Next Wave: As banks face scrutiny, Kenya’s corrupt turn to credit unions
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 02 March, 2025 It’s disheartening to see how Kenya’s credit unions, popularly known as Saccos (Savings and Credit Cooperative Organisations), are now grappling with some serious financial issues. These Saccos manage approximately KES 759 billion ($5.9 billion) in loans across 357 regulated entities that serve 6.84 million members. These are huge figures by Kenyan and African standards, with 70% of Africa’s Saccos based in Kenya. The country has the largest Sacco industry on the continent by asset size, with over 13,500 Saccos. Regulated Saccos collectively hold $4.36 billion in savings and shares, with total assets reaching $6.20 billion. The sector’s penetration rate stands at an impressive 20.7%. You can’t be faulted if you don’t understand why Saccos are so big in Kenya (they have been instrumental in helping households pay school fees, build homes, and accumulate some wealth). Traditionally, and maybe through no fault of their own, banks prioritise their biggest clients, so they often leave ordinary customers as an afterthought. A bank’s goal isn’t just to hold your money but to extract as much of it as possible through endless fees and hidden charges. Tough but understandable. Worse, the relationship is adversarial rather than supportive. If there’s ever a dispute, the bank assumes you’re wrong. As profit-driven institutions, banks aren’t in the business of serving customers but maximising returns, often through temporary perks as bait before imposing harsher terms. While they follow regulations, they do the bare minimum, and offer no flexibility, fairness, or even basic courtesy unless absolutely necessary. This is where Saccos come in, where mutual respect is the rule rather than the exception. However, take the recent KUSCCO fiasco, for instance. The Kenya Union of Savings and Credit Cooperatives, Kenya’s Saccos’ umbrella body, is under the microscope for alleged financial mismanagement that has cost Sacco members (note, Saccos refers to them as ‘members’ rather than ‘customers’) over KES 13 billion ($101 million). A forensic audit by PwC was handed over to the Inspector General of Police to start investigations into these irregularities. The cabinet secretary (minister) for Cooperatives and MSMEs, Wycliffe Oparanya, promised stern action against anyone guilty of misappropriating members’ funds. But here’s where it gets murky. Despite these bold declarations, there’s a lingering sense that Kenya’s Sacco financial regulations are intentionally lax and have created a playground for the corrupt since at least three similar Sacco corruption cases were reported in 2024 alone. It’s as if the system is designed to be porous, which has allowed grand corruption cases to go unpunished. Some Saccos have partaken in dubious activities, including taking out bank loans to pay dividends, which contradicts sound financial management principles and jeopardises the cooperative movement’s stability. There are alarming disparities in dividend distributions across the sector, with some Saccos offering rates exceeding 20%. While attractive in the short term, such high payouts can mask underlying financial issues and threaten long-term sustainability. The Central Bank of Kenya (CBK) has mandated that banks increase their core capital from KES 1 billion to KES 10 billion by December 31, 2029, with annual increments between KES 1 billion and KES 2 billion. In contrast, deposit-taking Saccos are required by the Sacco Societies Regulatory Authority (SASRA) to maintain a minimum core capital of only KES 10 million. This disparity underscores the more relaxed regulatory environment governing Saccos. The government plans to oversee the appointment of Sacco directors and impose term limits to enhance corporate governance. The plan may address issues such as embezzlement of members’ savings and failure to refund share capital to exiting members. Comprehensive reforms are desperately needed if policymakers and stakeholders are serious about safeguarding members’ interests and rescuing the sector’s already decaying public perception. Aligning Sacco regulations more closely with those of traditional banks seems to be an obvious step since it can help mitigate risks associated with financial mismanagement and corruption. Dividend policies that tie payouts to actual financial performance can prevent the unsustainable high returns that some Saccos offer, which is also a policy that can protect members’ savings. Otherwise, the Sacco sector will remain vulnerable to ongoing corruption and financial instability and undo good work about financial inclusion and economic growth for people who reaped from them at a time when banks did not welcome them. Kenn Abuya Senior Reporter, TechCabal Thank you for reading this far. Feel free to email kenn[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa. If you liked this edition of Next Wave, please share with your friends. And feel free to reply with thoughts and feedback. We welcome those. 18, Nnobi Street, Surulere, Lagos, Nigeria View in Map You received this email because you signed up on our website or made purchase from us. If you know longer wish to recieve these emails, please unsubscribe
Read More
TechCabal Daily – Tap. Pay. Access
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Join the TechCabal community on TikTok! We’re bringing the conversation about African tech to a new level with exclusive content, behind-the-scenes glimpses, and more. Follow us @techcabal and let’s build the future of tech together. Access Bank launches Tap to Phone in Nigeria Safaricom remains silent on Mali fund as it pushes Ziidi Zipline to launch in five more Nigerian states World Wide Web 3 Job Openings Banking Access Bank launches Tap to Phone in Nigeria Image Source: Google The race for contactless payments in Nigeria is heating up, with key players positioning themselves to crack this form of payment. While not new, contactless payments have long been a sleeper innovation in the country, held back by a lack of infrastructure, customer awareness, and adoption. Access Bank, Nigeria’s largest bank by assets, has launched a Tap to Phone solution to expose the average Nigerian to contactless payments. Tap to Phone uses software point-of-sale (softPOS) technology, where merchants download an app and use their smartphones as POS terminals. With a Near Field Communication (NFC)-enabled card, customers can withdraw by simply bringing their cards near the smartphone without needing to slot them in. This isn’t Access Bank’s first foray into contactless payments. It previously launched QR code capture payment technology, where users scan pre-generated QR codes to pay for goods and services. However, the bank hasn’t disclosed transaction numbers or how that technology is performing. With softPOS, Access Bank joins existing players like Kuda softPOS, which provides tap to phone functionalities in its business banking suite. Fintech rivals Moniepoint and PalmPay are also pushing contactless payments. Moniepoint partnered with AfriGO to introduce cards, while PalmPay teamed up with CashAfrica, a Nigerian contactless payments infrastructure provider, to launch payment terminals. This hyper-activity reflects a belief that contactless payments are the future. While infrastructural blockers are solvable, a deeper psychological block around security remains. How can users maintain control of their financial access if they lose their phones or cards? The Central Bank of Nigeria (CBN) has introduced daily cumulative limits capped at ₦50,000 ($33) to prevent heavy losses in cases of theft. However, building security-first solutions is crucial. In countries where contactless payments are entrenched, authorisation is key. Although providing authorised access to every payment is less user-friendly, it is efficient. Yet, the next will be making authorisation overrides difficult in those cases of theft. With the country’s biggest bank throwing its hat in the race for contactless payment adoption, one needs no telling that contactless payments may be about to take off in Africa’s biggest economy. Are you a freelancer or remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Companies Safaricom remains silent on Mali fund as it pushes Ziidi Image source: M-Pesa at 18. Safaricom, Kenya’s largest telco, is making a strong push for its new Ziidi Money Market Fund (MMF), but the move hasn’t been without drama. While Ziidi has already racked up over one million sign-ups and KES 6 billion ($46 million) in funds, customers and industry insiders are raising questions about Mali, Safaricom’s first MMF, which now appears to be on shaky ground. Mali, launched in partnership with Genghis Capital in 2020, was once a promising product. However, its growth stalled amid technical issues and regulatory hurdles. Now, Genghis Capital is accusing Safaricom of “business fraud” and claims the telecom operator intentionally orchestrated Mali’s decline while quietly building Ziidi with new partners. Some users were allegedly migrated to Ziidi without consent, sparking legal battles and concerns over data privacy violations. The money market fund space in Kenya is heating up. With KES 254 billion ($1.9 billion) in total assets under management, these funds are becoming a go-to investment option. Money market funds account for over 67.4% of all investments, offering better returns than traditional bank savings. Safaricom is clearly eyeing a bigger slice of this growing market by embedding Ziidi into M-PESA, making investing as easy as sending mobile money. This transition raises key questions. What happens to Mali investors? Will Safaricom compensate them if the fund collapses? The silence from both Safaricom and Genghis Capital fuels speculation. As digital investments become more mainstream, transparency and trust will be the real currency that determines who wins Kenya’s MMF battle. Stay up to date with the latest Paystack news Subscribe to Paystack to be among the first to know about our blog posts, product updates, events and more. Subscribe here→ Banking Zipline to launch in five more Nigerian states Image source: Zipline Zipline is offering Nigeria a lifeline. In a country where life-saving medical supplies can take hours—or even days—to reach those in need, Zipline, a US-based drone logistics company is expanding its reach across Nigeria to meet the need. The company which currently operates in Bayelsa, Kaduna and Cross River recently partnered with the Nigerian government, allowing it to use its drone infrastructure to deliver essential medical supplies to remote and underserved areas across the country. Since launching in Nigeria in 2022, Zipline has been using its high-speed autonomous drones to deliver life-saving medical supplies to hard-to-reach communities, cutting delivery times from hours or even days to just 30 minutes. Zipline is also negotiating new state partnerships to establish a total of seven drone deployment stations—“nests” that can serve vast areas, overcoming the country’s logistical and infrastructure challenges. The company’s ambition doesn’t stop at healthcare. While Zipline is focused on expanding its medical delivery services in Nigeria, it is also exploring drone logistics for agriculture and e-commerce. While Nigeria’s size and complexity will present a new challenge for Zipline, the company has proven expertise across eight countries—including Rwanda and Ghana—in four continents. Get notified when the Moonshot Deal Book goes live The Moonshot Book Dealbook is lauching very soon. Packed with a handpicked selection of the most promising startups, this exclusive
Read MoreCarbon resumes issuance of debit cards in partnership with Verve
Carbon, the Nigerian digital bank known for its loans-led approach to banking, has partnered with Verve, the Interswitch-owned card scheme to resume issuing debit cards nine months after pausing card operations, the company told customers in a February blog post. The startup previously issued Visa cards but ended that partnership due to high costs and its “cumbersome” processes. Carbon operates without an agent network or physical branches, limiting channels for cash withdrawals and online shopping. Discontinuing cards further limited its channels and the resumption of card issuance shows that despite the rise of contactless payments and bank transfers, debit cards remain one of the most effective channels for customers to access their funds. “Offering cards is not about attracting new customers to Carbon; it’s more of an essential service we provide. It’s about providing convenience and retaining our customers,” Lotanna Anuforo, Carbon’s content manager, told TechCabal in November 2024. Carbon did not immediately respond to a request for comments. Nigerian fintechs once saw Mastercard and Visa cards as a must-have to acquire young Nigerians who loved to shop online. However, rising costs for maintaining these international card schemes—which charge dollar-based fees—and reduced international customer spending have changed that thinking. Carbon began issuing debit cards in August 2021 after transitioning from a lender to a licensed microfinance bank to retain customers and drive transactions on its platform. Its cards also competed against bank-issued cards, which fintech customers often use as their primary account. Besides dollar-based costs, fintechs without physical branches must partner with logistics companies to deliver cards, increasing issuing costs. They also face a $500+ fee charged by international card schemes for logging disputes on their resolution channels. These factors have driven a shift toward Verve, which has issued over 70 million cards, cementing its dominance in the Nigerian market. Carbon’s switch to Verve, which charges in Naira, continues a trend of major Nigerian fintechs and banks opting for local card solutions. Moniepoint and OPay have issued over 17 million Verve cards, while most Nigerian banks issue Verve cards for customers. Carbon’s shift in its debit card strategy highlights that despite the rise of bank transfers and the growing adoption of contactless payments, fintechs still need debit cards—for now—despite the costs and operational challenges.
Read MoreSafaricom silent on Mali fund as it pushes replacement Ziidi
Kenya’s largest telco, Safaricom, remains tight-lipped about the fate of Mali, its first money market fund launched in 2020, as it aggressively pushes Ziidi, the newly approved replacement. Ziidi, which received regulatory approval in November 2024, is a partnership between Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited. However, its rollout has been marred by controversy, with customers left in the dark about Mali’s status while Safaricom intensifies efforts to onboard users onto Ziidi. At a Friday media briefing that coincided with M-PESA’s 18th anniversary, Safaricom said Ziidi has already recorded over one million sign-ups with over KES 6 billion ($46 million) in funds. Some users were allegedly moved from Mali, which sparked a legal dispute with Mali’s fund manager, Genghis Capital. In December 2024, Genghis Capital accused Safaricom of migrating customers to Ziidi without their consent. The firm also claimed Safaricom deliberately orchestrated a liquidity crisis that would trigger mass withdrawals from Mali amid ownership disputes over the fund. The situation worsened in late December 2024 and January 2025, when Mali experienced persistent technical failure that prevented some customers from withdrawing funds or signing up. While the service remains frozen for new registrations, Ziidi remains fully operational, which fuels the speculation that Mali is being phased out. Both funds currently appear on Safaricom’s M-PESA app. Safaricom and Genghis Capital were contacted multiple times for comment but did not respond. By September 2024, Mali was Kenya’s 17th-largest collective investment scheme managing KES 3.1 billion ($24 million) in assets and bringing in KES 11.6 million ($89,000) for Safaricom in the first half of the year. Kenya’s investment funds have seen significant growth, with total assets under management rising 13% to KES 254 billion ($1.9 billion) in June, up from KES 225 billion ($1.7 billion) in March, according to data from the Capital Markets Authority (CMA). During the same period, money market funds remained the dominant choice, accounting for KES 171.2 billion ($1.3 billion) and 67.4% of total investments. The remaining assets were distributed across fixed-income, equity, and other investment categories.
Read MoreZone hits ₦1 trillion in transactions as Nigerian banks turn to blockchain
Zone, the Nigerian payments infrastructure company, has processed over ₦1 trillion in transactions on its blockchain network between November 2022 and December 2024, according to the company’s CEO, Obi Emetarom. It recorded 100 million transactions, averaging ₦10,000 per transaction. While blockchain adoption in banking remains limited, most of these transactions were processed on automated teller machines (ATMs)—a first for blockchain-powered payments at this scale in Nigeria. This milestone comes despite the decline of ATM usage. In the past three years, ATM transaction values have declined from ₦32.65 trillion in 2022 to ₦28.2 trillion in 2023, as customers shift toward Point-of-Sale (POS) terminals and digital payments. Twelve banks currently use Zone’s blockchain network, but few use the technology to process ATM transactions. “If there was wider adoption of ATMs, [reaching ₦1 trillion in transactions] would have been faster,” said Obi Emetarom, Zone CEO and co-founder. “We used the ATM as a pilot to [introduce something new]. We didn’t want to start loading our system with heavy transactions, so we chose a transaction type that is manageable to build a credible system.” While Zone’s network allows these banks to achieve faster settlement rates on ATM transactions, others are in the system for another reason: ZonePoS, which allows them to process POS payments on the blockchain. After acquiring a switching licence in 2022, Zone launched a test phase for its blockchain network on ATMs in November. The initial blocker was onboarding banks and convincing regulators that activities performed on the network could be compliant, helping them to automate many of the processes that manual audits typically revealed. The rollout in late 2022 was a successful pilot, opening the pathway for the startup to launch commercially in January 2023. Since then, Zone has worked closely with banks. “The real issue that affects traditional financial institutions is the fear of non-compliance of existing blockchains and DeFi solutions,” said Emetarom. “[Financial institutions] don’t want to risk being fined or their licences withdrawn.” Emetarom claims that Zone’s Layer-1 blockchain reaches 10,000 transactions per second (TPS) “right out of the box.” Seeing how this worked for ATMs and the surge in POS transactions, Zone extended its blockchain network to terminal payments. In June 2024, Zone expanded its blockchain network to POS terminals, and in August, the company partnered with the Nigeria Inter-Bank Settlement System Plc (NIBSS), the country’s payment switch, to record POS transactions on its blockchain ledger. The move allows NIBSS to manage the interaction between the cardholder’s bank and the POS terminal on Zone’s regulated blockchain. The partnership was expected to kick off in October 2024, with NIBSS being fully integrated into Zone’s blockchain ecosystem, which would mark the first time a major regulator operated on such a scale within any blockchain framework. However, the integration faced delays due to NIBSS’s institutional structure and the lack of clarity around the stance of the Central Bank of Nigeria (CBN). Despite reaching the agreement with NIBSS in August 2024, the CBN only approved the partnership in December. “NIBSS, being a regulated entity, is very institutional-based. There are strict processes to follow to make sure things go according to the project cycle that [NIBSS] has,” said Emetarom. Zone has added NIBSS to a testnet on its blockchain. The company is still testing its network to ensure data integrity and preparing the live environment for the payment switch to perform its PTSA function. For now, Zone is collecting and storing POS terminal identities on its network. While it isn’t yet fully operational for storing payment records, a handshake with NIBSS allows it to verify these terminal IDs on the blockchain, said Emetarom. The rollout of Zone’s blockchain to POS payments is cautious to maintain the trust of regulators. Emerarom is confident of exporting Zone’s technology across Nigeria’s borders in the coming years, although, according to him, no talks have been established between other foreign financial institutions. The startup also declined to share its revenue numbers, citing a “confidentiality clause” from its investors. For its next act, Zone will take its blockchain payment rail to businesses that provide account-to-account fund transfers, bringing its technology closer to the average Nigerian.
Read More
Quick Fire
with Solomon Ayodele
Solomon Ayodele is Head of Innovation at WEMA Bank, overseeing Ventures, R&D, Programs, and Product Innovation. He led the establishment of IDEAX Labs, the bank’s first Innovation Labs since 1945. Beyond Finance & Technology, he advises several African startups and creates multi-generational social impact through Boys Quarters Africa, a leading transformational movement for boys. With expertise in Innovation & Strategy, his mission is to catalyse Africa’s future through his voice & the enabling power of technology. Explain your job to a five year old? Imagine the bank is a big, cool playground, and my job is to find new toys and games that everyone will love to play with. These toys and games help people save money, buy things, and have fun while using them. So, I make sure the playground is always exciting and useful for everyone! You claim to be an accidental tech bro, how did you get your first tech role? I never applied or got a Tech Role. I joined a Core Banking Project as a contract staff in 2014, whilst my role was mostly administrative [i.e buying Shawarma], but I was curious. I stayed late, learning to code and shadowing technical teams, just really eager to understand how people, processes, and technology intersected. This was how my accidental foray into tech began. Ultimately, the organisation offered me the sandbox to grow across different roles and I experimented with multiple gigs outside of my 9-5 You’ve gone from being an accidental tech bro to being Head of Innovation at Wema Bank, what would you say was the most important ingredient in rising through the ranks? I think I have not started rising. It is still day zero for me. However, I’ll unapologetically say God is the most important ingredient. I have also just been privileged to have worked with great bosses and leaders. Shout to people like Baba T, Adeoluwa Akomolafe, Ruby, TJ Bakare, Wole Adeniyi, and Mr. Moruf Oseni. There’s a way the world amplifies horrible bosses but having a great boss is beyond a breakthrough. I’ve worked and still work with many of them. I also think I am a very stubborn hard worker. I am not always the best in the room but you’ll always find me burning the extra candle when the room is empty. I knew early in life that I have no one except God and the work of my hand. You operate at the intersection between people, processes, and technology, what does your day-to-day look like? Well, I fight fire and I spend some more time explaining to stakeholders who want breakthrough ideas that I am in no way related to Albert Einstein. I am just an Ekiti Man who grew up in Agege. LOL My role is a Beyond-Tech-Innovation one. I manage the bank’s innovation ventures, including our newly built Incubation and Acceleration lab. I steer all innovation goals and efforts with organisational objectives, overseeing idea pipelines using frameworks like design thinking, and I manage innovative projects from ideation to execution. I also evaluate emerging technologies and lead prototyping for scalable, impactful solutions. You built the CoopHub – Digitised Cooperative Solution. What has been your biggest challenge in developing this product, and what was your most euphoric moment during the process? We are the first commercial bank in Nigeria to build something like this. However, It is hard to say ‘I built’ the product. WEMA Bank/ALAT is a community of rockstars whose core value is partnership. While the refining and implementation of the product came from the Innovation team I lead, I think the most euphoric moment was seeing it come to life through ‘collaboration’ between the different product, business and engineering teams across the bank. Additionally, seeing a fresh Product Manager [Eseohe], grow under my wings to deliver such a solid product was the biggest deal. You have a passion for inspiring the next generation, how has that been like for you and what avenue have you used to demonstrate that? By day, I’m a wannabe tech bro; by night, a social impact leader. In 2018, I founded Boys Quarters Africa, and we’ve engaged over 500k+ boys and men across 5 African countries to promote healthy masculinity. I’ve partnered with the Netherlands’ Ministry of Foreign Affairs to mobilise over 10,000 men as allies in ending gender-based violence. I also run Out of Office, a budding community supporting young professionals. Finally, I share some ‘aspire to perspire’ videos across my social media platforms too. Beyond all of this, it’s been a really exciting journey of being able to give back and do purposeful work. What do you do outside of your job? I ride my Bicycle. Analyse VDM’s analysis and sit/argue with my suya guy at night. I serve as the Ministry Director for Media and Information Systems, alongside my Pastor & Mentor, Damilola Oluwatoyinbo, at KINGS [Kingdom Influencers in Nations, Generations and System]. We are a global community of Kingdom Influencers touching and transforming individuals and communities with the love and light of Jesus Christ. Asides this, I run a BoyChild Transformation Movement, where I educate, empower & advocate for a new tribe of boys who will deliberately and purposefully transition from boyhood to manhood. Beyond all of these activities, my overarching objective is to catalyse the future of Africa, through my voice and the enabling power of technology.
Read MorePalmPay partners with AfriGO to introduce five million contactless cards
PalmPay, the Nigerian fintech with over 35 million users, has partnered with AfriGO, the national domestic card scheme, to roll out five million contactless payment cards and tap-to-pay solutions across Nigeria, the company shared in a statement. The move follows a similar partnership between Moniepoint and AfriGo, further aligning with Nigeria’s ongoing shift toward contactless payments. The partnership comes one week after TechCabal reported contactless payment infrastructure provider CashAfrica partnered with PalmPay to roll out tap-to-pay functionality on its POS terminals. Both companies will kick off with 1,000 devices in a pilot phase before a nationwide expansion in March. The recent partnership between fintechs and AfriGo signals a wave of preparedness for contactless payment adoption in Nigeria. For AfriGo, these collaborations represent a strategic move to capture a segment of Nigeria’s payment market that remains largely untapped—contactless transactions. “We are excited to partner with PalmPay to revolutionize financial services and expand access to digital payments across Nigeria. Through this collaboration, AfriGO and PalmPay will provide enhanced access to digital payments—particularly in underserved areas—drive financial inclusion, and support the rapidly growing digital economy in Nigeria,” said Ebehijie Momoh, Managing Director/CEO of Afrigopay Financial Services Limited (AFSL). While AfriGo has shared market space with Visa, Mastercard, and local rival Verve, in other digital payment forms, contactless payments present a new opportunity for the scheme to establish a stronger foothold. Industry experts also say the recent partnerships could address one of the biggest barriers to contactless payment adoption—merchant acceptance. With major fintechs driving issuance, more businesses may be incentivized to enable contactless terminals. “One of the biggest issue for contactless payment adoption in Africa has been the lack of authorization with cards,” said Malik Asamu CEO CashAfrica. “I believe the recent partnerships will accelerate the delivery of contactless payments and also explore in depth ways Nigerians can authorize each transaction before they are completed, Nigerian data shows customers want to authorize every transaction even down to the kobo.” While mobile wallets and QR codes have grown in adoption, Nigeria has yet to see widespread contactless card payments, a system dominant in markets like Europe and China. But with two of Nigeria’s top three fintechs—PalmPay and Moniepoint—now issuing contactless cards, the first real wave of tap-to-pay transactions in Nigeria may begin. The wave of contactless payment in Nigeria may be card-driven rather than mobile-led as many Nigerians still lack NFC-enabled smartphones required for contactless payment. As Nigeria gears up for mass contactless adoption, the battle for market share is intensifying—and if current trends continue, fintechs may finally drive the shift from PIN-based transactions to tap-and-go payments at scale.
Read MoreZipline to launch drone logistics in five additional states in Nigeria
Zipline, a U.S.-based drone logistics company backed by Goldman Sachs and Sequoia Capital, plans to expand to five additional Nigerian states by the end of 2025. This expansion follows a memorandum of understanding signed with the Nigerian government in September 2024, allowing Zipline to use its drone infrastructure to deliver essential medical supplies to remote and underserved areas. Zipline, which expanded to Nigeria in 2022, operates drone deployment stations, known as “nests,” in Bayelsa, Kaduna, and Cross River. The company is in talks with five more states to expand its network to seven nests, further strengthening its role in Nigeria’s healthcare supply chain, according to Akin Oyediran, Zipline Nigeria’s country manager and partnership lead. “The federal government is partnering with us in working with the different states because each different state has its healthcare system,” Oyediran said. “We’re working together to start deploying nests and have some drone technologies to deliver these medical devices.” Nigeria’s healthcare supply chain faces major challenges, including poor drug storage, bad roads, and widespread counterfeit drugs. Bureaucratic procurement delays in public hospitals often lead to shortages, especially in rural areas where many rely on expensive private care or wait long for essential medicines. Solving these issues requires investment in technology and infrastructure. In the South-South region, where riverine communities rely on motorcycles, bicycles, boats, or even foot travel for medical supplies, deliveries can take hours or days, making timely healthcare even harder to access. Before Zipline, institutions like LifeBank—a healthtech and logistics company that delivers essential medical products such as blood—along with the Africa Resource Center for Excellence in Supply Chain Management (ARC_ESM) and the Nigeria Supply Chain Integration Project (NSCIP), had already been working to address these challenges. One major challenge for these organizations is a lack of financing to reach many communities. Zipline doesn’t have that challenge. In May 2023, Zipline raised $330 million in a Series F round, bringing its total funding to approximately $900 million and valuing the company at $4.2 billion. The funding was used to improve its drone technology. Zipline generates revenue by partnering with hospitals and medical institutions for its delivery services. Zipline, which operates in eight countries across four continents, began its Africa operations in Rwanda in 2016 before expanding to Ghana in 2019. In 2022, it entered Nigeria, Kenya, and Côte d’Ivoire. While it runs a vast operation in Rwanda and Ghana, it will begin to make significant inroads in Nigerian states this year. The memorandum of understanding it signed in November 2024 with the National Blood Services Commission of Nigeria allows it to put a national blood solution in place by the end of 2025. Oyediran claims that Zipline’s drones can deliver medical supplies in as little as 30 minutes to areas where traditional healthcare personnel might take up to 14 hours to reach. A McKinsey & Company analysis estimated that a single-package drone delivery has a direct operating cost of approximately $13.50, with labor representing up to 95% of the total cost. Zipline declined to share how much it charges for drone delivery in Nigeria. It charges an estimated per-delivery cost of $17 for medical supplies in Ghana. Each Zipline nest can operate up to 300 drone flights per day, delivering vaccines, anti-malaria drugs, nutritional medicine, and just-in-time (JIT) medical supplies. Nigeria is about 36 times the size of Rwanda, where Zipline operates with just two nests covering the entire country. Achieving similar coverage in Nigeria would require an average of one nest per state, totaling 36 nests for the country’s 36 states. Although Zipline’s drones fly autonomously, an employee tracks each drone’s movement at the backend to ensure successful deliveries. A single drone nest, even if located in Cross River, can serve patients within an 80-kilometer radius, extending services to neighboring states. “We’re going to start delivering blood and other medical equipment to riverine areas where people lack access to quality healthcare,” said Oyediran. Beyond healthcare, Zipline is considering an expansion into agricultural supply deliveries to support farmers and a potential entry into e-commerce logistics in Nigeria. Oyediran says Zipline is betting on Nigeria because it represents an opportunity to improve healthcare on a large scale. The company’s mission is to make drone delivery possible for everyone on earth, according to Oyediran.
Read More
TechCabal Daily – Gig drivers launch SimpliRide
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! Today, the US will announce its “crypto strategic reserve,” a carefully selected collection of digital assets, including altcoins like Cardano and Ripple, developed under a federal regulatory framework. It marks the first time the US will include these alternative cryptocurrencies in its reserve. Let’s get into it. Quick Fire with Solomon Ayodele Nigeria’s treasury payment shake-up: Remita’s grip loosens but not lost Nigerian ride-hailing drivers launch SimpliRide to challenge industry giants Chowdeck slashes contract staff by 68%, fast-tracks its Ghana expansion plans Funding Tracker World Wide Web 3 Events Features Quick Fire with Solomon Ayodele Image: Solomon Ayodele Solomon is Head of Innovation at WEMA Bank, overseeing Ventures, R&D, Programs, and Product Innovation. He led the establishment of IDEAX Labs, the bank’s first Innovation Labs since 1945. Beyond Finance & Technology, he advises several African startups and creates multi-generational social impact through Boys Quarters Africa, a leading transformational movement for boys. With expertise in Innovation & Strategy, his mission is to catalyze Africa’s future through his voice & the enabling power of technology. Explain your job to a five year old? Imagine the bank is a big, cool playground, and my job is to find new toys and games that everyone will love to play with. These toys and games help people save money, buy things, and have fun while using them. So, I make sure the playground is always exciting and useful for everyone! You claim to be an accidental tech bro, how did you get your first tech role? I never applied or got a Tech Role. I joined a Core Banking Project as a contract staff in 2014, whilst my role was mostly administrative[i.e buying Shawarma], but I was curious. I stayed late, learning to code and shadowing technical teams, just really eager to understand how people, processes, and technology intersected.– this was how my accidental foray into tech began. Ultimately, the organization offered me the sandbox to grow across different roles and I experimented with multiple gigs outside of my 9-5 You’ve gone from being an accidental tech bro to being Head of Innovation at Wema Bank, what would you say was the most important ingredient in rising through the ranks? I think I have not started rising. It is still Day Zero for me. However, I’ll unapologetically say God is the most important ingredient. I have also just been privileged to have worked with great bosses and leaders.- Shout to people like Baba T, Adeoluwa Akomolafe, Ruby, TJ Bakare, Wole Adeniyi, and Mr. Moruf Oseni. There’s a way the world amplifies horrible bosses but having a great boss is beyond a breakthrough. I’ve worked and still work with many of them. I also think I am a very stubborn hard worker. I am not always the best in the room but you’ll always find me burning the extra candle when the room is empty. I knew early in life that I have no one except God and the work of my hand. You operate at the intersection between people, processes, and technology, what does your day-to-day look like? Well, I fight fire and I spend some more time explaining to stakeholders who want breakthrough ideas that I am in no way related to Albert Einstein. I am just an Ekiti Man who grew up in Agege. LOL My role is a Beyond-Tech-Innovation one. I manage the bank’s innovation ventures, including our newly built Incubation and Acceleration lab. I steer all innovation goals and efforts with organizational objectives, overseeing idea pipelines using frameworks like design thinking, and I manage innovative projects from ideation to execution. I also evaluate emerging technologies and lead prototyping for scalable, impactful solutions. You built the CoopHub – Digitised Cooperative Solution. What has been your biggest challenge in developing this product, and what was your most euphoric moment during the process? By the way, we are the first commercial bank in Nigeria who has been able to build something like this. However, It is hard to say ‘I built’ the product. WEMA Bank/ALAT is a community of rockstars whose core value is Partnership. Whilst the refining and implementation of the product came from the Innovation team I lead, I think the most euphoric moment is seeing it come to life through ‘Collaboration’ between the different Product, Business and Engineering teams across the Bank. Additionally, seeing a fresh Product Manager [Eseohe], grow under my wings to deliver such a solid product is the biggest deal. You have a passion for inspiring the next generation, how has that been like for you and what avenue have you used to demonstrate that? By day, I’m a wannabe Tech Bro; by night, a Social Impact leader. In 2018, I founded Boys Quarters Africa, and we’ve engaged over 500k+ boys and men across 5 African countries to promote healthy masculinity. I’ve partnered with the Netherlands’ Ministry of Foreign Affairs to mobilize over 10k men as allies in ending gender-based violence. I also run Out of Office, a budding community supporting young professionals. Finally, I share some ‘aspire to perspire’ videos across my social media platforms too. Beyond all of this, it’s been a really exciting journey of being able to give back and do purposeful work. What do you do outside of your job? I ride my Bicycle. Analyse VDM’s analysis and sit/argue with my suya guy at night. I serve as the Ministry Director for Media and Information Systems, alongside my Pastor & Mentor, Damilola Oluwatoyinbo, at KINGS [Kingdom Influencers in Nations, Generations and System]. We are a global community of Kingdom Influencers touching and transforming individuals and communities with the love and light of Jesus Christ. Asides this, I run a BoyChild Transformation Movement, where I educate, empower & advocate for a new tribe of boys who will deliberately & purposefully transition from boyhood to manhood. Beyond all of these activities, my overarching objective is to catalyze the future of Africa, through my voice
Read MoreNigeria hasn’t “dumped” Remita but plans for a new “Treasury Portal” signal a shakeup
Nigeria’s federal government has not “dumped” Remita, the electronic payment platform that has powered the Treasury Single Account (TSA) for nearly a decade, despite reports suggesting otherwise. Instead, a new system—Treasury Management & Revenue Assurance System (TMRAS)—will operate alongside Remita, the latest in a series of attempts to loosen the company’s grip on government revenue collection, according to multiple documents seen by TechCabal and conversations with a high-ranking Remita executive. For years, Remita, a subsidiary of SystemSpecs, has been at the centre of controversy and regulatory scrutiny over a perceived monopoly in processing federal payments. The latest development stems from a 2023 memo by the Office of the Accountant General of the Federation (OAGF), which authorized Simplify International Synergy Limited to build an “FGN Treasury Portal” and requested historical TSA transaction data. While this move signals the government’s desire to restructure how revenue collection works, a senior Remita executive told TechCabal that TMRAS remains layered on top of Remita’s existing infrastructure, not a replacement. Another attempt to unbundle Remita? Remita won the federal government’s bid in 2012 to consolidate public funds into the TSA, an initiative to improve transparency and curb leakages. Though proposed under Goodluck Jonathan’s administration, the system was not fully implemented until 2016 under Muhammadu Buhari. Since then, Remita has played a significant role in Nigeria’s public finance management, allowing real-time tracking of government inflows. Despite its benefits, politicians and regulators have repeatedly attempted to reduce Remita’s dominance. In 2016, the Senate investigated the company following allegations of corruption, but it was cleared of any wrongdoing. Still, critics argue that entrusting a private company with sole control over government revenue collection creates risks. Various efforts to introduce alternatives have failed over the years. The Central Bank of Nigeria (CBN) has attempted at least twice in the last five years to design a new payment aggregation model. According to a senior Remita executive, these efforts fell apart due to a lack of technical depth. “They never understood the end-to-end of what we were doing and the depth we had gone,” the executive said. “They look superficially and issue a circular. Without understanding the depth of the problem, a circular announcing a new arrangement won’t help.” While TMRAS represents the latest attempt to unbundle Remita, its impact remains unclear. The TSA system has evolved to allow at least four other Payment Solution Service Providers (PSSPs) to collect payments. However, Remita has remained the sole aggregator responsible for remitting funds to the Central Bank. The company’s contract states it charges a 1% transaction fee, shared with the CBN, participating banks, and PSSPs. Whether the introduction of TMRAS will significantly alter this arrangement or finally succeed in breaking Remita’s dominance remains to be seen.
Read More