Itana, Nigeria’s first licensed digital economic zone management company, and Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, have agreed to jointly develop the first digital economic zone in Africa designed for global and Pan-African technology, finance and service-based businesses to operate and scale with ease across Africa, unlocking the continent’s digital economy.

The formalisation of this partnership took place in front of global government and business leaders, at the Global Africa Business Initiative (GABI), on the sidelines of the ongoing United Nations General Assembly (UNGA) in New York.

The Itana Digital Economic Zone in Lagos, Nigeria is intended as an online jurisdiction and to serve as a gateway to build a global business in Nigeria.

Through Itana, companies can remotely incorporate and operate their businesses in the Itana zone, with laws, business incentives (tax, immigration & banking), and services optimized for the digital economy.

This will be coupled with eco-friendly live-work districts and a live-in accelerator program, showcasing the future of African cities and providing the ideal infrastructure and support for businesses in Africa to scale and compete globally.

AFC will support Itana with project development funding and intends to lead in the financing of phase 1 of the Itana project which is budgeted at around $100m. This will include an eco-friendly tech campus in Lagos, Nigeria, and funding of startups in Accelerate Africa, the accelerator program of Itana in partnership with Future Africa.

AFC will also support the roll-out of the Itana Digital Economic Zone for global and Pan-African tech, finance, and service-based businesses seeking to operate across Africa.

Itana and AFC are already collaborating alongside Future Africa, PwC Nigeria, and Charter Cities Institute as technical advisers to the Initiative for the Promotion of Digital FreeZones in Nigeria (DiFZIN), a non-profit advocacy and policy research organization representing the private sector in the recently announced Nigerian Federal Government steering committee for the establishment of Digital Economic Zones in Nigeria.

The committee is chaired by President Bola Tinubu and includes relevant Government Ministers and Agency Heads.

Itana will be a conducive environment tailored to the 21st-century digital trade and technological age. The organization recently launched the Itana Application where individuals can join the community and have access to events and services such as business visa facilitation, local bank accounts, and a curated marketplace of trusted vendors and consultants for doing business in Africa.

Businesses that meet the criteria can register as a Free Zone Enterprise (FZE) with ease and will receive a Business Operating license that enables them to do business in Nigeria like numerous digital companies including Reliance Info and Future Africa.

Post business incorporation, businesses can operate in the zone with tax and capital repatriation incentives, get access to the Itana business community, apply for business banking in the Digital Economic Zone, and special work and residency permits without limitations imposed by expatriate quotas.

“Itana intends to be to Nigeria and Africa what Delaware & Silicon Valley is to the U.S., the DIFC is to Dubai, and e-Estonia is to the Europea n Union,” said Luqman Edu, CEO of Itana. “Itana is poised as the gateway to doing business in Africa. Local and International businesses looking to expand their operations across Africa will naturally look to Itana as their point of entry”.

“Africa’s digital economy is poised for significant expansion and innovation following the rapid adoption of mobile technology, a burgeoning youth population, and the growing importance of digital commerce and services,” said Samaila Zubairu, President & CEO, Africa Finance Corporation.

“In support of this, AFC is proud to be a pioneer alongside Itana, in building Africa’s first digital economic zone. This unprecedented initiative marks a pivotal step towards creating a thriving hub for the African digital economy, cementing the Corporation’s commitment to driving innovation, job creation, and sustainable economic development across the continent,” he added.

Last year, Itana announced a funding round backed by leading technology venture capitals and highly influential tech industry leaders including Local Globe, Amplo, Pronomos Capital (backed by Peter Thiel), Balaji, and Future Africa (led by Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave).

As the first Digital Zone, Itana remains committed to making Nigeria a powerhouse in the global digital economy. It will be hosted in Alaro City, an integrated, mixed-use city planned on over2,000 hectares in the Lekki Free Zone.

Mr Bello Hassan, managing director/CEO, Nigeria Deposit Insurance Corporation (NDIC), has said that the use of Bank Verification Numbers (BVN) facilitated the successful reimbursement of 84.98 per cent of depositors from the defunct Heritage Bank.

Hassan made this announcement during the 21st edition of the NDIC Workshop for Business Editors and the Finance Correspondents Association of Nigeria (FICAN), held in Lagos.

The workshop, themed “Strengthening Nigeria’s Financial Safety-Net – The Role of Deposit Insurance,” was described as timely and pertinent, considering the rapidly changing dynamics of the global financial system and its impact on Nigeria.

He emphasized that the recent revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) on June 3, 2024, serves as a clear demonstration of the NDIC’s critical role in protecting depositors and maintaining financial stability in the banking sector.

According to him, acting under the relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 and the NDIC Act 2023, the NDIC was appointed liquidator to manage the orderly resolution of the bank and oversee the payment of its depositors and other claimants.

He said in the discharge of this critical role of depositor reimbursement, the Corporation began the payment of the insured deposits of N5m maximum per depositor within a record time of four days of the bank’s closure.

This was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks without the need to fill out forms or visit the NDIC offices.

“This innovative approach has indeed, enabled the payment of 84.98% of depositors with BVN-linked accounts to date.

“The prompt payment of depositors, coming at a time when the Corporation had also recently increased the deposit insurance coverage from N500,000 to N5m in Deposit Money Banks, significantly cushioned the negative impact of bank failure, especially during the current challenging economic climate.

This achievement is consistent with the provisions of the International Association of Deposit Insurers (IADI) Core Principle 15, which emphasises timely payouts to depositors of failed banks,” he said.

Hassan said that having largely reimbursed depositors their insured deposits, the Corporation is committed to ensuring that depositors with balances exceeding N5m are also paid the balance of their deposits.

He stated that the uninsured deposits represent a significant portion of the total deposits in Heritage Bank.

According to him, in this regard, the Corporation is already working assiduously to ensure that, all depositors with amounts above the maximum insured amount of N5m are paid through liquidation dividends from the realisation of the defunct bank’s assets and recovery of debts.

“The Corporation has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely payment of the uninsured deposits of the defunct bank.

“Additionally, the NDIC’s responsibilities extend to the creditors of the defunct bank, who will receive payments after all depositors have been fully reimbursed.

“This orderly process, based on asset realisation and priority of claims, is essential in maintaining public trust in the banking system and promoting financial stability.

“The handling of the Heritage Bank liquidation illustrates the broader role of the NDIC in ensuring that even in times of financial disruption, depositors can be rest assured that their funds are protected,” he said.

Hassan assured that as the Nigerian financial system continues to evolve and face new challenges, the NDIC remains steadfast in its mission to protect depositors and collaborate with the Central Bank of Nigeria (CBN) in ensuring the stability of the banking sector, which is critical to the growth and development of the economy.

He noted that confidence is key in the maintenance of financial system stability and the role of deposit insurance cannot be overemphasized.

“As one of the safety nets, it reassures depositors, thereby instilling trust in the banking system and preventing bank runs during times of uncertainty.

“ Over the years, the NDIC has been instrumental in promoting stability by ensuring that when banks fail, depositors are protected, and their funds are reimbursed promptly,” he said.

E-payment transactions in the country jumped by 86.44 per cent to N566.39tn in the first half of 2024 from N303.60tn in the same period of last year, according to data from the Nigeria Inter-Bank Settlement System.

The data showed July saw the highest transaction value, totalling N89.50tn, compared to N47.39tn in July 2023. In June this year, the value of e-payment transactions stood at N79.59tn, up from N45.31tn in June 2023.

The NIP, launched in 2011 by NIBSS, is an online real-time interbank payment platform that enables instant value transfers.

Banks have since made the NIP platform accessible to customers through various channels, such as internet banking, mobile apps, USSD, ATMs, POS, and bank branches.

Similarly, May saw a total of N87.48tn e-payment transactions, compared to N45.96tn in May of the previous year.

April 2024 recorded N75.32tn in e-payment transactions, rising from N41.25tn in April 2023, while March 2024 posted N83.05tn compared to N48.33tn in March 2023.

In February, transactions reached N79.33tn, up from N36.79tn in February 2023, and January 2024 saw N72.11tn compared to N38.77tn in January 2023.

The surge in e-payment transactions was linked to the increasing adoption of digital payment platforms by businesses and individuals, driven by convenience and efficiency in financial transactions.

Last year, electronic payment transactions in the country hit an all-time high, rising by 55 per cent to N600tn, compared to N387tn in 2022.

Also, the total value of point-of-sale transactions for 2023 was N10.73tn compared to N8.39tn recorded in 2022.