Financial institutions were reportedly among the ten fastest-growing sectors of the Nigerian economy in 2023, with a growth rate of 28.86% from 17.24% in 2022. But fraud is becoming a significant threat to Nigeria’s financial system, with both traditional banks and fintech startups struggling to contain it.

In the latest fraud reveal, Wema Bank, a tier-2 Nigerian bank with ₦1.8 trillion ($1.6 billion) in customer deposits, reportedly lost ₦685 million ($594,943) to fraudulent activities in 2023. 

Wema, which saw its 2023 profits soar from ₦11 billion ($9.5 million) in 2022 to ₦35 billion ($30.3 million), had its performance overshadowed by the fraud.

How did it happen? According to a Wema Bank spokesperson, the losses came from their digital banking channels, collection and payment services, and transactions involving third-party partners on their platform.

The bank also cited inadequate Know Your Customer (KYC) procedures and compliance issues as contributing factors. To address the problem, Wema Bank has bolstered its fraud monitoring systems and expanded its digital compliance team. The bank also claims a decrease in fraud cases for the first quarter of 2024, though independent verification is pending.

Wema’s experience is not unique. In October 2023, Fidelity Bank reportedly lost $2.5 million to fraudsters in three attacks. Court documents also reveal that Access Bank, Nigeria’s largest bank by customer deposits filed lawsuits in June and July 2023 to recover a combined $6.9 million lost to illegal withdrawals. Fintech giants like Flutterwave haven’t been spared either, with alleged cyberattacks in March 2023, resulting in a $3.7 million loss. 

According to the Financial Institutions Training Centre (FITC), Nigerian financial institutions have lost over $201.5 million to fraud since 2020. 

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TikTok has reaffirmed its dedication to maintaining a safe environment for its users in Kenya. Fortune Mgwili-Sibanda, TikTok’s director of government and public policy for sub-Saharan Africa, this week, talked about how TikTok’s policies will provide guidance and serve as safety measures while appearing before the parliament. 

Mgwili-Sibanda explained that TikTok’s Community Guidelines will provide guidance on the regulations of the platform and will help the community feel positive and safe.

With a significant investment of over $2 billion globally in Trust and Safety initiatives this year, TikTok remains determined in its mission to prioritize user safety. 

Why is TikTok having this conversation? TikTok is engaging in a safety guideline discussion with Kenya’s parliament in response to a petition received by the Kenyan House of Assembly in 2023. The petition, submitted by a concerned citizen, called for TikTok’s ban due to explicit content. The petitioner highlighted a trend among users of creating sexual videos on TikTok during nighttime livestreams.

Is a ban the solution? President Ruto thought that a ban wasn’t the answer since many Kenyans are using TikTok for their careers. Instead, he had a virtual meeting with TikTok to improve how they moderate content. The CEO of Tik Tok Shou Zi Chew agreed to set up a TikTok office in Kenya to coordinate its operations on the continent. President Ruto said the move would ensure that content on the platform is moderated to fit community standards.

Moreover, the platform says it will continue hosting capacity-building workshops for policymakers and regulatory agencies, focusing on online safety, data privacy, and content moderation.

TikTok has also invited lawmakers and other government officials to visit its Transparency and Accountability Centre in Dublin. During this visit, legislators will get to observe firsthand how TikTok’s teams ensure the safety of the community.

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South Africa’s Openview, a free-to-view satellite platform owned by eMedia, has a history of battling MultiChoice, the pay-TV giant, over broadcasting rights. In October 2023, Openview took MultiChoice to court accusing the company of monopolising Rugby World Cup broadcasting rights. 

MultiChoice and the state-owned South African Broadcasting Company (SABC) reached last-minute agreements for the Rugby and Cricket World Cups, but with restrictions. SABC got rights to broadcast important matches, including those with South Africa’s teams, semis, and finals, but only on SABC channels, not Openview. This caused a dispute with eMedia.

What’s the issue now? Openview wants SABC to be able to air live sports (sub-licensed from MultiChoice) on its free satellite platform as its parent company, eMedia, argues that SABC’s exclusivity limits viewer choice and hinders competition.

The Competition Tribunal has now sided with eMedia in a temporary ruling. For the next six months, MultiChoice cannot enforce restrictions that prevent SABC from broadcasting sub-licensed sports on Openview. The Tribunal said the reasons for its decision will be issued in due course.

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After it completed a high-speed fibre optic link stretching 1,890 kilometres from Johannesburg, South Africa, to Swakopmund, Namibia, via Botswana, telecom operator, Paratus has made a significant stride in boosting digital connectivity between Africa and Europe.

The news: The Namibian company has launched a fibre network route from Johannesburg to Europe, making use of Google’s Equiano undersea cable infrastructure.

What does this mean? Paratus boasts a latency of 123 milliseconds and a capacity of 800 gigabits on this new route, which means quicker data transfer and smoother online experiences. The new route—the Botswana Kalahari Fiber—will offer an alternative path for internet traffic, mitigating disruptions caused by potential outages on existing undersea cables.

This development primarily benefits local network operators in South Africa. They can now utilise Paratus’ network to route internet traffic more efficiently, which leads to improved service and reliability for end-users.

Zoom out: Paratus isn’t just focused on South Africa. The company operates in several African countries, including Angola, Botswana, the Democratic Republic of Congo (DRC), Mozambique, Zambia, and a satellite network serving over 35 countries. Their reach extends beyond Africa, with points of presence in Europe, the UK, and the US.

GITEX Africa returns a second time on May 29–31, 2024, to Marrakech, Morocco, discussing ways to accelerate the continent’s digital health revolution. GITEX is the continent’s largest all-inclusive tech event renowned for uniting the brightest minds in the technology industry. 

Grab your tickets here.

Coin Name

Current Value

Day

Month

Bitcoin
$62,995

– 3.60%

– 9.19%

Ether
$3,039

– 3.06%

– 18.26%

IOTA

$0.80

– 9.99%

+ 66.38%

Solana
$132.42

– 10.75%

– 29.03%

* Data as of 05:40 AM WAT, April 16, 2024.

Norrsken is accepting applications from startups at its early (pre-seed) stage for its 2024 cohort. Selected startups will receive up to $125,000 in funding and pitch to an audience of hundreds of investors, potential partners and clients at Norrsken Investor Day. Apply by April 30.
Applications are now open for the DAAD Leadership for Africa Master’s Scholarship Programme. The programme aims to support the academic qualification and advancement of young refugees and national scholars from Burundi, Kenya, Rwanda, South Sudan, and Uganda at higher education institutions in Germany. Applicants will get a chance to learn a German language course for 6 months before study begins, and a Tuition-free M.A. or M.Sc. degree programme at a public or state-recognized university in Germany starting September/October 2025. Apply by June 7, 2024.
The 2024 African Business Heroes Competition is open for application. It aims to identify, support, and inspire the next generation of African entrepreneurs who are making an impact in their local communities, working to solve the most pressing problems, and building a more sustainable and inclusive economy for the future. Finalists get grant funds of up to $300,000, global recognition and exposure and targeted and practical training programmes. Apply by May 19.

Here’s what you should be looking at

Nigeria’s headline inflation accelerates to 33.2% despite the naira’s strong performance
The next wave: Is Nigeria ready for the AI revolution?
TECNO launches the powerful CAMON 30 Pro 5G phone as part of its CAMON 30 series
Leaked NYT Gaza memo tells journalists to avoid words “genocide,” “ethnic cleansing,” and “occupied territory”

Written by: Mariam Muhammad & Towobola Bamgbose

Edited by: Timi Odueso

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