Exclusive: GTBank gets court order to recover ₦1.9 billion erroneously credited to customer accounts in October 2024
Guaranty Trust (GTBank), a tier-1 Nigerian bank with a market capitalisation of ₦1.68 trillion, has been granted a court order to recover ₦1.9 billion mistakenly credited to customer accounts between October 28 and 29, 2024. The error occurred when the bank processed duplicate transactions while handling unapplied NIP (NIBSS Instant Payment) inflows. Upon discovering the error, GTBank began an internal investigation, which revealed that some of the funds had been moved to other banks, according to court filings. GTBank asked the court to place restrictions on accounts that received duplicate funds. That order was granted by Justice F.N Ogazi of the Federal High Court, Lagos, on Thursday and has been served on receiving banks, clearing the way for the funds to be returned. Guaranty Trust Bank did not immediately respond to a request for comments. The incident coincided with a period of significant disruption in GTBank’s services following its decision to switch its core banking application from Basis to Finacle in September 2024. Developed by Infosys, Finacle is the most popular banking application in Nigeria’s banking industry, and GTBank’s leadership visited India as part of the process of deciding on the switch. While the switch to Finacle was expected to streamline operations and enhance customer experience, it was fraught with difficulty. After the bank announced the completion of the migration in October 2024, customers began reporting erroneous transaction alerts, and for weeks, the bank’s banking channels were either unusable or unstable. While the court documents do not explicitly tie the duplicate transactions to the migration, documented incidents of customers completing without receiving credit or debit alerts may suggest a link. GTBank customers shared their frustrations over the disruptions and the bank’s silence on social media platforms like X between September and November. The bank issued a public apology in November 2024. Technology challenges centering around core banking upgrades were a major theme of 2024, with at least four commercial banks switching or upgrading their software. This led to weeks of customer disruption and a central bank directive stating that banks must first receive regulatory approval before commencing such upgrades in the future.
Read MoreTop 5 Kenyan startups to watch in 2025
In 2024, TechCabal’s big stories on the Kenyan startup ecosystem signalled mixed fortunes for founders. While shutdowns and downsizes topped our headlines, some startups bucked the trend with millions in fundraising, mergers and acquisitions, and ambitious cross-border expansions. Copia, a B2C e-commerce startup, and iProcure, a B2B agritech startup, entered administration in H1 2024 after failing to secure new funding. Copia’s co-founder, Tracey Turner, said she would launch a new entity, but this has not taken shape. M-KOPA navigated a complex tax claim in Kenya and increased its investment with an expanded phone assembly facility in Nairobi and an e-bike plant. “We are now profitable as an organisation and have been profitable for several quarters,” Mayur Patel, M-KOPA Fintech MD, told TechCabal in November 2024. In 2024, Kenya also witnessed the first two startup acquisitions, with Kopo Kopo and Hisa welcoming new owners. Craydel, a Kenyan ed-tech, also expanded to Zimbabwe, making it its fourth market on the continent. Here are our choices for Kenyan startups to watch in 2025: M-KOPA In September 2024, M-KOPA announced it had reached five million customers across five African markets as the company continued its pan-African expansion. This milestone makes it the first Kenyan financial services startup to record such impressive customer numbers. Founded in 2010 by Nick Hughes, Chad Larson and Jesse Moore, M-KOPA is a PAYGO fintech that provides affordable smartphones, solar panels and electric motorcycles to low-income earners. With Kenya’s tax claim now behind it, the company is keen to expand the market for its locally assembled smartphones and electric motorcycles. “We think about our success in terms of the scale we can achieve. We are financing progress in the lives of everyday earners, and that’s important for us because our customers are primarily self-employed individuals working in the informal economy,” Patel said. KopoKopo In August 2023, Nigeria’s newest unicorn, Moniepoint, finalised its acquisition of Kenya’s payments and credit startup, Kopo Kopo, for an undisclosed value. The transaction extends the fintech’s presence to East Africa’s biggest economy. Founded in 2012 by Ben Lyon and Dylan Higgins, Kopo Kopo offers payments solutions and credit facilities to small businesses and mid-size enterprises. Banks and mobile money control a significant chunk of Kenya’s payments and credit market. Regulators like the Central Bank of Kenya (CBK) have been tough on fintech, delaying critical approvals for operation. Moniepoint’s entry into Kenya will be closely watched and scrutiny from regulators will only increase. Craydel In November 2024, Kenyan ed-tech startup Craydel entered Zimbabwe, bringing to four the market the startup operates. The company has built a unified university applications platform for learners in Africa. Its university matchmaker offers the most personalised recommendations for students. Founded in 2021, Craydel assists African students to apply universities abroad. Craydel operates in Kenya, Uganda, Nigeria and Zimbabwe, with 600 partner universities across 45 countries. “The study abroad market in Africa is a multi-billion dollar, rapidly growing market. It is currently dominated by a large number of unorganised, fragmented and analogue study abroad agents,” said Manish Sardana, Craydel founder and CEO. Hisa In another major acquisition this year, Rise, a Nigerian fintech that gives customers access to selected global investments, acquired Hisa, a Kenyan investment startup. Hisa, which has retained its brand and operations after the acquisition, hopes to grow its customer base and introduce new products. Founded in 2020 by Eric Asuma and Eric Jackson, Hisa is a platform that allows users to invest in Kenyan and global assets including stocks, bonds and ETFs. “Hisa’s growth since the Risevest acquisition has been incredible. We’re scaling fast, fixing technical issues, and rolling out big changes,” said Asuma.”Interestingly, Hisa hit record-breaking trading volumes in the last week of November, highest in over a year, driven by the buzz around the US election.” Sukhiba Shukhiba, a Kenyan social commerce startup, raised $1.5 million when most players in the sector were downsizing or shutting down. Shukhiba is a B2B conversational e-commerce platform that allows customers to order for products on WhatsApp. Founded in 2020 by Ananth Raj and Abhinav Reddy, the startup claims that shoppers trust its platform more than e-commerce websites that do not “seem like there is a person behind that you can have a conversation with prior to purchase.”
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From Clicks to Clarity: TechCabal’s 2024 Journey
If you think the media industry’s failures with the “clicks and pageviews over everything” model have cured it of its obsession with numbers, think again. Numbers matter. Take The New York Times, with 11 million subscribers, or The Washington Post, which had 2.5 million subscribers before a rash of cancellations followed Jeff Bezos’ controversial refusal to endorse a presidential candidate. These numbers reflect business performance, but they also signal impact. Imagine mattering to 11 million people. In 2023, TechCabal set an ambitious goal of reaching 1 million unique monthly users, a huge jump from the 370,000 users we ended 2022 with. By October, we surpassed 1 million, and we’ve continued to grow well beyond that target. In 2024, our core focus was a deeper commitment to quality journalism—aiming to become the publication of record for every company leveraging technology. This was more challenging than tripling our user base. Depth means taking the time to fully understand a story, building expertise, and revisiting sources until we’re sure of the story’s full implications. Thorough, nuanced coverage is what sets us apart. In Nigeria’s tech ecosystem, there are only a few real secrets. Many of the stories that never get published exist in private group chats. Because people don’t always trust the media to treat these stories fairly, they keep these impactful stories to themselves. We’ve worked hard to change that and earn trust, allowing our nearly 2 million readers to engage with the same conversations and understand the issues as industry insiders. One area where this trust-building has been critical is banking. Nigeria’s top banks are worth trillions of naira and have become experts at controlling the media narrative. Yet there’s a gap in reporting—few stories help everyday customers understand the banks’ thinking. We’ve sought to fill that gap. For example, we reported on GTBank’s switch to a new core banking system—a move fraught with complications that even station attendants in Lagos discussed while customers tried to pay for fuel. We also covered Sterling Bank’s ambitious decision to build a custom core banking application. And while the jury’s still out on Sterling’s bold move, building your core banking product and offering it to others as a service is wise. It’s what Amazon did with AWS, turning a cost center into a product and profit center. If you’re wondering how much some of those changes cost, we reported it here. There’s still much to be done, but we’ve challenged traditional banking coverage and are excited to see other publications following suit. Fraud in the financial services sector remains a persistent problem. While many assumed fraud was limited to fintechs, our 2024 reporting showed it’s an industry-wide issue. Bad actors are more sophisticated than ever, collaborating on large-scale cyberattacks. In November, the Economic and Financial Crimes Commission (EFCC) arrested over 400 individuals allegedly involved in such schemes. While the bad guys unite, there’s a troubling lack of unity between fintechs and banks. Regulators have struggled to enforce consistent rules, making it easier for fraud to flourish. While the Central Bank’s emphasis on compliance is a step in the right direction, bad actors will continue to thrive without greater cooperation across the sector. Despite these challenges, there have been bright spots in the industry. This year, Africa’s newest unicorn, Moniepoint, raised $110 million in a Series C funding round. We reported on Moniepoint’s impressive growth before the hype, with insights into its profitable partnership with card scheme Verve and its commercial banking ambitions. Telecommunications, like banking, is an underreported sector in Nigeria. In 2024, we focused on bringing much-needed clarity to the industry. Frank Eleanya joined us early in the year with a mandate to peel back the layers of Nigeria’s telecoms sector. We reported on a massive hack at Globacom, the company’s leadership change, and the struggles of 9Mobile, which is under new ownership and hoping to address its many challenges. Meanwhile, Mafab, which holds Nigeria’s first 5G license, has done little with the technology since acquiring it but plans to launch 5G services in early 2025. There’s still an untapped market, with only a small portion of the country using 5G networks. For the observant—we saw some of your tweets—a theme for 2024 was expanding our coverage because technology isn’t just about startups. There’s technology in everything. While TechCabal focuses heavily on tech startups—we have two reporters focused on finding new and interesting startups, ideas, and the innovation that powers them—technology is integral to every aspect of modern life. That’s why we’ve expanded into banking and telecommunications, sectors where technology offerings impact people’s everyday experiences. TechCabal is a publication for everyone, and these industries—shaping how we communicate, transact, and interact—are vital to understanding the technology that drives our world. Pan-African ambitions Our coverage in Kenya coverage also grew in 2024 with reports on the acquisition of Hisa by Rise, AltSchool’s expansion to Kenya, and Access Bank’s acquisitions. This helped us expand our readership in Kenya and South Africa, bringing us closer to becoming a genuinely pan-African publication. The biggest story in Kenya in 2024 was the protest against the Finance Bill, which proposed taxes on remittances and other everyday goods. While this might seem like a political story, it’s also deeply connected to the tech landscape, as many of these taxes directly affect digital payment platforms and remittance services that rely on technology to function. The bill posed a leadership test for President William Ruto, whose popularity has waned significantly, and our coverage of this issue was crucial in understanding its implications on the tech ecosystem. To cover this story effectively, we had boots on the ground—remote reporting simply couldn’t capture the full context of how these proposed taxes would impact both the people and the digital infrastructure driving Kenya’s economy. A Look Ahead This letter is not a comprehensive overview of our 2024 coverage but a glimpse into how we approach our journalism. Our goal is to help you make sense of the complex issues shaping Africa’s tech and business landscape.
Read More10 African fintechs to watch in 2025
2024 has been the year for African fintech. Fintechs remain the most-funded startups in Africa’s tech ecosystem, securing 35% of the total funds raised in H1 2024. The sector also welcomed two new unicorns: Moniepoint and Tyme Bank. While the year has seen fintechs record successes, it’s worth looking at emerging fintech companies with potential for global reach. This article highlights four key product categories of fintechs to watch in 2025. Each category lists two or three startups to watch and their products. Credit Card Business—Allawee, Monapp Although card payments have grown to be the second most popular mode of payment in Nigeria, credit card adoption is yet to catch on. Only 2% of Nigerians own a credit card. While the Nigerian government plans to raise the adoption of consumer credit to 50% by 2030, several fintech startups have launched to offer credit solutions to their customers. Allawee: Launched in 2023, Allawee Technologies Limited is a licensed Digital Money Lender (DML) that offers credit cards to Nigerians. In December 2024, it partnered with Providus Bank, Mastercard, and Remita to launch its credit card offering. The card allows users to get credit equal to 30–90% of their net income, up to a maximum of ₦1,000,000 ($605). Customers can use the credit card to make payments like regular debit cards. They can shop online or pay at hardware terminals like ATMs and PoS devices. Users have up to four months to repay their debts in a maximum of three installments. MONAPP: While credit-card behemoth American Express has launched in Nigeria to cater to luxury travelers, restaurants, and hotels, MONAPP, a Nigerian fintech company, is targeting a niche audience: commercial transportation. MONAPP provides easy access to credit—through its credit cards—to commercial drivers for vehicle maintenance and emergency repairs. Many drivers operate under hire-purchase agreements, leaving them with limited funds for unexpected vehicle maintenance. Contactless payments— Cash Africa, Karla, TAP Although contactless payments is still in the early stages of adoption in Nigeria, startups and banks are gearing up for its adoption. Nigerian banks like UBA and Providushave been issuing contactless cards—capped at N30,000 transactions—to customers inthe past three years. While more NFC-enabled phones and a likely change in user behavior could enable the adoption of contactless payments, startups like Cash Africa, Karla, and TAP are positioning themselves first in the market. TAP: Launched in 2017 by Olamide Afolabi, Michael Oluwole, and Kabir Yabo, Touch and Pay Technologies, the YCombinator-backed startup support payments for mobility services in Lagos through its NFC-enabled Cowry Cards. The fintech is solely responsible for accepting payments on Lagos’ intracity transport system, including the Bus Rapid Transit (BRT), a popular public-private metro partnership, and Lagos ferries and train service. The startup claims that its Cowry card is used for 500,000 daily trip payments by 3.8 million users in Lagos. Cash Africa: Launched in 2023, CashAfrica builds an API that allows banks and fintechs to offer customers a tap-to-pay option within their banking apps. While working to integrate with banks, the fintech has a mobile app—Cash Mobile—that allows users to make transactions using the tap-to-pay feature on their mobile phones Karla: Karla is a Nigerian-based contactless payment platform that allows you to make quick and secure payments with your mobile device or contactless card. It enables you to link your preferred payment method to the Karla app and then use your device or card at participating merchants’ contactless terminals to complete transactions swiftly and securely. Payment Infrastructure— Zone, Keyrails, Hub2 The surge in African cross-border trade has led to a demand for robust payment infrastructure with robust anti-fraud measures and adherence to KYC/AML regulations. New startups across the continent are rising to the task. Zone: In 2022, Zone, a Nigerian payments infrastructure company, broke off from its parent company, Appzone, after it secured a payment switching and processing license from the Central Bank of Nigeria. The startup became the first licensed African payment infrastructure company powered by blockchain technology. Zone claims over 15 of Africa’s major banks and fintech businesses—including Access Bank Plc, Guaranty Trust Bank Plc, United Bank of Africa, Fair Money, Baxi, and Kongapay—use its network to process payments. In August 2024, the company partnered with the Nigerian Inter-Bank Settlement Scheme (NIBSS) to introduce blockchain technology to Point-of-sale (POS) terminal payments. The partnership will allow participating financial institutions to view the blockchain ledger that contains all recorded transactions, helping banks reconcile transactions, settle disputes quickly, cut customer wait times, and reduce chargebacks and other POS-related fraud. Keyrails: Launched in 2023, Keyrails is a global payments infrastructure company that provides payment rails for cross-border transactions among businesses and users in the US, Africa, and China. The startup enables seamless, non-pre-funded international 1st & 3rd party payments through SWIFT & local banking rails, all initiated directly from a USDC treasury. HUB2: Launched in 2019 by Ashley Gauzere, Ivory Coast-based fintech, HUB2 wants to become the “Stripe for Francophone Africa.” The payment aggregator enables fintechs to collect payments and payouts in markets they operate in through a unified payment infrastructure API. HUB2 allows fintech companies to collect mobile money, bank transfers, card payments, and cryptocurrency through a single API. It operates in six Francophone countries—Senegal, Burkina Faso, Benin, Togo, and Cameroon—and serves clients like Ghana’s Zeepay, Tanzania’s NALA, SA’s Onafriq and YC-backed Ivorian neobank, Djamo. Escrow services— Aje, Middleman In 2022, social commerce in Africa and the Middle East was estimated to be a $9 billion market. However, as more Africans adopt online shopping, social commerce has been a hotbed for fraud and scams. Startups like Middleman and Aje have become important in reducing the lack of trust on social media platforms. Middleman: Launched in 2023 by Omolara Dada and Odion Abolagba, Middleman is an escrow service that acts as a safe deposit to collect and hold payments from customers until the customers confirm that the products they have received are satisfactory. To initiate a transaction on Middleman, the vendor creates an escrow. The platform then sends the buyer a payment prompt
Read MoreTop 5 blockchain use cases in Nigeria you should know about
“Businesses are no longer afraid to work with us now,” a spokesperson for Quidax, Nigeria’s first licensed cryptocurrency exchange, said at a stablecoins event in December 2024. Her comments summarise the reality in Nigeria where products built for blockchain use cases have been met with skepticism by businesses and high-handed scrutiny from regulators. While cryptocurrency is merely a subset of blockchain applications, regulators’ shadow over it has also affected other applications of blockchain in healthcare, gaming, and investments where digital assets are used. The good news is that regulations are now being developed and companies in the sector are now getting licenses, paving the way for a more conducive environment for blockchain innovation. The technology continues to evolve, becoming more user-friendly and accessible to the average person. Here are the top five blockchain use cases in Nigeria and some of the startups building in each of them: Fintech Traditional technology has made tremendous progress toward solving the shortcomings of the various services provided by Africa’s traditional banking system—savings, payments, lending, investment, etc. However, the problem remains largely unsolved: cross-border payments still need to be cheaper and faster. Point-of-sale payments need to be cheaper and more interoperable. Financial investments need to be more accessible. Lending needs to be more accessible and derisked. Several blockchain companies have emerged across the continent, striving to meet each or all of these needs. This is the most popular of all blockchain use cases in Nigeria so there are significantly more startups playing in this field than others. Here are a few of them: Bitnob Bitnob enables cross-border payments with its virtual cards and in-app transfers. It also provides APIs with which other platforms can provide the same services. Bitnob is built on Bitcoin and Lightning Network, a second layer built on Bitcoin for faster transactions. The company, founded in 2020 by Bernard Parah, Adeolu Akinyemi, and Usman Majeed, claims to have an annualised total payment volume of $1.3 billion and that it is currently cash-flow positive. Canza Finance This startup hopes to become a web3 bank in the future. For now, its most popular product is the Baki, which enables businesses to make cross-border payments. It allows businesses to swap currencies at official rates, reducing transaction costs. Former AT&T employees Pascal Ntsama and Oyedeji Oluwole launched the startup in 2019. Zone Zone runs a blockchain network that enables payments in foreign currencies. It has been onboarding financial institutions onto its network to process transactions without intermediaries. Its native blockchain network enables instant settlement in other local currencies, along with automatic reconciliation and dispute management. Obi Emetarom, Emeka Emetarom and Wale Onawunmi spun Zone off from Appzone, the banking as a service business they founded in 2008. Prominent Nigerian financial institutions, including First Bank, UBA, and Zenith Bank, are on Zone’s peer-to-peer payment settling infrastructure. In September 2024, Zone announced that Baxi by Onafriq, FairMoney Microfinance Bank, and KongaPay—popular fintechs—joined its network. Mansa Finance Mansa Finance is a decentralised finance (DeFi) platform that provides asset-backed stablecoin lending, particularly to businesses, especially payment providers who need adequate funding to facilitate cross-border settlements for individuals and businesses. Mansa sources this capital from institutional and accredited investors. The company, Mouloukou Sanoh, officially launched in August 2024. Mansa claims to have processed over $3 million in transactions since. Onboard This startup launched in 2022 to help users “be their bank.” It is a self-custody wallet for managing digital assets—cryptocurrencies, tokens, etc without intermediaries. Onboard Wallet enables the transfer of funds directly to a bank account, circumventing centralized exchanges. Users can also send and receive payments in EUR and USD with the wallet. Finna This startup enables borrowers to secure low-interest Naira loans by pledging stablecoins (cryptocurrencies pegged to the US dollar) as collateral. This allows individuals and businesses to access Naira for immediate needs while preserving their valuable crypto assets, which may be appreciated significantly over time. It was founded in 2023 by Adebayo Juwon, former Business and Operations Manager at FTX, a now-defunct cryptocurrency exchange, and Agbona Igwemoh, former Chief Operations and Marketing Officer at Kylin Network, a popular blockchain network. Blockradar This is a B2B API-based blockchain product that enables fintech companies to easily integrate multichain wallets with which their customers can make stablecoin deposits and payments. This wallet is non-custodial, meaning users have full control of their funds, not held by BlockRadar. The company was founded in May 2024 by Abdulfatai Suleiman, the co-founder of Lazerpay, a crypto startup that enables businesses to accept cryptocurrency but shut down. Crypto Exchange and Marketplace This is one of the most popular applications of blockchain technology in Nigeria. A cryptocurrency exchange is a platform that allows users to buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, etc. Nigeria is the most prominent crypto market in Africa—of the $117.1 billion in crypto value circulated in Africa between July 2022 and June 2023, Nigeria received nearly $60 billion. Many exchanges have expanded their services to include cross-border payments, investments, and savings. Here are some of the crypto exchanges operating in the country: Quidax This is the first cryptocurrency exchange in Nigeria to be licensed by the country’s Securities and Exchange Commission (SEC) after years of tumultuous relations, including a ban. Founded in 2017 by Buchi Okoro and Morris Eberioma, Quidax facilitates the buying, selling, and storing of cryptocurrencies. It boasts a 24-hour spot trading volume of $7.4 million and supports over 20 cryptocurrencies. The platform also provides cards that enable payments with cryptocurrencies. Busha Founded in 2020 by Michael Adeyeri and Moyo Sodipo, Busha is another licensed cryptocurrency exchange in Nigeria. It enables the trading of cryptocurrencies. Busha also empowers users to spend their crypto like fiat currency or earn interest on it. The company is also exploring means to enable traders to collect crypto as payment, according to its website. Yellow Card Yellow Card facilitates the buying and selling of stablecoins—cryptocurrencies pegged to the dollar like USDT, USDC, and PYUSD. Initially focused on retail customers, the company has shifted its focus
Read MoreA beginner’s guide to investing in Nigerian startups
So you have decided to invest in Nigerian startups? Congratulations! You’re about to embark on an exciting adventure. Investing in Nigerian startups can be financially rewarding but you already know that. You saw Moniepoint hit the unicorn milestone and calculated how much an early investor might have cashed out. You also saw how Paystack’s 2022 acquisition changed the game for Nigeria’s tech ecosystem by validating the idea that startups can provide huge windfalls and now you’re keen to benefit from those windfalls. As a first-time investor looking to back the next big thing, this guide will answer key questions and help you get started. Why Nigerian startups? First off, many Nigerian startups are addressing real-world problems with technology. OPay, Moniepoint, and PalmPay became synonymous with successful transactions in 2023 as Nigerian bank apps struggled with increased demand during the cash scarcity. Nowadays, seven times out of ten, whenever I am paying for something in person or withdrawing cash from POS agents, I send the money to an account operated by one of these fintechs. Nigerian startups are innovative. Touch and Pay (Cowrycard), a profitable startup that processed over ₦20 billion in 2024, has familiarised contactless payments to many Nigerians. In Lagos, Africa’s second-most populous city, all passengers on government-run public transport must use Cowry cards for fare payments. CashAfrica even lets Nigerians make contactless payments from their phones. Nigerians love their startups and more Nigerians rely on apps built by these startups for almost all aspects of daily life. Chowdeck, a food delivery app, is so popular among young people that Afrobeats’ biggest stars and Nigeria’s biggest banks advertise on it. While most startup investments are long-term commitments that require exit opportunities like acquisitions and IPOs, there’s still an opportunity to make a quick buck from investing in startups through secondary share sales (selling to other investors). In January 2024, TechCabal exclusively reported that one VC firm made such a significant profit from secondary share sales that it returned its entire $5 million fund from that deal, showing how much investor interest is in Nigerian startups. How to start investing in Nigerian startups? There are several ways to invest in Nigerian startups. As an angel investor, you can invest between $5,000 and $10,000 in early-stage startups in exchange for equity through syndicates like Lagos Angel Network and HoaQ, which help derisk your investment by pooling resources, expertise, and networks of other angel investors. Or you could meet founders at tech events like Moonshot by TechCabal and ask them about their startup, conduct due diligence yourself or outsource your investigation to companies like Diligence Africa, and negotiate how much equity you get for your investment. You can also invest through small-ticket investment platforms like GetEquity, where you can invest from as little as $100 in exchange for equity in startups like Gokada. What should you look out for in a startup? It is critical to conduct due diligence before investing in startups all over the world and Nigeria is no exception. Before investing, you should understand the team behind the startup. After learning about the founders, you should be convinced they have the skills, experience, and drive to succeed. You should also be convinced about the problem the startup is addressing and its proposed solution. Ideally, the startup should operate in a large, expanding market. It should also have impressive customer growth, revenue milestones, or partnerships. To maximize your chances of a successful investment, the business should be able to scale quickly without a substantial rise in costs. Additionally, you should review their financial statements to assess the startup’s burn rate and runway, ensuring they have a clear path to sustainability or profitability. What risks should you be aware of? Investing in Nigerian startups comes with significant risks, including regulatory uncertainty. In April 2024, regulators banned five fintechs from onboarding new customers and imposed fines as high as ₦1 billion. Nigeria’s regulatory landscape is also notoriously volatile. In 2020, the Lagos State government abruptly banned two-wheelers overnight, effectively dismantling the ride-hailing market for startups like Gokada, ORide, and Max. The startup also operates in an inflationary environment with currency fluctuations, which can significantly impact business operations and profitability. You will also likely wait for acquisitions or IPOs before realising returns, as startup investments are often long-term, with limited opportunities for quick exits. How to reduce risks? Start small. You should begin with an amount you can comfortably afford to lose while gaining experience in startup investing. Consider building a portfolio by spreading your investments across different startups to reduce your exposure. Also, don’t forget to monitor the startup’s progress. Stay engaged with your portfolio companies by requesting regular investor reports to track their growth and address potential challenges. Investing in Nigerian startups is an exciting way to support innovation and potentially earn significant returns. With thorough research, a clear strategy, and a willingness to take calculated risks, you can make informed decisions and contribute to the growth of Nigeria’s dynamic startup ecosystem while earning rewarding returns. Just to be clear, this is not financial advice. But then again, you’re probably not the type to take financial advice from a journalist anyway.
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Next Wave: 2024 in review
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published on 22 Dec This marks our final edition of the Next Wave in 2024–and what a year it has been! Once again, it was a privilege to serve our readers from across the globe with insights on trends and events in Africa’s dynamic tech startup ecosystem. From our coverage this year, it’s clear that innovation has moved at an unprecedented pace–this has come with challenges for the industry. From breakthroughs in fintech and climate tech to increasing cybersecurity challenges facing African banks, 2024 has been a year of great achievements and sobering lessons. It was a pleasure to send out a newsletter every Sunday that explored some of these issues in depth. In this last edition, we have summarised the five most-read and thought-provoking Next Wave newsletters in 2024. The future of fintech regulations Before fintech can be effectively regulated, we need to understand its peculiarities, as distinct from those of traditional finance institutions. Regulators must understand the infrastructure fintechs operate on. In a fintech company, innovation moves faster than regulations can keep up with, so regulation must be flexible enough to accommodate, or even preempt these changes. A middle-ground approach to regulation can be considered instead of issuing outright bans or restrictions that hurt the fintech sector. Take a glimpse into the future here. What’s the future of Kenyan fintechs? Founders must present a compelling business model, with proof they can be profitable and acquire customers to receive investors’ backing. Smartphone-friendly technology alone is not enough to unseat Kenyan traditional banks and telcos, which have proven they can introduce some of the features that neobanks use to capture the market. In a fintech company, innovation moves faster than regulations can keep up with, so regulation must be flexible enough to accommodate, or even preempt these changes.Traditional financial institutions have also proved they can pour millions and poach staff from fintechs’ ranks, moving with their ideas. Read it here. Showmax is promising, but it needs to fix a few technical basics 2024 shaped up to be a challenging year for streaming platforms in Africa after Showmax, the continent’s leading video-on-demand platform, revamped to become Showmax 2.0. Its streaming technology received a boost and is now leveraging Peacock’s technology. The company has also set higher ambitions to reach 50 million subscribers within five years. However, has it set such a high target and neglected the basics? Read it here. Housing startups need to evolve Despite claims that inflation and high interest rates affect real estate’s growth potential, the fact remains this: proptech has failed to evolve significantly. Many Nigerian proptechs established over seven years ago have been unable to transform real estate using technology. At best, these startups offere monthly rent payments and list properties for sale or rent online. The future of housing, however, has three possible solutions: crowdsourcing of real estate projects, the use of tech-driven advancements in construction, and rent-to-own schemes that make real estate attractive to millennials and Gen Zs. Build up your knowledge here What is Africa’s place in the EU AI treaty? What will be the place of Africa in AI technology? We all kicked off 2024 with the notion that this year would be the year most countries will pass AI regulations. By July, it was clear that wasn’t the case; nothing much had happened on the continent. This may be why the African voice is missing in the drafting of the EU AI Treaty. The exclusion of Africa in the development of the treaty raises challenges for a continent burgeoning with innovation. Without Africa on the table, the new treaty risks worsening the data dependency that has plagued the continent in technological developments. Read it here At Next Wave, we look forward to giving more thought-provoking insights to help you understand the current state and future of Africa’s tech and business climate. NextWave will be back in your inboxes by January 12. Merry Christmas and Happy 2025! Adonijah Ndege – Senior Reporter Feel free to email adonijah[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa. If you liked this edition of Next Wave, please share with your friends. And feel free to reply with thoughts and feedback. We welcome those. 18, Nnobi Street, Surulere, Lagos, Nigeria View in Map You received this email because you signed up on our website or made purchase from us.If you know longer wish to recieve these emails, please unsubscribe
Read MoreTop 5 e-commerce platforms in Nigeria to start selling in 2025
What a time to be an entrepreneur, setting up an online business to sell goods or services has never been easier. Thanks to e-commerce platforms, you can sell to Nigeria’s over 200 million population from the comfort of your home. There are several e-commerce platforms in Nigeria so you may be spoiled for choice. However, you should make some considerations to pick the right one. When selecting a platform: the size of the user base, the level of customer trust, commission fees, payment methods, and the platform’s logistics capabilities. By carefully weighing these factors, you can choose the most suitable e-commerce platform to launch and grow your online business in Nigeria. Here are our top picks for e-commerce platforms in Nigeria to start selling in 2025: Jumia Jumia is the most popular e-commerce platform in Nigeria with over 81 million monthly website visits. The platform processed orders worth over $750 million in 2023 from its 2.3 million active customers. While this figure represents sales across various markets, Nigeria is Jumia’s largest market. Jumia handles delivery with fees ranging from ₦500 to ₦5000 depending on the size and weight of the item and the delivery location. It also offers pick-up centres across the country where buyers can collect their orders. Jumia also enables global shipping, making it an ideal platform for businesses outside Nigeria to reach the Nigerian market. The platform features an affiliate marketing program that rewards influencers and independent marketers with commissions on successful sales generated through their unique tracking links. Jumia also leverages its “J Force” network, a team of salespeople who assist customers in areas with limited internet or mobile penetration. Sellers can further enhance product visibility through various promotional options available on the platform. Konga Konga.com is another leading e-commerce website in Nigeria. In 2015, it was ranked as the most visited e-commerce website, attracting over 22 million visits throughout the year. In November 2024, it received about 2.5 million visits. It is easy to sign up as a seller on the platform which charges a 3% commission on each sale. Konga offers a convenient shopping experience. Konga’s own logistics arm, K-Xpress, ensures efficient delivery of goods. The platform offers a wide range of products across various categories, including computers, phones, clothing, shoes, and more. Sellers on Konga have the flexibility to determine their own return policy, which can be a 7-day return policy or something else entirely, depending on their preference. Jiji Jiji is one of the popular e-commerce platforms in Nigeria, ranking as the 42nd most visited website in the country. It gets about 12 million unique visitors monthly. This popularity is partly attributed to its pre-installation on many Android phones and its accessibility to Airtel network users even without internet access. In 2023, it attracted 65 million unique visitors, in Nigeria and seven other African countries it operates in. Listing on Jiji is free, but sellers can opt for Premium Services to increase their visibility, gain more listings, and reach a wider audience, ultimately driving more leads and sales. Jiji also allows vendors to promote goods through banner ads on Google. It has over 200,000 sellers who have processed annual transaction volumes ranging from $10 to $20 billion. Unlike Jumia, Jiji does not handle logistics. Instead, it provides a platform for direct communication between buyers and sellers, allowing them to arrange their own deliveries or pickups. While this may not suit businesses seeking a full-fledged e-commerce platform with integrated logistics, it fosters trust between buyers and sellers by enabling direct interaction. Selar Selar has grown in popularity as the one-stop shop for marketing digital products, e-books, online courses, event tickets, etc. It offers an option for selling physical products. You retain ownership of your valuable customer data, including email addresses and purchase history. This allows you to nurture customer loyalty and implement targeted marketing campaigns. Importantly, you gain greater control over your website’s SEO, optimizing your store for search engines and improving your organic search rankings – a crucial factor for long-term success. The platform paid out over ₦4 billion ($4.4 million) to over 150,000 sellers in 2023. It has both free and paid listing options. For its Software-as-a-Service business, the startup offers two paid plans – Pro and Turbo – that provide creators with customisable features. These plans cost ₦8,000 ($8.81) and ₦15,000 ($16.6), respectively. Creators can access extra features like PayPal and Stripe integration, affiliate access, and a custom domain. The platform partners with global payment providers like PayPal, Stripe, Paystack, and MPesa, enabling you to receive payments from countries outside Nigeria. It charges a commission only on each product sold: a 4%-6% commission fee for African currencies and 7% for dollar transactions. Selar also runs an affiliate marketing program which allows sellers to add their preferred marketers. Anyone can market your products and earn a commission on every purchase made through their custom link. In 2023, 8,000 products were sold through this program, generating ₦187 million ($207,506) for marketers. Bumpa If you prefer to build your own online store instead of listing on platforms like Jumia, Bumpa can be a strong contender. Bumpa empowers sellers to create professional websites, manage inventory, communicate with customers, and analyse their business performance all within a single platform. It also enables social media integration, allowing businesses to connect their Instagram accounts, and receive DMs directly within the Bumpa app. Building your online store on Bumpa grants you complete control over your brand’s online presence. You can customize the design and branding to create a unique and memorable customer experience that perfectly reflects your brand identity. Bumpa offers a flexible pricing model, with a free plan and subscription plans ranging from ₦15,000 to ₦150,000 per month to suit various business needs.
Read MoreStarlink raises prices again to ₦75,000 days after NCC signals intention to approve tariff hike
Satellite internet service Starlink has informed its Nigerian customers that it will raisd monthly subscription prices, with the new rates set to take effect on January 27, 2025. New subscribers will immediately pay the adjusted prices while existing customers will see the changes reflected in their upcoming bills. In an email to users, Starlink explained, “To continue enhancing the Starlink network and provide reliable, high-quality service across Nigeria, we are adjusting our monthly subscription prices. These changes are part of our ongoing commitment to investing in the infrastructure needed to improve your experience with Starlink.” Under the new pricing structure, the lowest subscription tier will increase significantly from ₦38,000 to ₦75,000 per month. In addition, the mobile global roaming service will now cost ₦717,000 monthly. This is the second time Starlink has attempted a price hike in Nigeria. The Nigerian Communications Commission (NCC) rejected its previous increase in October on the grounds that the company had not sought the necessary regulatory approval. For years, Nigerian telecom operators have been lobbying for tariff increases but have faced challenges in gaining approval from the NCC. However, the NCC is set to approve an increase in the first quarter of 2025, a development first reported by TechCabal. Starlink’s email to customers suggests that the company is preparing for this timeline to align with the anticipated regulatory changes. As the Nigerian internet market evolves, this latest development may signal a broader shift in pricing strategies for satellite and telecom services, impacting both consumers and the competitive landscape.
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The most popular payment methods on Nigeria 2024: Everyone does transfers
In 2024, Nigerians increasingly used bank transfers as digital payments continued their dominant run after a cash crunch in 2023. While cash remains the dominant means of payment in the country, “Nigerians now prefer digital methods for making payments, reflecting a shift away from traditional cash-based transactions,” the Central Bank of Nigeria (CBN) said in a June 2024 report. The volume and value of instant online transactions surged to 5.63 billion and ₦476.89 trillion in the H1 2024, up from 3.5 billion and ₦256.85 trillion in the same period of 2023. To put it in perspective, Nigerians increased how often and how much they paid online by 60% and 85%, respectively. When Nigerians pay online, over half use bank transfers, as web transfers account for over 51% of total online payment transactions, according to the Central Bank of Nigeria. POS devices follow at a distant second, accounting for 28.5% of transactions, while mobile devices contributed 15.5%. ATMs ranked fourth with 2.2%, and direct debit accounted for just 0.44%. Bank transfers are a convenient means of payment for many Nigerians as they are instant and with fintechs like OPay, PalmPay, and Moniepoint becoming trusted and popular choices, it has quickly become the preferred choice for small ticket payments. Many fintechs, realising the dominance and growth of transfers in online payments, have increasingly built products leveraging this trend. Paystack has integrated with several Nigerian banks and fintechs to allow customers to pay online directly from their accounts after transfers accounted for over half of all transactions it processed in 2023. POS transactions have grown wildly in the past five years In 2019, PoS transactions were valued at ₦3.21 trillion. In just five years, PoS transactions have surged to over ₦85 trillion, a staggering 2576.44% increase. A lot has changed in that time, but the growth of POS transactions has been driven by the agency banking industry, which now boasts 1.5 million agents, and fintechs like OPay, Moniepoint, and PalmPay. In the first half of 2024, over 6 billion transactions were completed via PoS devices, which amounts to a billion monthly, over 33 million transactions daily, and over 1.3 million every hour. How often do Nigerians use cheques today? The answer is rarely. Customers are slowly phasing out cheques as the volume of cheques cleared dropped by 13% from 7.92 million in the second half of 2023 to 6.88 million in the first half of 2024. While the value rose slightly by 2%, increasing from ₦8.553 trillion to ₦8.741 trillion, customers prefer to use electronic and alternative payment channels over cheques. ATMs might be relics in five years Many Nigerians have grown accustomed to seeing “Out of Service” messages displayed on ATMs. Not only are ATMs often out of service, but there are also far too few of them across the country to meet demand. There are only 16,000 active ATMs in Nigeria and with a banking population of 106 million adults, Nigeria requires almost 70,000 ATMs to meet demand. This scarcity and unreliability led to the value of those transactions falling by 10%, as Nigerians used ATMs for only ₦12 trillion worth of transactions—seven times less than the value of POS transactions. Surprisingly, the volume of ATM transactions increased by 1%, rising from 492.76 million in the second half of 2023 to 496.44 million in the first half of 2024. But this growth is a rare spot with ATMs; just five years ago, Nigerians performed 839.8 million transactions with ATMs. While other payment methods have grown over the years, ATM transactions have halved, and in just five years they might be a relic of a distant past when Nigerians relied on them for cash. Overall, 2024 marked a pivotal year in Nigeria’s payment ecosystem, with a clear shift towards digital payment methods, driven by increased internet penetration, smartphone usage, and a growing preference for convenient and secure transaction channels.
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