Broadcasting
How can Nigeria build on the payment evolution brought about by the Naira shortage
By Mxolisi Msutwana – Chief Operating Officer at Baxi
All around the world, governments are trying to encourage cashless payments. Their reasons for doing so are multiple, including expanded financial inclusion and transparency, wanting to formalise the informal economy, and to drive economic growth and innovation. Nigeria is no exception.
By the end of 2022, the move towards a cashless policy as a means to eradicate cash was high on the government’s agenda in Nigeria. In early 2023, a bid by the Central Bank of Nigeria (CBN) to introduce new banknotes and lower cash withdrawal amounts led to a serious shortage of cash .
Unfortunately, there were not enough new notes in circulation to serve the needs of a country that’s historically been as heavily cash-dependent as Nigeria. While the initiative itself is a step in the right direction, there’s no denying that it caused issues.
The economic effects were far from positive. According to S&P, amidst widespread protests, many Nigerians were left scrabbling for ways to pay for day-to-day goods and services. As a result, many people who’d never previously used digital payment services had little choice but to adopt them. Fintechs in particular stepped up to the plate, helping Nigerians meet a fundamental need at a time when their lives had been massively disrupted. A report from Nigeria’s Inter-Bank Settlement System (NIBSS) found that there was a 125% increase in mobile payments during January compared with the same period in the previous year. Additionally, Bloomberg reports, the value of mobile-money transactions has jumped by a quarter to 2.5 trillion naira (US$5.4 billion).
As the shortages abate, it will be crucial that digital payment providers do not let the resulting move to digital payments go to waste. In a country with a long history of relying on cash as the primary means of payment as Nigeria, they will have to work hard to retain the customers they’ve gained in recent months and position themselves for continued accelerated growth.
How digital payment providers evolved
Before looking at how digital payment providers can do so, it’s worth taking a deeper look at how they responded to the situation. That the crisis represented a particularly big opportunity for digital payment providers that allow people to make transactions with their mobile phones is to be expected. After all, as Bloomberg points out, just under 40% of Nigerians have access to bank accounts, compared with mobile-phone penetration of 117% in the country, giving them the opportunity to expand rapidly. Given the comparatively low levels of mobile money use prior to the cash shortages, it should be clear just how much potential for growth there was (and still is).
Of course, those operators still had to work hard to ensure that they were able to properly service the growing pool of customers looking to make and receive digital payments. MTN Nigeria, for example, is planning to deploy 224 000 agents to boost the adoption of mobile wallet use.
At Baxi, meanwhile, we onboarded record numbers of agents, ensuring that people were able to easily send and receive money. We also supported merchants in providing solutions for payment collections during that period by deploying additional point-of-sale (POS) terminals, allowing customers to pay via card and transfers, and allowing merchants to generate account numbers for payment collections.
Of course, not everything went according to plan for every digital payment provider. As a recent column in TechCabal pointed out, many Nigerians complained about the high failure rate in digital transactions.
Cash will always be important
Even in the face of such growth, it’s important to remember how dominant cash has historically been in Nigeria. Despite cashless transactions rising 42% in 2022, cash-based payments still accounted for 63% of all POS transactions in the same year, according to the FIS Worldpay Global Payments Report 2022. That’s significantly higher than the global average of 17.9%. It also puts Nigeria well ahead of the average for the Middle East and Africa region, where cash accounts for 44% of POS payments.
The reasons for the dominance of cash in Nigeria are deep-seated too. They range from a lack of access to bank accounts (just 39% of Nigerians aged 15 and older have a formal bank account) to trust issues with the formal economy. An extensive informal economy and infrastructure challenges also play significant roles while the power of force of habit can’t be ignored either.
In other words, digital payment and mobile money providers cannot simply assume that the boon they’ve experienced as a result of the cash shortage will continue unabated. They also can’t assume that cash will be displaced. It will continue to play a significant role in Nigerian society for a long time to come.
Instead, they should focus on using the situation to ensure that Nigerians and merchants alike understand the very real advantages that digital payments and mobile money have in specific situations.
Security, convenience, and increased access
When it comes to consumers, for instance, payment providers need to highlight that the day-to-day transactions that they enabled during the cash shortage were just the start of what they can offer.
Of course, it’s important to keep emphasising that digital payments offer consumers better security and convenience, especially when it comes to large transactions.
But it’s also important to highlight the additional benefits that digital payments offer. Thanks to advanced integrations, for example, customers can access audio and video streaming services without needing a formal bank account. In many cases, the promise of access to something you didn’t previously have access to is a much more powerful incentive than being able to complete existing tasks more conveniently.
For merchants, meanwhile, security is also a benefit that can continue to be emphasised. For small businesses especially, using electronic channels makes tracking your cash-generating activities easier than ever.
Here again though, there are other significant benefits that should be emphasised, including the ability to automate takings. The digital records made available by having digital payment offerings as an option can also ease the path towards formalisation for small businesses. That, in turn, makes it easier to access things like growth financing.
An opportunity not to be missed
Ultimately, there’s never been a better time for digital payment providers to press home what they can offer to both consumers and merchants. But they must make the most of that opportunity. Their best hope for doing so isn’t to degenerate the role of cash but to emphasise the very real opportunities they can help unlock.
The government of Ghana has ordered MultiChoice Ghana to reduce DSTV subscription costs by 30%, noting the significant appreciation of local currency and growing dissatisfaction with current rates.
This comes as Nigeria Data Protection Commission (NDPC) has fined MultiChoice Nigeria ₦766,242,500 for breaching the Nigeria Data Protection Act (NDPA).
According to Mr Babatunde Bamigboye, head Legal, Enforcement & Regulations, NDPC, the investigation, which commenced in the second quarter of 2024, was triggered by suspected breach of privacy rights of Multichoice subscribers and illegal cross-border transfer of personal data of Nigerians.
MultiChoice, which operates across Africa, continues to lose revenue and subscribers.
Ghana’s minister of communication, digital technology, and innovation, Samuel Nartey George, made the call last week during a meeting with a DSTV team led by Dr. Keabetswe Modimoeng, group executive for regulatory and corporate affairs.
According to a ministry statement, George said the government’s responsibility is to respond to Ghanaians’ concerns over high DSTV pricing and outdated content offers.
The Minister pointed out that despite a 30% increase in the cedi’s value over the past five months; DSTV prices have not reflected the positive economic trend.
The statement went on to say the minister is therefore calling for a 30% price reduction to match the cedi’s appreciation and to pass on economic benefits to consumers.
According to the statement, while MultiChoice has implemented promotional packages, people prefer a direct price reduction over temporary discounts.
George said feedback from public engagements revealed that many users are dissatisfied with DSTV’s content, describing it as outdated save for Premier League football. They also believe that the current cost is not justified.
”To address the concerns, he said MultiChoice Ghana has until July 21 to formally respond to the government’s request. The Minister expects a concrete proposal by this date, allowing time for further engagement before the end of July,” the statement said.
In response, Dr. Modimoeng acknowledged the government’s concerns and expressed gratitude for the opportunity to dialogue.
The MultiChoice team reacted positively to the minister’s request and committed to provide input by July 21st. They emphasised the need of balancing public interest and business sustainability.
This is the continent’s latest pricing conundrum for the pan-African pay-TV business, following fee disputes with Nigerian and Malawian authorities.
In Ghana, the demand for price cuts comes as MultiChoice is under pressure, having lost revenue and subscribers in the financial year that ended March 31, 2025. Last month, the company announced its financial year-end results.
In a statement to shareholders last month on the Stock Exchange News Service, the company said the past two financial years have been a period of significant financial disruption for economies, corporates and consumers across Sub-Saharan Africa due to challenging macro-economic factors.
Combined with the impact of structural industry changes in video entertainment, such as the rise of piracy, streaming services and social media, this has materially affected the overall performance of the MultiChoice Group, it noted.
Over this period, MultiChoice said the group lost 2.8 million active linear subscribers and had to absorb a R10.2 billion negative impact on its top line due to local currency depreciation against the US dollar.
For the year, the company reveals that linear subscribers were down 1.2 million, or 8% year-on-year, to 14.5 million active subscribers, with the loss evenly split between South African (600 000) and rest of Africa (600 000).
Nigeria Data Protection Commission (NDPC) has fined MultiChoice Nigeria ₦766,242,500 for breaching the Nigeria Data Protection Act (NDPA).
NDPC is a public institution that processes data in furtherance of its mandate as Nigeria’s data protection authority and relies on recognised lawful bases for data processing, such as consent, legal obligation, and contract.
The fine was contained in a statement signed by Mr Babatunde Bamigboye, head Legal, Enforcement & Regulations, NDPC.
According to him, the investigation, which commenced in the second quarter of 2024, was triggered by suspected breach of privacy rights of Multichoice subscribers and illegal cross-border transfer of personal data of Nigerians.
“The NDPC found, among others, that Multichoice violated the data privacy rights of subscribers and their friends who are not necessarily subscribers.
The Commission also found that Multichoice carries out illegal cross-border transfer of personal data relating to data subjects in Nigeria.
The depth of data processing by Multichoice is patently intrusive, unfair, unnecessary, and disproportionate.
This is a grave affront to fundamental right to privacy as enshrined in Section 37 of the 1999 Constitution of the Federal Republic of Nigeria.
In line with its standard remediation procedure, the Commission directed Multichoice to carry out appropriate remedial measures.
However, the Commission found the measures undertaken by Multichoice in this regard unsatisfactory.
For want of cooperation, the Commission has directed Multichoice to pay ₦766,242,500 for violating the Nigerian Data Protection Act.
“Nigeria is entitled to protect her citizens and data sovereignty under both international and extant municipal laws, as these have far-reaching implication for rule of law, national security, and economic growth.” the statement said.
Babatunde also revealed that, Vincent Olatunji, national Commissioner, NDPC, has directed that all outlets through which Multichoice is collecting personal data of Nigerian citizens should be investigated for non-compliance.
He added that any outlet that processes personal data in violation of the NDP Act is liable to penalty under the Act.
Broadcasting
IFC, AfDB Collaborate with EbonyLife Media to Explore Supporting the African Film Industry to Drive Job Creation
As part of their ongoing efforts to support the growth of Africa’s creative industries and drive job creation in the region, IFC and the African Development Bank have announced a collaboration with EbonyLife Media, Nigeria’s leading media company, to explore the conditions for the creation of a pan-African investment vehicle targeted at the region’s film sector.
The aim is to improve access to financing for productions that promote original African stories around the world. EbonyLife Media has built a reputation for bringing compelling African narratives to global audiences through innovative storytelling.
The company has produced some of the highest-grossing movies in the region and enjoys strategic collaborations with global media companies, including Sony Pictures Television, Westbrook Studios, Starz, Macro Film Studios and Idris Elba’s 22 Summers.
This effort is in line with IFC’s strategy to expand Africa’s creative industries, recognizing the sector’s potential to drive job creation – especially for youth – promote inclusive narratives, and stimulate economic growth across emerging markets.
Despite the growth of film production across the continent over the last few years, Africa’s film sector remains untapped. According to UNESCO, the sector currently supports approximately 5 million jobs and contributes $5 billion to the continent’s GDP.
However, the industry faces significant challenges that inhibit its growth potential, including persistent financing gaps, policy barriers and lack of a robust intellectual property regulatory framework and implementation, which results in up to 50 percent revenue loss to piracy by film producers in the region.
In this context, IFC, AfDB and Ebony Life are exploring ways in which they can crowd in more capital into African film productions and support the expansion of the film industry at scale in the continent, while working with governments to introduce protection of intellectual property and film incentives, essential to strengthen the economics of film production in the continent.
“Africa’s creative economy is a cultural asset and an engine for inclusive growth, youth employment, and global influence. Through this partnership, we aim to unlock new capital for the continent’s storytellers, helping them bring authentic African voices to international platforms while boosting job creation in one of the most dynamic sectors of the future,” said Dahlia Khalifa, Regional Director for Central Africa and Anglophone West Africa at IFC.
Ousmane Fall, The African Development Bank Group’s Director for Private Sector Operations, said: “This collaboration reflects the African Development Bank Group’s growing interest in creative industries as a growth sector supporting entrepreneurship and job creation for young people and women in Africa.
“By joining forces with EbonyLife, Nigeria’s premium media conglomerate, and IFC, a like-minded DFI institution, we are seeking to support the creation of a sustainable investment vehicle for film production in Africa”.
“This has been a long time coming. For nearly two years, I’ve been quietly laying the groundwork—defining and building an ecosystem designed to scale, to unlock opportunity, and to provide the vital capital African filmmakers need to create stories that resonate across borders and generations.
“Today, I am thrilled and deeply proud to welcome the IFC and AfDB on this journey. Together, we will identify ways in which we can catalyze a new era of African storytelling that can thrive on the global stage” said Mo Abudu, CEO, EbonyLife Media.
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