COMESA investigates Airtel, MTN over hidden mobile money fees
The COMESA Competition Commission is investigating Airtel Mobile Commerce BV and MTN Group for allegedly misleading customers about transaction fees and failing to disclose foreign currency exchange rates for cross-border transfers in multiple markets. Airtel is under scrutiny for violating consumer protection laws in Kenya, Uganda, and Malawi, while MTN Group faces similar allegations in Uganda. Payment platforms operating with the COMESA region–a bloc of 21 African countries–must disclose the full cost of transactions, including forex charges before they confirm any payment. The requirement aims to protect consumers by promoting transparency in money transfer fees. “In the case of Airtel Mobile Money Kenya, the charges displayed to the sender before confirming the transaction are, in some instances, different from the actual charges indicated in the final confirmation message and details of the intermediary parties, as well as the exchange rate used are not disclosed to consumers,” COMESA Competition Commission said in a notice. In Malawi, the commission has accused Airtel Mobile Commerce Malawi Limited of failing to disclose transaction details, including sender information, fees charged, and intermediary parties. These alleged omissions violate the bloc’s anti-trust regulations, which mandate transparency from companies operating within the 21-member trade area. Airtel’s mobile money services in Malawi and Uganda also did not give senders the exchange used in cross-border transfers and the amount in recipients’ currency, COMESA said their findings show. “The alleged conducts are considered misleading and unconscionable as it denies consumers the right to material information required to make informed decisions,” the commission said. In some instances, the exchange rate displayed to users in Uganda differed from the rate applied to transactions. The operator did not also reveal the extent of consumer information shared with intermediaries involved in the transfer process. For its part, MTN Mobile Money Uganda Limited allegedly displayed different amounts to senders what recipients received in international money transfers. While the investigations will establish whether the telcos breached regional anti-trust laws, they do not, at this point, imply unfair business practices on the part of MTN Group and Airtel.
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Startups don’t die—they adapt with purpose
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 02 Feb, 2025 The world of startups has always been high-stakes. Economic turbulence like currency devaluation in Nigeria and Kenya’s tax hikes to meet its debt obligations, add an extra layer of pressure for African startups. Amid these challenges, resilience has become their defining trait. While large corporations with deep pockets and established infrastructure can weather storms, startups rely on another important feature: adaptability. Yet, the prevailing narrative that startups must constantly adapt is only part of the story. Adaptability is critical, yet it risks becoming a crutch if it isn’t grounded in a clear vision and solid market understanding. Take Paystack, for instance, which centres its growth on enabling SMEs, strategically solving a key pain point on the continent, integrating with global platforms and focusing on scalable digital onboarding. Paystack’s success wasn’t just about reacting to market changes; it was about a calculated response to market needs, based on a deep understanding of its core mission. Next Wave continues after this ad. Join millions of Nigerians earning 20% interest on their savings with zero risk. Trusted by 35 million users and 1.2 million businesses, PalmPay empowers your money to do more. Start saving today! Resilience, in this case, isn’t about surviving through luck—it’s about robust execution. But resilience also goes beyond sheer adaptability. Too often, startups are told that in order to succeed, they must pivot and embrace change at every turn. But what if constant adaptation is a double-edged sword? Excessive adaptability can also dilute vision. While flexibility and agility are valuable traits, startups need more than just a willingness to change direction at a moment’s notice. History shows there’s merit in stubbornness—a commitment to a core idea, even in the face of market resistance. In fact, sticking to a rigid vision can differentiate a startup and attract investors looking for a company with a clear, unwavering purpose. The question, then, isn’t simply “adapt or die,” but “adapt with purpose or die.” Startups that flit between trends or constantly change direction without clear strategy risk losing their identity, wasting time, and, ultimately, failing. Partner Content: Read: [Raenest Returns as Headline Partner for Africa Tech Summit Nairobi 2025, Championing Global Growth for African Tech] here. Failure isn’t just a closed website; it’s the shattered dreams of founders, the lost livelihoods of employees, and the unfulfilled potential of an idea. The stakes are higher for African startups that operate with limited resources and in challenging environments. Failure here means significant debt, a damaged reputation, and repercussions for future investment in the local ecosystem. Of course, some startups pivot into new ventures or merge with other entities, but this is often the exception. For most, failure is final—a painful chapter that ends a journey. The pressure to constantly adapt can lead to a loss of focus and undermine the initial vision, eventually killing the startup’s original idea. Is constant adaptation the best strategy? Or would a more measured approach, balancing agility with a strong core vision, be more sustainable? Perhaps fewer startups would “die” if they adapted with purpose, based on a long-term vision, rather than simply reacting to every passing trend. If resilient startups understand one thing, it’s that they can’t succeed in isolation. Success isn’t just about internal strategies; it’s also about tapping into external support. Startups thrive when they connect with entrepreneurial networks—both physical and digital—that provide resources, knowledge, and opportunities otherwise out of reach. Next Wave continues after this ad. Don’t miss your chance to be part of this revolutionary across two international capitals at the heart of the UAE’s rise to global AI dominance—Abu Dhabi and Dubai from 4—6th February 2025. Secure your spot today! In the past, building these networks meant attending industry conferences or joining local business associations. Today, the game has changed. Startups can now leverage online platforms like LinkedIn, Slack communities, and crowdfunding sites to build global connections. These networks offer mentorship, partnerships, and investor access—critical lifelines that allow startups to navigate uncertainty with greater ease. Innovation isn’t just about creating groundbreaking products; it’s about responding to change faster than the competition. Resilient startups don’t just innovate—they integrate innovation into their DNA. Consider M-KOPA, the Kenyan credit startup. Founder Jesse Moore identified a critical gap: millions of people lacked electricity but had mobile phones. By offering pay-as-you-go solar systems that could be paid for in small installments via mobile money (M-PESA), M-KOPA provided an innovative solution to an urgent problem. Moore didn’t chase flashy features; he focused on affordability and accessibility. The result? Over 3 million customers and a revenue model that scaled sustainably. Innovation, though, doesn’t always have to be about creating the next big thing. In fact, the most successful startups often find new ways to solve old problems. The challenge is to innovate adaptively, responding to market shifts before the competition can. For example, during the pandemic, many food delivery startups pivoted to offer grocery delivery services, a trend that continues to grow today. Partner Content: Read: [Flutterwave, Yellow Card, OmniRetail named finalists for inaugural Africa Tech Summit Awards] here. The world is only becoming less predictable, but uncertainty doesn’t have to spell doom for startups. Those that adapt, innovate with purpose, and build strong networks will not only survive economic uncertainty—they’ll emerge stronger. The real question isn’t whether startups should adapt to survive; it’s how they can adapt with purpose, staying true to their mission, and navigating change in a way that’s sustainable. Startups rely on wit, but another argument comes into play: whether these firms need to adapt or wither away. Focusing on the same argument may create a false dichotomy. Startups need deep
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👨🏿🚀TechCabal Daily – Telecom Turbulence
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy new month We’re now on TikTok! We’re going to be focusing on video a lot this year. You can expect bite-sized insights, founder stories, memes, and exclusive behind-the-scenes content that make tech more exciting. Follow us on TikTok @techcabal_ and join the conversation shaping Africa’s tech future! 9mobile’s market share shrinks even further Nigeria’s telecoms industry lost 24.6 million subscribers in 2024 Kenya’s December inflation gives hope of a rate cut World Wide Web 3 Events Telecoms 9mobile’s market share shrinks even further GIF Source: 9mobile Nigeria’s telecom market is proving too fierce for 9mobile. Data from the Nigerian Communications Commission (NCC) shows the country’s smallest telecom by subscriber base, 9mobile, has seen its market share shrink to just 1.9% (3.2 million subscribers)—its lowest ever. While the telecom’s market share dipped, its subscriber base stayed flat, showing that other telecoms grew their active user base. Yet, this decline didn’t happen overnight. The telecom has been losing market share over the years. In 2015, 9mobile held 15.7% of the market with 23.4 million users. By 2022, that number had dropped to 12.8 million. In September 2024, an NCC regulatory audit further slashed its market share to 2%. Now, at 1.9%, it’s losing ground fast. 9mobile is losing subscribers to its competitors. Over the past year, over 7,000 9mobile subscribers have ported to other network providers due to 9mobile’s poor internet service; the issues have persisted for two years due to its inferior broadband infrastructure reach compared to other telecoms. As of September 2024, 9mobile’s download speed as an internet service provider (ISP) stands at 17.82 megabytes per second (Mb/s), which is nowhere near the level of other telecoms and ISPs in Ookla’s recent H2 2024 report. Beyond its history of loan defaults, debts, and ownership changes, 9mobile is struggling to attract high-value users. Once a bold disruptor targeting young Nigerians, it has failed to keep up with rising tech demands and remote work trends in the country, which have seen tech workers demanding faster internet. Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers (NATCOMS), believes 9mobile can only recover if it secures fresh capital. Its new owner, Light House Telecom, which acquired a 95% stake for $750 million in July 2024, is yet to invest in infrastructure or marketing to make the telecom competitive again—or show any intention of raising money. Is history repeating itself? In 2018, Teleology acquired 9mobile but lacked the funds and strategy to revive it, leading to a failed attempt to raise capital. Will Light House Telecom follow the same path, or can it turn things around before it’s too late? Dive deeper into our definitive reporting of 9mobile growth and decline to understand where it stands in the competitive Nigerian telecom market. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Telecoms Nigeria’s telecoms industry lost 24.6 million subscribers in 2024 Image Source: Business Alive The challenges facing 9mobile are not isolated—they reflect a broader transformation sweeping Nigeria’s telecom sector. While 9mobile grapples with a steep decline in market share, industry-wide regulatory measures are prompting a significant recalibration in subscriber numbers. In 2024 alone, Nigeria lost 24.6 million internet users as the Nigerian Communications Commission (NCC) enforced stricter SIM verification and redefined what qualifies as an active subscriber. These sweeping changes are not only exposing weaknesses in struggling networks like 9mobile but also streamlining the sector toward a more sustainable, revenue-focused future. At the heart of these reforms was a drive to eliminate inflated subscriber figures. Telecom operators were required to deactivate SIM cards linked to unverified National Identity Numbers (NINs), while the NCC tightened its criteria by counting only those users actively engaging in revenue-generating activities—whether it be purchasing data, airtime, or making calls. Such measures were designed to reveal a truer picture of user engagement in an industry that remains one of Nigeria’s largest contributors to GDP. The impact of these regulatory actions was immediately evident. Between December 2023 and December 2024, the number of internet users dropped sharply from 163.8 million to 139.2 million. Similarly, active phone connections fell by 26.6%, from 224.7 million to 164.9 million. Despite this contraction in subscriber numbers, there was a notable surge in mobile data consumption, which climbed from 713,200 terabytes to 973,445 terabytes. Meanwhile, advancements in network infrastructure are shifting consumer preferences—4G adoption now surpasses 2G, with 4G accounting for 42.7% of usage. In this recalibrated market, the story of 9mobile—a network already beleaguered by declining market share and service quality—takes on even greater significance. With its subscriber base stagnating and its market share shrinking to just 1.9%, 9mobile’s struggles are emblematic of the sector-wide purge of underperforming operators. Conversely, major players like MTN (51.4%), Airtel (34.3%), and Glo (12.2%) continue to build their active user bases, underscoring a competitive shift toward quality service and revenue-generating engagements. As the telecom industry refines its focus on genuine customer engagement, the evolving landscape is expected to drive higher average revenue per user (ARPU) and pave the way for more robust, sustainable growth. The consolidation of subscriber data reflects a broader commitment to quality over quantity—a commitment that could spell long-term benefits for both consumers and operators willing to invest in superior network performance. Economy Kenya’s December inflation gives hope of a rate cut GIF source: Tenor Kenya’s inflation rate remained comfortably below the central bank’s 5% target for the eighth consecutive month in December, setting the stage for another potential interest rate cut next week. In December 2024, inflation ticked up slightly to 3.3% from 3%, driven largely by rising food and transport costs. Food prices, which account for about a third of the inflation basket, surged 6.1% compared to 4.8% previously. However, relief might be on the horizon: the government is gearing up to
Read More9mobile’s telecom market share declined to 1.9% in December 2024
9mobile, Nigeria’s fourth-largest telecom operator, has seen its market share plummet to a historic low of 1.99% as its number of subscribers (3.2 million) remained stagnant for two consecutive months, according to data from the Nigerian Communication Commission (NCC). This is a dramatic decline from the 23.4 million subscribers it boasted in 2015 when the company—then Etisalat Nigeria—had around 15.7% of the market share. While 9mobile’s subscriber base has remained flat, other telecom operators have grown. Market leader MTN Nigeria increased its share to 51% with 84.6 million subscribers, up from 81.2 million in November. Airtel also grew, reaching 56.6 million subscribers in December, up from 55.4 million in November. Globacom, which faced a sharp drop in subscribers earlier in 2024 due to a regulatory audit, grew its subscriber base from 19.6 million to 20.1 million by the end of the year. 9mobile was the only major telco that did not improve its subscriber count in 2024, raising concerns about its declining performance. Light House Telecom acquired a 95% stake in 9mobile in July 2024 for an estimated $750 million. Since it took over, the company has appointed a new chief executive and chief operating officer. In December 2024, it also moved different department heads intending to strengthen the company, according to two former employees. The new owners are yet to inject capital into the business, which is seen as critical to moving the company forward. “The funding is still not clear. The new buyer has not done anything, no new deployment, they haven’t done any maintenance. They may start putting in money now that the tariffs have increased,” said a telecom executive who chose to remain anonymous to speak freely about the company. The lack of capital investment is especially concerning given the operational challenges 9mobile is facing. Industry insiders stress that for 9mobile to regain market share, it must modernize its network infrastructure, improve customer acquisition efforts, and potentially reduce prices to remain competitive. Without the necessary funding, these objectives will be hard to achieve. 9mobile’s stagnant subscriber base reflects the broader challenges facing the company, including network maintenance and customer retention. However, without capital for new initiatives, it risks falling further behind its competitors, who continue to invest in expanding their services.
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The technology and innovation shaping cross-border payments in Africa
This article was contributed by Paschal Okeke, Head of Ops & Expansion at CrissCross, and Gwera Kiwana – Expansion & Partnerships, Avian Labs as part of the Emerging Trends in Cross-Border Payments: A Growth Guide for Stakeholders report authored by Aroghene Favour Ndulu and Paschal Okeke. What technologies are currently underutilised in Africa’s cross-border payment systems? The two answers that come to mind are blockchain and multi-currency account APls. Blockchain adoption has been slow partly due to regulatory and compliance challenges and the volatility of cryptocurrencies. Governments and financial institutions are still developing frameworks to regulate and monitor blockchain payments. Stablecoins have majorly solved the problem of volatility. Blockchain makes cross-border payments cheaper, faster, and more secure. Unlike traditional payment options, blockchain payments do not require intermediaries, and no single “organisation” is in charge. Every transaction is encrypted with a public record. Multi-currency account APls allow fintechs to create bank accounts for their merchants or end-users through partnerships with other financial institutions. These accounts will increase borderless payments’ ease through increased liquidity access. Sadly, this infrastructure is only present or mature in a few African markets- Nigeria, Ghana, and Kenya. If businesses had access to multicurrency accounts across Africa, currency exchange would be cheaper, settlements would be faster, and reconciliation would be easier. The entire FX operations will be smoother, and by extension, borderless trade will benefit it. Leveraging AI to combat fraud One everyday familiar use case is using Al for transaction monitoring. Machine Learning (ML) algorithms can monitor spending patterns and flag suspicious behaviours. These algorithms can help prevent identity theft, card theft, and phishing attacks. Al can also be used to build risk profiles, verify documents’ authenticity and improve due diligence. APIs and integrating cross-border payment solutions APls help to singularise operations. If a company provides settlements in 100 countries, it needs liquidity partners, brokers, and some sort of operation in those countries. APls make this easy. With APls, a business can easily offer multiple payment options, currencies, and geographies- balance and reconcile its treasury. APls mean you don’t need to start from scratch. One use case is using APls to access real-time exchange rates. This access protects transactions against the risk of fluctuations. APls also help with interoperability because most multi-currency desks have to connect with multiple brokers underneath the hood. Stablecoins and cross-border payments in Africa Stablecoins make remittance faster and cheaper. Stablecoins offer a seamless user experience for currency transfers. Imagine you travel to the Maldives; with one straightforward exchange, you can convert your naira to USDC and then to Rufiyaa (Rf) to pay for food, hotel, or transportation without needing to source Rf or access bureau de change locally. It is fast and efficient. Stablecoins provide an avenue to get real value for the dollar in emerging countries Interoperability in payment systems Interoperability in Africa is a mirage. You need to build your product to suit your audience and resources. Imagine trying to build solutions for WhatsApp (OTC) transactions. There is no global standard. As an organisation, you must create interoperable solutions based on the market’s needs, especially emerging markets. The organisations that can hack interoperability are the traditional banks. They have the assets, data, and resources to provide an integrated borderless payment service. Some banks are already working towards this, and it will be interesting to see how they perform in the future. You can read the full report here. __________________ Paschal Okeke– Head of Operations at CrissCross- a cross-border payments company leveraging modern blockchain and fiat technologies. He has over nine years of experience leading global operations at companies like Binance and Bolt. Gwera Kiwana– Expansion & Partnerships, Avian Labs. Gwera is a fintech and web3 expert who focuses on where both intersect. With years of experience building and scaling global fintech companies, she’s now driving global expansion and partnerships at Avian Labs for Sling Money.
Read MoreMoniepoint mirrors Jack-Dorsey’s Square with new POS
Moniepoint is testing an all-in-one point-of-sale (POS) terminal that combines payment processing, inventory management, and transaction reconciliation. The product is a result of Moniepoint’s December 2023 acquisition of Grocel, a fintech company that focused on inventory management solutions. The acquisition allowed Moniepoint to retain Grocel’s team, which has been working on integrating business management capabilities into Moniepoint’s POS terminals. Many physical stores commonly use POS devices for card payments and money transfers. However, Moniepoint’s new POS will manage the entire gamut of business processes for enterprises of all sizes and aims to replace the existing approach. Currently, businesses use separate methods or technologies for bookkeeping and inventory management, creating a theft and error-prone analogue nightmare. “It is pretty much like the roadmap of Square,[ a payment company in the U.S. that provides retail management POS devices],” said one Moniepoint executive who asked not to be named discussing a product under development. The only difference is that it is “more rugged,” the person said, adding that roadside vendors can use the device. Moniepoint will use distribution as its competitive advantage in a space where startups like Mira already provide all-in-one POS devices and terminals to retailers. The fintech unicorn has over 800,000 POS terminals in circulation and 2 million enterprise users to whom it will market the new device before the end of the quarter. Despite a billion-dollar valuation, success in new product lines isn’t always guaranteed. The CEO of Mira, Ted Oladele, suggests that fintechs entering the space might be limited by their focus on payments. “Businesses have peculiarities and established fintech startups may not have the appetite to build individual modules to meet unique business needs,” Oladele added. Furthermore, all-in-one POS solutions must be adaptable to cater to the diverse needs of complex businesses, especially in industries like retail and food service, where each business has peculiar needs. For example, while handheld POS terminals offer convenience for tableside ordering in restaurants, many establishments also require kitchen display systems (KDS) for a centralised overview of orders, tables, and operations. An established fintech may find the work required to meet these unique needs a distraction to its main business. It’s exciting to see more startups entering the market, as this creates new opportunities,” Oladele said. The idea of an all-in-one solution for enterprise users is not new. In 2023, fintech startup Nomba launched Nomba MAX, a POS device that combined payment processing with inventory management for restaurants—features that enable them to connect their transactions to payments directly. There are also global examples: Stripe, the parent company of Paystack, provides restaurants with POS solutions that go beyond basic payment processing. These solutions enable businesses to document sales, automate reconciliation, manage both dine-in and online orders, integrate with logistics companies, and more. Customising point-of-sale hardware to meet specific business needs is a powerful retention strategy. It gives enterprise customers compelling reasons to stay with a fintech company and attracts new users who were previously underserved by existing solutions. By empowering businesses to grow their businesses by streamlining operations and enhancing customer experiences, Moniepoint can increase payment processing volume on their platforms, which translates to increased revenue through transaction fees.
Read MoreMoniepoint, OPay, PalmPay responded to 2024 ban with better data collection and compliance
In 2024, Nigerian fintechs faced significant regulatory pressure, including fines and a six-week ban on onboarding new users due to compliance issues with anti-money laundering (AML) and fraud prevention standards. In response, leading fintechs revamped their operations, strengthening compliance measures and increasing data collection efforts to regain regulatory trust. Their efforts coincided with the CBN retiring 18 directors in May 2024, including a director of other financial institutions, causing a shift in regulatory stance. “Once the new guys came in, they didn’t have such strong feelings (for Nigeria’s fintech industry),” said a fintech executive who asked not to be named so they could speak freely. The new directors have been more open to collaborating with the fintech sector than predecessors, allowing leading fintechs to improve their lobbying efforts, two fintech executives said. The fintechs have made progress with some of the compliance issues the CBN flagged in 2024. They have significantly enhanced their data collection practices and send detailed reporting to the Nigerian Financial Intelligence Unit (NFIU) on politically exposed persons, suspicious transactions, fraud cases, and geo-tagged transaction data. They have also broadened the definition of suspicious transactions. PalmPay, which has over 30 million customers, has introduced software to flag large and frequent transactions that appear suspicious. This allows its compliance team to review the transactions before filing a report with NFIU. Moniepoint, a major Nigerian fintech, has also expanded its definition of suspicious activities as it now blocks accounts that log in from certain countries that are commonly linked to fraudulent activity. “We do not want to be a conduit for fraud,” one fintech executive stated, echoing a shared sentiment in the industry. Beyond tightening transaction monitoring, fintechs have restructured their teams to improve efficiency and accountability. Compliance teams are now integrated with customer onboarding and retention teams, allowing for better identification of potential threats. In addition to internal changes, fintechs have employed ethical hackers—cybersecurity professionals paid to test their systems for vulnerabilities. These ethical hackers aim to identify security weaknesses before malicious actors can exploit them, giving fintechs an added layer of protection. “These hackers help us stay one step ahead of criminals by exposing potential flaws in our systems,” a fintech executive explained. Minor improvements to the startups’ apps have also been a central focus. PalmPay and OPay have introduced facial recognition for first-time users, large transactions, and transfers to new beneficiaries. These tools are designed to enhance security and prevent fraudulent activities from slipping through the cracks. Both companies also launched a “night guard” feature for an extra layer of protection for transactions conducted after 6 p.m., a period traditionally more vulnerable to fraud. However, some of the fintechs’ improvements have impacted user experience with several customers sharing complaints of having accounts blocked after performing large transactions, requiring an explanation of the transactions before regaining access. But executives argue that this has been necessary to prevent fraud. Ultimately, the fintechs efforts have been met positively with regulators softening their hardline stance. Industry insiders have noted that regulatory agencies, including the CBN and NFIU, have become more receptive to fintechs’ security measures and reporting practices. This will only continue as long as Nigerian fintechs improve their compliance efforts, and like banks, present a unified front to regulators, for easier and more transparent regulatory supervision. “They just show up and look at our books,”fintech executives reveal stricter CBN compliance checks Nigerian fintechs ramp up compliance hiring months after customer onboarding ban
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👨🏿🚀TechCabal Daily – Bento Unboxed
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF Our sister publication Zikoko is looking for people who are passionate (or just curious) about personal finance to join a fun, open conversation about money. Here’s what’s in it for you: the chance to shape better money content…and a food voucher as a thank you. Interested? Fill out this form and the team will reach out to schedule a quick chat! Bento’s CEO resigns Nigeria’s labour union threatens to protest over telecom tariff hike SARB lowers borrowing costs Funding tracker World Wide Web 3 Events Startups Bento’s CEO resigns Ebun Okubanjo In Monday’s edition of the newsletter, we wrote about Bento Africa, the Nigeria HR-tech startup embroiled in allegations of failing to remit taxes and pensions on behalf of its clients. The company was also being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC). The company’s CEO, Ebun Okubanjo maintained that the issue only affected a few percentage of its customers and chalked the issue to the inherent limitations of Nigeria’s complex and outdated tax and pension systems. Okubanjo also said the startup was working with the LIRS to come up with a plan to repay owed taxes. Yesterday, Okubanjo resigned from his position as CEO of the startup. In his letter to the company’s board of directors, Okubanjo attributed his decision to the difficulty of scaling HR and payroll systems in Africa. The move marks the CEO’s second attempt at moving away from the startup this year. Okubanjo had earlier sent a resignation letter to the company’s board of directors on January 11, 2025, asking the board to begin searching for his replacement. Ebun’s resignation came as a shock to some of Bento’s investors, some of whom only learned about his resignation in the news. While you might wonder what’s next for Bento, Okubanjo already figured out what’s next for himself. He is launching a new AI startup, Ada AI, an AI-powered sales assistant. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Telecoms Nigeria’s labour union threatens to protest over telecom tariff hike Image Source: Wunmi Eunice/TechCabal Stakeholders with different interests—in and outside the telecom industry—won’t see eye to eye on the rationale of the recently approved 50% telecom tariff hike. Those invested in the sector’s stability—telco operators and the Nigerian Communications Commission (NCC), acting as a proxy for the government—reached a compromise to prevent further financial haemorrhaging in an industry that is one of Nigeria’s top GDP contributors. However, another group, including the Nigeria Labour Congress (NLC), a member union of millions of Nigerian workers, has announced that it will not stand for the hike. The union has made its strong opinions known about the decision, strongly describing it as “insensitive, unjustifiable, and a direct assault” on Nigerians. As a result, the labour union has threatened a nationwide protest on February 4. If we learned anything from NLC negotiations in the past, protests often lead to strike actions. A telecom-wide strike could cut off millions of Nigerians from telecom services. Worse, if fibre cuts or other network disruptions occur, striking workers and engineers who typically respond to restore service won’t be available, leading to prolonged outages. Still, telecoms—who have spent over a decade lobbying regulators for this tariff adjustment—are unlikely to back down. They argue the hike was long overdue, though critics point out that rural Nigerians already struggle with poor service, and the country’s high inflation makes the timing especially painful. Many consumers will either stretch their budgets to afford telecom services or cut back on usage. Yet, one thing is certain: while the timing of the hike is debatable, the rationale behind it is not. Change, especially sudden change, triggers strong reactions based on interests and incentives. The NCC appears unwilling to reverse its decision, and while a labour strike could shake up the telcos, the real question is whether workers can sustain the pressure. Economy South African Reserve Bank lowers borrowing costs Image source: South Africa Reserve Bank The South African Reserve Bank (SARB) has cut its benchmark rate by 25 basis points to 7.5%, marking the third consecutive easing. This move was widely expected, but the apex bank’s governor Lesetja Kganyago says he remains cautious, warning that future cuts may not come as easily. The decision, supported by four out of six Monetary Policy Committee (MPC) members, brings the prime lending rate for commercial banks down to 11%. Inflation in South Africa remains within the central bank’s target range (3.0%)—despite quickening by 10 basis points in December 2024—lower than the SARB’s 3.2% preceding forecast. This gave the apex bank some room to ease monetary policy, but uncontrollable global risks still remain the elephant in the room. Kganyago pointed to growing uncertainty in the US, particularly President Donald Trump’s trade policies. If the US imposes higher tariffs, it could push up global inflation and weaken the rand. The SARB has even modelled a worst-case scenario where the rand falls to R21 per dollar, domestic inflation rises to 5%, and interest rates are forced higher instead of lower. Despite these risks, economists believe another rate cut is likely in the first half of 2025. However, if inflation quickens later in the year, the window for further cuts could close. For now, the SARB has taken a step toward easing borrowing costs, but its hawkish stance suggests it won’t hesitate to reverse course if inflation or global shocks demand it. Never miss an update from Paystack Subscribe to Paystack for a curated dose of product updates, insights, event invites and more. Subscribe here → Insights Funding Tracker Funding Tracker This week, Rwandan-based Pula Foundation, an agriculture insurtech company, secured a $10.4 million grant from Bayer Foundation. (January 29) Here are other deals for the week: NjiaPay, a
Read MoreDespite streaming boom, Nigerians still prefer watching movies in cinemas
Despite the growing adoption of streaming platforms, cinemas remain the most preferred choice for Nigerians to watch movies, according to the Nigerian Box Office report by Filmone Group. 66% of 500 cinema-goers surveyed in the report prefer cinemas over streaming platforms, suggesting theatrical releases still hold strong appeal and remain a critical part of the Nigerian film industry. Streaming giant Netflix is the second most preferred choice at 27%, while YouTube which has seen a surge in Nollywood movies came third at 4%. Showmax and and Amazon Prime Video got 2% each. In December 2024, Netflix denied it was exiting Nigeria after media speculations. Amazon Prime, another streaming platform, exited Nigeria in January 2024—one year after investing in several Nigerian productions. Despite the strong appeal of cinemas, infrastructural gaps exist. According to the report, Nigeria has 102 cinemas, accounting for 92.9% of Anglophone West Africa box office. Lagos dominates with 36 cinemas, reflecting the consumer spending in Nigeria’s economic capital. 2024 shows growth in the cinema ecosystem with the emergence of 24 new cinemas with Silverbird Cinemas opening the first cinema in Kaduna. The report found that cinema admissions in Nigeria increased by 2% in 2024. “This resurgence underscores the enduring appeal of the big screen experience in Nigeria, even as ticket prices soared by 95% in nominal terms between 2021 and 2023,” the report said. Filmhouse Cinemas maintained the highest market share in West Africa for the seventh consecutive year with 28% grossing ₦3.2 billion in box office revenue. Silverbird Cinemas and Genesis Cinemas earned ₦2.2 billion each, with Silverbird holding a 19% market share and Genesis Cinemas capturing 18%. EbonyLife Cinemas had the highest-grossing cinema location in the country contributing 7% and making over ₦838 million in ticket sales, with more than 138,000 people buying tickets to watch movies at EbonyLife cinema. Filmhouse Group remains hopeful, saying ‘The opportunities for more cinema infrastructure, abound, especially as despite the macroeconomic headwinds hitting disposable income negatively, the subsector has remained resilient.’’
Read MoreAbuja airport internet outage exposes risks to Nigeria’s telecom infrastructure
On Tuesday, January 21, 2025, hundreds of passengers at Abuja International Airport arriving or leaving the country could not access the internet services they needed to access taxis or their flight schedules. The cause? A severed fiber optic cable disrupted the airport’s connectivity. The cable, owned by MTN Nigeria, was accidentally cut by road construction workers in a nearby community. When engineers arrived to repair the damage, local community members blocked access, demanding payment before allowing work to proceed. Faced with the urgency of restoring services, MTN Nigeria had to comply, escalating the cost of the disruption. Once repairs were completed, normal operations resumed, but for MTN, it was yet another costly incident of infrastructure vandalism. The disruption disruption highlights a growing crisis in Nigeria’s telecom sector. As the country’s largest telecom operator with the largest network of fibre cables (40,000km), MTN Nigeria faces an average of 37 fiber cuts daily—amounting to over 1,000 incidents per month. Airtel Nigeria reports similar problems with around 43 cuts per day and 7,742 incidents in the first half of 2024. cuts. Yahaya Ibrahim, MTN Nigeria’s Chief Technical Officer (CTO), told TechCabal that the rate of the cuts is not slowing down in 2025. The telco recorded over 860 damages to its fibre infrastructure in the first three weeks of January 2025. “Four weeks ago, at Park View estate, we had people throwing fire into the manholes (where fibre cables were laid). We lost traffic,” Ibrahim said. MTN also lost connection in Abuja and Lagos in February 2024 due to cuts affecting thousands of fibre cables from road construction and bush-burning. Road construction is responsible for 60% of the cuts; 20% is caused by vandalism, bush burning, farming activities, and pipe-borne water digging, and the remaining 20% is from theft of the cables. These frequent disruptions affect businesses and essential services and impose significant financial losses on telecom providers, exacerbating Nigeria’s connectivity challenges. According to Yahaya Ibrahim, one fibre cut in a location can impact 500 base stations, or a cut in a location in Ikoyi can impact services to Ikeja. In 2024, the government issued an executive order, designating telecom and other industry infrastructure as national assets and criminalizing intentional damage. However, implementation has not begun. Industry stakeholders are engaging with the government to develop an enforcement strategy. Their approach involves educating Nigerians on the importance of the CNI order; second, fostering inter-ministerial collaboration to align government agencies; and, enforcing the order through a joint effort between the NCC and the Office of the National Security Adviser (ONSA). Implementation is expected to begin in February 2025. In the interim, operators are exploring alternative fiber deployment methods such as using aerial cables along powerlines. While this approach reduces the risk of cuts and enhances security, it presents logistical challenges. Many base stations are located far from powerlines, requiring a transition from aerial to underground cables, and increasing costs. “So yes, aerial cables are less susceptible to cuts and are safer, but they are also more expensive,” Ibrahim told TechCabal.
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