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Nigeria to Spend $144bn on ICT by 2019

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ICT
  • Nigeria to Spend $144bn on ICT by 2019

The Director General, National Information Technology Development Agency (NITDA), Mr. Isa Ibrahim Pantami has said, studies have shown that Nigeria will be spending $143.8 billion on Information Communications Technology (ICT), products and services by 2019.

According to him, Nigeria loses about $2.8billion annually from the importation of ICT goods and services, including $1billion spent annually on software imports.

The DG made the disclosure at the 2016 e-Nigeria conference, in Abuja, adding locally manufactured or assembled computers represent less than 8 percent of all the computers used in the country.

Pantami, while calling for private sector investment in the sector added: “We strongly plead with our international manufacturers to domesticate their products in order to achieve a win-win relationship.

“The diversification of our economy has become imperative in the face of dwindling revenue from the oil sector.

“ICT provides a veritable option for diversifying our economy because it has the added advantage of being able to improve efficiency and enhance productivity in all the other sectors of the economy.”

He however said that Nigeria was fortunate to have a large percentage of young Nigerians that have a high level of interest in ICTs, stressing that NITDA is creating an environment that supports high level ICT-based capacity building for them.

He said: “This will create the critical mass required to drive the Local Content programme of the federal government, championed by NITDA.

“We will collaborate with industry leaders and put policies in place to support young Nigerians to develop world-class ICT products. This plan informed our decision to invite several start-ups to eNigeria.”

Within the limits of the mandate set up for the agency, he said NITDA is being repositioned to filter the IT gadgets being imported to the country in the overall interest of the nation.

According to him, there is tremendous gain to be made from a local content policy that encourages the development of local ICT products and services, adding that this will significantly reduce capital flight.

The DG said: “NITDA will lay on regulation, local content development and capacity building, we are making concerted efforts to create, as well as review, existing standards and guidelines.

“This will enable us to regulate the sector in line with the highest global standards. We are committed to ensuring that the proliferation of fake and sub-standard ICT products and services in the country is eliminated or at least significantly curtailed.

“Security in the 21st century is highly reliant on ICTs and we want to encourage the development of ICT-enabled security services across all sectors of the economy. In addition to our support for the use of ICT for physical security, we are also committed to ensuring the cybersecurity of our nation.” he said.

He said NITDA as regulator of the IT industry, will correct irregularities, fight corrupt practices and resist unnecessary and unproductive interference in the affairs of the agency.

In his remark, the Vice President, Prof. Yemi Osinbajo, who was the key note speaker at the occasion, said innovation in digital technology, has no doubt forced diversification on the country, adding that dependence on oil and gas is therefore becoming less important.

According to him, with the development of electric cars in Japan and China, who are importers of Nigeria’s oil, the country’s dependence on oil is gradually becoming irrelevant.

He said: “Nigeria may not be depending on oil for much longer because electric cars in Japan and China will depend basically on the the use of electric. By 2040, cars using electric cars will cost less than $20,000.”

He however regretted that the quantum leap being experienced in technology in the country is only delayed by the deficit in power, bandwidth and other infrastructure.

While assuring that government is investing heavily in technology, he stressed: “We have budgeted for training of 65,000 Nigerians in hardware as well as software in our social protection programme which has the collaboration of the ministry and NITDA.

“This means that we shall be building more local capacity to assemble hardware and software for development

“We shall focusing on technology for media and entertainment which which is relatively new. We intend to create a reservoir of human capacity in technology that can be exported internationally.”

With thee current pace of ICT growth, he assured, that Nigeria will lead India and China as a market for technology and innovation.

Poor Communication, Obsolete Navigational Aids Threaten Air Safety

Chinedu Eze

The Senate Committee on Aviation has said that Nigeria’s airspace is endangered by poor communication between the pilot and the air traffic control (ATC) and non-functional and obsolete navigational aids.

Vice chairman of the Senate committee on aviation, Senator Bala Ibn Na Allah who is also a pilot spoke about the hard decisions pilots have to take every day in order to fly safely through the airspace with inadequate navigational equipment, noting that ineffective communication in the airspace has become inimical to air safety.

N’Allah recalled that these problems have been there over the years despite huge amount of money spent on projects to improve safety in the airspace.

The Committee berated the Nigerian Airspace Management Agency (NAMA) and the Nigerian Civil Aviation Authority (NCAA), saying that the later has failed in its oversight functions to regulate the airspace management agency, It decried the billions of Naira spent on equipment procurement and execution without any discernible improvement in airspace safety.

Na’Allah observed that in the aviation industry, contracts are inflated and when compared to other countries, a 10th of what is budgeted to execute a project in Nigeria is used to provide the best of similar project overseas, adding “The navigational aids we have in Ghana, Togo, Dakar, Senegal, we have spent five times of the money they spent, yet we are yet to have the kind of equipment they have. So when we talk about funds the problem is much more than that. Collectively we have failed, so individually let us correct those mistakes that we made in the past. We do not have the funds now. We will never have the kind of funds that we had in the past in the foreseeable future. So we need to change our attitude now.”

The Committee promised to into the activities of the industry, the money the Senate appropriated to the different agencies and review the execution of the projects in line with the funds allocated to them.

However, the acting Managing Director of NAMA, Emma Anasi explained that paucity of funds have been the major factor for failure to implement projects in the agency and traced the history of communication and navigational aids in Nigeria airspace. He noted that expansion and multiplication of airports and air routes hampered the effectiveness of these equipment, which was initially made for relatively limited part of the airspace.

He said a major part of this problem would be solved if NAMA completes the on-going Aeronautical Information Service (AIS) automation, which is meant to improve communication in the airspace.

“When the project, which we call Aeronautical Information Service (AIS) automation was started it was designed to do two principal things. Create a V-SAT network in double redundant mode to enable us establish more extended VHF coverage sites and those sites are Benin, Calabar, Yola, Kaduna and many more. We have issues like that in Lagos, but this project by the time we finished it you can file your flight plan from you bedroom or from your cockpit because the network is web based. The network will also enable us to cover all the routes with radio communication to flight level 100. That is our target,” Anasi said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Fintech

Flutterwave Hit by Another Security Breach, Billions of Naira Diverted to Multiple Bank Accounts

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In another blow to the financial technology sector, Flutterwave, a prominent player in Nigeria’s digital payment landscape, has been rocked by yet another security breach, resulting in the diversion of billions of naira to multiple undisclosed bank accounts.

This incident is the latest in a series of setbacks for the fintech company, raising concerns about the integrity of its systems and the safety of customer funds.

According to insider sources familiar with the matter, unauthorized transactions amounting to approximately ₦11 billion ($7 million) were illicitly transferred to several accounts during April 2024.

However, other sources suggest the figure could be as high as ₦20 billion ($13.5 million), underscoring the magnitude of the breach.

Flutterwave, responding to inquiries regarding the breach, acknowledged the unauthorized activities but stopped short of confirming the exact amount involved.

In a statement to TechCabal, the company assured the public that no customer funds were lost or compromised, and the confidentiality of customer data remained intact.

The modus operandi of the perpetrators involved transferring the stolen funds to various accounts across five financial institutions over a span of four days.

To evade detection, the transactions were carefully orchestrated to stay below thresholds that trigger fraud checks, highlighting the sophistication of the operation.

Law enforcement agencies have been notified of the breach, and investigations are underway to apprehend those responsible.

Flutterwave has also initiated measures to mitigate the impact of the incident, including temporarily restricting the accounts implicated in the unauthorized transfers.

Industry analysts note that this is not the first time Flutterwave has fallen victim to such security breaches. Over the past fourteen months, the company has grappled with multiple incidents of unauthorized transfers, raising serious concerns about the adequacy of its cybersecurity measures.

In October 2023, Flutterwave reported unauthorized transactions totaling ₦19 billion ($24 million), affecting thousands of account holders across 35 banks and financial institutions.

Subsequent breaches in March and February 2023 saw millions of naira diverted to numerous bank accounts, further exposing vulnerabilities in the company’s systems.

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Moniepoint Inc Moniepoint Inc Named Africa’s Fastest-Growing Financial Institution by Financial Times

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Moniepoint

Moniepoint Inc, parent company of Nigeria’s leading financial institutions, Moniepoint MFB and TeamApt Ltd has been ranked by the Financial Times, one of the world’s leading business news organizations, recognized internationally for its authority, integrity, and accuracy as Africa’s fastest-growing financial institution.

The world’s leading financial publication confirmed Moniepoint Inc’s accolade in its annual “Africa’s Fastest Growing Companies” survey, released today. It is the second consecutive year Moniepoint has achieved both the fastest-growing fintech milestone, and, ranked in Africa’s top four fastest-growing companies overall.

The survey was compiled by Statista, a leading research company renowned for its insight into African companies’ actual performance, in a rigorous screening process. In this survey, companies are ranked based on 2019-2022 data by their absolute growth rate of revenues and their compound annual growth rate (CAGR). Moniepoint’s growth rates of 7,979% (absolute) and 332% (CAGR) ranked it ahead of hundreds of leading companies from diverse industries such as technology, telecoms, financial services, and healthcare.

Moniepoint Inc has long been one of Africa’s largest business payments platforms, processing over $182 billion for customers in 2023. It will be recalled that in August 2023, Moniepoint MFB entered the personal banking market offering reliable banking services to millions of individuals across Nigeria.  The holding group also doubled its global headcount, growing to over 1,800 employees by the end of 2023.

This recognition highlights Moniepoint’s success as Africa’s leading fintech, driving financial inclusion by empowering underserved businesses and individuals to access the formal financial system, contributing to a key goal of the Nigerian government.

Tosin Eniolorunda, Group CEO of Moniepoint Inc., said: “We are thrilled to be recognised by the Financial Times as Africa’s fastest growing fintech for the second consecutive year. Achieving rapid growth and scale is a fantastic achievement; maintaining that year-on-year is even better. The ranking is a testament to the dedication and hard work of the entire Moniepoint team, and the trust of millions of customers across Africa in the Company.

“2023 was a pivotal year for Moniepoint. Moniepoint has moved from being an agency-dominated institution to becoming merchant-dominated as we have seen a lot more people embrace more digital payment solutions. It is humbling to see that we have become a household name that people have come to know and trust, the bellwether for reliable transactions every time.

With our foray into the personal banking market, we have been able to deliver seamless and reliable payment solutions for Nigerians especially those in underserved communities as we continue to supercharge access to financial services and contribute to economic growth and wealth creation.  2024 is set to be even more exciting with continued growth, driving compliance and innovation, as we maintain our leading role within the African fintech sector, driving financial inclusion across Africa.”

According to David Pilling, FT Africa Editor, “The third year of our now expanded ranking of Africa’s Fastest Growing Companies comes against a background in which many economies are struggling to recover from the Covid pandemic. The FT-Statista list reveals the type of companies that, even in hard times, have managed to grow, often by disrupting markets…This year, our ranking has a wider geographical spread of companies than before. The big newcomer is Morocco, with 12 companies in the top 125 against just three last time. Mauritian-domiciled companies also did well with nine winners, against four in 2022. South Africa had 42 companies in the list, followed by Nigeria’s 25, while Kenya tied third at 12.”

Moniepoint Inc.’s technology powers over five million businesses and their customers, offering all the payment, banking, credit and business management tools they need to succeed.  Establishing itself as a market leader in Nigeria across various segments from commerce to health and hospitality amongst many others, Moniepoint’s transformational and positive strides has earned it local and international plaudits.

In 2023, for the second year running, Moniepoint Inc was named amongst the 100 most promising private fintech companies by CB Insights. Moniepoint MFB received the Rising Star Family Business Award at the Pwc/Businessday Family Business Summit; while bagging the Fintech Company of the Year award at the 16th edition of Leadership Newspapers Conference and Awards.

Industry analysts have averred that as a strongly embedded and systemic institution in the digital payment services segment, with an eye on the future, Moniepoint Inc is poised to continue to deliver innovative solutions that promote inclusivity, drive sustainability and create new vistas in the markets where they operate.

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E-commerce

Jumia Plans Warehouse Consolidation in Lagos Amid Nigeria Focus

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Jumia - Investors King

Jumia Technologies AG, the Nasdaq-listed e-commerce giant, has unveiled plans to consolidate its warehouses in Nigeria.

This decision is part of the company’s broader strategy to prioritize Nigeria, Africa’s most populous nation as it endeavors to turn profitable amidst challenging market conditions.

The consolidation initiative will see Jumia merging its three existing warehouses in Nigeria into a single expansive depot spanning 30,000 square meters, strategically located in Lagos.

Francis Dufay, CEO of Jumia, emphasized the cost-cutting benefits associated with this move, highlighting the company’s commitment to optimizing its operational efficiency.

Speaking about the rationale behind the consolidation, Dufay expressed confidence in Nigeria’s potential to provide Jumia with the scale needed to achieve profitability.

Despite facing headwinds such as currency fluctuations and a challenging economic environment, Jumia views Nigeria as a key market for growth, anticipating positive developments in the medium term.

Jumia’s decision to streamline its operations in Nigeria comes against the backdrop of its ongoing efforts to navigate the complexities of the e-commerce landscape.

Despite reporting an operating loss of $8.33 million in the first quarter of the year, the company remains optimistic about its prospects in Nigeria, where it continues to witness steady revenue growth.

The e-commerce giant’s commitment to Nigeria underscores its long-term vision and determination to succeed in the region.

With plans to expand its footprint to additional cities across the country, Jumia aims to capitalize on Nigeria’s vast market potential and consumer demand.

However, Jumia’s journey to profitability in Nigeria is not without its challenges. The country’s economic landscape has been marred by currency devaluations, infrastructural deficiencies, and logistical hurdles.

Yet, amidst these obstacles, Jumia remains resilient, banking on Nigeria’s economic revival efforts and policy reforms to fuel its growth trajectory.

As part of its strategy to adapt to evolving market dynamics, Jumia has introduced innovative initiatives such as buy-now-pay-later financing options to cater to customers grappling with rising prices.

Also, the company remains vigilant in monitoring pricing dynamics, ensuring competitive pricing to meet the needs of price-conscious consumers.

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