.S. starting February 28, 2025, with a starting price of $599 for the 128GB model. Pricing in African markets will be significantly higher due to import duties, VAT, and reseller markups. Below is an estimate of what consumers in key African countries can expect to pay: Country-specific iPhone 16e pricing & availability Nigeria Official price: Expected between ₦900,000 – ₦1,100,000 Import taxes, exchange rate fluctuations, and reseller markups will increase costs. Available via authorised Apple resellers, online stores, and independent vendors. Kenya Expected price: KES95,000 – KES110,000 Additional costs due to VAT and shipping fees. Likely to be available in Apple stores and major retailers. South Africa Estimated price: R12,000 – R14,500 Import taxes and reseller pricing strategies affect affordability. Available through iStore and major telecom providers. Market perspective & buying decision Fisayo Fosudo’s Insights We spoke to tech YouTuber Fisayo Fosudo about the iPhone 16e and how it fits into the African market. Here’s what he said: On Apple Intelligence & AI Adoption in Africa: “Apple Intelligence is in an interesting state right now. There’s still a lot to figure out, especially with context. For example, I received a YouTube notification with the name ‘Bimbo,’ and Apple Intelligence read it as ‘Bingo.’ The AI isn’t optimised for local African nuances yet.” On Affordability & Pricing in Africa: “The iPhone 16e starts at $600, which is around ₦900,000 in Nigeria. But vendors will add their markup, often $200 or more, because they need to make a profit. That means prices will likely be closer to ₦1.1 million. While it’s the cheapest new iPhone, affordability remains relative.” On iPhone 16e vs. iPhone 14/15: “The iPhone 16e has an A18 chip, which is two generations ahead of the A16 chip in the iPhone 15. This alone makes it a better buy than an older model. Plus, the AI-powered features add value.” On Whether iPhone 16e Will Convert New Buyers: “Apple’s SE lineup has always been interesting. People hype them, but many still prefer to buy used flagship iPhones instead. New buyers might still opt for older used models over the iPhone 16e.” Recap: Is the iPhone 16e worth buying in Africa? The iPhone 16e is Apple’s most affordable entry in the iPhone 16 lineup, offering solid features like the A18 chip, 48MP camera, and Apple Intelligence. However, when factoring in import duties and reseller markups, its price in African markets may still feel steep for many buyers. Final Verdict If you want a brand-new iPhone at the lowest possible price, the iPhone 16e is a solid choice. If you’re looking for the best value for money, a used iPhone 14 Pro or 15 Pro might offer better performance at a similar cost. If you’re considering an Android alternative, flagship Tecno and Samsung A-series models could provide more competitive pricing with similar features. Fisayo Fosudo sums it up best: “The most affordable, best phone for this price from Apple.” Would you buy the iPhone 16e at its expected African price? Let us know in the comments!
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