Moniepoint, a Nigerian cash-transfer startup, raised $110 million in an equity sale to expand in home market and across Africa, Tosin Eniolorunda, founder and chief executive said.

The Series C funding round, backed by an Africa investment fund owned by Google and Development Partners International LLP, will enable the firm start cross-border remittances and extend banking services into francophone African countries,  according to Eniolorunda.

“We are at different levels of engagement for approvals to do remittances,” Eniolorunda said in an interview. “We want to deploy banking to other countries.”

Founded in 2015 to provide infrastructure and payment solutions in Africa’s most populous nation, Moniepoint has seen rapid expansion taking advantage of Nigeria central bank’s cashless drive and widespread insecurity that has promoted the use of digital platforms for payments, according to Eniolorunda.

The Financial Times earlier reported that the funding round gives the company so-called unicorn status, or a value of more than $1 billion, citing unidentified people familiar with the company.

That puts the firm in the ranks of other players like Flutterwave, OPay and Jumia Technologies AG that have all achieved or surpassed the elusive valuation by exploring the Nigerian market.

Moniepoint processes 800 million transactions, worth about $17 billion every month, according to Eniolorunda.

The company is looking to start inventory management “soon” to complement other banking services including debit cards, savings, lending and payments, he said.

House of Representatives on Tuesday passed into second reading, a bill seeking to protect victims of fraudulent withdrawal from bank accounts.

They overwhelmingly supported the proposed legislation, which seeks to impose stiffer sanctions on money deposit banks involved in unauthorised transactions and deductions from the accounts of unsuspecting customers.

Titled, “A Bill for an Act to Amend the Banks and Other Financial Institutions Act (BOFIA), 2020 to make Provision for the Protection of Victims of Fraudulent withdrawal from Accounts and for Related Matters (HB.1168),” the proposed legislation is sponsored by Hon. Moses Oluwatoyin Fayinka (APC, Lagos).

Leading debate on the general principles of the bill, the lawmaker,said the proposed legislation seeks to stop illegal fund transactions where monies are moved from the customer’s account without the authorisation of the customer for such transactions to take place.

He said, “There is an alarming rise of bank fraud or unauthorised withdrawal of deposit funds in Nigeria. In the banking industry, about 101,801 cases were reported in 2022 and 48,703 cases were reported in 2023, making bank customers lose several billions of naira.

“This Bill is in consideration of the uprising of various financial crimes within the country, with many of such passing through financial institutions, or we can call it the commercial banking system.”

The lawmaker called the attention of his counterparts, Saying, ”We all know that virtually all banking transactions are done electronically, which means that transactions can either be ATM, POS, direct cash transfer, fast cash, and many others, in which many bank customers have fallen victim and have lost their hard-earned fortune without help from any side.

“The bank has the obligation to protect customers’ funds by way of monitoring its movement. Most of us here today, before money leaves our account, the bank, through its account officers, makes contacts to know if the customer is in authorisation of such a transaction; however, banks have neglected the duty of protecting their customers as regards the safeguarding of their monies in the case of e-transactions.”

He said when passed, the piece of legislation would stop banks from covering up such syndicates without reporting such action to the receiving bank and the police for necessary actions.

“For the banks, both the paying and receiving banks to get the culprit arrested and prosecuted and to pay all necessary bills in the course of the recovery processes, make a refund back to the victim’s account without charges,” he said.

The lawmaker added that, “The amendment will go a long way to curtail electronic means of funds stealing that pass through the banking platforms to their destination, and as we know its nature, these amendments are long overdue.”

The Senate on Tuesday passed for third and final reading, a bill meant to strengthen the capacity of the Nigeria Deposit Insurance Corporation (NDIC)’s capacity to safeguard bank depositors’ funds, ensure the stability of financial institutions, and promote trust in the banking system.

The legislation titled: ‘Nigeria Deposit Insurance Corporation Act No 33 of 2023,’ was sponsored by Senator Mukhail Adetokunbo Abiru (Lagos East) and all the members of the Senate Committee on Banking, Insurance and other Financial Institutions.

He said the bill would also make the NDIC more effective, safeguard its independence and autonomy and bring it in line with current realities and best practices.

The Bill consolidated the power of the president to appoint the chairman and members of the board of the NDIC, while the Central Bank  of Nigeria (CBN), which hitherto recommend to the appointees, would now concentrate on supervising the corporation.

The NDIC, based on the new amendment of its Act, would focus on the examination of the banks.

He noted that despite the fact that the NDIC 2023 Act made substantial improvements to the 2006 Act, its implementation had been fraught with continuous debates.

He specifically said stakeholders had consistently been engaging in series of appeals on the need for an amendment of the Act to address all the issues that have been raised concerning it.

He said: “The Nigerian Deposit Insurance Corporation (Amendment) Bill, 2024 is thus a critical piece of legislation aimed at strengthening the Nigerian financial system.

“The proposed amendments will enhance the NDIC’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.

“Given the rapidly evolving nature of the financial sector, this Bill represents a timely response to the challenges and opportunities that lie ahead.”

Abiru added that the current Bill would lay to rest once and for all, the claims that the bill that was assented to by the former President Muhammadu Buhari, was materially different from what was passed by the 9th National Assembly.

According to him, “To further empower the corporation by guaranteeing its independence in performing its statutory functions in line with Section 1 (3) of the principal Act.

“The principal (2023) Act curiously restricts the president’s power to appoint the managing director and executive directors and provides that they are to be to persons recommended by the Central Bank of Nigeria Governor.

“The (2024) bill (now) seeks to amend this provision to bring it in line with and in consonance with Mr. President’s power of appointment as enshrined in the Constitution of the Federal Republic of Nigeria 1999 (as amended).

“The provisions of the principal Act which makes the Permanent Secretary, Ministry of Finance the Chairman of the Board is also being reviewed.

“This is because the workload and busy schedule of that office is such that makes such appointment untenable.

“The importance of the need for the Minister of Finance to constitute an Interim Management Committee for the corporation within 30 days after the expiration or termination of the tenure of the Board is also introduced in the bill.

“This is to forestall the recent situation where the corporation faces challenges in its operations as a result of the absence of a board.”

Abiru said there was a general agreement among stakeholders of the importance of the NDIC as it was set up for the purpose of the protection of depositors and to guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits, thereby helping to maintain financial system stability.

He said: “Considering the above therefore, the general consensus among stakeholders was that it is important that the legal framework is reviewed.

“This is to make the corporation more effective to discharge its functions, safeguard its independence and autonomy and to bring it in line with current realities and best practices.

“This is particularly because the corporation plays a vital role in safeguarding the interests of depositors and promoting confidence in the financial sector.

“The evolving challenges in the global and domestic banking environments necessitate the amendment of the current law to keep pace with these developments and ensure the NDIC remains fit for purpose.”

Abiru said over 30 written memoranda and numerous oral submissions were received. All the written memoranda and oral presentations at the hearing supported the bill.