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FG Lauds Moniepoint’s Contributions to the Growth of the Informal Economy

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Vice President of the Federal Republic of Nigeria, Senator Kashim Shettima, has restated the government’s unvarnished commitment to deepening economic and financial inclusion in line with President Bola Tinubu’s Renewed Hope Agenda, noting that financial inclusion is a core component and the government is making a lot of efforts to ensure that the vulnerable in society have safety nets as exemplified by the ASO accord which was signed this year.

L – R Managing Director, Moniepoint Microfinance Bank, Babatunde Olofin; Honorable Minister, Federal Ministry of Industry, Trade and Investment, Doris Uzoka-Anite, and Director General, Small and Medium Enterprise Development Agency of Nigeria, SMEDAN, Charles Odii, at the launch of the Moniepoint Informal Economy Report 2024 in Abuja recently.

He made these comments over the weekend at the Abuja Continental Hotel in Abuja while speaking as principal guest of honour at the launch of the 2024 Nigeria Informal Economy Report powered by Moniepoint in collaboration with the Small and Medium Enterprise Development Agency of Nigeria, SMEDAN and the Federal Ministry of Industry, Trade, and Investment.

The Nigeria’s Informal Economy Report offers fresh insights for individuals and organizations interested in understanding the dynamics of Nigeria’s informal economy and shaping a more inclusive and sustainable economic landscape. Some of the key insights from the report include:

  • The youthful demographic is a critical driving force of Nigeria’s informal economy, with over 57.7% of business owners under 34 years old

  • There is an untapped earning potential that is prevalent in the informal segment, with the average monthly income below ₦250,000 while on the higher end of the spectrum, only about 1.3% of businesses in Nigeria’s informal economy earn above N2.5 million monthly

  • Retail and General Trade is the leading industry within the informal economy, making up 24% of all informal businesses

  • The reality that unemployment is the primary driver for starting a business by many players in the informal sector

Sen Shettima, represented by the Technical Adviser to the President on Economic & Financial Inclusion, Dr. Nurudeen Abubakar Zauro, acknowledged and appreciated the role of players in the informal space, especially Moniepoint. “We can all remember during the Covid-19 lockdown and the recent currency changes, there were a lot of challenges and we saw agencies like this come together and save the country at that point. This is because of the flexible initiatives they brought into the space, especially last-mile delivery by providing a platform that allowed people to successfully transact. SMEDAN’s innovative streak has also been very commendable, he said.

In his opening remarks, Managing Director, Moniepoint Microfinance Bank, Babatunde Olofin, praised operators of informal businesses for the high degree of flexibility and innovation they exhibit in adapting quickly to changing market conditions. Highlighting their economic significance, he said that the informal economy contributes substantially to Nigeria’s GDP and can be effectively mobilized to unleash Nigeria’s full economic potential and provide much needed support to the most vulnerable households in our society.

Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, who formally launched the report, reiterated the Federal Government’s commitment to supporting small business operators in the informal sector of the economy. She pointed out that the informal sector, which often appears to be forgotten, would henceforth begin to enjoy government’s interventions and incentives.

She said: “We are really grateful to Moniepoint for conducting this report. It gives us the basis and foundation now to provide targeted intervention as part of the government’s approach to supporting the informal economy. This segment plays a significant role in the Nigerian economy, we can now bring them up to enjoy incentives that the government is providing to the broader economy as well.

Also delivering a goodwill message, the Chairman, House Committee on Small and Medium Enterprises (SMEs), Hon. Mansur Manu Soro, said the House was taking deliberate steps to prioritize women operating in the informal sector and end gender disparity in earnings. He expressed the National Assembly’s commitment to give the report its full attention, subjecting it to the necessary review and internalizing it while lauding Moniepoint for its positive impact in pushing financial inclusion.

“I want to congratulate Moniepoint for achieving such a national penetration as far as the banking industry is concerned within a very short period of time. The story of Moniepoint is the story of how technology can propel a business to unprecedented levels within a short time span. Reports like this one which we’d be releasing today remain a critical tool used in planning by the government and private sector and we in the House of Reps will be internalizing it legislatively.”

Chief Executive Officer, Moniepoint Inc, Tosin Eniolorunda in his foreword provided the rationale for the report, “In just a few years, over 2 million businesses, many within the informal economy, have chosen Moniepoint as their essential growth partner. The commitment we feel to this sector inspired the creation of this report. By quantifying the informal economy’s impacts and nuances, we can better shape policies and programs to empower and uplift the entrepreneurs driving it forward. Their success is inextricably linked to Nigeria’s continued growth and development.”

In a keynote presentation, Director General/CEO SMEDAN, Charles Odii, said that small businesses are the engine of the Nigerian economy and most of Nigeria’s approximately 40 million small businesses reside in the informal sector. He noted that these businesses which are born of both necessity and entrepreneurial zeal, exemplify the famous Nigerian ‘hustling’ while affirming that the agency is working to formalize these businesses and bring them into the formal sector to increase access to important resources such as finance.

“Ensuring their survival and catalyzing their growth is crucial for poverty elimination, rural industrialization, and the enhancement of livelihoods, all three core mandates of SMEDAN. Their formalization will aid the development of brand value and financial history, which indicates creditworthiness and attracts investment.”

Furthermore, Odii articulated SMEDAN’s agenda aimed at accelerating growth and prosperity for small businesses as encapsulated in the acronym ‘GROW’: Guidance, Resources, Opportunities, and Workforce support. According to him, the agency’s focus spans seven priority sectors including agriculture (EAT Nigeria), manufacturing (PRODUCE Nigeria), tourism (VISIT Nigeria), fashion (WEAR Nigeria), creative industries (WATCH AND LISTEN Nigeria), education (TEACH Nigeria), and services (PATRONISE Nigeria). This agenda focuses on expanding local production capacities, improving market access both domestically and internationally, and creating an enabling environment for over 40 million small businesses, collectively providing more than 60 million jobs.

The event featured a panel session which was moderated by Vice President, Corporate Affairs, Moniepoint Inc, Didi Uwemakpan with the theme: Building an inclusive and sustainable informal economy for Nigeria: Hopes and Impediments. The panelists which included Special Adviser to the President on Economic Affairs, Dr. Tope Fasua; Head, Financial Inclusion Delivery Unit, Central Bank of Nigeria, Dr Paul Oluikpe; DG, SMEDAN; Founder, She Forum Africa, Inimfon Etuk and MD, Moniepoint Microfinance Bank were unanimous and strident in the call for continued collaboration and concerted efforts to support and elevate Nigeria’s vibrant informal economy towards sustainable growth and development.

Some of the dignitaries who attended the event include Senior Special Assistant to the President on Entrepreneurship in Innovation & Digital Economy, Engr Jennifer Adighije; National President, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Barr. Dele Kelvin Oye; MD/CEO, Abuja Enterprise Agency, Mr. Chudi Ugwuada-Ezirigwe; Registrar General/CEO, Corporate Affairs Commission, Hussaini Ishaq Magaji, SAN, among others.


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Telcos Say 30m Lines not Properly Linked to NINs

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Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), has disclosed that over 30 million lines have not been properly linked to a National Identification Number (NIN).

Telcos Say 30m Lines not Properly Linked to NINs

Gbenga Adebayo, chairman. ALTON

These lines are mainly in car trackers, MiFi units, WiFi devices, and Point of Sale (PoS) machines. He said this during a recent interview with News Central on the back of recent chaos caused by the unblocking of lines not connected to their NINs.

“The numbers are staggering,” Adebayo, the president of the umbrella body of telcos, said. “We are looking at potentially over 30 million SIM cards, including those in various digital devices, that have not been properly linked to the NIN. Many of these SIMS are in car trackers, POS machines, MiFis, WiFis, and many other devices that use SIMs to operate.”

Over the weekend, telcos began barring phone lines not linked with NINs days before the Nigerian Communications Commission (NCC)’s July 31, 2024 deadline.

Since February 2024, telcos have implemented a phased disconnection of lines in compliance with an NCC directive. At the end of 2023, the regulator asked telcos to disconnect lines that had not been successfully linked with an NIN across three phases, ending July 31, 2024.

About 50 million lines have been impacted by earlier rounds of disconnections. Nigeria has 219.01 million connected lines as of March 2024.

Some subscribers affected by this round of disconnections claimed that their SIMs and NIN had been linked. According to Adebayo, these subscribers were disconnected because of discrepancies in records between telecom operators and the National Identity Management Commission (NIMC).

“There are instances where individuals provided their NINs, but the information did not match our records,” Adebayo noted.

“These discrepancies must be resolved at service centers to ensure proper verification.”

While the timing of the disconnections coincided with nationwide protests, Adebayo emphasised that there was no link as the action had begun long before the protests.

“Unfortunately, the disconnection coincided with the planned protests, but it had nothing to do with stifling communication,” he said. “We are guided by our social contract with subscribers and provide services on a non-discriminatory basis.”

The ALTON boss further highlighted the role of accurate data in building a reliable national database. He stressed the importance of individuals providing truthful and consistent information during registration to avoid future complications.

“To have a reliable and equipped national database, all of us must contribute accurate information,” Adebayo urged. “This database can only be as reliable as the information provided by the public.”

Public outcry over the implementation of the last phase of disconnection eventually made the NCC extend its deadline to a yet-to-be-set date.

“The consumer is our priority, therefore, considering the challenges the blockages have caused, the commission has directed all operators to reactivate all lines that were disconnected over the weekend… Reactivated consumers are to note that this is for a limited period to allow them to properly link their NIN to their SIM,” the commission said.

Credit: Businessday

 

 


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Pan African Towers Appoints Jyoti Desai, Vivek Gupta as Non-Executive Directors

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Pan African Towers (PAT) Ltd, provider of digital infrastructure has announced the appointment of Jyoti Desai and Vivek Gupta as Non-Executive Directors, with effect from May 21st, 2024.

Jyoti Desai, a former Group Chief Operating Officer of MTN, is a banking and telecoms professional with more than 35 years in the industry.

Her achievements in banking, including a stint at Standard Bank, include driving largescale transformation in the banking industry to streamline operational cost and shifting focus to customer centric, segment-based value propositions.

An experienced professional with a demonstrated history of working in the financial services industry as well as fixed and mobile telecoms, she has more than 15 years’ experience in Africa and the Middle East.

Desai is also skilled in startups in emerging markets, notably in the technical, commercial and operational aspects of the telecom business, and has more than 25 years’ experience in cost and operational transformation, including digital transformation, large scale project execution, Service Delivery, 3G, LTE, Mobile Communications, Universal Mobile Telecommunications System (UMTS), and more recently 5G.

Vivek Gupta is a first-generation entrepreneur, investor and telecoms veteran. As Founder and Director of iSON Group, he has built a dynamic ecosystem of businesses in IT & ITeS, BPO and Telecom Infrastructure and Services, employing 20,000+ resources, spanning 40 countries across Africa, Asia and Middle East.

Gupta became an entrepreneur in 2008 as CEO of Zamil Infra, iSON’s first joint venture with the $8B Saudi conglomerate, Zamil, that specializes in build and managed services for telecom passive infrastructure.

Under Gupta’s leadership, iSON Group diversified in Renewable energy, Digital infrastructure, Digital Healthcare and Health insurance sector. iSON Group has grown both organically and inorganically in last few years.

He spent two decades creating an illustrious career within the telecom sector, working for multinationals such as Ericsson and IBM.

In 2008, he was recognized by Fortune as “IBM’s All-Star Salesman” for contracting over $5 Billion worth of business and executing high value transformational and ‘out of box’ deals, particularly path-breaking strategic outsourcing deals with Bharti Airtel, Idea & Vodafone that have gone on to become one of the most successful business models for the company.

“As can be seen from their profiles, both Desai and Gupta’s extensive global experience, and their contributions to the advancement of telecommunication, technology and infrastructural development in Africa and beyond make them invaluable assets for us at Pan African Towers, especially at this point in time where we are on a continuous improvement drive across our operations within Nigeria, and with a vision to grow our digital infrastructure base,” said Azeez Amida, Managing Director and Chief Executive Officer at Pan African Towers.

Pan African Towers was established in 2017 to capitalize on the growing demand for wireless communications across Africa and has since emerged as a prominent telecommunications and tower infrastructure provider.

It would be recalled that in November last year, Pan African Towers announced a strategic investment from Development Partners International (DPI), a premier investment firm focused on Africa, and Verod Capital (Verod), one of the continent’s leading investment management firms.

DPI and Verod are investing in PAT to fuel its continued growth and will work with management to build on the company’s recent achievements and reaffirm its position as Nigeria’s largest homegrown digital infrastructure provider.

With this appointment, Jyoti Desai and Vivek Gupta joins Adefolarin Ogunsanya, Daniel Adeoye, Marc Stoneham and Azeez Amida on the board of Pan African Towers.


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The Risks of Compliance Amidst Citizen Agitation: The MTN Nigeria Example

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By Dr. Ajibola Obafemi

Compliance is often touted as a virtue in business and governance, implying a willingness to adhere to rules and regulations. However, in times of citizen agitation and social unrest, compliance can become a double-edged sword. On one hand, it demonstrates a commitment to upholding the law and respecting authority.

Dr. Ajibola Obafemi

On the other hand, it can be perceived as complicity with a government that citizens are agitating against, hence the compliant company is perceived as an enemy of the people. The recent experience of MTN Nigeria, which suffered social media and physical attacks merely for complying with the regulator’s directive, serves as a stark illustration of this dilemma.

Citizen agitation in Nigeria has been simmering for years, with growing discontent over the government’s handling of various issues, including economic stagnation, insecurity, and corruption. The latest expression of this frustration is the planned August 1 protest, which has been gaining momentum on social media. The basis of the proposed protest is a demand for better governance, which includes bringing down the cost of living with inflation at 34.2%, ending corruption, hunger and highhandedness of the security agencies.

One challenge of the government regarding the call for protest is that it does not know whom the organisers are. Perhaps, this is a good strategy for the organisers, as the government cannot be trusted to not arrest them. The government’s response to the protesters has been characteristically un-empathetic, with officials dismissing their concerns and warning against any form of unrest. This approach has only served to fuel the anger and frustration of the protesters, who feel that their voices are not being heard.

Social media has played a significant role in driving the conversation around the planned protest, with various hashtags trending on Twitter and other platforms. The online campaign has helped to galvanize support for the protest, with many Nigerians expressing their discontent with the government’s handling of various issues. The government has not stayed silent, as its spokespersons and advocates have also been speaking on social media, but they do not seem to be connecting with the agitators online as their approach is largely to use fear-mongering, threats and misinformation. For example, a top functionary of the Tinubu government, Bayo Onanuga, accused Peter Obi, former presidential candidate of the Labour Party, of spearheading the protest in expression of anger over losing the 2023 election. Such blatant attempts to mislead the public have only fueled the protest.

Suffice it to say that the recent wave of protests across Africa, including the violent clashes in Kenya and other parts of the continent, has emboldened Nigerians to demand change through similar means. The successes and challenges faced by these movements have served as a catalyst, inspiring Nigerians to take to the streets and demand better governance. However, this trend has sent jitters down the spines of Nigerian authorities, who fear a repeat of the violence that followed the EndSARS protests in 2020.

Businesses in Nigeria are caught in the web of the civil agitation in the country. According to the World Bank, “In times of social unrest, businesses are often caught in the crossfire, facing risks to their operations, employees, and assets.” MTN witnessed this but in a different form. While Nigerians agitated for good governance, the telcos, including MTN Nigeria, were bothered about a deadline from the Nigerian Communications Commission (NCC) to disconnect all SIMs not linked to NIN by the 31st of July. On July 27 to July 28, the company disconnected millions of unlinked lines, in compliance with the regulator’s directive. This action nearly devastated the company, triggering a swarm of unimaginable issues.

The backlash was swift and brutal. Protesters took to Twitter to express their outrage, with some suggesting that MTN had collaborated with the government to disrupt the protest. Omoyele Sowore, a former Presidential Candidate of the African Action Congress (AAC) and lifelong activist, even suggested that the protest would commence at MTN offices, implying that the company was complicit in the government’s plans to sabotage the planned protest. The next day, MTN offices were besieged by angry protesters, with the Festac office being destroyed and looted.

While it seemed like it might have been cataclysmic for the company, the Association of Licenced Telecom Operators of Nigeria (ALTON) and the Nigerian Communications Commission (NCC) came to the rescue, clarifying that MTN was only complying with an industry-wide directive and that the action of the company had nothing to do with the planned protest. To ease off the tension, the NCC mandated telcos to unblock lines that were blocked during the period, allowing for a de-escalation of the tension.

Critical questions come to mind on what MTN could have done differently in the circumstance. Could it have decided not to comply with the regulator’s directive? Perhaps. But this would only strain the relationship with the regulator, with the risk of a fine. It should be added that the company was once fined $5.2 billion for failing to disconnect millions of unregistered lines in the past. In light of this, can anyone blame the company for striving to be compliant, as it has been in recent years, winning the award for Most Compliant Listed company in Nigeria year after year?

While it is not abnormal to have businesses suffer attacks during civil unrest in Nigeria, as witnessed during the EndSars protest where many businesses were either vandalized or burnt, the subject of compliance amid civil agitation is a new perspective which has not received sufficient attention by scholars and commentators. This is a gap which needs to be filled in the field of regulatory compliance. The ball is now in the court of the scholars to interrogate the issues for corporates to take learnings. The business community has too much at stake for such a gap to exist.

The recent attack on MTN Nigeria, a company which is vital to Nigeria’s social, digital and economic life, shows that the Nigerian society needs a lot of conscientization of the people with regards to corporate issues. It appears that the Nigerian is angry against big businesses, hence they are quick to respond violently, unmindful of the overarching consequences even on themselves and their country. If MTN Nigeria were not a firmly rooted company in Nigeria, the social media attacks launched against the company could have crippled it. Nigeria needs more ‘MTNs,’ to raise its revenue generation, support the economy and ultimately improve the lives of the average Nigerian.

In the midst of civil unrest, regulatory compliance can be a delicate balancing act. To minimize risk, regulators and companies must prioritize clear communication and empathy. In the case of the SIM-NIN linking deadline, the regulator could have considered postponing the deadline to diffuse tension and avoid exacerbating the situation. This would have allowed MTN and other telcos to comply with the directive without inadvertently fueling the flames of protest. Additionally, the regulator could have proactively clarified the reasons behind the directive, addressing concerns and misconceptions before they escalated into widespread outrage.

As a market leader, MTN Nigeria is becoming synonymous with the sector, and hence suffers attacks when there are sectoral issues. These isolated attacks on the company work in favor of competing telcos, raising the question of whether there are forces fueling the attacks against the company. Whenever there is a general network downtime in the country, such as on the commencement day of the hunger protest, MTN is singled out for heavy backlash, even when other telcos experience similar issues. While the social media attacks on August 1st were not a case of compliance by the telcos, it is pertinent for the public to realise that the digital industry is bound to occasionally encounter network challenges, even as the government may even be complicit in sabotaging networks to suppress the public. The telecom operators, such as MTN, Glo, and Airtel, are always at these crossroads as critical and strategic entities in the fabric of the country.

In conclusion, the recent SIM-NIN linking debacle serves as a cautionary tale for regulators and companies operating in tumultuous environments. By prioritizing empathy, clear communication, and strategic timing, they can minimize risk and avoid becoming entangled in the web of civil unrest. As Nigeria navigates its current challenges, regulators and companies must learn from this experience, recognizing that compliance and sensitivity are not mutually exclusive, but rather complementary aspects of responsible business practice.

Dr. Ajibola Obafemi is a Political Science Lecturer at the National Open University of Nigeria (NOUN) and the Head Researcher at QL Intelligence.


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