$2million per fix: The hidden costs of Africa’s fragile internet infrastructure
MainOne Equinix Solutions, which deployed Nigeria’s first private-sector-led submarine cable infrastructure in 2010, has suffered three major fiber cuts since its launch. Each repair took an average of six weeks or more—one of the longest timelines globally—causing prolonged internet disruptions in key cities like Lagos. Globally, submarine cable repairs are typically completed in five to fifteen days, but in Africa, months-long delays have become the norm. When the BCS East-West Interlink cable between Lithuania and Sweden was damaged on November 17, 2024, it was repaired in just 11 days. By contrast, MainOne’s past three fiber cuts took an average of six weeks each, exposing a critical weakness in Africa’s digital infrastructure. Why do repairs take so long? At the Submarine Cables Resilience Summit in Abuja, organized by the International Telecommunication Union (ITU), industry experts identified the biggest obstacles: Limited Access to Repair Ships: Unlike Europe and North America, which have dedicated repair vessels stationed nearby, Africa lacks specialized ships, leading to delays in mobilization. Bureaucratic Red Tape: Obtaining government permits for repairs can take months. A single permit in Africa can cost up to $1 million and requires navigating multiple agencies. High Repair Costs: Each fix costs around $2 million, but many operators lack the financial resources to respond swiftly. The Côte d’Ivoire cable crisis On March 13, 2024, an underwater avalanche off Côte d’Ivoire’s coast severely damaged four major submarine cables—ACE, MainOne, South Atlantic 3, and WACS—crippling internet connectivity across 13 West African countries, including Nigeria, Ghana, and South Africa. The West Indian Ocean Cable Company (WIOCC) attempted to reroute traffic but faced long delays due to intergovernmental red tape. The result? A continent-wide disruption that lasted for over two months, with final repairs completed only on May 16, 2024. In contrast, North America and Europe have strategic cable redundancy—multiple cables backing each other up. Africa, by comparison, is dangerously reliant on just a few international cables, making each failure disproportionately damaging. Africa currently has 74 submarine cable systems, far fewer than Europe’s 152 or the 88 that connect the United States alone. Worse, about 90% of African countries lack even a single dedicated submarine cable—a gap that makes the continent more vulnerable to disruptions. Most cable damage is caused by human activity—fishing trawlers and ship anchors account for 70–80% of incidents. Other causes include seafloor currents, equipment failures, and natural disasters like the one that struck Côte d’Ivoire. Image Credit: internetsociety.org The cost of inaction Regional collaboration to invest in repair ships stationed closer to African waters. Faster government approvals to cut down unnecessary delays. Incentives for private investment to strengthen Africa’s internet infrastructure. “We need to have regional conversations on submarine cable deployment and protection in Africa,” said Jane Munga, Fellow at Carnegie Endowment for International Peace. “Without better policies, Africa’s internet will remain fragile.” Solutions exist, but progress remains slow. Image: ITU summit. The ITU and the International Cable Protection Committee (ICPC) have launched a new advisory body to improve global resilience in submarine cable networks. Co-chaired by Nigeria’s Minister of Communications, Bosun Tijani, and Portugal’s Sandra Maximiano, the panel aims to accelerate solutions. But without aggressive reforms, Africa risks remaining the world’s most vulnerable region for internet blackouts—one cable cut away from another months-long digital shutdown.
Read MoreBeyond Chowdeck and Glovo, here are 10 startups shaping Nigeria’s food delivery space
Nigeria’s food delivery scene is booming, but beyond dominant players like Chowdeck, Glovo, and Food Court, a new wave of startups is emerging. These companies are focused on hyperlocal needs, from campus-specific cravings to regional delicacies unavailable on mainstream platforms. While the big players dominate major cities, these challengers thrive by going where others won’t. Some specialize in serving university students with affordable late-night meals, while others focus on delivering beloved local dishes to customers outside their native regions. They’re proving that in Nigeria’s massive food market, success isn’t about reaching everyone—it’s about reaching the right people. Campus-focused food delivery Startups CHAO Chao targets students with food, groceries, and medicine delivery across campuses. Currently operating at the University of Port Harcourt and Pan-Atlantic University, with plans to expand to 12 more locations, Chao’s web app features local vendors and major chains like Kilimanjaro and Chicken Republic. Founded in 2021 by Gift Akobundu (CEO) and Melvin Senne-Aya (COO), Chao has grown rapidly since its launch at Babcock University in 2022. It has remained bootstrapped so far and has processed ₦70 million in gross merchandise value across 25,000 orders. Its self-reported revenue for 2024 was ₦17.5 million ($11, 669) and it disbursed ₦10 million to riders. The startup’s advantage? Proximity to students, which enables faster delivery and stronger brand loyalty. BelaChow BelaChow, formerly known as Belarush, is a campus-based food delivery app serving Lead City University in Ibadan and Redeemer’s University in Ede. It caters to student favorites, from street food like mai shayi and akara to meals from major chains like KFC, Burger King, and Item7Go. Beyond food, BelaChow also offers laundry services to students, with basic plans starting at ₦7,000 for ironing and ₦10,000 for full-service washing, folding, and ironing. Meal deliveries start as low as ₦1,000, with delivery fees from ₦250. Information on its founders and funding remains undisclosed. Yabatech Food Yabatech Food Delivery serves students in and around Yaba College of Technology and the University of Lagos. The platform focuses on hyperlocal delivery, allowing students to order meals from nearby restaurants for as little as ₦1,000. Unlike its competitors, it operates without a mobile app, relying on a web-based ordering system. Regional & hyperlocal startups Ogwugo Based in Enugu, Ogwugo has built a strong following in Eastern Nigeria, particularly in Nsukka. The platform mixes mainstream chains like Chicken Republic with local favorites specializing in Eastern delicacies like ntachi osa, nkwobi, and oha soup. Founded in 2017 by software developer Ugochukwu Aronu, Ogwugo has raised $51,000 in funding, with backing from the Ford Foundation. Food prices range from ₦1,400 to ₦5,000, with free delivery in some areas, though service fees vary. Olili Founded in 2019 by Nweze Ikechukwu Emeka, Olili operates in Asaba and Warri, featuring an extensive selection of local restaurants. By 2021, the startup had processed over 14,000 orders and attracted 3,400 users. The startup raised $125,000 in seed funding in 2020, fueling its early expansion. A key differentiator for Olili is its wide selection of local foods. A typical delivery from Asaba Mall to Asaba Terminal costs ₦1,950. Dado Food Dado operates in Enugu and Abuja, offering delivery from restaurants, local markets, grocery stores, and pharmacies. The platform adjusts its offerings based on the city: Enugu customers get access to Chicken Republic, while Abuja customers see a heavier focus on local eateries. Founded in 2017 by Ugome Chukwuebuka, Isaac David Mayowa, and Chukwu Chinasa, Dado charges a delivery fee of ₦6,510 for orders from a restaurant in 6th Avenue, Gwarinpa, to Abuja Continental. Foodelo Founded in November 2021 by Eunice Anthony, an alumna of the Federal University of Agriculture, Abeokuta, Foodelo offers on-demand food delivery in both Lagos and Abeokuta, Nigeria. The platform is accessible via web and mobile app and currently features a wider variety of local restaurants in Lagos, while Abeokuta’s selection is still expanding. Lagos based startups ChowCentral Originally launched as 500Chow, ChowCentral is a cloud kitchen that gained traction during the COVID-19 lockdown. The YC-backed startup generates over $80,000 in monthly revenue and primarily serves Lagos, focusing on Lekki, Oniru, Victoria Island, Surulere, Ajah, and Yaba. Founded by Tosin Onafuye, Christopher Obasi, and Adeyemo Onafuye, ChowCentral sells meals starting at ₦2,000 and is available on platforms like Chowdeck, Glovo, and Pocket by Piggyvest. UrbanEats After spending nine years in the UK, Halima Kasumu returned to Nigeria with a mission: bring high-end restaurant meals straight to customers’ doors. Founded in 2023, UrbanEats operates in Lekki, Ikoyi, and Victoria Island, featuring premium restaurants like Ikoko, Chow City, Cindy’s, and Adun Kitchen. UrbanEats encourages customer retention through a meal points system—you’ll earn ₦10 for every ₦4,000 spent. For instance, if you spend N4000 on your order, you get ₦300 Mealbot points. OjaNow Founded by three Nigerian friends—Demi Hastruup, Jamal Kasumu, and Alvin Ukpeh—OjaNow is an on-demand delivery startup offering groceries, alcohol, electronics, and gifts. The service operates 24/7 in Lagos, with prices starting at ₦250. In 2024, OjaNow raised $150,000 in pre-seed funding at a $6 million valuation. The company stocks over 300 products in strategically located storage facilities to ensure rapid delivery. .
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👨🏿🚀TechCabal Daily – Sterling Bank raises salaries again
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-TGIF! Nigeria wants Flutterwave on the Nigerian Exchange (NGX), but the $3 billion fintech and a cash-hungry stock exchange don’t seem to be the perfect match. The NGX loves profits, Flutterwave loves growth—one of them has to compromise, and it won’t be the startup. Flutterwave listing on the NGX sounds great, until you realise the stock market might not have enough cash to make it work. We detail why it makes business sense for Flutterwave’s IPO to land somewhere else—if it happens at all—despite Nigeria making passes at it. Sterling increases staff salary by 35% Edukoya, a Nigerian edtech platform, shuts down South Africa’s inflation quickens to 3.2% in January World Wide Web 3 Events Banking Sterling increases staff salary by 35% Sterling Financial Holding Company/Image Source: Sterling Bank via Proshare When the Japa wave—Nigeria’s mass exodus of talent—began, one of its most significant consequences was brain drain. Many industries lost top professionals, and the banking sector was hit particularly hard. For Nigerian banks, the challenge was twofold: they were losing talent not just to emigration but also to fintechs, which offered competitive salaries—sometimes double what banks paid. Now, banks are responding. In January, we reported that Sterling Bank, a tier-2 Nigerian bank, raised staff salaries by 7% and paid a cost-of-living adjustment (COLA) stipend; however, the meagre increase did not sit well with its employees who have seen other banks like GTBank, Union Bank, and Zenith Bank all increase salaries by 20%–40% in the last few months. In response, Sterling Bank increased salaries again by 35% on Wednesday. These pay hikes come at a crucial time when Nigeria is grappling with its worst cost-of-living crisis in decades, with inflation soaring; retaining talent has never been more urgent. But for Sterling Bank, these salary adjustments aren’t just about retention—they are central to its broader vision. While best known for its banking operations, Sterling is aggressively expanding into fintech, asset financing, and even electric vehicles. Leadership sees talent retention as critical to executing this strategy. Under the new structure, executive trainees (entry-level employees) will now earn ₦528,000 ($352) net monthly. Assistant Banking Officers (ABO) will take home about ₦850,000 ($567), while Banking Officers (BO) will see their salaries rise from ₦700,000 ($467) to ₦1,030,000 ($687). Senior Banking Officers (SBO) will now earn ₦1.1 million ($733), and Assistant Managers (AM) will receive ₦1.3 million ($867) per month. These raises reflect the bank’s commitment to attracting and keeping the best talent as it deepens its footprint in fintech and asset financing. But the big question remains: Will this be enough to stop top talent from leaving? Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Startups Edukoya, a Nigerian edtech platform, shuts down Image Source: Google Edukoya, a Nigerian edtech startup that set out to revolutionise K-12 online learning, has shut down. The company, which raised Africa’s largest pre-seed funding of $3.5 million in 2021, cited market readiness issues, limited access to devices, and challenging economic conditions as reasons for shutting down and returning investor capital. The startup also faced a balancing act between attracting parents and paying tutors. Edukoya paid over ₦200,000 ($134) per month to tutors, a competitive wage aimed at maintaining quality. This was higher than the average ₦60,000 ($40) that underpaid teachers in peri-urban and rural schools earned, making Edukoya’s offer enticing. With this structure, it was clear Edukoya hired top tutors, passing the shared cost of paying them and maintaining their operations onto parents. Yet, the company’s inability to scale profitably suggests that it either did not have enough paying users or priced its service too high for mass adoption. Founded in 2021, Edukoya entered an already competitive Nigerian edtech market but struggled to establish a strong foothold. Unlike established players like uLesson and Tuteria, which refined their pricing and targeted specific customer segments, Edukoya took a broad approach, offering a freemium model that failed to convert free users into paying customers. It also faced stiff competition not just from other edtech startups but from Nigeria’s deeply rooted offline tutoring system, where many parents and students still preferred in-person learning. Students were returning to classrooms post-pandemic, so the urgency for digital education diminished. Edukoya also offered a freemium model which didn’t allow it to monetise instantly. Thus, without a product compelling enough to drive willingness among parents to pay, Edukoya faced monetisation challenges that ultimately stalled its growth. Yet, it’s not just Edukoya. Globally, K-12 edtechs have struggled; Byju’s, an Indian edtech unicorn which was valued $22 billion at its peak, went from hero to zero after scaling too fast and failing to prove the effectiveness of its product. Meanwhile, skill-based edtech platforms like AltSchool Africa, Product Dive, and Utiva are thriving by selling directly to adults. These businesses tap into a market where learners control their own spending and see clear economic benefits from upskilling. Edukoya’s shutdown poses a new question for Nigerian edtech operators: Is the market ready for broad K-12 edtech at scale, or are they better off targeting other customer verticals? The opportunity seems to tilt toward providing a practical, career-driven education where students—not parents—make the purchasing decisions. You can now integrate Paystack with GiveWP GiveWP makes it easy to create donation pages and accept online donations on your WordPress site. With Paystack, you can securely receive payments for your donations effortlessly. Find out more here→ Economy South Africa’s inflation quickens to 3.2% in January Image Source: Reuters South Africa’s inflation rate accelerated by 20 basis points (bps) to 3.2% in January, following a revision in how the consumer price index (CPI) is calculated. The change, made by Statistics South Africa, the country’s statistics agency, adjusted the weighting of household expenses in the inflation basket to reflect current spending habits more accurately. Notably, the
Read MoreAccess Bank’s phased software update promised stability but customers are struggling
When Michelle logged into her Access Bank app on Wednesday, she couldn’t see her transaction history. Afeez Tunde, another Access Bank customer, can’t even open his bank app. Days after Access Bank finalised a core banking upgrade that caused a service downtime over the weekend, many customers are having trouble accessing digital banking services, questioning the bank’s much-hyped phased approach to the upgrade. “My USSD transactions kept failing for two days after the upgrade,” complained Chioma Alex, a trader based in Lagos. Nigeria’s largest bank by assets hoped to avoid the catastrophic core banking upgrades that were a feature of 2024. GTCO, Sterling, Zenith, FCMB and other commercial banks upgraded or switched their core banking software at great pain to customers. For over four weeks, Sterling and GTBank customers could not use banking services without problems. Upgrading their core banking software in stages was expected to solve the problem. “We understood that a one-size-fits-all upgrade wouldn’t work given our diverse markets and operational complexities,” said a bank employee familiar with the upgrade who asked not to be named so he could speak freely told TechCabal on Friday. The final stage of Access Bank’s upgrade—an enhancement of its existing Oracle Flexcube platform—was completed on February 23, 2025, following temporary downtime of its digital services from 2 AM to 1 PM. But despite assurances that this strategy would minimize disruptions, some customers say they are still dealing with frustrating glitches. “I thought it was a glitch, so I uninstalled and reinstalled the app, but the issue persisted,” Michelle told TechCabal. “My bank app hasn’t been opening. I had to look for alternative ways to make payments. If this was a phased upgrade to prevent disruptions, it didn’t work well for me,” Afeez Tunde added. Access Bank has not publicly addressed these complaints. A spokesperson did not immediately respond to requests for comment. The upgrade is part of Access Bank’s broader push for digital transformation. The bank allocated ₦68.62 billion ($51.3 million)—20% of its latest capital raise—to technology infrastructure. With over 63 million customers across several African markets, the lender is betting big on digital expansion. But the real test isn’t how much Access Bank spends—it’s whether these investments translate into reliable service. For banks racing to modernize, the lesson is clear: No matter how carefully planned, system upgrades aren’t just about infrastructure—they’re about the people who rely on them.
Read MoreNigeria has been courting Flutterwave to list on the NGX since 2023. Can it afford the fintech?
Nigeria has been lobbying Flutterwave, its most valuable startup, to list on the Nigerian Exchange (NGX) since 2023. The government believes a high-profile IPO could energise the country’s capital markets and attract other startups to follow suit. But with Flutterwave’s profitability in question, a stock exchange that favours cash-heavy businesses, and a bigger issue—whether the NGX can provide the kind of exit liquidity that global investors expect—the odds of this happening remain slim. At its last public valuation of $3 billion, Flutterwave would be one of the most valuable companies on the NGX. However, unlike listed giants such as MTN Nigeria ($3.5 billion) and Dangote Cement ($5.4 billion), Flutterwave isn’t profitable—a major hurdle given that the NGX’s rules prevent loss-making companies from going public. The government’s push to list Flutterwave on the NGX dates back to September 2023, when CEO Olugbenga Agboola joined President Bola Tinubu and Minister of Communications and Digital Economy Bosun Tijani at the G20 summit in India. While the specifics of their discussions remain unclear, multiple sources told TechCabal that Nigeria has since intensified efforts to convince Flutterwave to list locally. Last Friday, President Tinubu’s special media adviser confirmed the push following a meeting between Tinubu and Agboola at the Presidential Villa. But Flutterwave has remained noncommittal, carefully sidestepping IPO discussions in its public statements. Nigeria has successfully nudged companies onto the stock exchange before. In 2019, MTN’s Nigerian subsidiary went public on the NGX after regulators reduced its $1.7 billion fine which paved the way for its listing. The NGX has long struggled to attract tech startups. It even launched a dedicated board for them in 2022, but only one startup, YC-backed Tizeti, has shown interest. Meanwhile, legacy players like Interswitch have delayed their IPOs due to Nigeria’s currency instability and foreign exchange shortages. The NGX wants Flutterwave to set a precedent and draw in younger retail investors unfamiliar with older, slow-growing stocks. But there’s a fundamental mismatch: Flutterwave, like most venture-backed startups, prioritises rapid scale over profitability, while the NGX requires companies to be profitable before listing. Beyond the government’s ambitions, an IPO is, at its core, a liquidity event for early investors looking to exit. And this is where the NGX faces its biggest challenge. Nigeria’s stock market has a total equity market cap of around $44 billion, with daily trading volumes below $15 million. A $3 billion Flutterwave IPO would represent 7% of the exchange’s total value, raising serious questions about whether the NGX has the depth to absorb such a listing. Global VCs like Tiger Global and Avenir have poured millions into Flutterwave, expecting high-growth exits. But the NGX, dominated by investors who prefer dividends and stable cash flows, might struggle to provide the exit they need as both MTN and Dangote Cement trade at price-to-sales ratios below 3%. Since the start of 2025, Nigerian investors have preferred low-risk stocks as trading activity fell compared to January 2024. Without a deep enough market to sustain a high-growth fintech stock, Flutterwave’s valuation could take a hit post-listing, making it a less attractive exit for investors. This liquidity challenge is one reason high-profile Nigerian startups have avoided the NGX. Interswitch, another fintech giant, has kept its IPO on hold, and even MTN Nigeria had to list through a public introduction rather than a traditional share sale to avoid liquidity constraints. A dual listing—where Flutterwave debuts on both the NASDAQ and NGX—is one workaround, but that would increase compliance costs and regulatory complexity. And if the NASDAQ listing attracts most of the liquidity, Nigerian investors could be left with a less attractive secondary market. Even if Flutterwave were willing, the broader market conditions are not encouraging. Stripe, one of the world’s largest fintechs, has shelved its IPO plans, and investor appetite for fintech stocks has cooled since the end of the zero-interest rate era. The NGX wants Flutterwave to be its poster child for tech listings, a success story that proves Nigeria can host billion-dollar startups. But if the exchange can’t provide the liquidity that Flutterwave’s investors need, the company’s IPO will likely land elsewhere—if it happens at all.
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iPhone 16e price in Nigeria, Kenya, and South Africa: Is it worth it?
Apple has completed the iPhone 16 lineup with the introduction of the iPhone 16e. Featuring the latest A18 chip, a 48MP Fusion camera, Apple Intelligence, and extended battery life, this new model is being positioned as Apple’s most affordable iPhone 16 series device. However, for African consumers, the big question remains: Is the iPhone 16e truly affordable when factoring in exchange rates, taxes, and reseller markups? In this article, we break down the features, pricing, and expert insights to help you decide if the iPhone 16e is worth buying in Nigeria, Kenya, and South Africa. iPhone 16e: Features & Upgrades The iPhone 16e features some of the latest Apple innovations while making a few trade-offs to keep its price lower than the iPhone 16 and 16 Pro. Key Features: Key features of iPhone 16e/Image Source: How-to Geek A18 Chip: Faster and more efficient, making AI-driven tasks seamless. Apple Intelligence: Features like Clean Up (removing distractions from photos), Image Playground (personalised image creation), and Siri integration with ChatGPT. 48MP Fusion Camera: A dual-purpose camera with high-resolution image processing. Battery Life: Up to 26 hours of video playback. USB-C Port: Universal charging for convenience. Action Button: Quick access to favorite apps and functions. iOS 18: Customisable home and lock screens. Durability: Ceramic Shield protection, Face ID security, and water and dust resistance. What’s Missing Compared to Flagship iPhones? No ProMotion (high refresh rate display) Lacks some advanced camera features like LiDAR scanning No telephoto or ultra-wide cameras Lower-tier materials compared to the iPhone 16 Pro iPhone 16e pricing in the U.S. vs. African countries The iPhone 16e will be available in the U.S. starting February 28, 2025, with a starting price of $599 for the 128GB model. Pricing in African markets will be significantly higher due to import duties, VAT, and reseller markups. Below is an estimate of what consumers in key African countries can expect to pay: Country-specific iPhone 16e pricing & availability Nigeria Official price: Expected between ₦900,000 – ₦1,100,000 Import taxes, exchange rate fluctuations, and reseller markups will increase costs. Available via authorised Apple resellers, online stores, and independent vendors. Kenya Expected price: KES95,000 – KES110,000 Additional costs due to VAT and shipping fees. Likely to be available in Apple stores and major retailers. South Africa Estimated price: R12,000 – R14,500 Import taxes and reseller pricing strategies affect affordability. Available through iStore and major telecom providers. Market perspective & buying decision Fisayo Fosudo’s Insights We spoke to tech YouTuber Fisayo Fosudo about the iPhone 16e and how it fits into the African market. Here’s what he said: On Apple Intelligence & AI Adoption in Africa: “Apple Intelligence is in an interesting state right now. There’s still a lot to figure out, especially with context. For example, I received a YouTube notification with the name ‘Bimbo,’ and Apple Intelligence read it as ‘Bingo.’ The AI isn’t optimised for local African nuances yet.” On Affordability & Pricing in Africa: “The iPhone 16e starts at $600, which is around ₦900,000 in Nigeria. But vendors will add their markup, often $200 or more, because they need to make a profit. That means prices will likely be closer to ₦1.1 million. While it’s the cheapest new iPhone, affordability remains relative.” On iPhone 16e vs. iPhone 14/15: “The iPhone 16e has an A18 chip, which is two generations ahead of the A16 chip in the iPhone 15. This alone makes it a better buy than an older model. Plus, the AI-powered features add value.” On Whether iPhone 16e Will Convert New Buyers: “Apple’s SE lineup has always been interesting. People hype them, but many still prefer to buy used flagship iPhones instead. New buyers might still opt for older used models over the iPhone 16e.” Recap: Is the iPhone 16e worth buying in Africa? The iPhone 16e is Apple’s most affordable entry in the iPhone 16 lineup, offering solid features like the A18 chip, 48MP camera, and Apple Intelligence. However, when factoring in import duties and reseller markups, its price in African markets may still feel steep for many buyers. Final Verdict If you want a brand-new iPhone at the lowest possible price, the iPhone 16e is a solid choice. If you’re looking for the best value for money, a used iPhone 14 Pro or 15 Pro might offer better performance at a similar cost. If you’re considering an Android alternative, flagship Tecno and Samsung A-series models could provide more competitive pricing with similar features. Fisayo Fosudo sums it up best: “The most affordable, best phone for this price from Apple.” Would you buy the iPhone 16e at its expected African price? Let us know in the comments!
Read MoreSterling Bank raises entry-level pay to ₦528,000 in company-wide salary review
Sterling Bank has increased salaries for its 3,000+ employees, with entry-level staff now earning ₦528,000 net monthly, up from around ₦320,000. The review—over 35% across several roles—follows a tepid 7% salary bump in January that left employees unimpressed. The move comes amid industry-wide pay hikes at banks like GTBank, Union Bank, and Wema, driven by a growing battle for talent. Three banking executives who declined to be named said top fintech companies are aggressively poaching senior banking staff, citing salary offers that were effectively double their bank salaries. At the same time, more young professionals are leaving Nigeria for opportunities abroad, further straining the talent pool. Sterling Bank did not immediately respond to a request for comments. Can contactless payments finally take off in Nigeria? PalmPay and CashAfrica are working on it While Sterling is best known for its banking operations, the group is expanding aggressively into fintech, asset financing, and even electric vehicles, and leadership sees retaining top talent as critical to executing its vision. Sterling’s banking business, the largest subsidiary in its group, reported ₦221 billion in gross earnings in 2023 and projects ₦337 billion for 2024. However, it lags behind competitors like Wema Bank, which, despite having similar asset and deposit sizes, generates nearly twice as much revenue. Sterling’s leadership appears committed to holding onto talent that can help drive its expansion across multiple industries. Following the latest adjustments: Executive trainees (entry-level) will now earn ₦528,000 net monthly Assistant Banking Officers (ABO) will take home around ₦850,000 Banking Officers (BO) will see their salaries rise from ₦700,000 to ₦1,030,000 Senior Banking Officers (SBO) will now earn ₦1.1 million Assistant Managers (AM) will take home ₦1.3 million monthly With banks fiercely competing for skilled professionals, Sterling’s latest salary review is both a response to the market and a signal of its long-term ambitions. Whether it will be enough to retain its best employees in a rapidly evolving financial landscape remains to be seen.
Read MoreCan contactless payments finally take off in Nigeria? PalmPay and CashAfrica are working on it
Nigeria’s digital payments sector has grown rapidly for years, yet contactless payment—common in markets like Europe and China—remain a rarity. PalmPay, one of Nigeria’s largest fintechs, is making a move that could change that. In partnership with contactless payment infrastructure provider CashAfrica, PalmPay is rolling out tap-to-pay functionality on its POS terminals, starting with 1,000 devices in a pilot phase before a nationwide expansion in March. It could be a turning point for digital payments in Nigeria, where transactions are still dominated by cash, bank transfers and cards transactions that need PIN verifications. Palmpay will rely on CashAfrica’s contactless technology, which enables PalmPay’s POS terminals to process NFC-based transactions from debit and credit cards, mobile wallets, and wearables. CashAfrica will charge PalmPay on a per-API-call basis, meaning the fintech will incur costs each time a contactless transaction is processed. If the pilot phase is successful, Palmpay will expand the service to its 300,000 POS terminals across Nigeria. The company sees this upgrade as a step toward preparing for a future where tap-to-pay transactions become mainstream. Why Contactless? Why Now? Nigeria’s payments landscape has evolved dramatically in the last five years, thanks to fintechs like OPay, Moniepoint, Paga, and FirstMonie. These firms spent millions on customer education and infrastructure to push digital payments—first through agent banking, then through apps and cards. But growth in agent banking has plateaued, and traditional card payments remain expensive due to fees charged by international card schemes. Meanwhile, “pay with bank” options, while growing, still involve significant friction. Industry players seem to agree that contactless payments—faster, more seamless, and potentially more cost-effective—could be the next big thing. “The role of contactless payments cannot be emphasized, especially at this period where the country is faced with financial fraud risks just like other countries of the world.” Ajibade Laolu-Adewale, Chairman of the committee of E-Business Industry Heads (CeBIH), said while endorsing contactless payment in a stakeholder meeting last year. “Beyond the safety issues, this innovation will also enable merchants to provide faster, smoother and easier transactions,” he stated. The Adoption Challenge Despite the promise of tap-to-pay, Nigeria has been slow to embrace it. The primary alternative—NIBSS’ NQR (Nigeria Quick Response)—has seen limited adoption, with only First Bank and Providus Bank currently supporting it. That leaves a gap that PalmPay and CashAfrica hope to fill. CashAfrica is also in talks with Sterling Bank, UBA, and Zenith Bank to integrate contactless payment into their mobile apps and POS systems. But getting merchants on board remains a challenge. PalmPay did not share details on its merchant education strategy, but training and incentives will likely be crucial to driving adoption. If contactless payments take off, security concerns will be front and center. To prevent unauthorized transactions, CashAfrica’s system requires explicit authorization for every tap, ensuring that accidental or fraudulent taps do not go through automatically. At the API level, PalmPay and CashAfrica will implement tokenization, encryption, and session expiration mechanisms to secure transactions. For years, fintechs fought to pull Nigerians away from cash, pushing bank transfers, mobile apps, and even QR codes. But as they inch closer to victory, the next battle is already here: how to make digital payments faster, smoother, and nearly invisible. If PalmPay and CashAfrica succeed, the biggest challenge for Nigerian payments won’t be adoption—it’ll be remembering the last time you actually typed in a PIN.
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👨🏿🚀TechCabal Daily – Cat and dog fight
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! If you’re reading this from Cape Verde, there’s a Nigerian edtech in your neighbourhood. AltSchool has partnered with Ola.cv to provide in-demand tech skills training to Cape Verdeans. Applications are open here. In other news, Google has denied South Africa’s claim that its news platforms harm local media, saying it drives more traffic to publishers than it earns. Typical Big Tech playbook? In Nigeria, a court has frozen the bank accounts of customers following a technical glitch at Keystone Bank, a mid-sized commercial lender. The glitch artificially inflated account balances, leading customers to overdraw their accounts. The disputed amount in question is ₦5.7 billion ($3.8 million). Let’s get into it. 54 Collective to cut jobs as Mastercard Foundation partnership ends Sendstack cofounder steps down as startup undergoes second pivot Nairobi vs Kenya Power’s $23.1 million debt row escalates Unity Bank’s $41.7 million loss underscores years-long financial struggle World Wide Web 3 Opportunities Venture Capital 54 Collective to cut jobs as Mastercard Foundation partnership ends Image Source: Google 54 Collective, an Africa-focused venture capital (VC) firm is shutting down its venture studio as its partnership with the Mastercard Foundation ends on April 30, 2025. The news, shared with employees on Friday, means job cuts are coming, and early-stage founders will lose a key launchpad for support. The venture studio has been instrumental in helping startups refine their ideas, secure initial funding, and gain operational guidance. Without it, many entrepreneurs will have to look elsewhere for backing, which could make an already tough funding environment even more competitive. Startups that have gone through the studio now face uncertainty. While 54 Collective’s $40 million venture fund, UAF1, is still active, it’s unclear whether it will step in to fill the gap left by the studio’s closure. Many founders relied on the structured support of the studio, and without it, some may struggle to find the same level of mentorship and resources. The Mastercard Foundation has been a major backer of 54 Collective. In 2023, the foundation, alongside Johnson & Johnson Impact Ventures, an impact fund within the Johnson & Johnson Foundation, invested $114 million to help the venture studio “address gender imbalances” and close the funding gap to early-stage startups. The studio wrote checks of up to $250,000 and provided additional $150,000 in equity-free capital to startups that met the requirements. However, with Mastercard stopping funding, it may reflect a priority change for the foundation which has historically backed impact-driven projects. For example, in 2021, it backed Astia Fund—an early-stage venture fund investing in women-led startups. 54 Collective had an ambitious goal to invest in 105 startups over the next five years. But neither Mastercard Foundation nor 54Collective has provided specific details on why the partnership isn’t being renewed. This is a setback for founders looking for hands-on support in the early stages of building their companies. With fewer venture studios operating on the continent, the pressure is on investors and accelerators to step up and fill the gap. For now, startups in 54 Collective’s programs are waiting to see how this transition affects them, and whether any safety nets will be put in place. Are you an Afincran? If you’re building solutions for Africa, you already are. Join Fincra’s mission to empower Africa through collaborative innovation. Together, we’re building the rails for an integrated Africa. Join the Afincran movement—let’s drive change! Startups Sendstack cofounder Ifeoma Nwobu steps down as startup undergoes second pivot Image Source: Ifeoma Nwobu In yesterday’s newsletter, we told you that logistics startup Sendstack is pivoting to a hardware play with new GPS trackers, projecting $1 million in revenue. However, further changes are underway: co-founder and COO, Ifeoma Nwobu, has resigned. This leaves CEO Emeka Mba-Kalu to lead the company toward its goals single-handedly. Cofounder breakups are not uncommon, affecting approximately 35% of companies. They occur for various reasons, including but not limited to: misalignment of vision and unequal distribution of responsibilities and equity. These separations shouldn’t be viewed as failures; startups operate in high-pressure environments with rapid changes, and, like many marriages under stress, it’s understandable if someone needs to step away. Nwobu’s departure is notable, as she has been the public face of the three-year-old startup for some time. You may recall her viral pitch at the Norrsken Accelerator, where she appeared confident and clear-sighted about the company’s ambitious mission to build the logistics infrastructure of the future. Since then, the company’s strategic direction has shifted twice. Initially, Sendstack aimed to provide last-mile delivery through an aggregator platform. At the time, Nwobu, originally a growth lead, became a co-founder in August 2021. The company subsequently discontinued its last-mile delivery platform, pivoting to fleet management software, and now, from a purely software focus, has transitioned to include hardware tracker. Despite these changes, Sendstack CEO seems more focused and ambitious than ever—the company projects a $1 million revenue this year, four times what it made in the past three years. You can now integrate Paystack with GiveWP GiveWP makes it easy to create donation pages and accept online donations on your WordPress site. With Paystack, you can securely receive payments for your donations effortlessly. Find out more here→ Telecoms Nairobi county cuts internet cables to businesses, schools as row with Kenya Power deepens Image Source: Tenor A cat-and-dog fight between Nairobi County and Kenya Power, the state-owned energy company, has escalated into a full-blown crisis, with the county cutting off fiber optic cables on Kenya Power’s utility poles. This drastic move has disrupted internet services for thousands of Nairobi residents, businesses, schools, and malls, plunging parts of Kilimani and surrounding areas into a digital blackout. The root of the conflict lies in a bitter financial dispute. Nairobi County owes Kenya Power a staggering $23.1 million (KES 3 billion) in unpaid electricity bills, a debt that was reportedly reconciled in 2024. However, the county government claims Kenya Power owes it even more in unpaid land rates, wayleave
Read MoreNairobi County cuts internet cables in $23.1 million row with Kenya Power
Nairobi County officials have cut fibre optic cables from Kenya Power’s utility poles, disrupting internet services for businesses, schools, and homes as tensions escalate over an unpaid electricity bill of $23.1 million (KES 3 billion). The county government acknowledges the bill but insists Kenya Power owes it even more in unpaid land rates, wayleave fees, and parking charges. This counterclaim has stalled payments and fueled an increasingly hostile standoff. The dispute took a dramatic turn this week. On Monday, county officials dumped garbage outside Kenya Power’s offices in Ngara. By Tuesday, they poured raw sewage at the company’s headquarters, preventing staff from entering. Later that afternoon, county workers vandalized fibre optic cables on Kenya Power’s poles, cutting off internet access in parts of Kilimani and surrounding areas, according to a TechCabal spot check. The move drew sharp criticism from the Communications Authority (CA), which warned that ICT infrastructure is under national government jurisdiction. “Fibre optic networks are a cornerstone of Kenya’s digital economy. Any interference must follow legal and regulatory frameworks,” the CA said in a statement to TechCabal. Kenya Power: The bill is verified and overdue Kenya Power maintains that Nairobi County’s electricity bill was reconciled in 2024 and is long overdue. It says the county government had previously agreed to clear part of the bill in November 2024 but later failed to pay. “We have had a long-standing issue with Nairobi County with regards to payment of their bills. We offer a service, electricity, and once we offer the service, we bill and the client should pay,” said Rosemary Oduor, Kenya Power’s general manager of sales. The county government, however, argues that Kenya Power owes billions in fees for land use, wayleave (right-of-way) charges, and vehicle parking. Officials claim these unpaid fees exceed the power bill, making the dispute a matter of unresolved balances rather than simple non-payment. A Parliamentary report showed that as of November 2024, Nairobi accounted for over two-thirds of the $33.7 million (KES 4.37 billion) owed to Kenya Power by county governments. That’s nearly three times its debt from February 2024 ($10.4 million/KES 1.35 billion), highlighting why the standoff has escalated. With businesses and residents now caught in the crossfire, pressure is mounting for a resolution. Kenya Power hasn’t indicated whether it will take legal action, but the Communications Authority’s intervention suggests possible regulatory consequences for Nairobi County. For now, the capital remains a battleground—where a financial dispute has spiralled into disruptions affecting thousands.
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