Quidax, Yellow Card, Busha bet on B2B crypto payments to grow market share
If you swipe across the social media pages of Quidax, Yellow Card, and Busha—three prominent crypto startups operating in Nigeria—in recent months, you’d notice one common detail: they are heavily promoting their B2B crypto payments business. Yellow Card and Quidax have run paid promotional campaigns for their B2B application programming interfaces (APIs), targeting businesses and fintechs; Busha has mostly promoted this service organically. The push toward businesses reflects a stronger focus on a part of their operations that has long been active but less visible. These crypto companies are now spotlighting their B2B payment solutions to meet growing demand from African fintechs that want to offer crypto payments without taking on regulatory burden. These startups prioritise B2B services to complement the retail side, as it offers a more stable and scalable way to grow their market share. “There was a gap in the market,” said Tochy Emereole, marketing lead at Quidax API Business. “There’s been high crypto adoption, especially in Nigeria, and many people have been interested in building crypto products. But the talent gap has been a problem.” According to a Hashed Emergent report, Africa lags behind other regions in blockchain talent. While Nigeria leads the continent in the number of Web3 developers, they still make up only 4% of the global developer workforce. Building a traditional fintech and building in Web3 require different skill sets, like knowing how to work with blockchains, write smart contracts, and use new programming languages like Solidity, Rust, or Move. Handling the technology in Web3 is more technical and requires a steeper learning curve—something few engineers in Nigeria are willing to embrace, said Emereole. Yet, the increasing adoption of cryptocurrencies across Africa’s big four—Nigeria, Kenya, South Africa, and Ethiopia—has also pressured fintechs to integrate crypto and stablecoin payment rails to meet customer demand. Since 2023, African traditional fintechs, including Flutterwave, Chipper Cash, Onafriq, Grey, and Eversend, have integrated stablecoin payment rails for different reasons. On the customer side, fintechs are looking to solve cross-border payment needs for their users, while businesses-serving fintechs are exploring crypto liquidity as a workaround for FX shortages. This makes stablecoins a practical choice for retail and enterprise use cases, hence why API providers are shifting toward this segment. Their pitch is simple: crypto startups can build full-stack applications and digital asset exchanges by connecting to these APIs and riding on their technology. Traditional fintechs that want to offer stablecoin-to-fiat payments tap into this technology, bypassing the need to build these apps. 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Quidax, Yellow Card, and Busha are betting on the ease and simplicity they provide for startups, especially businesses just starting out. With these APIs, developers only need to know how to make API calls, handle responses, and test their applications in sandbox environments provided by the crypto platforms. This makes it easier for traditional fintechs, mobile apps, and even neobanks to introduce crypto payments and trading features without overhauling their systems or hiring blockchain engineers. These API providers either charge an
Read MoreOnafriq appoints former PPRO chief Simon Black as board chair
Onafriq, a pan-African digital payments network, has named Simon Black as chair of the board of its UK holding company following his appointment as an independent non-executive director. Black previously served as chief executive of PPRO, a Germany-based payments infrastructure provider, from 2015 to 2023. Under his leadership, the company expanded internationally, surpassing $113 million in annual revenue. Before PPRO, he was CEO of Sage Pay, a UK-based payments firm focused on small and medium-sized businesses. With a presence in over 40 African markets, Onafriq is at the center of the continent’s fragmented payments ecosystem. Black’s experience running global fintech businesses is expected to support Onafriq’s efforts to expand cross-border services and deepen its position in connecting digital wallets, banks, and financial platforms across Africa. “Simon’s appointment comes at a transformative moment in Onafriq’s journey,” said Dare Okoudjou, founder and CEO of Onafriq. “To fulfil our mission of making borders matter less across Africa, we must build upon our strong foundations to create an even more resilient and innovative business.” Onafriq — formerly known as MFS Africa — positions itself as a “network of networks,” integrating banks, mobile wallets, and fintech apps to facilitate interoperability and cross-border transactions across the continent. It claims to connect more than 500 million mobile wallets and 200 million bank accounts across 42 African markets. The company plays a growing role in corridors such as intra-African trade payments, diaspora remittances, and merchant payments, which are expanding in volume and complexity as digital commerce gains ground. Black is expected to provide strategic oversight to the company’s executive leadership and help guide its cross-border growth ambitions. “Simon’s exceptional track record of scaling fintech leaders and navigating complexity makes him the ideal Chair to guide this next phase,” Okoudjou said. “His expertise will be instrumental as we strengthen our position as Africa’s payments infrastructure backbone and accelerate financial inclusion throughout the continent.” Despite raising over $200 million in capital from investors including AfricInvest, Goodwell, and Admaius Capital, Onafriq operates in a challenging environment. Currency instability, uneven regulation, and high transaction costs make scaling cross-border payments across African markets difficult. Black’s appointment could bring board-level experience to help the startup navigate cross-border scaling challenges.
Read MoreAfrican e-commerce startups raise $11.3M in Q1 as investor caution grows
Investor appetite for e-commerce startups in Africa is dwindling as year-on-year funding figures dropped by 47.2% in Q1 2025. According to data from Africa: The Big Deal, a database for startup deals, the total funding received by African startups in the e-commerce sector in the first quarter of 2025 dropped to $11.3 million, down from $21.4 million during the same period last year. The tightening of investments reflects a cooling of private markets and a reassessment of the sector by investors in terms of competition, unit economics, and general growth. Uncertainties in these areas may have pushed investors to make more conservative bets in other sectors. While a few notable rounds were still closed—such as Egypt’s Taager, a social e-commerce platform that supports online merchants with end-to-end logistics, raising $6.8 million in a Pre-Series B round led by Breyer Capital, and Kenya’s Kapu, a grocery-buying service focused on group purchases, securing $2 million in a Pre-Series A from Base Capital—the average deal size shrank compared to the first quarter of 2024. Seed funding rounds in this sector were nought, compared to the $3 million raised by Badili and Dawa Mkononi in Q1 2024, signalling a waning appetite for risk. African e-commerce startups face increasing challenges, including difficulty gaining market share due to intense competition from established giants like Jumia, Zando, and Konga, and the rising cost of acquiring customers. These challenges may contribute to the pullback in investment as investors want to prioritise profitability over high growth, opting for sectors with stronger unit economics. This decline in e-commerce startup investment may persist if investors remain cautious. The size of Africa’s e-commerce market was valued at $317 billion in 2024 and is expected to cross $1 trillion in 2033. With increased internet penetration and evolving consumer preferences, the long-term outlook for investments in this sector remains positive.
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👨🏿🚀TechCabal Daily – Starlink is (finally) coming to SA
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! You can get just about anything in the world—if you’ve got enough charm, pressure tactics, and a little Elon-sized audacity. Just ask Musk. After a year-long standoff with South African regulators, his satellite internet company, Starlink, might finally get the green light to operate in the country. Meanwhile, in Mountain View, Google pulled off its annual flex: Google I/O 2025. If you slept on it, here’s what you missed—AI, AI, and more AI. The company dropped Project Mariner, a web-surfing AI agent; Veo 3, a video generator that adds sound; and Stitch, an AI that designs full web and mobile front ends on command. But the biggest curveball? Search as we know it is getting AI-ified. Google is betting big on a future where all searches are handled by AI—and it’s bundling access to its most advanced tools into a $249.99/month subscription. Here’s everything you need to know from Google I/O 2025. Elon Musk, Cyril Ramaphosa to hold key meeting to discuss black ownership rule for Starlink Kenya’s supreme court: No AI in judgments—yet Twiga Foods, a Kenyan e-commerce startup pivots to an asset-light model Nigeria leaves Interest rate unchanged World Wide Web 3 Opportunities Internet Elon Musk, Cyril Ramaphosa to hold key meeting to discuss black ownership rule for Starlink Musk “evil overlord” meme/Image Source: ReactionGIF. Starlink may be finally getting a licence to operate in South Africa. On Tuesday night, President Cyril Ramaphosa is expected to meet Musk to break the deadlock that’s kept Starlink, the satellite internet service company now operating in 21 African countries, out of South Africa. (Fun little detail: we wrote this blurb at 6PM WAT.) Starlink has been unable to enter South Africa due to a regulation requiring foreign telecom operators to be at least 30% owned by blacks or historically disadvantaged groups. Musk, the CEO of Starlink, has pushed back, calling the rule exclusionary—and so far, Starlink hasn’t even applied for an operating licence. This standoff has been brewing for over a year. There were talks between Musk and Ramaphosa multiple times in 2024, but no results followed. However, there was a complete fallout between the two in February 2025. US President Donald Trump had accused Ramaphosa over South Africa’s land reform policy, claiming it unfairly targets white South Africans. Amid the fallout, Musk also posted on X that the country favoured blacks more than white, citing the Starlink delay. This added tension to the diplomatic relations between South Africa and the USA. However, in what seems like a timely intervention, Ramaphosa will visit Trump in Washington to discuss foreign policies, which puts pressure on the South African president to fix the Starlink mess. Will it finally bend its black ownership rule for Starlink? South Africa is only trying to hold on to a policy that has worked for it for over two decades. Regardless of what’s said in both meetings, it is likely that the country won’t completely grant Musk and Starlink a free pass. South Africa could propose the “equity equivalent” model. Instead of handing over equity, Starlink would invest in social projects—like bringing free internet to rural schools or clinics. It’s not a new idea: in 2019, foreign car-makers like BMW and Toyota signed a similar deal to operate in the country. Ramaphosa may be looking to cool tensions and boost internet access at the same time. Offering Starlink a tailored deal could ease diplomatic strains, expand rural connectivity, and avoid a public policy U-turn with Trump. We will know the outcome of this meeting on Wednesday. Seamless Global Payments With Fincra. Issue accounts in NGN, KES, EUR, USD & more with one integration. Send & receive funds seamlessly across borders; no more banking hassles or complex conversions. Create an account for free & go global today. 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Read MoreFidelity Bank loses trillion-naira market cap after Supreme Court fine ruling
Fidelity Bank Plc, a tier-2 Nigerian commercial bank, has dropped out of the elite ₦1 trillion market capitalisation club, following a sharp decline in its share price triggered by a Supreme Court ruling. As of market close on Tuesday, May 20, 2025, the bank’s market capitalisation fell to ₦954 billion, after its share price slipped by 5% to ₦19.00 from ₦20.00 the previous day, according to data from the Nigerian Exchange Limited (NGX). The drop came after the Supreme Court ordered Fidelity to pay ₦225 billion ($140.6 million) in damages to Sagecom Concept Limited. The judgment, tied to a long-standing dispute involving the defunct FSB International Bank—which Fidelity acquired—spooked investors despite immediate reassurances from both the bank and the Central Bank of Nigeria (CBN). This marks the second time in May, the lender has lost its trillion-naira status, although this time the trigger was not market sentiment or profit-taking, but regulatory and legal uncertainty. “The decline in share price is most likely from the initial reactions to the Supreme Court fine news,” said Nathanael Disu, investment research analyst at Afrinvest West Africa Limited. He noted that legal overhangs like this tend to cloud valuation, especially in a retail-driven market: “The bank’s share price might possibly pick up tomorrow because its financial performance still remains strong.” Fidelity had surged into the trillion-naira club and valuation tier on April 4, becoming the only tier-2 Nigerian bank to join the ranks of tier-1 giants like Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Holdings, First Bank HoldCo, and United Bank for Africa (UBA). With its exit, only five banks remain in that category. In a statement, the bank said that the Supreme Court judgment relates to a legacy transaction and does not reflect the bank’s current financial position. The bank also noted that it is pursuing judicial clarification, stating the actual payable amount may be closer to ₦14 billion ($8.7 million). The CBN also dismissed media reports of bankruptcy, saying “the Nigerian banking sector remains resilient, safe, and sound.” The timing of the court’s decision is significant as Fidelity recently reported a 190% year-on-year increase in after-tax profit for Q1 2025, reaching ₦91 billion ($56.8 million). The strong performance helped drive investor confidence and justified its earlier ascent into the trillion-naira club. The bank is also in the middle of its recapitalisation drive, as mandated by the CBN’s ₦500 billion ($311.9 million) minimum capital requirement. Analysts previously expressed confidence that the bank could meet this target through equity raises, citing its 237% oversubscribed capital offering in 2024 and strong retail investor support. Despite a share price dip, Fidelity remains one of the most active stocks on the NGX. According to African Stock Exchanges, a real-time market data platform, Fidelity is the second most traded stock between February 14 and May 20, 2025, with 2.5 billion shares exchanged in over 31,000 deals valued at ₦47.8 billion ($29.9 million). Fidelity Bank’s brief departure from the trillion-naira club may prove temporary, but it underscores how swiftly legal and regulatory developments can reshape investor perceptions, even for banks with strong earnings and strong ambition. *This is a developing story
Read MoreU.S. 5% remittance tax plan to threaten $2.8 billion of Africa’s foreign inflows
A proposed U.S. bill to impose a 5% tax on all outbound remittance transfers from non-citizens could divert as much as $2.8 billion from Sub-Saharan African economies in 2025, threatening one of the region’s most stable sources of foreign exchange. Nigeria, Ghana, and Kenya stand to be among the hardest hit. “The One Big Beautiful Bill,” backed by President Donald Trump, would apply a 5% levy on international money transfers made by all non-citizens in the U.S., including green card holders and temporary visa holders. U.S. citizens would be exempt. The bill, now advancing in the House of Representatives, is expected to be voted on May 26, with a possible signing into law by July 4, 2025. The proposed tax will be deducted at the point of transfer and remitted quarterly to the U.S. Treasury. Under this policy, a $400 remittance transfer would be subject to a $20 withholding fee. For individuals sending $400 each month, this tax would add up to $240 over a year. For African countries, where remittances fund education, healthcare, and business investments, the proposed fee could trigger a ripple effect across economies already struggling with high inflation and low foreign direct investment. Who is most affected? African nations, particularly those with large diaspora communities in the United States, will be significantly affected by this proposal. The U.S. Census Bureau data released in April 2024 says the U.S. hosts about 46.2 million immigrants, which makes up almost 14% of the U.S. population. Sub-Saharan African immigrants make up over 5% of the U.S. immigrant population, with Nigeria having the largest number as of 2019, with countries like Ethiopia, Ghana, Kenya, and Somalia. These communities rely heavily on remittances from their overseas populations to support household incomes, fund education, and drive local investments. For instance, Nigeria’s remittance received in 2024 reached nearly $20 billion-making remittances one of the country’s most stable sources of foreign exchange. Nigeria’s economy is highly dependent on these inflows, which often surpass foreign direct investment. Egypt has the highest remittances, however most of them come from the gulf countries, as most of its diasporan population is based there. Broader implications Kahuna, a Tanzanian living in the U.S., told TechCabal that if the bill is applied, she foresees reduced remittance flows with U.S. diasporan communities sending less money home due to the added cost on top of transfer fees. For example, Western Union fees range from $5 to $20, with faster transfers costing more. These additional fees will force many migrants to opt for illegal, informal channels. “It should be interesting to see how this evolves, but by the way things are, it may likely pass,” Kahuna, who asked to be identified by her first name, said. “The changes that have been happening in the U.S. as of late have forced us to question our roles as Africans,” said Joy, a Nigerian living in the U.S. “If this remittance Bill is passed, we will have to find more alternatives of sending money home or even just invest in businesses that would generate cashflow for family support.” Yavi Madurai, the President of African Prosperity Fund, an infrastructure initiative sponsored by the African Continental Free Trade Area (AfCFTA) Secretariat, told TechCabal that the proposed tax on remittances threatens to disrupt a crucial financial lifeline for millions of African families. While the policy targets U.S. domestic concerns, its ripple effects could undermine economic resilience and financial inclusion across Africa. “These funds are more than just income; they support education, health care, housing, and small business development,” she said. “They serve as social safety nets in many communities across Africa.” Sub-Saharan Africa is projected to receive approximately $54 billion in remittances in 2025, and a 5% tax could divert up to $2.8 billion away from recipient households if a significant share comes from non-citizen US residents. Madurai noted that many small businesses in Africa are financed through remittances. A decrease in these funds could slow entrepreneurship and job creation. “Blanket remittance tax risks decreasing transfer volumes, increasing informality, and disproportionately affecting low-income households,” she said. “The poor are going to be impacted the most. Moreover, it undermines global commitments to reduce remittance costs under SDG 10.” Remittance startups like NALA and LemFi may face increased regulatory burdens, as they would be required to verify the citizenship status of senders before processing transactions. This could lead to higher operational costs and potential disruptions in remittance services, further complicating the financial landscape for migrant workers. The policy—part of Trump’s broader campaign to restrict immigration—could open new diplomatic rifts between Washington and African capitals. Analysts say the African Union and affected governments must engage U.S. lawmakers urgently. Madurai noted that African governments should urgently initiate a coordinated diplomatic response through the African Union and engage US lawmakers to seek exemptions or waivers for least developed or heavily remittance-dependent countries. Simultaneously, they should work on regional remittance harmonisation and strengthen financial sovereignty through digital financial innovation. “Now is the time to access the talent and technological advancements we have on the continent,” said Madurai. The bill’s progress will be closely watched over the coming weeks.
Read MoreOnboard Global unaffected by Coinbase’s $400 million data breach
Onboard Global, a Nigerian crypto payments startup, has confirmed that its operations remain unaffected by the recent data breach at Coinbase, the largest US-owned cryptocurrency company. In February, Onboard Global partnered with Coinbase to make it easier for users in Nigeria to buy crypto using local currency through Coinbase Wallet. The integration routes users to Onboard’s platform, where transactions are handled independently. Onboard runs its verification checks, meaning Coinbase does not access or store any of Onboard’s user or system data. “The Coinbase breach does not impact Onboard Global, and there’s no material connection to our operations in this context,” an Onboard Global spokesperson told TechCabal. This assurance comes amid revelations from a May 15 regulatory filing, in which Coinbase disclosed that hackers had bribed and colluded with contract employees, reportedly from India, to steal sensitive data from users. The attackers posed as Coinbase staff and tricked users into sending crypto after gaining access to their full names, government-issued ID images, addresses, and account data. Coinbase CEO Brian Armstrong said the company received a ransom demand of $20 million on May 11. It declined and instead placed a $20 million bounty on the perpetrators. While Coinbase estimates its financial exposure as high as $400 million, it said less than 1% of users were affected. The breach is a stark reminder of how human error and insider threats continue to expose vulnerabilities in crypto infrastructure. Although Onboard is a Coinbase partner, its limited use of the Coinbase Wallet application programming interface (APIs) meant none of its users or systems were compromised. In 2024, Coinbase Ventures, the corporate venture capital (CVC) arm of Coinbase, invested in the crypto startup. Hacks have become a recurring theme in the crypto space. Since 2021, the global industry has lost more than $1.5 billion yearly to cyberattacks. Bybit, another major crypto exchange, was hit by a $$1.5 billion hack in February, reportedly linked to North Korea’s Lazarus Group. These incidents unsettle users, particularly in emerging markets, where trust in crypto is still forming. Often, it’s not the tech that fails, but people. Still, Nigeria’s crypto ecosystem remains on course. Developers building on Coinbase’s Base blockchain—on which Onboard runs—continue to ship products and grow local adoption. The breach hasn’t slowed the pace for African developers, who are carving out their place in the global crypto map with steady momentum.
Read MoreLebara bets on voice bundles to win in Nigeria’s $20 billion telecom market
When Lebara Nigeria, a subsidiary of the London-based Mobile Virtual Network Operator (MVNO) Lebara, launches in Q3 2025, it will challenge the norm of traditional airtime sales by offering voice bundles and data packages tailored to specific user needs. This move will give subscribers more control over their spending, reduce the cost of calls, and deliver longer talk time and browsing value. Lebara’s decision to offer voice bundles instead of traditional airtime underscores a major shift in Nigeria’s highly price-sensitive telecom market. In a market where ₦100 airtime often vanishes without clear usage breakdowns, voice bundles offer predictable, real-time billing with no hidden charges. For investors, this model reflects a lean, tech-driven operation with strong potential for rapid growth, especially given Lebara’s global MVNO experience and low operational overhead. For regulators, it validates the move to open the market to MVNOs. And for incumbent players, it serves as a wake-up call to evolve or risk losing ground to more agile, customer-focused entrants. Lebara’s entry into Nigeria aligns with the Nigerian Communications Commission’s (NCC) broader agenda to expand competition, improve service quality, and drive innovation through Mobile Virtual Network Operator (MVNO) licensing. By allowing MVNOs to offer services over existing telecom infrastructure, such as fibre networks and base stations, without the heavy investment of building it themselves, the NCC aims to lower costs and boost access, especially in underserved areas. For subscribers, this translates into more affordable, tailored voice and data plans. Countries like South Africa, Kenya, and Morocco have more established MVNO ecosystems, thanks to earlier regulatory support, mature telecom infrastructure, and higher mobile penetration. South Africa, for example, has multiple active MVNOs—including FNB Connect and Me&You—backed by strong consumer demand for niche, cost-effective services. Kenya’s ecosystem thrives due to its digital-savvy population and robust mobile money integration, while Morocco’s regulatory framework has long encouraged telecom competition. In contrast, Nigeria, despite being Africa’s largest telecom market by subscriber base, only began issuing MVNO licences in 2023 due to previous regulatory hesitation, infrastructure challenges, and a market long dominated by a few powerful Mobile Network Operators (MNOs). With the NCC now actively supporting MVNOs to foster competition and expand access, the ecosystem is finally beginning to take off. Lebara will operate under a Tier 5 Unified Virtual Operator licence—the most comprehensive category within Nigeria’s MVNO framework—secured through VAS2Net, a local value-added service provider, in March 2024. Valid through 2034, this licence allows Lebara to offer a full range of telecom services. Unlike Mobile Network Operators (MNOs) such as MTN, Airtel, or Globacom, which build and maintain vast infrastructure, Lebara will lease capacity from existing networks and build its offerings on top.. The difference is significant. Airtime is a flexible prepaid credit usable for calls, SMS, or data at standard pay-as-you-go rates, but typically comes with higher per-minute charges. Voice bundles, on the other hand, offer fixed call minutes at discounted rates and often come with usage perks. While airtime suits users looking for flexibility, voice bundles are ideal for frequent callers who want predictability and better value. “You buy minutes, not airtime,” explained Samuel Alabi, Head of Corporate Communications at Lebara Nigeria. “If your call ends in 30 seconds, you still have 99 minutes and 30 seconds left. That’s the kind of clarity and control we’re bringing to Nigerian telecoms.” Betting on lower operational cost Lebara bets that as an MVNO, it can outmaneuver traditional players weighed down by massive operational costs. While MNOs must maintain sprawling infrastructure and thousands of employees, Lebara keeps lean by riding on partner networks and leveraging software, partnerships, and automation. The company is betting it can undercut incumbents and win market share in an industry projected to reach $20 billion this year. “Our operational cost is lower, so our prices can be too,” said Alabi. “It’s like how fintechs disrupted banks—you don’t need a branch on every street to offer great financial services.” That model allows Lebara to tailor products for specific user needs. Whether you’re a tech bro downloading software or a social media addict glued to TikTok, there’s a bundle tailored to the specific activity you want to conduct online. Heavy callers get voice minutes, not confusing unit-based billing. And yes, there will be both physical SIMs and eSIMs at launch. The challenge of Nigeria’s telecom landscape But the path to launching an MVNO in Nigeria isn’t simple. The ecosystem has long been dominated by just a few MNOs, MTN Nigeria and Airtel Nigeria. Infrastructure is patchy, prices are opaque, and service quality varies widely. “The telecom sector here isn’t just suffering from hardware gaps,” said Alabi. “It’s also the software—both literally and figuratively. It’s one thing to have an iPhone; it’s another to know how to use it.” This is where Lebara hopes government support can make a difference. To succeed, MVNOs need regulatory backing, infrastructure-sharing laws, and collaboration between private players and the public sector. As of May 2025, the Nigerian Communications Commission (NCC) has issued at least 41 MVNO licences across five tiers, making Nigeria one of Africa’s most dynamic MVNO markets. The NCC initially licensed 25 companies in 2023, but by late 2024, the number had grown to 41, with companies paying a combined ₦8.6 billion ($5.4 million) in licence fees. The MVNOs in Nigeria are betting on innovation, customer-centric offerings, digital and financial services integration, and strategic partnerships to carve out market share and drive growth in a highly competitive telecom landscape. “MVNOs can’t work without government involvement,” Alabi emphasised. “The NCC’s licensing is a good start, but this has to be a true private-public partnership. That’s why we’re working with the Ministry of Arts, Culture, Tourism, and Creative Economy to ensure the environment supports innovation.” The goal is to unlock competition and shake up a space where too few players control too much. “With only three major MNOs, it’s not easy to get them in a room and agree on pricing,” Alabi said pointedly. “MVNOs change that.” Building through partnerships Two major partnerships backed Lebara’s Nigerian
Read MoreNigeria’s Central Bank holds interest rate at 27.50% for second straight meeting
Nigeria’s central bank held its benchmark interest rate steady at 27.50%, maintaining its policy stance for a second straight meeting as policymakers seek clarity on the inflation outlook. The CBN also left the interest rate unchanged in February. The decision signals a cautious approach by Governor Olayemi Cardoso, who is balancing a need to lower inflation with the need to support an economy that is gradually winning back investor confidence. The Monetary Policy Committee (MPC) voted unanimously to hold rates, citing relative improvements in some key macroeconomic indicators, including exchange rate stability and a gradual slowdown in fuel price increases, and decided that holding rates steady was the best course of action. “Members also noted with satisfaction, progressive moderation in food inflation, and therefore commended the government for implementing measures to increase food supply as well as stepping up the fight against insecurity, especially in farming communities,” Cardoso said at a press briefing on Tuesday. The decision to hold the interest rate was widely anticipated by analysts, who argued that further tightening could stifle business activity, while a premature cut might worsen inflationary pressures. “The relative stability in price levels and exchange rate in recent months reduces the case for further tightening,” said Felicia Awolope, Senior Investment Research Analyst at Meristem. “ Furthermore, the committee will likely weigh persistent inflation risks, including the potential fallout from global trade tensions and tariff-related price pressures.” “Additionally, with oil prices on the decline, FX inflows from crude exports could weaken, increasing the importance of keeping investor sentiment strong to sustain portfolio flows.” Since the start of 2024, the CBN has raised the interest rate in an aggressive attempt to rein in inflation and stabilise the naira. This latest decision suggests the central bank is pausing to evaluate the impact of those hikes rather than committing to further tightening. Headline inflation stood at 23.71% in April, but food price increases have slowed on a monthly basis. The naira has also strengthened in recent weeks, boosted by rising investor confidence and improved foreign exchange inflows. “Holding the policy rate steady would help sustain foreign portfolio investment inflows, which are sensitive to interest rate differentials and currency stability, as this approach aligns with the CBN’s commitment to orthodox monetary policies aimed at price stability,” said Ola A, a banking and investment analyst. With the next MPC meeting scheduled for July 21-22, investors will be watching for signals on whether the CBN maintains its hawkish stance or shifts toward easing if inflation shows signs of further moderation. “The committee, however, acknowledged underlying inflationary pressures driven by high electricity prices, persistent foreign exchange demand pressure, and other legacy structure factors,” Cardoso said. “The committee also called on the fiscal authority to strengthen current efforts at enhancing foreign exchange, especially gas oil and non-oil exports.”
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Nigerian startup, Allawee, wants to restore fintechs’ confidence in cards
Nigerian fintechs have had a mixed relationship with cards. In the past, some offered foreign-issued cards like Visa and Mastercard to acquire customers and encourage online spending. However, as Nigeria’s economy worsened and bank transfers grew, fintechs began ditching foreign card schemes in favour of local alternatives or stopped offering cards altogether to cut costs and adapt to shifting user behaviour. Now, Nigerian fintech, Allawee, is building infrastructure to help fintechs offer cards to their customers. Allawee is aiding other fintechs like Piggyvest, Nomba, and Carbon to issue cards through its end-to-end card-issuing infrastructure, which includes core banking, card authorisation services, and direct integration with switches and card schemes like Mastercard and Verve. “We’ve wrapped all of that into a simple tool that can be accessed through a no-code dashboard or via an API,” Ikenna Enenwali, Allawee’s CEO, told TechCabal. Fintechs make money from card transactions through a fee known as interchange, a small percentage charged every time their customers pay with their cards. If cards are dormant, they continue to incur card-related costs, such as maintenance and compliance, without earning interchange revenue. Allawee’s revenue model is three-pronged: a monthly fee on each active card, a 0.5% interchange fee, and a higher fee for processing foreign transactions. Customers must use their cards frequently for a fintech to break even or turn a profit with cards. However, as bank transfers grew to account for over 51% of online payment transactions, customers transacted less with cards, making them a cost centre for fintechs. The higher margins with bank transfers also made fintechs deprioritise cards. Despite these issues, cards remain one of the most effective channels for customers to access their funds. For many, cards offer an easy and fast option to access cash. If Allawee can consistently ensure that cards issued through its platform complete transactions reliably and make money for the fintechs, it could reverse their deprioritisation of cards. How Allawee helped Carbon bring cards back Carbon, a 13-year-old fintech known for its loan-led approach, stopped offering cards in 2024 because of the high costs tied to foreign cards. The company brought them back in February 2025 after rising demand from customers. This comeback was made possible through a partnership with Allawee, which helped Carbon solve its two biggest problems with offering cards: persistent failed transactions and the high transaction cost. “The decision to partner with Allawee turned out to be one of the most effective moves we’ve made,” said Chijioke Dozie, Carbon CEO. “They moved with incredible speed, understood our needs, and delivered a seamless card infrastructure that surpassed our expectations.” Allawee’s solution allowed Carbon to coordinate with several payment switches, card processors, banks, card personalisers, and manufacturers in its dashboard, which cut the time it takes to issue cards from months to weeks. “With just three clicks, a fintech can configure, issue, and manage cards, “Enenwali said. “Launching a card program traditionally takes about one to two years, whether in Nigeria or elsewhere. We’ve cut that timeline down to just a few weeks. That speed has been a game-changer.” The startup is also allowing its customers to bypass dollar-denominated fees that eat into margins on card transactions through an integration with Verve, Interswitch’s card service, which charges in naira. “We rebuilt the commercial logic. Even when a customer makes a small ₦10,000 payment or withdraws ₦5,000 from an ATM, the fintech should not lose money on that transaction. With our infrastructure, they don’t,” Enenwali said. Allawee’s customers can also issue Nigerian customers who make foreign transactions with Mastercard. In 2024, the global card issuer launched Naijacard, a Nigeria-focused card that charges in naira when making foreign transactions. Verve charges a flat rate lower than ₦10 per transaction, Enenwali said, compared to international card schemes that charge in dollars and are based on transaction amount. “For global card acceptance, we worked directly with Mastercard for two years to negotiate a new pricing model. This model has made Mastercard issuance commercially viable for local fintechs again,” Enenwali said. The startup claims its APIs have allowed its customers to successfully perform card transactions, leading to a 60% monthly growth rate on its platform over the past four months. “We’re trying to restore confidence in cards. We believe that if you give people a reliable card experience, they’ll prefer it,” Enenwali said. The startup also has plans to expand to Francophone West Africa before the end of the year, thanks to a partnership with Mastercard. “The Carbon case also validated something we have believed all along: most infrastructure problems are not about innovation; they are about execution,” Enenwali said. “The technology exists, but it’s often poorly integrated, poorly localised, and difficult to access. We made it simple. API-first, developer-friendly, and modular. That’s our edge.” Enenwali believes that if his company can lower costs and make cards reliable, cards can grow to become a vital part of Nigeria’s digital payments market. If Allawee can succeed on that front, it could change how cards are viewed in Nigeria’s fintech industry.
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