Fintech: The digital key to spotting new markets
This article was contributed to TechCabal by Leila Rwagasana. Fintech, the fusion of finance and technology, is revolutionising financial services globally, particularly in emerging and developing countries. From ancient Greece’s minted coins to Persia’s invention of cheques and, more recently, the deployment of ATMs and digital transactions, financial tools have always aimed to facilitate economic growth and societal development. Today’s digital technology ought to make financial services even more inclusive. A prime example of fintech’s transformative power is M-Pesa in Kenya. Launched in 2007 as a mobile money service for airtime transfer, M-Pesa quickly expanded into a comprehensive financial tool. By 2021, M-Pesa’s transactions accounted for 87% of Kenya’s GDP, lifting 2% of households above the poverty line. The evolution of financial tools has always aimed to facilitate the exchange of goods and services, stimulating financial inclusivity and furthering societal development. Societies with advanced financial systems tend to prosper, as more inclusive financial transactions lead to higher incomes, increased demand, and innovation. Conversely, societies with restricted financial access stagnate and struggle to achieve economic growth. This pattern is particularly evident in emerging and developing countries, where financial inclusion remains a critical challenge. Post-independence, Africa’s financial systems remained unchanged, still designed to serve colonial interests. This left most of the population excluded from mainstream financial services. By the 1970s, about 90% of Africans were unbanked, and today, 52% remain without banking access, conducting 90% of transactions in cash. This exclusion hinders economic growth and development. Fintech, however, can turn things around. After the 2008 financial crisis, traditional banks became more conservative, and digital innovations emerged. With the internet and mobile technology expansion, fintech companies have filled the gaps left by traditional banks. Platforms like M-Pesa enable people to pay bills, transfer money, and purchase goods using their mobile phones, demonstrating fintech’s potential to drive financial inclusion and economic growth. Fintech operates without traditional banking infrastructure. It requires no physical branches, cards, or chequebooks—only a smartphone and telecom ecosystem. This simplicity has allowed fintechs to thrive in regions with limited banking infrastructure. In Kenya, for example, M-Pesa expanded financial access from 26% to 83% of the population between 2006 and 2021, showcasing the potential for inclusive financial systems. Fintech also supports small and medium-sized enterprises (SMEs), which are crucial to developing economies but often face barriers to traditional financial services. Fintech platforms give SMEs access to loans, enabling them to expand operations and contribute to economic growth. Digital-only banks like South Africa’s TymeBank and Nigeria’s Kuda offer services at a fraction of traditional banking costs, democratising financial access and empowering entrepreneurs. Fortunately, or not, the COVID-19 pandemic’s strain on the economy accelerated the adoption of digital banking. African banks now collaborate with fintech startups to offer a broader range of financial products, catering to a tech-savvy population. With mobile phones accounting for about 75% of all online traffic in Africa, digital platforms are increasingly designed for mobile users, driving innovation and expanding access to financial services. Fitech is also promoting gender equality by providing women with access to financial services. Women, who often manage SMEs and agricultural activities, face significant barriers in traditional banking. In Rwanda, the recent FinScope report highlights this progress, showing that women’s access to formal and non-formal financial services (including fintechs) has increased significantly from 73% in 2020 to 90% in 2024. This demonstrates the pivotal role of fintech in bridging the gender gap and empowering women economically. Fintech apps used by cooperatives and mutual support groups empower women by facilitating access to loans and other financial services. Studies show that companies with more female employees perform better financially, underscoring the importance of gender-inclusive financial systems. In Africa, where 40% of SMEs are female-owned, fintech is closing the funding gap and enabling women to contribute more effectively to economic growth. The inaugural Inclusive FinTech Forum in Kigali, a global platform for financial inclusion and fintech co-organised by the National Bank of Rwanda, Elevandi, and the Kigali International Finance Centre, further showed fintech’s transformative potential in Africa. With nearly 3,000 attendees from 65 countries, the forum emphasised shared experiences and best practices driving financial inclusion and sustainable development. The presence of high-profile participants, including Rwanda’s President Paul Kagame, underscored the significance of fintech in shaping Africa’s economic future. Additionally, the Africa Continental Free Trade Area (ACFTA) promises to boost intra-African trade, and the fintech-based Pan-African Payment and Settlement System (PAPSS) is a significant step in this direction. Harmonising national payment systems will facilitate seamless trade transactions across the continent, enhancing economic integration and growth. Fintech also reduces technological inequality between advanced and developing nations. A McKinsey study shows that between 2020 and 2021, nearly half of Africa’s 5,200 tech startups were involved in disrupting or augmenting traditional financial services. Fintech is expected to grow by 19% annually through 2025, reaching a valuation of $150 billion. This growth is driven by increasing smartphone ownership, declining internet costs, expanded network coverage, and Africa’s young population, which is well-versed in the digital world. Fintech represents a significant milestone in the history of financial technology. By breaking down traditional barriers and opening financial services to the masses, fintech can drive unprecedented economic growth and prosperity in Africa and other emerging markets. Embracing this digital revolution offers a more equitable and prosperous future for all. — Leila is the FinTech Lead at Rwanda Finance Limited. She is a business development and partnerships professional with 10 years of work experience in Rwanda and across Africa.
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Calculate OLevel & JAMB score aggregate for 2024 admissions
Securing admission into Nigerian universities involves a thorough understanding of the admission process, particularly how to calculate Olevel and JAMB score aggregate for admission 2024. This article breaks down the process into clear, manageable steps. Understanding O’ Level grade points The first step is calculating the O level grade points. Most Nigerian universities use a specific grading system to convert O level grades into points: A1: 6 points B2: 5 points B3: 4 points C4: 3 points C5: 2 points C6: 1 point For example, if a student scores A1 in five subjects, their total points would be calculated as follows: 6 points×5 subjects= 30 points Calculating JAMB scores The JAMB score, which ranges from 0 to 400, is another critical component. To integrate this score into the aggregate, universities typically standardize it by dividing by 8. For instance, if a candidate scores 240 in JAMB, the calculation would be: 240/8 = 30 points. Combining O’ Level and JAMB scores To calculate Olevel and JAMB score aggregate for admission 2024, simply add the points from both components. For example, if a student has 30 points from their O levels and 30 points from their JAMB score, the total aggregate would be: 30 points + 30 points = 60 points Including Post-UTME scores to calculate OLevel & JAMB score aggregate for 2024 Some universities also consider post-UTME scores in the admission process. Some universities solely admit based on their post UTME scores. But for those who add it to the JAMB and O’level scores, typically, the post-UTME score (out of 100) is divided by 2. For instance, if a candidate scores 70 in the post-UTME, the calculation would be: 70/2= 35 points This score is then added to the combined O’Level and JAMB points to obtain the final aggregate: 30 points(O’Level)+30 points(JAMB)+35 points(post-UTME)=95 points. Final thoughts on how to calculate OLevel & JAMB score aggregate for 2024 admissions Understanding how to calculate O level and JAMB score aggregate for admission 2024 can help you better assess your chances of admission and plan your preparations accordingly. Remember to check specific university requirements, as they can vary.
Read MoreKenya banks’ assets down 2.7% to $58.2 billion
Kenyan banks saw their balance sheets shrink in Q1 2024 as foreign currency loans and government securities decreased, the Central Bank of Kenya said. The sector’s assets shrank 2.7% to $58.2 billion (KES7.5 trillion) in the three months to March, driven by an 18.5% decline in foreign currency loans to $7.6 billion. The banks also cut their holding of government securities by $474.3 million (KES61 billion). The decline in banks’ assets could signal a reduced appetite for dollar-denominated loans as the shilling strengthened and a tightening of credit conditions for borrowers as lenders seek to shore up their balance sheets amid a tough macroeconomic environment. “Net loans and advances remained the main component of total assets, accounting for 49.4% in the first quarter of 2024, a decrease from 49.7% recorded in the fourth quarter of 2023,” CBK said. The banks offloaded short-term bonds to reduce fair value losses, which happens when they sell the securities at a lower price than they purchased. This came as the CBK tightened its monetary policy to curb inflation, which affects bond prices. Soaring inflation at the beginning of the year and subsequent interest rate hikes slowed economic activity, making it expensive for firms and individuals to borrow. This cut the demand for loans and customer deposits. The banks’ gross loans shrunk by 2.8% to $31 billion (KES4 trillion) in Q1 2024 compared to $31.8 billion (KES4.1 trillion) in Q4 2023, revaluing the sector’s balance sheets. “The decrease in gross loans and advances was largely witnessed in the manufacturing, energy and water, Personal and household, tourism, restaurant and hotels sectors. The decrease in gross loans was mainly due to loan repayments,” CBK said. Customer deposits, the main source of funding for banks, decreased by $2.2 billion (KES286.7 billion) to $42.6 billion (KES5.5 trillion) in 2024 Q1, highlighting reduced activities amid rising cost of living and a tough macroeconomic environment for businesses. Foreign currency deposits took the biggest hit, dropping by 14.6% to $12.4 billion (KES1.6 trillion) as the Kenyan shilling strengthened. A weak local currency and FX liquidity crisis in 2023 pushed companies to source dollars from the parallel market. Local currency deposits dropped 0.2% to $29.4 billion (KES3.8 trillion). “Customer deposits remain the main source of funding to the banks accounting for 73.6% of the banking sector total liabilities and shareholders’ funds as of the end of the first quarter of 2024,” CBK said.
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👨🏿🚀TechCabal Daily – Nigeria tells telcos to disclose data use
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’re an African founder ready to showcase your innovations to a global audience, or an investor interested in backing audacious startups, then TechCabal Battlefield is for you! This year, TC Battlefield will feature deal room sessions, a pre-accelerator programme, the Fastest Growing African Startup Award, and a bigger prize money for startups. Investors will also gain exclusive access to a comprehensive database of investable African startups. Register here. In today’s edition WhatsApp’s potential exit is big news in Nigeria Telcos to disclose data use in Nigeria The future of Africa’s EV market The World Wide Web3 Events Regulation WhatsApp’s potential exit is big news in Nigeria On Friday, a Meta spokesperson told TechCabal that the demands of the Federal Competition and Consumer Protection Commission (FCCPC) would make it impossible to provide WhatsApp in Nigeria if it followed the commission’s demands. If all this sounds new to you, here’s a dry recap: The FCCPC and NITDA concluded a three-year investigation into WhatsApp two weeks ago It fined WhatsApp $220 million after determining that a 2021 privacy policy did not give users a choice to provide consent Beyond the steep fine, the FCCPC also made three immediate demands, one of which was to stop WhatsApp from sharing data with third parties like Facebook The stakes are pretty obvious. If WhatsApp stops operating in Nigeria, the future of those broadcast messages that depend on you to spread the word about something or the other could be in jeopardy. Our reporting generated significant online discourse. If you’re still not sure what all this kerfuffle is about, catch up here before you go on. Some Nigerians think this is a ploy to exploit big tech companies and enrich government officials, while others praised the commission for slugging it out with Meta. The FCCPC claimed Meta was simply trying to force their hand and pointed to a huge judgment against Meta in Texas. Government types used the Texas judgment as their talking point too and railed against WhatsApp. The FCCPC responded again that Meta is trying to influence public opinion, and it may be right. Atedo Peterside, reporting for our mummies and daddies everywhere, said people were already suffering enough and the government should allow us to enjoy WhatsApp. One person said we have Zuckerberg on speed dial (we wish o!) and said we should help Nigeria beg. But the FCCPC doesn’t look like it’s giving the matter up. We expect Nigerians to react differently to news like this; some have started jumping buses to alternative apps like Telegram and Signal. For us at TechCabal, we’ll be right here in your inbox, popcorn in hand, bringing you the latest on the WhatsApp saga. Read Moniepoint’s 2024 Informal Economy Report 89% of businesses in the informal economy pay levies and market fees. The informal economy is typically described as untaxed, but is that true? Click here to find out more. Telcos NCC wants to let you know how you spend your internet data I once expressed my frustration in the office about MTN’s internet charges. “How can I use up 8GB of data just writing three drafts?” I asked, puzzled. My colleagues burst out laughing. In response, my Editor made this argument: with fast internet speeds, many background interactions consume more data. Many other Nigerians have had similar complaints, including airtime being exhausted faster than expected. Nigeria Communications Commission (NCC) had a similar explanation to my Editor. According to the NCC, several factors contribute to data depletion for most subscribers, including background apps running without their knowledge and automatic updates on mobile devices. Whatever side you are on, the NCC wants to give you full disclosure on how your data and airtime are spent. In its “Guidance for the Simplification of Tariffs” document, the regulator asked all telcos in Nigeria to clearly explain their call and data charging methods to subscribers, ensuring they understand exactly how they’re being billed. Telcos must now provide this information on a dedicated tab on their websites. “The table must display all information which is necessary to enable the subscriber to make a comparison between the offered tariff plan and others, and thereby make an informed choice,” it said. The information will include how users are charged per minute and second and rates per megabyte/kilobyte/gigabyte. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. TC Insights The Future of Africa’s EV market Electric mobility in Africa is still in its development stage. Although the sales of electric vehicles (EVs) on the continent have increased in recent years, they have remained the lowest worldwide. For instance, South Africa is the continent’s largest e-mobility market, yet electric vehicles account for 0.05% of the total 12 million automobiles in the country at 1,000 EVs as of 2022. While these electric vehicles offer cost-effective and environmentally friendly alternatives, their path to widespread adoption is faced with controversy and challenges. h;in hopes of increasing government earnings to help pay back its debts. The chart shows that the projected stock of electric vehicles (EVs) in sub-Saharan Africa by 2040 is expected to be 13.5 million in the base case and 25 million in the accelerated case. The base case assumes that current trends continue, while the accelerated case assumes that there are significant policy interventions to accelerate the transition to EVs. As the majority of EVs in sub-Saharan Africa are expected to be two-wheelers, this also makes electric motorcycles hold significant potential in Africa, given the continent’s vast fleet of two-wheeled vehicles due to their affordability, durability, and manoeuvrability as attractive options for African riders. Now, the ambitious goals of African EV startups are now met with doubts
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Official 2024/2025 cutoff marks & vitals for all LAUTECH courses
Before you apply for the 2024 LAUTECH Post UTME screening, you need to know if you are eligible for your preffered course based on your UTME and O’level peculiarities. Below is a comprehensive list of the courses offered at Ladoke Akintola University of Technology (LAUTECH) along with their O’Level and JAMB cutoff marks and subject combinations for the 2024/2025 academic session. LAUTECH cutoff marks 2024 for all Faculty of Agricultural Sciences courses 1. Animal Nutrition and Biotechnology O’Level requirements: English Language, Mathematics, Chemistry, Agricultural Science or Biology, Physics or Geography or Economics. UTME subjects: English Language, Chemistry, Physics, and either Biology or Agricultural Science UTME cut-off mark: 170 2. Animal Production and Health O’Level requirements: English Language, Mathematics, Physics, Chemistry, and any of Agricultural Science or Biology or Animal Husbandry. UTME subjects: English Language, Physics, Chemistry, and any of Agricultural Science or Biology or Animal Husbandry. UTME cut-off mark: 170 3. Crop and Environmental Protection O’Level requirements: English Language, Mathematics, Chemistry, Biology, and Physics. UTME subjects: English Language, Physics, Chemistry, Biology or Agricultural Science. UTME cut-off mark: 170 4. Crop Production and Soil Science O’Level requirements: English Language, Mathematics, Chemistry, Physics, Agricultural Science or Biology. UTME subjects: English Language, Chemistry, Physics, and either Biology or Agricultural Science. UTME cut-off mark: 170 5. Fisheries and Aquaculture O’Level requirements: English Language, Mathematics, Chemistry, Physics, and Biology/Agricultural Sciences. UTME subjects: English Language, Biology or Agricultural Science, Chemistry, and Physics or Mathematics. UTME cut-off mark: 170 6. Food Science O’Level requirements: English Language, Mathematics, Chemistry, Physics, and Biology or Agricultural Science. UTME subjects: English Language, Chemistry, Biology or Agricultural Science, and Physics or Mathematics. UTME cut-off mark: 170 LAUTECH cutoff marks 2024 for all Faculty of Engineering and Technology courses 7. Chemical Engineering O’Level requirements: English Language, Mathematics, Chemistry, Physics, and any relevant science subject. UTME subjects: English Language, Mathematics, Physics, and Chemistry. UTME cut-off mark: 200 8. Civil Engineering O’Level requirements: English Language, Mathematics, Chemistry, Physics, and any relevant science subject. UTME subjects: English Language, Physics, Mathematics, and Chemistry. UTME cut-off mark: 200 9. Computer Engineering O’Level requirements: English Language, Mathematics, Chemistry, Physics, and any relevant science subject. UTME subjects: English Language, Mathematics, Physics, and Chemistry. UTME cut-off mark: 200 10. Electronic and Electrical Engineering O’Level requirements: English Language, Mathematics, Chemistry, Physics, and any relevant science subject. UTME subjects: English Language, Physics, Mathematics, and Chemistry. UTME cut-off mark: 200 11. Food Engineering O’Level requirements: English Language, Mathematics, Chemistry, Physics, and Biology/Agric Science. UTME subjects: English Language, Mathematics, and any two of Physics, Chemistry, Biology, or Agricultural Science. UTME cut-off mark: 170 12. Mechanical Engineering O’Level requirements: English Language, Mathematics, Chemistry, Physics, and any relevant science subject. UTME subjects: English Language, Mathematics, Physics, and Chemistry. UTME cut-off mark: 200 13. Agricultural Engineering O’Level requirements: English Language, Mathematics, Physics, Chemistry, and any of Technical Drawing, Geography, and Biology. UTME subjects: English Language, Mathematics, Physics, and Chemistry. UTME cut-off mark: 200 LAUTECH cutoff marks 2024 for all Faculty of Environmental Sciences courses 14. Architecture O’Level requirements: English Language, Mathematics, Physics, and any two (2) of Chemistry, Biology, Geography, Economics, Technical Drawing, Building Construction, Fine Art, and Agricultural Science. UTME subjects: English Language, Physics, Mathematics, and any of Chemistry, Biology, Technical Drawing, Fine Art, or Geography. UTME cut-off mark: 200 15. Building O’Level requirements: Mathematics, Physics, Chemistry, English Language, and any of Technical Drawing, Building Construction, Biology, Geography, Economics, or Fine Arts. UTME subjects: English Language, Mathematics, Physics, and any of Chemistry, Technical Drawing, and Building Construction. UTME cut-off mark: 170 16. Estate Management O’Level requirements: English Language, Mathematics, Economics, and any other two subjects (one must be selected from Physics, Chemistry, Biology, Geography, or Technical Drawing). UTME subjects: English Language, Mathematics, and any other two subjects from Economics, Geography, Physics, Chemistry, or Technical Drawing. UTME cut-off mark: 170 17. Fine and Applied Arts O’Level requirements: English Language and any other four (4) subjects. UTME subjects: English Language and any other three (3) subjects. UTME cut-off mark: 170 18. Urban and Regional Planning O’Level requirements: English Language, Mathematics, Geography, and any other two subjects from Physics, Chemistry, Biology, Government/History, Data Processing/Computer Science, Fine Arts/Woodwork, and Economics. UTME subjects: English Language, Mathematics, Geography, and any one (1) from Biology, Chemistry, Physics, Government/History, and Economics. UTME cut-off mark: 170 19. Surveying and Geoinformatics O’Level requirements: English Language, Mathematics, Physics, Geography, and any one other subject selected from Chemistry, Technical Drawing, Fine Arts, Biology/Agricultural Science, or Economics. UTME subjects: English Language, Mathematics, Physics, and any one (1) of Geography or Chemistry. UTME cut-off mark: 190 LAUTECH cutoff marks 2024 for all Faculty of Pure and Applied Sciences courses 20. Biochemistry O’Level requirements: English Language, Mathematics, Physics, Chemistry, and Biology. UTME subjects: English Language, Physics, Chemistry, and Biology. UTME cut-off mark: 170 21. Computer Science O’Level requirements: English Language, Mathematics, Physics, and any other two subjects from Chemistry, Biology, Agricultural Science, Economics, or Geography. UTME subjects: English Language, and any three of Mathematics, Physics, Chemistry, Biology, Economics, and Geography. UTME cut-off mark: 220 22. Earth Science O’Level requirements: Mathematics, English Language, Physics, Chemistry, and Biology or Technical Drawing or Geography. UTME subjects: English Language, and any three (3) of Physics, Chemistry, Biology, Mathematics, and Geography. UTME cut-off mark: 170 23. Pure and Applied Chemistry O’Level requirements: English Language, Mathematics, Biology, Physics, and Chemistry. UTME subjects: English Language, Physics or Mathematics, Chemistry, and Biology. UTME cut-off mark: 170 24. Pure and Applied Mathematics O’Level requirements: Mathematics, English Language, Biology, Physics, and Chemistry. UTME subjects: English Language, Mathematics, Physics, and any one of Chemistry, Biology, or Economics. UTME cut-off mark: 170 25. Pure and Applied Physics O’Level requirements: Mathematics, English Language, Biology, Physics, and Chemistry. UTME subjects: English Language, Physics, Chemistry, and Mathematics or Biology. UTME cut-off mark: 170 26. Science Laboratory Technology O’Level requirements: Mathematics, English Language, Biology, Physics, and Chemistry. UTME subjects: English Language, Biology, Chemistry, Physics or Mathematics. UTME cut-off mark: 200 27. Statistics O’Level requirements: English Language, Mathematics, Chemistry, Physics, and Biology. UTME subjects: English Language, Mathematics, and
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LAUTECH 2024 admissions and Post UTME screening exercise
Ladoke Akintola University of Technology (LAUTECH) recently kicked off its Post UTME screening for 2024 admissions into various undergraduate programmes. The registration portal will open on Monday, 5th August 2024, and close on Friday, 6th September 2024. UTME candidates are exempted from written screenings, while Direct Entry candidates will undergo oral and written interviews on Tuesday, 10th September and Wednesday, 11th September 2024. You should also see the full 2024 cut-off marks and requirements for all LAUTECH approved courses before you apply for potential admission. Eligibility criteria for the LAUTECH 2024 admissions To participate in the Lautech Post UTME screening for 2024 admissions, candidates must: Choose LAUTECH as their first choice in the 2024/2025 UTME. Score at least 170 marks in the 2024/2025 UTME. Upload their O’Level results on JAMB CAPS before the admission exercise closure. Possess at least five (5) credits in relevant subjects at not more than two (2) sittings for UTME. Medicine, Nursing, and Medical Laboratory Science candidates must have all credits in one sitting. Be at least sixteen (16) years old. Grounds for admission ineligibility Candidates should note the following disqualifications: Direct Entry applicants who miss the oral and written interview will forfeit consideration. Candidates with inconsistent names, state of origin, or age on any result may face disqualification. Registration details The Lautech Post UTME screening for 2024 admissions registration runs from Monday, 5th August to Friday, 6th September 2024. Registration procedure 1. Visit the LAUTECH admission portal at apply.lautech.edu.ng. 2. Make a payment of N2,000.00 using an Inter-Switch Enabled Debit Card (ATM card). 3. Familiarise yourself with the available programmes, O’Level entry requirements, and UTME subject combinations. 4. Complete and submit the online application form, including a clear digital passport photograph in JPEG format (not more than 20kb). 5. Print the acknowledgement page and present it at the screening venue. Cost of screening The fee for the Lautech Post UTME screening for 2024 admissions is N2,000. Direct Entry candidates Direct Entry candidates, including those on LAUTECH JUPEB or other institutions’ JUPEB programmes, must: Obtain Direct Entry forms from JAMB. Forward transcripts to the Registrar, LAUTECH, Ogbomoso, one week before the screening exercise. Attend the oral and written interviews on the scheduled dates. Important reminders Adhere strictly to all guidelines. Provide valid and active email addresses and phone numbers. Awaiting results of NABTEB, NECO, and WASC can apply, but must upload results on JAMB CAPS promptly. Avoid false information to prevent disqualification and legal consequences. Enquiries and final thoughts on LAUTECH 2024 admissions For further details, candidates may contact LAUTECH via email at registrar@lautech.edu.ng or admissions@lautech.edu.ng. Beware of fraudsters and conduct transactions only with authorised personnel.
Read MoreRaising interest rates to lower inflation works
If I had a dollar every time someone asked why Nigeria’s Central Bank keeps raising interest rates to fight inflation, I’d be on a yacht in the Maldives and not write a weekly column. The CBN has raised interest rates four times this year, yet inflation remains at its highest level in nearly three decades: 34.2%. The myth: Raising interest rates to fight inflation doesn’t work. The facts: Raising interest rates is a monetary tool to manage inflation. Generally, the way it works is that the central bank raises the interest rates for loans. Banks, in turn, raise the price you pay to borrow money from them. The theory is that when borrowing becomes more expensive, it discourages spending and reduces demand for goods and services. Prices will eventually fall. “If raising interest rates to moderate inflation really works, then why does Nigeria’s inflation rate keep accelerating?” Raising interest rates isn’t a magic wand that makes inflation disappear overnight. When the Bank of England (BoE) started raising rates in December 2021, inflation was 5.4% and rose to 11.1% in October 2022 despite sustained hikes in interest rates. Between December 2021 and August 2023, the BoE raised interest rates fourteen consecutive times to a 16-year-high of 5.25%. It held rates until July 2024. The country’s inflation is now 2%. On Thursday, August 1, BoE cut the rate to 5%—for the first time in four years. Yet Governor Andrew Bailey told BBC the mission wasn’t “accomplished yet.” Fighting inflation is not a two-day task, and the rates will not always translate quickly. The current CBN leadership started its inflation fight in February 2024. There’s no fixed timeline for how long the transmission mechanism takes but Bank of Canada estimates between 12 and 18 months. The Bank of England says 12 months to two years. No surprises there, as it kept rates up for two years. CBN governor Olayemi Cardoso expects Nigeria’s inflation to moderate to 21.4% this year. Ultimately, one thing is clear: raising interest rates to lower inflation works.
Read MoreLagRide could lose ₦10m daily due to nationwide protests
₦10.52 million. That is the figure LagRide, the government-backed ride-hailing platform, could lose daily after drivers were asked to stay off the roads due to a nationwide protest, according to calculations by TechCabal. If the strike lasts ten days as planned, the ride-hailing company could lose ₦94.69 million. On Wednesday, LagRide told its 1,000 drivers to stay home and suspend their daily repayments during the strike. Drivers pay ₦700,000 ($791) for brand-new GAC vehicles and spread the rest of the payment for four years through daily payments of ₦10,522. “Any captain found driving or making offline trips or impersonating tomorrow will have their vehicle repossessed without options of settlement,” the company said in a statement seen by TechCabal. Only LagRide directed its drivers to stay off the road. Its competitors like Bolt, Indrive and Uber did not. However, officials of the e-hailing drivers union instructed drivers to stay home for fear of reprisal attacks. “We did not stop operations, we only advised safety,” national treasurer of App-Based Transporters of Nigeria (AUATON), Jolaiya Moses said in a text message. “We encouraged everyone to stay safe, if possible stay at home. It’s a volatile period.” The suspension of LagRide driver’s accounts will significantly impact the drivers’ ability to earn money to cater to their needs during the protest period. In July 2024, drivers’ daily asset repayments were increased 17% from ₦8,955 ($5.72) to ₦10,522 ($6.72) due to accelerating inflation and macroeconomic headwinds. The inability to make daily repayments could, in turn, result in losses for the government and the private investors should the protest extend.
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UNILAG 2024 admissions and Post UTME Screening Exercise
The University of Lagos (UNILAG) has just announced the commencement of its Post UTME screening for 2024 admissions into all undergraduate programmes. The screening process is an essential step for prospective students who selected UNILAG as their first choice in the 2024 Unified Tertiary Matriculation Examination (UTME). Eligibility criteria for Unilag Post UTME screening for 2024 admissions To participate in the Unilag Post UTME screening for 2024 admissions, candidates must: Have chosen UNILAG as their first choice in the 2024/2025 UTME. Achieve a minimum score of 200 in the UTME. Possess five (5) credit passes at one sitting in relevant O/Level subjects, including English Language and Mathematics. Upload their O/Level results on the JAMB Central Admissions Processing System (CAPS) by 9th September 2024. Be at least sixteen (16) years old by 31st October 2024. Ineligible candidates for Unilag Post UTME screening for 2024 admissions Candidates should note the following disqualifications: Former students whose admissions were withdrawn due to poor academic performance or absence status can only reapply for a different programme. Students expelled from UNILAG cannot be re-admitted. Candidates who do not participate in the Post-UTME Online Aptitude Test will not be considered. Registration details for Unilag Post UTME screening for 2024 admission The Unilag Post UTME screening for 2024 admission registration begins on Monday, 5th August and ends on Friday, 23rd August 2024. Registration procedure 1. Visit the UNILAG website at www.unilag.edu.ng. 2. Navigate to the Admissions section. 3. Select “Post-UTME Application”. 4. Log in with UTME Application number as username and surname in lowercase as password. 5. Generate and print payment advice. 6. Pay online with the available payment options or proceed to any commercial bank to make payment. 7. Return to the UNILAG portal to complete the screening form. 8. Print the Post-UTME Examination Pass. Screening fee The fee for the Unilag Post UTME screening for 2024 admission is N2,000. Unilag 2024 Post-UTME test schedule The online Post-UTME Aptitude Test will occur from Monday, 2nd September to Friday, 6th September 2024. Enquiries For further details, candidates may contact UNILAG via: Email: admissions@unilag.edu.ng Phone numbers: 09053006772, 08027953216, and 08141656802. Final thoughts Adhere strictly to all guidelines. Ensure necessary clarifications are obtained. UNILAG maintains a zero-tolerance policy for drug abuse and will withdraw admissions of candidates who test positive for drug use before or after registration. Candidates must follow these steps meticulously to complete the Unilag Post UTME screening for 2024 admission successfully.
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👨🏿🚀TechCabal Daily – Kenya rules against crypto tax
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF To close out the week, we’re once again asking you to move this newsletter to your Main/Primary folder so that we can be smack dab in your faces. A small glitch means our newsletter is landing more in the Promotions folder, so a qquicck drag-and-drop will help solve this. Don’t make us ask again . Thank you. In today’s edition WhatsApp threatens to exit Nigeria Chowdeck’s ad business Kenya removes Digital Asset Tax (DAT) Shago sues Fidelity Bank over $488,000 chargeback Funding tracker The World Wide Web3 Events Regulation WhatsApp threatens to exit Nigeria Nigerians may have to imagine life without WhatsApp. Meta says the Federal Competition and Consumer Protection Commission’s (FCCPC) demands would make it “impossible to provide WhatsApp in Nigeria or globally”. On July 19, 2024, FCCPC handed WhatsApp a $220 million fine over claims that the social media company breached user data policy on Nigerian users and forced them to accept dubious data requests. In addition to the fine, the FCCPC is also asking WhatsApp to stop sharing user data with its other Facebook companies and third parties. This situation puts Nigeria in a pickle. On one hand, the government’s flex shows it’s not afraid to take on tech giants. On the flip side, it risks pushing away a company that millions of Nigerians rely on daily for income and entertainment. Meta’s data use allows it to continue to float its other money-spinning business—advertising. More than 10 million digital advertisers use Meta Ads daily to reach their target audience, thanks to the data Meta collects. Last year, 98% of Meta’s $134.9 billion revenue came from advertising. However, this scrappy data collection practice has put it in trouble in many parts of the world. Currently, Meta is facing regulatory complaints in 11 countries and recently agreed to pay a $1.4 billion Texas fine for a biometric data breach. It seems shady that the non-data compliance in Nigeria is given a different treatment. Meta’s bluster is a tactic to strong-arm the country, according to FCCPC chairman Babatunde Irukera. In his X post, he says, “if [Meta] didn’t violate the law, it should appeal and let the legal process run its course.” Read Moniepoint’s 2024 Informal Economy Report 89% of businesses in the informal economy pay levies and market fees. The informal economy is typically described as untaxed, but is that true? Click here to find out more. Startups Is Chowdeck ads a profitable side hustle for the company? Growth-stage startups often have to think outside the box to create new pathways to profit. Sometimes these revenue opportunities are low-hanging fruits already layered on top of a product they deliver for free. Chowdeck is delivering a complementary ad product to make more money. Its value proposition for third-party businesses goes like this: for ₦250,000 ($150.5) per week, place ads on Chowdeck and reach 600,000 users. Much like food delivery companies in the US, Chowdeck is profiting off its free app to create an additional income source for its business. Already, it has attracted the likes of Guaranty Trust Bank which advertised its share offering on the platform this week. Other food delivery companies have tried a version of this ad product to generate income before. For example, Heyfood, another food delivery startup,, offers banner advertising spaces for aggregator restaurant companies on its roster. Businesses on the platform that want more visibility can advertise to users in order to increase orders. Chowdeck also has one thing going for it. Its large user base and the age demographic that uses its app make it a valuable destination for businesses to place ads. And as its users increase, it further strengthens Chowdeck’s position. As a growth-stage startup, staying in business long enough likely creates an opportunity to win. And how do you stay in business long enough? By figuring out ways to bring in more cash and burn less money. Chowdeck has just figured it out with an ad product. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Crypto Kenya removes Digital Asset Tax (DAT) Like opening this newsletter daily, death and tax are a given. However, crypto exchanges in Kenya will be avoiding taxes for now. In 2023, Kenya introduced a Finance Bill that mandated crypto exchanges to pay 3% of their revenue from trading cryptocurrency and other digital assets as part of a Digital Asset Tax (DAT). While some critics argued that the government should have aligned the DAT with the 1.5% Digital Service Tax (DST) which caters to taxes on digital services including crypto transactions, others were against the entire Finance Bill. Senator Okiya Omutatah, who is thought to be the defender of most public interest cases in Kenya and some activists—Eliud Matindi, Benson Otieno and Blair Oigoro—took the National Treasury to court to defend the bill. Okiya argued that additional taxes could affect the quality of Kenyan lives. Yesterday, Kenya’s Court of Appeal ruled against Okiya case, ruling the 2023 Finance Act unconstitutional, null, and void. The ruling means that crypto exchanges in the country will no longer be required to pay Digital Asset Tax (DAT) which was included in the Finance Act. The National Treasury will appeal the decision at the country’s Supreme Court. The ruling comes after Kenyan authorities bowed to public protests, reversing some of its newly proposed tax. President Ruto introduced new taxes in the 2024 Kenya Finance bill—that sought to place a tax on everything from the price of bread, motor vehicles, mobile money transfers, and banking services—in hopes of increasing government earnings to help pay back its debts. Banking Shago sues Fidelity Bank over $488,000 chargeback A Nigerian fintech dragging a commercial bank to
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