The acquisition gives Paystack a microfinance banking licence, allowing it to hold deposits and offer lending services under a new entity, Paystack Microfinance Bank (Paystack MFB). The bank will initially focus on lending to businesses before expanding into consumer banking and banking-as-a-service (BaaS) offerings.

“After 10 years of building payment infrastructure, we realised that businesses needed more than just getting paid to grow,” Paystack’s chief operating officer, Amandine Lobelle, told TechCabal. “This allows us to address more of the pain points businesses face.”

Paystack MFB will operate independently from Paystack’s payments business but under the same parent company. The separation allows the company to test lending and deposit products while limiting regulatory exposure compared to a full commercial banking licence.

The move builds on Paystack’s recent push into consumer-facing products, including the launch of its payments app, Zap, last year. With Paystack processing trillions of naira monthly for more than 300,000 businesses, the banking licence gives the company greater control over settlement flows and higher-margin financial services.

Paystack plans to offer working capital loans, merchant cash advances, overdrafts, and term loans, using real-time transaction data from its payments platform to assess credit risk. The company said it has already generated over $2.5 million in commercial revenue and is currently protecting assets valued at about $11 billion.

The bank will compete with traditional microfinance banks such as LAPO and Accion, digital lenders like Carbon and Fairmoney, and fintech platforms including Moniepoint, OPay, PalmPay, and Kuda.

In April 2025, Nigeria’s Central Bank fined Paystack ₦250 million for regulatory issues related to Zap. Lobelle said the matter had since been resolved and did not affect approval for Paystack MFB.

Paystack said the new banking arm represents a structural shift, allowing it to move deeper into Nigeria’s financial stack while maintaining existing partnerships with commercial banks.

The post Paystack Enters Banking Sector With Acquisition of Microfinance Bank appeared first on Tech Digest News.

On an ordinary November evening, Nigerians witnessed a sharp turn in the narrative of one of their most celebrated tech figures. What began as quiet online murmurs soon exploded into screenshots, threads, and timelines filled with decade-old posts—explicit jokes, sexual comments involving minors, unsettling humour, and troubling allegations linked to a man once regarded as one of Africa’s most brilliant innovators. Ezra Olubi, co-founder of Paystack and the unconventional face of a $200 million acquisition by Stripe, was suddenly trending not for genius, but for shock, disbelief, and disappointment.

By the end of the week, applause had given way to interrogation. Tweets long buried resurfaced with force, including remarks about young girls, fetish-tinged statements, sexualised humour, and accusations of inappropriate conduct with a younger colleague. The same online community that once amplified his brilliance now demanded clarity and accountability. His image was not dismantled by a mob; it was undone by his own digital past.

Ezra Olubi was born on 12 November 1986. Long before his name became synonymous with African fintech, he developed an early fascination with computers—a passion that guided him through Babcock University, where he graduated with first-class honours in Computer Engineering. After years of freelancing and building systems, he teamed up with Shola Akinlade in 2015 to co-found Paystack, a company designed to simplify online payments for Nigerian businesses. What began as a niche solution evolved into one of Africa’s most influential fintech giants.

Tech Digest reports that in 2020, Paystack secured one of Africa’s biggest startup exits when Stripe acquired it for over $200 million. The achievement catapulted Ezra into national recognition, earning him the Officer of the Order of the Niger (OON) in 2022. His public persona—gender-nonconforming, flamboyant, and unapologetically unconventional—challenged Nigeria’s conservative norms and made him both an icon for some and a target for others. This tension amplified everything around him: praise, scrutiny, admiration, and resentment.

But even before the scandal erupted, faint signals suggested his aura of invincibility was never absolute. Whispers circulated privately, concerns about blurred boundaries, troubling jokes, and behaviour many found odd but excused as eccentricity. These early signs were often dismissed in the shadow of his achievements—until the spark came.

When Nigerians began circulating screenshots of Ezra’s old tweets, the reaction was immediate and visceral. These were not vague insinuations but explicit posts. Among them were sexualised jokes about colleagues, comments about minors, fetish-related admissions, and a disturbing tweet implying sexual misconduct involving his sister. Others referenced recording female friends using his bathroom and making jokes about prayer postures in ways many considered deeply offensive. The tweets, resurfacing all at once, created a digital avalanche that reshaped public perception overnight.

As the tweets dominated social media, allegations followed. Anonymous accounts and pseudonymous participants in audio spaces recalled encounters that suggested manipulation, inappropriate conduct, or imbalance of power. One alleged ex, known only as “Maki,” claimed she experienced concerning behaviour that blurred lines between personal freedom and predatory tendencies. As stories multiplied, Ezra’s digital reputation collapsed.

Paystack, once shielded by his brilliance, found itself at the epicentre of a reputational crisis. The company suspended him pending investigation—a move that signaled internal panic. Investors grew uneasy, partners demanded clarity, and Stripe assessed potential damage to its global reputation. Eventually, termination became inevitable. Ezra released a rebuttal, attempting to contextualise the tweets as satire or youthful foolishness, but the harm was irreversible. Corporate institutions act swiftly when founders become liabilities.

Ezra’s downfall has significant implications for Nigeria’s tech ecosystem. For years, founders were celebrated as untouchable disruptors—ingenious, eccentric, and exempt from public morality. This incident shattered that myth. The new reality is clear: innovation does not erase accountability. Investors, regulators, and the public are now recalibrating how they judge tech leadership—not just by vision, but by character.

His story is a cautionary tale for digital natives and future innovators. The internet never forgets, and brilliance is not a moral shield. In an era where digital footprints become evidence and public perception shapes legacy, Ezra’s journey reinforces a timeless truth: talent builds empires, but character sustains them.

Ezra Olubi built part of Africa’s digital economy, but his legacy is now inseparable from the words he once posted carelessly into the world. His rise and fall will be studied not just as a narrative of success, but as a reminder that even genius must answer to the standards of its time.

Shuaib S. Agaka is a Tech Journalist and Digital Policy Analyst based in Kano.

Email: sshuaib328@gmail.com

The post Ezra Olubi: When Digital Genius Collides with Digital Footprints, By Shuaib S. Agaka appeared first on Tech Digest News.

Nigeria’s Central Bank has fined fintech company Paystack, ₦250 million ($190,000) for allegedly operating its newly launched consumer product, Zap by Paystack, a peer-to-peer money transfer app in violation of its regulatory licence, according to TechCabal with direct knowledge of the matter.

Paystack had been embroiled in a regulatory crisis after the launch of its consumer product, Zap, sparked a trademark war with another startup, Zap Africa and triggered scrutiny that showed that Paystack’s Zap failed to inform the Central Bank of Nigeria (CBN), let alone obtain approval to launch.

Against a litany of Nigeria’s financial laws, Zap by Paystack was launched on March 24, as co-founder and CEO Shola Akinlade told attendees of the event that Zap was a product focused on “fast, reliable and secure transfers”.

Paystack’s Zap first has to answer to the top bank to determine if it has any right to exist before it can fight to retain its name.

Zap’s launch was seen as a bold move by the Stripe-owned firm to compete in the fast-growing consumer payments market. The fine marks Paystack’s largest publicly known regulatory penalty since it received CBN approval in 2016.

The post CBN fines Paystack ₦250m over Zap operations, cites licencing breach appeared first on Tech Digest News.

By Iklima Musa

TECHDIGEST – Nothing offers a more reliable picture of a country’s economic performance better than a periodic assessment of sectoral contribution to Gross Domestic Product (GDP). It’s no less so in Nigeria where a report by the National Bureau of Statistics indicates that Nigeria’s Information and Communications sector contributed 18.44 percent to the GDP in the second quarter of 2022. The figure was an improvement from the 15 percent performance recorded in the last quarter of 2021.

Kashifu Inuwa, NITDA Director-General: “Globally, there is a shortage of talents, so, we are creating a mandate to develop a talent strategy because we have a competitive advantage as a country with our vast human and natural resources. Nigeria can seize the opportunity to fill that gap” 

A little context will help put the significance of this growth in real perspective. The NBS data shows that the country’s Information and Communications sector’s contribution trumped the figures recorded by sectoral powerhouses such as Oil and Gas, Manufacturing, Real Estate, and Financial and Insurance. The plaudits – or a huge part thereof – for that sterling performance should go to the Ministry of Communications and Digital Economy, its helmsman Professor Isa Ali Ibrahim and the National Information Technology Development Agency (NITDA), and its steerer, Mr. Kashifu Inuwa Abdullahi.

NITDA, as the Federal Government Agency responsible for the development of the Information Technology sector in Nigeria, it is one of the seven agencies under the Ministry of Communications Technology and Digital Economy.

NITDA’s impressive scorecard could be glimpsed also in how quickly it has been able to develop strategies, to help grow the Nigeria information technology ecosystem in a COVID and emerging post-COVID era. Under its dynamic and innovation-driven Director-General, Kashifu Inuwa, so much has been achieved by the Agency in a short span of three years.

The NITDA Director-General, who recently marked three years in office, has gradually realigned and re-positioned the Agency, aiming to grow its capacity to respond adequately to the changing conditions and complexities of a digital economy in a fast-evolving global and local digital market.

READ ALSO: Adoption Of e-Voting Will Drastically Reduce Prospect Of Electoral Violence – DG NITDA

Milestones achieved under the leadership of Inuwa have been multi-faceted and stand out as bold testaments of his commitment to innovation. Inuwa’s vision for NITDA in the medium term is encapsulated in a robust and bold policy framework – the Strategic Roadmap and Action Plan (SRAP, 2021 – 2024), which was launched last year.

SRAP is designed to support the even broader, National Digital Economy Policy and Strategy (NDEPS) enunciated by the Ministry of Communications and Digital Economy.

The many achievements recorded so far belie the fact that NITDA has implemented SRAP for just one year, a development that Inuwa recalls with an understandable pride: “The first year of implementing the NITDA Strategic Roadmap and Action Plan (2021 – 2024) has been one of deep learning, overcoming challenges and celebrating amazing breakthroughs. Along the way we got conferred with the prestigious National Productivity Order of Merit (NPOM) award, in recognition of our productivity, hard work and excellence in service delivery.”

In June 2021, the Agency started operating the National Public Key Infrastructure (PKI) with the Key Generation and Handover Ceremony for Root Certification Authority (RCA) for Country Signing Certification Authority (CSCA) and Country Verification Certification Authority (CVCA) of the Federal Republic of Nigeria. The NITDA Director-General remains upbeat about its prospects: “This unprecedented cybersecurity landmark (NDEPS Pillar 6) will not only close loopholes in online activity but significantly reduce system vulnerabilities that are exploitable by threat actors.” That was undoubtedly a milestone achievement for Nigeria’s digital space.

To further close out loopholes in online activity and generate proper accreditation of professionals, the Agency intends to implement seven cybersecurity interventions that are focused on the PKI.

A key component of this creative platform is that, it will coordinate the management of the Country Object Identifier (OID), and upgrade the PKI authentication infrastructure, create a PKI Audit requirement for Microsoft onboarding on operating systems, and integrate PKI with major hardware/software vendors. “We will then construct, furnish, and equip two National Cybersecurity Research Centers,” Inuwa says.

With regard to the expected outcome, Inuwa, reputedly Nigeria’s first Cisco-Certified Internetwork Expert (CCIE) public servant, says: “Digitalisation of Government processes facilitates transparency, efficiency, productivity, participation, inclusiveness, cost savings, and competitive advantage, which ultimately translates to social and economic development for a country like Nigeria.”

He also estimates that the “implementation of Enterprise Content Management (ECM) can save Nigeria N4.5bn annually”. For a government determined to curb corruption and cut costs, this is quite significant. Some of NITDA’s action plans in the area of regulation and framework development, which are already in the works, include fostering Gender Digital Inclusion, enthroning a seamless e-Commerce environment and enhancing government digital services.

“In 2022, we are developing the Framework on Gender Digital Inclusion (GDI), with the aim of codifying learning standards for different categories of IT learners, while addressing the wide gender disparities in digital literacy and skill acquisition,” he said.

He is optimistic that the Guidelines for e-Commerce in Nigeria will provide an enabling framework for e-commerce to thrive and increase online trade’s contribution to Nigeria’s GDP. Just as crucial, he noted, is the planned development of the “Framework and Regulations for Implementing Government Digital Services (GDS) as a Guideline for Federal Public Institutions (FPIs) to deliver digital services and the Framework for Implementation and Compliance with relevant regulations to ensure compliance with all developmental regulatory instruments such as the NDPR, Cloud Computing, outsourcing, among others”.

To some, these goals may seem rather grandiose. But Inuwa possesses a tapestry of experience as an IT professional, having worked, and indeed excelled, in highly challenging environments, among which are the Central Bank of Nigeria and Galaxy Backbone Limited. This imbues him with a capacity to sufficiently address current developments and discern the dynamic trends and markets in the IT sector. His deep knowledge of IT trends reflects in the remarkable way he has steered the Agency to address the likely challenges of tomorrow’s digital environment.

Under Inuwa, NITDA has issued 966 digital tools and supported the development of digital transformation plans in accordance with NDEPS Pillar 5 in 3 states. “These digital tools and expert guide, which are part of our initiative to develop a framework and implementation toolkits for measuring the impact of digital technology deployment in FPIs are already enabling institutions to embark on digital transformation self-assessments,” he said, regarding the feat.

When Inuwa assumed office as NITDA’s Director General in mid-2019, the global Covid-19 pandemic which led to the lockdown of several cities worldwide, including Nigeria, was only a few months away. When it hit the country in February 2020, prompting a government-ordered lockdown in April 2020 which lasted for several months, the Agency initiated and adopted several remote and contactless digital technologies that ensured government machinery kept working throughout the critical period. Inuwa set up a team called Tech4Covid to cushion the effects of Covid-19. This led to the identification of three innovations that helped curb Covid-19 and the establishment of a virtual academy for research and training with over 70 active courses and over 485,000 active students.

In the circumstances, Inuwa’s leadership and managerial skills which had been honed by several high-level trainings in leadership and management at reputable world-class institutions such as Harvard, Sloan Business School, London Business School, IMD Business School, Oxford University, Massachusetts Institute of Technology and Cambridge University, all came into play, ensuring that critical digital services are being delivered to government and that government can continue to perform its various functions effectively. The same expertise has come into play in his relentless efforts, to transform the Agency into a world class IT Agency.

One instance of this transformation is the service delivery. The Director General comments: “In terms of the service contract, we reviewed the existing SERVICOM unit, expanded stakeholder identification, introduced new roles, realigned responsibilities to absorb the changes, created a new identity tagged iServe, and completed a sensitization process with key action points. Today, iServe represents our people first commitment to customer satisfaction through innovation and professionalism as we pursue the digital economy goals.”

Another key part of NITDA’s statutory mandate is massive upskilling and reskilling of Nigerians across all walks of life. NITDA under Inuwa, has trained well over half a million Nigerians in various basic digital skills and literacy, with such diverse backgrounds as junior schoolteachers, traditional rulers, journalists, youth and talent development programme participants, among others.

The Agency has embarked on a journey to train 1 Million Software Developers in the next 18 months, in collaboration with global giants such as Microsoft, Google, and other key ecosystem players. “Globally, there is a shortage of talents, so, we are creating a mandate to develop a talent strategy because we have a competitive advantage as a country with our vast human and natural resources. Nigeria can seize the opportunity to fill that gap”, the NITDA, DG says, with high optimism.

At a higher level, NITDA has awarded over 450 scholarships in IT to deserving Nigerians at the master’s degree level, with 42 Phds, in the past few years.

Inuwa is delighted with the phenomenal growth of the Nigerian Digital Innovation Ecosystem. Recent large acquisitions such as Stripe’s $200 million takeover of Paystack in 2020, the $320 million Main One Ltd take over by US-based Equinix, and Flutterwave’s $3.5 billion valuation have proudly spotlighted the country as a notable digital innovation centre in Africa.

In the first half of this year alone, Nigeria’s Digital technology and innovation startups have raised over one billion dollars in venture capital funding from major Western capital market funds. Notable among them are Sudo Africa, $3.7 million, Casava, $4 million, DrugStoc, $4.4 million, Bamboo, $15 million, Credpal, $15 million, and Reliance Health, $40 million.

NITDA itself, has recently facilitated the support of six digital information technology start start-ups to access grants of $120 thousand each, amounting to $715 thousand. The Agency is actively backing several digital innovation hubs and has set up such hubs around the country, including over 150 start ups which it has supported to attend the GITEX global exhibition, World Creativity Challenge, among others.

Just the beginning of this year, NITDA facilitated the approval of three Federal Executive Council memos through the Ministry of Communications and Digital Economy, in favour of digital startups. These approvals will incentivise and further harness the country’s digital innovation and entrepreneurship ecosystem to create job opportunities for its teeming youth population.

Within three years, Inuwa has equipped 160 digital economy centres around the country to further catalyze skills development and digital innovations.

According to Statista, 35 million Nigerian internet users will be added by 2026, which is another clear indication of increasingly phenomenal growth in internet adoption and usage in Nigeria.

Addressing the recent Ogun State Digital Summit in Abeokuta, on Digital Technologies: Key to Sustainable Development, Inuwa affirms that “Digital Technology innovation is not only booming, but it is also quickly moving towards sustainable solutions, with many of the most promising ideas from businesses worldwide having a clear focus on the environment.”

An innovation powerhouse, Inuwa would yet, undoubtedly, be pushing forward the boundaries of innovative digital technologies in Nigeria and beyond, in the coming years.

The post Kashifu Inuwa: Putting NITDA On The Cusp Of A Revolution appeared first on Tech Digest News.

TECH DIGEST- The Federal Government has ordered Flutterwave, Opay, Paystack, and Monify to halt providing payment services to loan Apps under investigation. This decision comes from the Federal Competition and Consumer Protection Commission (FCCPC).

The named Apps—Maxim Credit, Here4U, ChaCha, and SoftPay—were all under investigation, according to the Commission, for unethical conduct and invasions of consumer privacy.

READ ALSO: PHOTOS: Pantami Receives Young Female Authors, Commends PRNigeria’s Strides in Fact-Checking, Security Reporting

It specifically identified Soko Loan as the entity responsible for a number of other Apps that were being utilised to go around the Commission’s attempts to protect user privacy. Executive Vice Chairman of the FCCPC Babatunde Irukera responded to this development by saying; “The information available to the Commission demonstrates that Soko Lending appears to be the most consequential digital money lender with multiple apps and brand names covering a significant share of the digital/online lending market, and one of the most prolific actors in violating consumer privacy, fair lending terms, and the ethical loan repayment and recovery practices.”

“The commission has ordered all operating payment systems including Flutterwave, Opay, Paystack, and Monify to immediately cease and desist providing payment or transaction services to lenders under investigation or not otherwise operating with applicable regulatory approvals. The Commission has also ordered telecommunication/technology companies (including Mobile Network Operators (MNOs) to cease and desist providing server/hosting, or other key services such as connectivity to disclosed or known lenders who are targets/subjects of investigation or otherwise operating without regulatory approval,” he said.

Soko Lending Company Limited (Soko Loans) was fined N10 million by the National Information Technology Development Agency (NITDA) for violating people’s privacy in August 2021. Later, at the FCCPC’s request, the Soko Loan app was taken down from the App Store.

The post FG Orders Flutterwave, Opay, Paystack to Restrict Loan Apps from Payment Services appeared first on Tech Digest News.

TECHDIGEST – Often times societal change and advancement are usually credited to policymakers and policy implementers worldwide.

But the conversations we fail to have is the fact that there are a lot of groundbreaking ideas and innovations that have emerged over the years which have prompted these policies and in turn create a boost in economic development.

These groundbreaking ideas and innovations are usually promulgated by young millennials who did not rest on their oars to ensure there is developmental advancement in the socio-economic system of our societies.

Over time we’ve seen young people break tremendous ground in various works of life be it in tech, politics, entertainment, art, economy, and others for the greater good of our society.

Take for instance in a country like Nigeria, a personality like Michael Collins Ajereh aka Don Jazzy is a music entrepreneur who left London and returned back to Nigeria in his early 20s to reshape the Nigerian music industry. Today the Nigerian music industry is highly revered as number one in Africa.

In the Fintech space, names like Shola Akinlade who is the co-founder of PAYSTACK is a young millennial who has shaped and reinvented development in digital economy with an app that generates an estimated monthly revenue of over $20 million. That is some crazy numbers for a black man out of the African continent!

Also, changing the face of transportation in Africa is a group of young Africans in Nigeria, France, and the USA who came together to redefine the mobility of people with a game-changing company called ‘’Trekk Scooters’. A micro-mobility company that allows people to use Electric Scooters for short-distance movement around school campuses, housing estates, and streets within a community.

These and many more are testimonies that young people have the capacity to foster change and impact society in a positive way that will bring about sustainable development for many years to come.

More attention should be focused on young innovators especially in the African continent because sustainable change and development starts with these creative young minds and only then will there be a manifestation of the popular saying “leaders of tomorrow”.

The post Worldwide, youths drive socio-economic change appeared first on Tech Digest News.

TechDigest- The Nigerian government is waging war on its technology industry. Within the last 12 months, President Muhammadu Buhari’s administration — through different ministries and regulatory bodies — has enacted a series of bans and operational restrictions in the country’s vibrant tech ecosystem.

Most recently, the Central Bank froze the accounts of four fintech platforms this August, claiming they were operating without a license and trading unethically sourced foreign currencies. The same month, the Nigerian Information and Technology Development Agency proposed introducing tax levies and licensing fees for tech companies as well as prison sentences for those who default on these payments.

Nigeria’s tech hub is one of the most attractive and full of economic potential in Africa. It is home to countless start-ups, two of which, Flutterwave and Paystack, have collectively secured nearly US$400-million worth of investment in just the past year. In a nation struggling with widespread unemployment and poverty, Nigeria’s rapidly expanding tech industry is one of the few beacons of hope for upward mobility, especially among the youth.

Given this, the government’s clampdown on the sector might seem puzzling, especially when several other African countries are actively trying to make their own tech industries more attractive. However, to those familiar with Nigeria’s toxic business and political atmosphere, it is hardly surprising.

Nigeria’s elite has always worked in or with the government, exploiting the system to their benefit. For instance, Africa’s richest person, Aliko Dangote, built much of his empire off government favoritism in the form of exclusive import rights for sugar, cement, and rice, as well as hefty tax credits. This political-business alliance contributes to Nigeria’s culture of impunity. Anything that challenges this elite pact is seen as a danger.

Threat

As economist Tunde Leye puts it: “The main thing we must understand is that the Nigerian elite have a consensus from the North to the East to the West to the Delta, that the formation of wealth independent of the political patronage system is a threat that must be exterminated.”

The threat posed by a young and independently minded “new elite” with access to the global financial ecosystem was never more apparent than during the EndSARS protests in October 2020. These demonstrations began as a movement against police brutality but quickly snowballed into broader calls for government reforms and greater accountability.

The sentiments of the protests were personal to many in the tech industry, some of whom led efforts to build awareness and generate funds for the movement. When traditional financial institutions began freezing accounts linked to EndSARS, for instance, organizers began raising funds through bitcoin instead. By the time the civil society group, the Feminist Coalition, stopped taking donations to support the protests in late October 2020, the cryptocurrency accounted for nearly half of the $387 000 total amount raised.

The global traction the movement gained was also in large part thanks to technological platforms such as Twitter, whose founder Jack Dorsey has well-documented ties to Nigeria’s tech industry. Where traditional media failed to provide objective coverage of EndSARS, independent journalists and institutions more than compensated for it on social media.

Having underestimated the ingenuity of the youth and the diverse applications of technology in community organizing, the government has since embarked on a punitive expedition against the tech industry. Since the violent crackdown that brought EndSARS to a halt, Nigeria has prohibited cryptocurrency transactions, increased efforts to restrict the use of social media, and outright banned Twitter, a move that has cost the country over $360-million and put thousands of users’ livelihoods in jeopardy.

The government’s unpredictable actions have discouraged many would-be investors, but the political elite would rather torpedo the country’s economic future than relinquish their position as gatekeepers of wealth, power and influence. This will be one of the damning legacies of Buhari’s administration, for whom technology — especially social media — ironically played a decisive part in his ascent to the presidency in 2015.

Nigeria’s young tech professionals are full of anger mixed with incredulity at a government that has given so little and taken so much

Nigeria’s young tech professionals are full of anger mixed with incredulity at a government that has given so little and taken so much. Many responses have fallen into the fight vs. flight dichotomy. As policy analyst John Babalola wrote recently, “for a lot of Nigerians, relocating abroad with little or no intent to return has become a life goal”. The country is experiencing a massive brain drain, which has seen many of its best and brightest young minds leave for a chance at a better life.

Yet for other young Nigerians, the open malevolence of the ruling class towards them has only strengthened their resolve to stay and work towards changing things. Political consciousness among the youth is at an all-time high. Realizing they cannot innovate their way out of all the excesses of Nigeria’s carnivorous leadership, many young people have resolved to face the problem head on and actively participate in politics. Rinu Oduala, a prominent voice during the EndSARS protests, has emphasized the need to turn attention to seeking reform through the 2023 elections, saying “the momentum of this movement continues to grow as we channel attention towards the education of voters and grassroots mobilization”.

Nigeria’s young people proved the extent of their power and imagination during the momentous EndSARS protests that reignited almost exactly one year ago. The fate of Nigeria’s political system — and tech industry — may well rest on whether they can leverage their numbers and creativity again in a more formal political setting.

The post Nigeria’s war on tech appeared first on Tech Digest News.

TECH DIGEST – Technology and Innovation bring about great opportunities for Nigeria to grow her economy if sufficient and considerate investments are made towards that Startups and small businesses are the brain that will move such economic development in our country and in Africa at large.Therefore our young population becomes a great advantage when they become entrepreneurs.We bring you 10 top Innovative Startup companies founded by young Nigerians,that are making enormous impacts in different sectors of the economy.They are attracting foreign investments into the country,they are providing solution to the problems,creating jobs and driving innovation in Nigeria.They are:

54gene

54gene was launched in January 2019 by Dr Abasi Ene-Obong to address the significant gap in the global genomics market.The company is unlocking the African genome there by building African genetic data sets to make landmark discoveries and to support therapeutic development.

As of 2018, less than 3% of the data used in Genome-wide Association Studies were of African ancestry and currently, less than 1% of global drug discovery occurs on the African continent. Located in Africa’s most populous country, Nigeria, and in the US, 54gene aims to improve the development, availability and efficacy of medical products that will prove beneficial to Africans and the wider global population.

As part of its next stage of growth, the company will further explore partnerships and opportunities for co-development of drug targets and therapeutics, and expects to partner with pharmaceutical, medical device and diagnostic companies for clinical programs in Africa.54Gene has attracted $19.5 million in foreign investments.

Farmcrowdy

Agriculture offers Nigeria a great economic gain and global relevance.This is where Farmcrowdy has positioned itself.

Farmcrowdy is Nigeria’s first digital agriculture platform and a globally recognised Agritech company that connects small scale farmers across Nigeria with smart farming techniques, quality farm inputs, and access to broader markets to earn a decent profit margin compared to what they are used to earning within their locality.

Farmcrowdy has a vision to be the foremost digital agriculture platform in Africa admired for its impact on collaborative food production and boosting food security across the continent.The impact of its activities is great: empowering smallholder farmers as a way of contributing to increasing domestic food production and security.

So far, over 12,000 rural farmers have been able to keep a job, expand farm operations five times more and increase their income by 80% since Farmcrowdy launched in November,2016.The company has received several awards both within and outside the continent.Farmcrowdy was founded by Onyeka Akumah,Ifeanyi Anazodo,Akindele Phillips,Jimoh Maiyegun and Tope Omotani.The company has so far attracted $2.4m in funding.

Flutterwave

Lack of a global fintech company that fully supports Africa’s ecommerce ecosystem has been a major setback in the growth and development of ecommerce in the continent.This is the problem that Flutterwave has set out to address.Flutterwave was founded in 2016 by Iyinoluwa and Olugbenga Agboola,to provide technology,infrastructure and offer services to enable merchants,payment service providers,banks and businesses build secure and seamless payment solutions.

The company has achieved a great deal so far and has raised $64.5 million in funding, announced partnership with Worldpay FIS, and has launched an e-commerce platform for SMEs.

Flutterwave is making strides, even technologically, in building future-proof and resilient products in a dynamic environment.

Kobo360

Kobo360 is a digital technology platform disrupting African third-party logistics.The company operates a tech enabled digital logistics platform that aggregates end-to -end haulage operations to help cargo owners,truck owners and drivers achieve effective supply chain framework.Launched in 2017 by Obi Ozor and Ife Oyedele II, Kobo360 uses big data and technology to reduce logistics friction across the sectors like Agriculture and manufacturing.

Since its founding the company has moved close to 1000Mkg of goods, aggregated a fleet of over 10,000 drivers and trucks, for over 80 large enterprises such as Dangote Group, DHL, Unilever, Olam, African Industries, Flour Mills of Nigeria, and Lafarge.With operations in West and East Africa,Kobo360 is determined to build a global logistics operating system that will empower trade and commerce for Africa and emerging markets.They have attracted $37.3m in funding.

Lifebank

It is always a sad and unfortunate thing when someone has to die in any Nigerian hospital because the hospital does not have blood or oxygen for the patient or that the patient cannot afford them.This is the critical problem LifeBank is addressing.The company with operations in Nigeria and Kenya,uses technology and a multi-modal distribution platform to deliver blood and oxygen to hospitals thereby making them available when and where they are needed.The company continues to innovate in the way they deliver their core services and now use drones for delivery.Temie Giwa-Tubosun founded the company in 2015,she was the winner of Africa Netpreneur Prize of $250,000.They have also received a total of $225,000 in funding.

Paystack

Paystack is a financial technology company founded in 2015 by Shola Akinlade and Ezra Olubi.The startup company provides a platform that helps businesses in Africa accept payments on their websites or apps from anyone,anywhere around the world through credit card,money transfer and also mobile money.Paystack through its innovativeness is around processing about 15% of all online payments in Nigeria,several businesses of all sizes including telcos, airlines,government agencies and small businesses.Paystack has attracted $11.7 million in funding.

Tizeti

Affordable and reliable internet is needed for Africa’s rapid technology and innovation development.Tizeti provides broadband internet services to densely populated urban centres in Africa.Tizeti has consistently delivered on its mission to provide unlimited internet to the numerous customers.

Tizeti enables millions of Africans to access the internet through its solar-powered towers in Nigeria and provides residences and businesses with price friendly unlimited high-speed broadband internet; covering Lagos, Ogun, and Rivers states in Nigeria.

Tizeti has installed over 25,000 public Wifi hotspots within Nigeria with 1,500,000 users and partnered with Facebook to offer Express Wi-Fi, rolling out thousands of new internet hotspots across Nigerian cities.The company has since expanded its services to Ghana with new brand GhanaWifi.com and its voice service WifiCall.ng.The company also recently launched its 4G services in selected Nigerian cities.Kendall Ananyi and Ifeanyi Okonkwo founded the company in 2010, they have attracted $5.1 million in funding.

Piggyvest

PiggyVest (originally known as Piggybank.ng) was launched in 2016, as a savings product. Over the years, they have introduced innovative products, from savings tools like Safelock, Target and Group Savings, and PiggyFlex, to insurance products like AvonFlex, as well as TrackIt, which helps individuals and businesses in becoming more effective at financial management.In May 2018,Piggyvest acquired Gold Microfinance Bank.The founders are Joshua Chibueze,Ayo Akinola,Nonso Eagle,Odunayo Eweniyi and Somto Ifezue.They have attracted $1.2 million in funding

BuyCoins

As digital and cryptocurrencies adoption across the globe increases.Nigeria is not left behind in exploring the opportunities in Cryptocurrency and blockchain technology.Nigeria is in fact one of the leading countries in cryptocurrency adoption in Africa. Buycoins is a tech startup founded in 2017 as a peer-to-peer platform that enables Nigerians to easily buy,sell or exchange cryptocurrency with around $7 million worth of digital cash traded each month on its platform.The company has also launched innovative product called SendCash that enables nigerians receive money into their bank account in Nigeria from any country using bitcoin. Buycoins was founded by Timi Ajiboye,Ire Aderinokun and Tomiwa Lasebikan.They have received $1.2 million in funding.

NairaEx

NairaEx is one of the most popular bitcoin exchange platforms in Nigeria.It allows users to buy and sell bitcoin and perfect money with Nigerian naira.The platform provides a fast,simple and easy bitcoin exchange service that is accessible to Nigerians.

The company which began operations in 2015 was founded by David Ajala, and aims to utilize the power of Bitcoin to provide a more stable and healthy monetary system allowing Nigerians to access the wealth and power of Bitcoin.

NairaEx currently processes over 1 billion Naira worth of bitcoin transactions each month and the platform has accumulated over 130,000 users with over 900,000 transactions. It has become one of the most trusted exchanges to buy and sell bitcoin in Nigeria.

Unlike most other Bitcoin exchanges, NairaEx isn’t relying on the payment processor or mobile payment solution for cash payments. In doing so, NairaEx cuts down on deposit fees, which would amount to as much as 2.5% otherwise.Making the purchase of Bitcoin more convenient, and being transparent regarding pricing and fees, are the top priorities for NairaEx

The post 10 Top Tech Innovative Startup Companies In Nigeria 2020 appeared first on Tech Digest News.

1. TECH DIGEST – In what many are tagging the deal of the decade, Stripe has acquired Nigerian payments company, Paystack in a deal worth over $200 million (₦76 billion). This acquisition came against the backdrop of social activism against police brutality in the country.

In many ways, the acquisition has been touted as a validation of the work being done by talented Nigerian youth who often fall victim to the Special Anti-Robbery Squad (SARS).

The problem with law enforcement is somewhat symptomatic of the country’s regulatory landscape which is characterised by corruption and stifling policies that have sometimes brought thriving subsectors to a halt.

Perhaps, the ban on commercial motorcycles (Okada) in January 2020 that put an end to the thriving bike-haling industry in Africa’s most populous city, Lagos, is the most compelling example.

Referencing Nigeria’s regulatory landscape, a report by TechCrunch stated that the US payments giant, Stripe, seems to be taking a big bet on a market that could pose a different kind of risk exposure.

While innovation has always outpaced regulations in most parts of the world, the regulations that affect startups in Nigeria have been puzzling.

2020 has been a year when policymakers have juxtaposed several regulations that are sometimes positive, negative, or completely bewildering.

In January, the President signed the Finance Act into law, granting tax-exempt status for small businesses with turnovers less than ₦25 million a year. The Act also increased VAT on all transactions from 5% to 7.5%.

That was also the month when the Lagos State Government placed a ban on commercial bikes. The following month, it proposed new regulations for ride-hailing services like Uber and Bolt, which came into effect in September 2020.

The federal government proposed steep licence fees and tight government revenue control for the logistics sector, and an amendment to the country’s broadcast code sought to bring an end to content exclusivity in Nigeria; a move that was partly responsible for iROKOtv’s decision to exit the Nigerian market.

From 2018, fintech companies began to witness major regulatory moves. With Paystack, Flutterwave, PiggyVest, and Cowrywise taking the financial sector by storm, the Nigerian Central Bank came up with new exposure drafts that required these companies to pay more to obtain operating licences.

Then Paystack had just raised an impressive $8 million (₦2.9 billion at the time), but the $13.8 million (₦5 billion) capital requirements proposed by the CBN meant that they only had an extra ₦2.1 billion.

Thankfully, the apex bank has not yet enforced the provisions of the draft, but that could change anytime soon.

The focus on payments means there’s no dedicated digital banking licence for startups looking to serve other subsectors. Consequently, some of them make use of Microfinance Banks (MfBs) licences.

However, in 2018, the CBN also sought to increase the minimum capital requirements from ₦20 million ($54,291) to ₦200 million ($542,910); in April 2020, the new guidelines came into effect.

Although fintech companies have historically raised the most funds among Nigerian startups, these figures are steep even for some of the biggest of them.

Why the Paystack deal should be a regulatory turning point?
In a 2016 interview with Techpoint Africa, Paystack CEO, Shola Akinlade, revealed that there was no significant difference between mobile and web services available in the US and Nigeria, but the company was able to leverage the enabling environment in the former.

As stated in our article last week about how the Paystack deal could be a major turning point for the Nigerian startup ecosystem, there are likely to be more investments from local actors.

The post Why Paystack’s Aquisition Should Be A Policy Turning Point In Nigeria appeared first on Tech Digest News.