- October 29 2024
Globacom falls behind after new data shows subscriber count declined to 19.1 million
New data from the Nigerian Communications Commission (NCC) shows that Globacom, the Nigerian telecoms company that was shut out of emails and work applications after a ransomware attack, has lost significant market share. The NCC reviewed subscriber data and found that Globacom telco had only 19.1 million active subscribers in September 2024, a significant decline from the 62.1 million subscribers it recorded in March 2024. The steep decline came after the NCC adjusted subscriber figures to exclude users with no revenue-generating activity or inactive lines for 90 days. As a result, total active subscriptions in Nigeria dropped from 217 million in March 2024 to 154 million in September, according to NCC data. The NCC’s revised guidelines classify active subscribers as those engaging in revenue-generating activities, such as SMS, USSD, voice calls, or data usage. Corporate and individual data plan users also fall under this category. Under those 2021 rules, SIMs without a verified National Identification Number (NIN) cannot remain active. Verified subscribers must use their line at least once within a 90-day window to be considered active. “Even if you don’t make a call but receive one, the operator earns revenue, so your line is counted as active. Any qualifying activity within 90 days of activating a SIM makes it RG (revenue-generating),” said an NCC representative who asked not to be named. Despite the regulator’s clear directives, all leading telcos appeared to have engaged in spurious counting, “directly violating the Commission’s guidelines for identifying active subscribers, resulting in an inflated report of the operator’s subscriber count and skewing industry statistics,” one NCC insider told TechCabal. Globacom did not immediately respond to a request for comments. The Globacom breach: How hackers held Nigeria’s telco giant hostage The large-scale review by the NCC delayed the release of monthly industry statistics. Following that review, Globacom was the hardest hit, with 40 million inactive subscribers deleted from its overall subscriber count and shrinking its market share. Airtel also saw around 9 million inactive subscribers removed but retained 53 million users. Recently acquired 9mobile also experienced a substantial decline and now has 3.6 million active users. Market leader MTN Nigeria saw little impact, with less than 3 million inactive users. The telco maintains 78 million subscribers and has a 50.50% market share, up from 38% in March.
Read More- October 29 2024
Moniepoint gets $1 billion valuation in new funding round led by DPI
Moniepoint, a Nigerian fintech startup that processed 5.2 billion transactions in 2023, has raised $110 million in a funding round led by Development Partners International (DPI), according to two people with direct knowledge of the deal. The new financing round will almost triple the company’s valuation, which was around $400 million in a 2022 funding round in which it raised $50 million. Bloomberg reported at the time that the company was eyeing a valuation of $1 billion, but that was ultimately elusive, said two investors with knowledge of the matter. “They got the primary round at a $1 billion valuation,” one person with knowledge of the matter said, declining to be named so they could speak freely. That post-money valuation means Moniepoint, founded in 2015, will become the continent’s eighth unicorn. It will join a small club that has MNT-Halan, Interswitch, Flutterwave, Chipper, OPay, Wave, and Andela as members. Exclusive: Moniepoint processed more than 5 billion transactions in 2023 The funding round also included a secondary sale with a discounted valuation, which was ideal for many investors. Moniepoint provides retail banking services and also caters to small and medium businesses. It is one of the market leaders in Nigeria’s agent banking space. In 2023, it was second on the Financial Times list of Africa’s fastest-growing companies. While the FT list showed Moniepoint had annual revenues of $62.6 million in 2021, three people with knowledge of the matter claimed the company’s annualised revenue has grown to over $100 million. While naira devaluation may have slowed growth in dollar terms, many investors consider Moniepoint a solid company with bright prospects. In 2023, it grew transaction value by over 205%, processing 5.2 billion transactions worth over $150 billion. Moniepoint declined to comment on any part of this story.
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- October 29 2024
TechCabal Daily – Lights out, banking apps down
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! TechCabal Insights, in collaboration with Innovation Village, is launching the Uganda Digital Economy Trends Report! The report chronicles the vibrant growth of the country’s tech ecosystem, the fast-rising startups, the impact of government initiatives to funding, and the new opportunities emerging in fintech and mobile payments. Discover key players, funding trends, and regulations shaping Uganda’s digital future. Download the free report here. Power outage takes Nigerian banks offline A rise in investor-led acquisitions in Nigeria Pick n Pay to exit Nigeria World Wide Web 3 Opportunities Banking How a power outage at MainOne data centre took Nigerian banks offline Image Source: Zikoko Memes If you use a tier-1 bank, you may have experienced a service disruption in the early hours of Wednesday, October 9, 2024. You probably blamed the disruption on the ongoing technological changes by several Nigerian banks. You were wrong. What happened was a power outage at a data centre operated by MainOne, a major internet provider for most Nigerian banks. The one-hour outage knocked several Nigerian banks offline and affected millions of customers. That’s why you couldn’t access your bank app that morning. We will tell you why this is a big deal. Think of your bank as a car and MainOne as the engine. The bank needs a reliable infrastructure—especially secure network connectivity—to function efficiently. MainOne provides that connectivity. Urgent situations, they say, call for urgent measures. One person familiar with the situation told me that at least three chief technology officers (CTOs) of the affected banks visited the data centre hours after the outage happened. Another person said a faulty circuit breaker caused the power outage. Data centres like MainOne’s consume significant amounts of power so they rely on multiple power sources, including utility and diesel generators. While MainOne has since fixed the problem, the incident is just another reminder of how important connectivity is to a bank’s operations. If you call the internet the lifeblood of a bank, you won’t be wrong. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. M&A Omniretail-Traction acquisition signals more investor-led acquisitions in Nigeria Image Source: Google OmniRetail’s recent all-stock acquisition of Nigerian fintech startup Traction Apps highlights a growing trend: investors are supporting founders to consolidate their startups into larger entities with greater potential for significant returns. It previously happened in May 2024 when Paystack, the Stripe-owned fintech, led a group of investors to acquire Brass. Before that, in September 2023, Eke Urum, founder of investment platform Risevest acquired digital trading startup Chaka on the suggestion of an investor. It’s easy to see how the Traction Apps acquisition is a win-win for all parties involved. For OmniRetail which has been seeking funding for a new round, this deal will bolster its fintech arm and attract fintech investors who, in West Africa, are reportedly more liberal with cash and valuation multiples compared to other sectors. On the other hand, Traction Apps investors get to say they have exited another startup in a clime where many have been lost to the harsh funding climate. The all-stock deal gives Traction Apps investors equity in a startup with a brighter future. However, it remains unclear at what valuation Traction Apps was acquired and how much stake the incoming investors get in OmniRetail. As usual, the VCs are holding these numbers to their chest, leaving us guessing. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Companies South Africa’s Pick n Pay to exit Nigeria Image Source: Reuters Pick n Pay stores will soon start disappearing from Nigeria as the grocery retailer confirmed on Monday that it has sold its 51% share of its joint venture back to Nigerian conglomerate, A.G. Leventis. In 2020, Pick n Pay entered Nigeria—a market it described as “risky” upon entry—through a partnership with A.G. Leventis. The South Africa-based retailer operated two walk-in stores in Victoria Island and Ikeja, Lagos, where it distributed fast-moving consumer goods (FMCGs). While the decision to leave Nigeria could be summed up as a result of the inflation and its impact on consumer goods, yet, some of its other chain businesses outside South Africa have not been performing so well due to currency devaluation. The retailer reported a R1.1 billion ($62.2 million) loss before tax in the half-year period ending August 25. This was significantly higher than the R837.2 million ($47 million) loss it reported the year before. The company also reported mounting debts and its liabilities being greater than assets earlier this year. Pick n Pay’s outgoing chairman Gareth Ackerman said the performance of their core Pick n Pay business has been poor and has not met expectations. The company will raise between R6–8 billion ($339 million–$452 million) in secondary share sales of its subsidiary FMCG business, Boxer Retail, which it acquired in 2002. With the funds, it will refinance and refocus its businesses outside of South Africa. Pick n Pay is one of three largest grocery chains in South Africa, along with Shoprite and Spar Group. While Pick n Pay has been posting losses, its two biggest competitors—which still have a presence in Nigeria—have been thriving in the market which is likely due to their established presence in different regions in the country. While Pick n Pay will no longer compete in Nigeria, it still has physical presences in Botswana, Eswatini, Lesotho, Namibia, Zambia, and Zimbabwe. Introducing Pay with Pocket on Paystack Checkout Paystack merchants in Nigeria can now accept payments
Read More- October 28 2024
Starlink may face sanctions for unapproved price increase in Nigeria
SpaceX-owned satellite provider Starlink may face sanctions from the Nigerian Communications Commission (NCC) after it increased subscription fees without the regulator’s approval. One person with direct knowledge of the matter said Starlink wrote to the regulator to get approval for the price hike but did not wait for a response. On October 1, 2024, Starlink told customers about a 100% increase in subscription fees, citing rising inflation. The NCC immediately asked Starlink to reverse the price. hike, which the company complied with on Friday. “Regulatory enforcement actions do not necessarily end with fines,” said one NCC source who asked not to be named so he could speak freely. Starlink will be formally informed of the possibility of regulatory action, the same person said. The company will then be expected to respond before the the NCC makes a decision. The possible decisions can be fines, cautionary notes or nonaction if no wrongdoing is found. A decision is expected in about two weeks. Starlink launched in Nigeria in 2023 and has 23,897 active subscribers. However, telco executives believe regulators are soft on the company, allowing them to operate without a phyical presence. “This is not true,” said an NCC employee who asked not to be named. “Starlink has so far built three landing stations out of the five the NCC mandated it must build. The way satellite services operate they are not required to establish so many presence but they are doing more in Nigeria than they have done in other African climes.”
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- October 28 2024
Top 5 quality phones to buy under ₦20,000 in Nigeria 2024
There are times you just need a small phone to basically receive calls and store numbers without the complexity or glamour associated with smartphones like the iPhone series or Android brands. Or maybe your main phone has an issue and you just need a phone to fill in for basic communication like calls and texts. In other words, if you’re looking to buy cheap phones in Nigeria in 2024, these five devices offer essential features, solid battery life, and value for money. 1. Itel 2166 – ₦15,249 The Itel 2166 combines affordability with utility. This feature phone sports a 2-inch screen and a durable 1000mAh battery that supports up to 9.5 hours of talk time and 177 hours on standby. With dual SIM slots, Bluetooth connectivity, and a digital camera, it’s a reliable choice. The auto call recorder and speed-dial function add convenience for those on the move. The Itel 2166 suits anyone seeking quick makeshift or a low-cost device with basic functionalities. There are other cheap phones, but this is one of the quality ones you’ll find in Nigeria in 2024. Specs highlight Screen: 2.0-inch QVGA Battery: 1000mAh Memory: 32MB RAM, 32MB ROM Other Features: Wireless FM, speed dial, expandable memory 2. Itel 2163 – ₦12,700 The Itel 2163 offers similar advantages and specifications to the 2166 but at a lower price point. It features a 1.8-inch screen, a 1000mAh battery, and a sturdy build. Ideal for basic use, the device supports up to 32GB of expandable storage. It also features a loudspeaker, bright torch, and an auto call recorder. So if you are looking to buy affordable but quality phones in Nigeria in 2024, the Itel 2163 is a competitive option for basic needs. Specs highlight Screen: 1.8-inch QVGA Battery: 1000mAh Memory: 4MB RAM, 4MB ROM Other Features: Dual SIM, wireless FM, expandable memory 3. Itel 2160 – ₦13,000 The Itel 2160 is a compact, affordable device with a 1.77-inch screen and a 1000mAh battery. Offering a VGA camera and dual SIM support, this device prioritises essential features for those on a budget. The 2160 includes wireless FM, an auto call recorder, and 32GB expandable storage – perfect for a reliable, no-frills phone experience. Specs highlight Screen: 1.77-inch QVGA Battery: 1000mAh Memory: 32MB RAM, 32MB ROM Other Features: VGA camera, bright torch, preloaded games 4. Tecno T301 – ₦18,000 The Tecno T301 provides a longer battery life with its 1150mAh capacity, a rare find at this price. This phone features a 1.77-inch QVGA screen, dual SIM support, and basic internet connectivity. The Tecno T301 suits you if you especially prioritise battery life and simplicity. Specs highlight Screen: 1.77-inch QVGA Battery: 1150mAh Memory: 4MB RAM, 4MB ROM Other Features: Palmchat, Facebook, wireless FM 5. Tecno T302 – ₦19,000 The Tecno T302, priced just under ₦20,000, offers a 2.0-inch screen and dual SIM functionality. With a 1150mAh battery and 32GB expandable memory, it’s a powerful budget option. If you’re looking to buy a cheap phone in Nigeria in 2024, this phone’s larger display and solid battery make it a top contender. Specs highlight Screen: 2.0-inch QVGA Battery: 1150mAh Memory: 4MB RAM, 4MB ROM Other Features: FM radio, 0.08MP camera, Bluetooth Final thoughts Choosing a budget phone in Nigeria requires more than just a price check; it’s about balancing practical features with durability. For under ₦20,000, these phones don’t promise high-tech marvels, but they do deliver essential reliability. So if you are not in the market for the flashy phones, the highlights in this article stand out by focusing on what truly matters: staying connected, anytime and anywhere. You will find these phones on e-commerce platforms like Konga and Jumia.
Read More- October 28 2024
How a power outage at MainOne data centre took Nigerian banks offline
MainOne, the Equinix-owned broadband and storage company, suffered a one-hour power outage at its MDXi II data centre in Lekki on October 9, 2024, that took several Nigerian banks offline. The outage affected millions of customers who could not access banking services. One person familiar with the matter said at least three tier-1 banks were affected. A faulty circuit breaker caused the power outage, one person with direct knowledge of the matter said. With a power capacity of 600 kilowatts (kW) and a power density of 3.5 kW per rack, MDXi Lagos uses multiple power sources, including utility and diesel generators. This incident reflects MainOne’s influence in Nigeria’s broadband and data storage market. With a roll call of the biggest commercial banks and internet providers as clients, MainOne “is internet in Nigeria,” someone familiar with MainOne’s business told TechCabal. In March 2024, MainOne suffered a major fibre cut in Ghana that knocked many major Nigerian banks offline. At least three chief technology officers (CTOs) of the affected banks visited the data centre on October 9 to inquire about the situation, one person with direct knowledge of the matter said. MainOne did not immediately respond to a request for comments. One person familiar with the matter said MainOne has set up redundancy to avoid future reoccurrences. A data centre redundancy is the “use of duplicate components to keep operations uninterrupted if some components fail and maintain uptime during maintenance.” For commercial banks who rely on MainOne as an internet provider, an outage of that nature affects their operations, especially online banking activities. At a time when most commercial banks are undergoing major technology changes that have affected millions of customers, a blackout at their internet service provider is a risk not worth having. Nigerian commercial banks operate in a low-trust environment and customers question their reliability whenever there is a service disruption.
Read More- October 28 2024
Traction Apps all-stock acquisition adds to string of investor-led deals creating quick wins
The acquisition of Traction Apps, a Nigerian fintech startup, by OmniRetail, the B2B e-commerce company that topped FT’s list of Africa’s fastest-growing startups, adds to a growing trend of VCs leading consolidations of startups to create bigger entities more likely to create outsized returns. This has played out in the acquisition of business banking startup Brass by a group of investors led by payment giant Paystack and the acquisition of digital trading fintech Chaka, which the acquirer, Risevest, another digital trading startup, disclosed was suggested by a mutual investor. Ventures Platform, an investor in OmniRetail and Traction Apps, confirmed that these deals were prompted by investors. The VC firm also played an active role in the Paystack-Brass deal and facilitated the acquisition of Traction Apps. “But the key decision on when and how to drive the process is mostly founder-led,” said Dotun Olowoporoku, managing partner of Ventures Platform. “Founders often use their judgment or tap into investor networks to help the process.” The Traction Apps acquisition, an all-stock deal, according to a spokesperson for OmniRetail, gives Traction App’s investors; Multiple Partners, P1 Ventures, Ventures Platform, Voltron Capital and others, stakes in OmniRetail, a B2B commerce startup reportedly valued at $65 million in its last funding round. OmniRetail declined to specify the value of the deal. It is also unclear what stakes Traction Apps’s investors will get in the acquisition. Nonetheless, as is common in some acquisition deals, the whole value is not fixed and some of it will be determined in the coming years based on how much value the integration of both companies produces. The opportunity to gain a significant slice of OmniRetail has stirred excitement in Traction Apps investors who believe this acquisition spells out exponential growth for OmniRetail, according to a source familiar with the matter. Optimistic Traction App investors are willing to make further investments in the newly formed entity, according to the same source. Ventures Platform declined to confirm this but agreed that “OmniRetail is a compelling company with significant potential for investors interested in this sector.” The thinking of these investors is that the integration of Traction Apps’s financial services and its network of merchants can explode the growth of OmniPay, a proprietary financial service that Omnibiz says has boosted its efficiency and profitability in the fast and moving goods services sector where margins range between 3% and 6%. “Just buying from distributors and selling to retailers did not have enough margin and benefits, but engaging with distributors on the platform and embedding working capital tools like OmniPay increased the value chain margin for us to hit profitability,” said OmniRetail CEO, Deepankar Rustagi, in an interview with TechCrunch. OmniRetail claims that by January 2024, it had attained 9% gross margins and 5% net contribution margins meaning that for every transaction worth $1 (~₦1,500), OmniRetail makes $0.05 (~₦75). The startup also claims to have broken even in earnings before interest and taxes (EBITA), contrary to many competitors operating at negative margins or attaining only breakeven net contribution margins. This acquisition gives OmniPay payment licenses of Traction Apps that would have taken a significantly long time to acquire from the regulator. Aside from collections, and supplier payment, Omnipay provides transaction data for generating credit scores for retailers who are otherwise unable to access financing from traditional lenders. Traction Apps which provides financing services to merchants can boost that segment. “OmniPay will be able to integrate directly into the payment switch and give us the ability to deeper understand the wallets of our merchants and eventually provide them a host of value-added services in Fintech will be a key benefit for us,” an OmniRetail spokesperson told TechCabal. The fintech’s value-added services—bill payments, insurance and loans will be instrumental for Omniretail as well, according to the spokesperson. Following the acquisition, the combined entity will service 180,000 customers in the wholesale and retail sectors, with annual transaction volumes projected at $1 billion and loan facilitation of $122 million annually. Mayowa Alli and Dolapo Adejuyigbe, founders of Traction Apps will remain in the company to lead the growth. The acquisition of Traction Apps is an interesting turn of events overall. The startup was initially working with OmniRetail as one of several financial services providers that enable payments and collections. “It’s on trend. Most of the B2B eCommerce players have been building fintech roadmaps and this acquisition will be catalytic for OmniRetail,” Mikael Hajjar, a managing partner at P1 Ventures, one of the investors in Traction Apps, told TechCabal. Hajjar also cited another company, Chari, a Moroocan B2B e-commerce startup that is making similar strategic acquisitions to scale. Chari has acquired two fintech startups to date: France-based Axa Credit, the credit brand of Axa Assurance Maroc and Moroccan fintech app Karny. This acquisition may attract fintech investors to OmniRetail which has been trying to raise money in a Series A round. In March 2024, CEO Deepankar said Goodwell VC and several development finance institutions (DFIs) have already committed $10 million. However, at GITEX Dubai, one of the world’s largest tech conferences, Dika Oha, OmniRetail’s chief innovation officer, shared that the startup has seen many interested investors decide against investing due to concerns about the effect rising inflation is having on the FMCG sector. This fintech play may change things for the company. This trend of companies centring fintech in their growth aligns with a 2019 prediction made by Angela Strange, a general partner at the prominent venture capital firm Andrew Horowitz, who forecasted that every company would eventually become a fintech company.
Read More- October 28 2024
Kenya’s central bank fines UBA for breaching capital rules
The Central Bank of Kenya (CBK) has fined UBA Kenya for breaching capital requirements. The lender failed to meet the 8% minimum core capital-to-deposit ratio following continued losses, the bank said. UBA Kenya is among 12 commercial banks fined by the CBK for various regulatory breaches, as its core capital-to-deposit ratio fell sharply from 29.46% in 2022 to 7.92% in 2023 despite narrowing its losses. The bank reported a pre-tax loss of $2.6 million (KES344 million), down from $3.3 million (KES437 million). Commercial banks that also breached the rule alongside UBA include Housing Finance, a mortgage finance bank, and Development Bank of Kenya, a state-owned lender. CBK requires lenders to maintain a 10.5% floor for the core capital to risk-weighted assets ratio, 14.5% total capital to risk-weighted assets, and 8% for the core capital to deposits ratio. “Twelve commercial banks were in violation of the Banking Act and CBK Prudential Guidelines as at December 31, 2023, compared to thirteen commercial banks as at December 31, 2022,” the CBK said in its banking sector report. “Most of the violations were with respect to breach of single obligor limit due to depreciation of the Kenya Shillings against the US Dollar and decline in core capital in some banks that have continued to report losses,” the CBK said. Cash-strapped Spire Bank, which was acquired by Equity Group in 2023, and Consolidated Bank did not meet the core capital requirement of $7.7 million (KES1 billion) and also fell short of the 10.5% of the core capital to total risk-weighted assets rule. The breaches come even as the CBK plans to increase the minimum capital requirement for commercial banks tenfold to $77.8 million (KES10 billion). The move, which could prove challenging to small banks, will boost resilience to potential financial risks like increased cyber fraud threats and economic shocks, the CBK said in June.
Read More- October 28 2024
Sterling Bank pitches SEABaaS, its custom core banking software to MTN MoMo, other banks
Sterling Bank, a Nigerian bank with a market capitalization of ₦115.16 billion, is pitching its new custom-built core banking application software, SEABaaS, to financial institutions and fintech companies. Two people familiar with the matter said the bank has pitched SeaBaaS to MoMo, MTN’s Mobile Money business. This is consistent with the bank’s plan to save costs by building its own core banking application software and then licensing it to other banks and financial institutions. People familiar with the matter said Sterling is also pitching to fintechs because SEABaaS was built to give Sterling Bank the nimbleness of a fintech. Sterling has been more adventurous than other banks in its category, creating asset financing products, focusing on sleek user experience on its banking app, and launching Alternative Bank, a non-interest bank. With several products and even more in development, Sterling hopes to convince fintechs who want to move fast and break things that SEABaaS is perfect for them. Sterling Bank and MTN MoMo did not immediately respond to a request for comments. Beyond the fintechs, it also hopes to attract business from other banks. With tier-1 banks billed to spend ₦80 billion on licencing fees for core banking software in 2024 alone, SEABaaS may be a cheaper offering. Yet, people familiar with the matter say the banks will not be an easy sell. “Most banks will likely wait it out until they see how SEABaaS handles end-of-year operations,” one person familiar with banking technology told TechCabal. For banks, the end of the year is a crucial period where accounts have to be balanced and transactions reconciled in preparation for the new year. SEABaaS was jointly built by Bazara Tech Inc, Peerless Technologies, and a third company that has not yet been disclosed. It is unclear how much Sterling spent to develop the software, but the bank was keen to localise cost, people familiar with the matter said. Banking software like Finacle and Temenos are priced in dollars. It will likely make some inroads with tier-2 banks keen to localise costs.
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- October 28 2024
TechCabal Daily – A Sterling sales pitch
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! The Future is Female Mentorship Programme, a media and PR training programme, announced its 20 female finalists for the 2024 edition. Healthcare, AI, agritech, and climate tech startups stood out in the latest announcement. In other news, Apple is about to announce its smallest computer ever. The Apple Mac Mini, introduced in 2005 as the most affordable Mac in Apple’s lineup, is about to get even smaller. The size of the PC, which has not changed much since inception, will now become as small as the size of a DVD case. The shrink in size of the Mac Mini is thanks to Apple’s new M4 chip. The company also plans to release new versions of its devices with the M4 chips in the coming months, including iMac desktop and MacBook Pro. Sterling Bank pitches its core banking software to other banks, fintech NCC cautions Starlink for price hike Stanbic Kenya finalises core banking software upgrade World Wide Web 3 Jobs Banking Sterling bank pitches its core banking software to other financial institutions Image Source: Andertoons Let me tell you the most shocking thing I heard last week: core banking software—the pesky stuff banks buy so we can send money to each other—costs about ₦25 billion per year ($15.3 million). Yet, it’s a drop in the ocean for Nigeria’s biggest banks. These banks will only spend 1% of their half-year revenue on core banking costs. Yet, not everyone is a tier-1 bank. When you’re not valued at trillions of naira, you may not always want to splash the cash on core banking software. Sterling Bank, for example, chose to build its own banking software. But building a banking software from scratch is also expensive. That’s where other plans come in, like selling the software to other banks and grabbing a share of those billions they spend. Look out for my article later today on who Sterling is already speaking to. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Telco NCC cautions Starlink for price hike Image Source: Google On October 1, 2024, Starlink surprised its Nigerian customers by doubling subscription prices. The satellite internet service provider increased its residential plan from ₦38,000 ($24) to ₦75,000 ($48). While Starlink chalked up price increases to macroeconomic conditions, the Nigerian Communications Commission (NCC) said the company didn’t get regulatory approval for the price increase. One person with knowledge of the matter claimed Starlink wrote the NCC for approval to increase prices but did not wait for a response before implementing new prices., The NCC ordered Starlink to halt its price increase because it contravened “Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink’s Licence Conditions regarding tariffs.” While Starlink reversed the price increase, the NCC isn’t done yet. The NCC will demand a formal response on why Starlink did not wait before increasing prices, familiar with the matter said. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Banking Stanbic Kenya cops latest Temenos technology in core banking upgrade Image Source: Google Stanbic Bank Kenya, a Kenyan subsidiary of the Stanbic IBTC Holdings, recently announced that it upgraded its core banking software from Temenos T24 R17 to the newer cloud-based T24 R23. The vertical core banking switch, which started early in 2024, was finally completed on October 21. The bank suffered downtimes during the upgrade, which is now par for the course for many banks that are switching core banking platforms. Banks improve their technology to make its lending and banking services better. This tech upgrade made sense for Stanbic Bank Kenya as it plans to deal with emerging cyber threats which have been haunting Kenyan banks. Ecobank Kenya and Equity Group were previously targets in card fraud schemes where fraudsters stole millions of dollars. Stanbic Bank Kenya is one of the moderately large banks in the country with 266,000 customers and controlling 5.8% market share in the lending business. The new T24 R23 platform provides core banking capabilities across account management, loans, payments, and transfers. It also offers quick customisation features specific to the bank’s needs by only writing a few lines of Java codes. Stanbic Bank Kenya started using the Temenos technology in 2010. R23 is Stanbic’s bet to provide faster banking services to its customers. Yet, it is unclear if the tech upgrade applied to other banks in Stanbic IBTC Group’s portfolio—which operates banks in 20 countries. For instance, the Stanbic Nigeria bank experienced a 24-hour downtime on October 10 where customers were not able to use their bank apps. The Nigerian lender has not confirmed if this was also due to a core banking switch. Introducing Pay with Pocket on Paystack Checkout Paystack merchants in Nigeria can now accept payments from PocketApp’s 2 million+ customers. Learn more → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $67,576.39 + 0.71% + 2.44% Ether $2,475.45 – 0.14% – 8.00% AI Companions $0.09699 + 2.38% – 1.66% Solana $173.33 + 0.38% + 9.65% * Data as of 06:00 AM WAT, October 28, 2024. Jobs Platos Health – Product Marketing Manager – Lagos, Nigeria CredPal – Mid-level Backend Developer – Lagos, Nigeria Flutterwave – Backend Engineer, Frontend Engineer, Compliance Officer – Hybrid (Lagos, Nigeria) Jobberman Nigeria – Digital Marketer – Lagos, Nigeria KPMG Nigeria – Strategy Consultant – Abuja, Nigeria Renmoney – Growth Manager, Head of Legal & Compliance, Head of Contact Centre –
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