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CBN fines Moniepoint and OPay ₦1 Billion each as Nigeria tightens fintech regulation

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CBN fines Moniepoint and OPay ₦1 Billion each as Nigeria tightens fintech regulation
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In a continuation of the Central Bank of Nigeria’s (CBN) increased scrutiny of fintech startups, two of the country’s most prominent unicorns, Moniepoint and OPay, were fined ₦1 billion each in the second quarter of 2024, sources with direct knowledge of the matter told TechCabal. While several other fintech companies were also penalized, the two firms were the hardest hit.

The penalties followed a routine CBN audit of the fintech sector, which revealed compliance issues. According to two sources familiar with the process, these regulatory checks are a standard procedure for banks and financial institutions under CBN oversight.

At least four other fintech companies were similarly penalized, though the details of these fines remain unknown.

The CBN has increasingly relied on fines to enforce regulatory compliance. In 2023, Nigerian banks paid a combined ₦678 million in penalties. In October 2024, the central bank and the Securities and Exchange Commission (SEC) imposed a ₦15 billion fine on ten commercial banks, including Zenith and GTBank, for various infractions in the first half of the year.

Until recently, Nigeria’s rapidly growing fintech sector largely operated without CBN interference. However, the rapid expansion of fintechs like OPay and Moniepoint, which now serve millions of users, has invited greater scrutiny. OPay, for instance, claims a customer base of around 40 million, while Moniepoint, which processed 5.2 billion transactions in 2023, does not disclose specific customer numbers but is similarly large.

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Electric cars now MORE reliable than petrol and diesel counterparts

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Electric vehicle (EVs) sales have slumped in Britain, with the public struggling to fall in love with the technology.

A shortage of public chargers fuels ‘range anxiety’ among motorists worried about where they can top up their batteries, while high prices have also put off would-be buyers.

Despite these fears, a new study claims that EVs are even more reliable than traditional cars and vans with petrol and diesel engines.

Researchers from the University of Birminghamand the London School of Economics (LSE), analysed the ‘health’ of nearly 300 million vehicles on UK roads.

Their analysis found that battery electric vehicles (BEVs) not only had a lower likelihood of failure, but also a comparable lifespan to traditional cars and vans.

According to the team, this marks a ‘pivotal moment in the drive towards sustainable transportation’.

Co-author Dr Viet Nguyen-Tien, from the LSE, said: ‘Our findings provide critical insights into the lifespan and environmental impact of electric vehicles.

‘No longer just a niche option, BEVs are a viable and sustainable alternative to traditional vehicles – a significant step towards achieving a net-zero carbon future.’

A new study claims that EVs are even more reliable than traditional cars and vans with petrol and diesel engines

 

Their analysis found that battery electric vehicles (BEVs) not only had a lower likelihood of failure, but also a comparable lifespan to traditional cars and vans 

 

In the study, the team used nearly 300 million UK Ministry of Transport test records to analyse UK vehicles from 2005 to 2022.

This allowed them to estimate the reliability and longevity of each vehicle.

Their analysis revealed that BEVs demonstrated the most rapid improvement in reliability, with a 12 per cent lower likelihood of failure for each successive year of production.

For comparison, these figures were only 6.7 per cent and 1.9 per cent for petrol and diesel vehicles, respectively.

In addition, the results revealed that BEVs now have an average lifespan of 18.4 years and can travel up to 124,000 miles.

Petrol cars have a slightly longer average lifespan of 18.7 years, but with a lower mileage of 116,000 miles.

Meanwhile, diesel cars have a higher mileage (159,000 miles), but a shorter lifespan of 16.3 years.

As part of the study, the team also identified the top-performing brands in terms of vehicle longevity.

In the study, the team used nearly 300 million UK Ministry of Transport test records to analyse UK vehicles from 2005 to 2022 (stock image)

 

EVs have lower greenhouse gas emissions overall when compared with conventional cars, but there are some hidden environmental costs of an electric car

 

Among BEVs, Tesla leads the charge, while Audi is the best performer for petrol, and Skoda is the top for diesel.

‘BEVs offer significant environmental benefits, especially as Europe switches to a more renewable energy mix,’ said study co-author Robert Elliott, Professor of Economics at the University of Birmingham.

‘Despite higher initial emissions from production, a long-lasting electric vehicle can quickly offset its carbon footprint, contributing to the fight against climate change – making them a more sustainable long-term option.

‘Our findings offer consumers reliable data to make informed decisions about their vehicle purchases, whilst policymakers can use our insights to shape regulations and incentives that promote the adoption of durable and environmentally friendly vehicles and plan ahead their end-of-life treatment.’

However, the study comes as sales of electric cars have slowed in Britain.

A shortage of public chargers fuels ‘range anxiety’ among motorists worried about where they can top up their batteries, while high prices have also put off would-be buyers.

Electric vehicles run on energy from a charged battery much like a smartphone but come with hefty pricetags – around £46,000 on average in the UK.

‘Electric vehicles typically cost more upfront,’ say Milad Haghani, lecturer in urban analytics‬ at UNSW Sydney, and Hadi Ghaderi, a supply chain professor at Swinburne University of Technology, in a piece for The Conversation.

Their analysis revealed that BEVs demonstrated the most rapid improvement in reliability, with a 12 per cent lower likelihood of failure for each successive year of production. For comparison, these figures were only 6.7 per cent and 1.9 per cent for petrol and diesel vehicles, respectively

 

‘Sales have slowed in parts of Europe and the United States often due to reduced incentives, but strong sales growth continues in other regions such as China and India.’

The two experts say a ‘flood of cheaper Chinese vehicles’ is lowering the cost barrier.

However, these Eastern exports have triggered surveillance fears.

Another ‘major issue’ for car buyers is uncertainty about an electric model’s resale value compared to a standard petrol or diesel, the researchers point out.

‘Consumers are concerned electric vehicles depreciate faster than traditional cars… these concerns are particularly tied to battery degradation, which affects a car’s range and performance over time.’

Meanwhile, EV fires have made headlines globally – including a high-profile battery fire in a Korean parking lot in August – creating doubts among consumers.

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Globacom CEO Ahmad Farroukh resigns after one month amid governance challenges

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Globacom CEO Ahmad Farroukh resigns after one month amid governance challenges

Frank Eleanya (Ekwutosblog)
Jan 21, 2025

Ahmad Farroukh, who was appointed CEO of Nigerian telecom giant Globacom in October 2024, resigned after just one month in the role, multiple sources close to the matter confirmed. While Globacom has not issued an official statement or communicated the resignation internally, several industry insiders suggest the decision was linked to significant challenges within the company’s organisational structure.

A mid-level manager at Globacom, speaking on the condition of anonymity, speculated Farroukh’s departure was tied to problems with the organisational setup. A top-level executive at the Nigerian Communications Commission (NCC) who asked not to be named confirmed Farroukh’s exit but declined to share specifics.

Globacom did not respond to multiple requests for comments.

Farroukh’s abrupt resignation highlights significant internal challenges at the company, which has long been criticised for its centralised decision-making process. According to a former Globacom executive, the company’s founder, Mike Adenuga, is key to most decisions within the company. Adenuga has managed the telecom giant alongside his other business interests, including oil and gas, financial services, and real estate, with minimal structural separation between his other ventures and Globacom’s operations.

This approach has historically worked for the company but may have presented obstacles for Farroukh, whose experience at more structured organizations like MTN and Airtel might have led him to expect a different level of operational autonomy.

Farroukh’s departure also comes when Globacom is facing heightened regulatory scrutiny. In late 2024, the NCC’s sector audit revealed that over 40 million subscribers were not properly registered with their National Identification Numbers (NIN), violating government regulations. This led to a significant loss of market share, with Globacom’s share of the Nigerian mobile market shrinking by approximately 60%, leaving it with just 12%.

Globacom has also faced ongoing cybersecurity issues, including a high-profile hack in 2023 that exposed the personal data of millions of its subscribers. These issues may have created an environment where Farroukh’s leadership efforts could not make a meaningful impact quickly.

“A CEO leaving in one month is unprecedented in the industry. The NCC can investigate the reason for his exit. The commission can seek an explanation from the CEO, who is not obligated to respond, or from the company because this is about corporate governance, which the NCC Act covers,” said Ayoola Oke, a former Special Adviser to the former Executive Vice-Chairman of NCC, Ernest Ndukwe.

Globacom’s leadership void following Farroukh’s departure will raise questions about the company’s ability to navigate its ongoing internal challenges and regain its competitive edge. Without significant structural changes, it is unclear how Globacom can address the organizational weaknesses that led to Farroukh’s exit.

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TikTok Gets Restored

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TikTok, the wildly popular Chinese-owned app, is resuming operations for its 170 million American users after President-elect Donald Trump announced he would extend the app’s stay in the US.

The platform had gone dark on Sunday, following concerns over potential data access by Chinese officials.

In a statement, TikTok thanked Trump for his clarity and pledged to work on a “long-term solution” to remain in the United States. Trump, posting on Truth Social, vowed to issue an executive order on Monday to delay prohibitive measures and secure a deal to safeguard national security.

This comes after the Supreme Court upheld a law requiring TikTok’s parent company, ByteDance, to sell its US operations.

Previously supporting a ban, Trump has since praised TikTok’s influence, especially in engaging younger voters during his campaign.

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