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Mastercard, Financial Access Initiative Partner to Enable More Small Businesses Benefit From Digital Economy

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The Mastercard Center for Inclusive Growth and The Financial Access Initiative (FAI) at New York University have announced the launch of The Small Firm Diaries, a global research initiative that will provide unprecedented insight into the financial lives of small businesses across six countries in Sub-Saharan Africa, Latin America and Southeast Asia.

The study will examine how small firms manage the adoption of digital financial services, with a focus on women-led businesses.

By collecting detailed quantitative and qualitative data insights from firms employing between 1 and 20 non-family workers in Nigeria, Ethiopia, Uganda, Colombia, Indonesia and Fiji, the study will shed light on how small business owners across the world manage their financial decision making amidst uncertain and volatile economies.

While there has been a great deal of research on informal family-run “microenterprises,” and more professionalized “medium-sized” firms, the needs of small firms are not yet well-understood.

For example, in Sub-Saharan Africa, small firms play a crucial role in economic development and job creation and insight is needed to understand the unique challenges faced by them in order to create sustainable solutions for their longevity and growth.

According to The World Bank, it is estimated that SMEs are responsible for 77% of all jobs in Africa and as much as half of the GDP in some countries.

The research initiative, supported by the Center, aims to provide financial service providers, policymakers, and practitioners with knowledge and recommendations to address barriers to adoption of digital financial services.

“We must understand how small enterprises work in order to develop interventions that reduce inequality and increase financial security amongst financially underserved communities,” said Natasha Jamal, Regional Director, Middle East and Africa, with the Mastercard Center for Inclusive Growth.

“This first-of-its-kind research will provide on the ground insights into what barriers and opportunities exist for small firms to adopt digital financial services and participate in an inclusive economy.”

“Small firms are by far the biggest employer in low and middle-income economies.

“Despite decades of statistical research, fundamental questions remain about why some grow, and some stagnate,” said Jonathan Morduch, Executive Director of the Financial Access Initiative and Professor of Public Policy and Economics at New York University.

“ Our aim is to go into the field and try to understand small firms from the bottom-up, by listening closely to how entrepreneurs and workers make choices on their own terms.”

“Just as household financial diaries have been crucial to understanding the needs of low-income households around the world, and the barriers to achieving household financial security, the kind of detailed financial information provided by diaries is needed to understand the choices that small firm owners make and the real barriers to growth they face,” said Timothy Ogden, Managing Director at the Financial Access Initiative.

FAI and its partners are working closely with local organizations that will be involved in the research to obtain country-level research and ethics approvals in each of the six countries that will host the study.

Methodology of The Small Firm Diaries Research Initiative
Project researchers will follow a group of 100 businesses in multiple sites in each country over a period of 12 months, visiting them several times per month to collect quantitative data on cash flows, and qualitative data on business owners’ aspirations and decision-making.

Compared to traditional research studies that produce static snapshots from a single point in time, financial diaries can produce nuanced and dynamic portraits of firm owners and their choices.

High-frequency, quantitative data on cash flows shows researchers actual trade-offs and decisions made in near-real time, and qualitative data collection allows them to probe deeply to understand the “why” behind those choices, revealing the behaviors and barriers that prevent firms from adopting useful tools and technologies, hamper firm growth, and slow market development.

The study will illuminate the ebbs and flows of the businesses, the markets they serve, the constraints to their productivity, profitability and growth, the impact of access (or lack of access) to technology and formal credit, the interactions of the cash flows of the business with the cash flows of the owners and employees, and much more.

The Small Firm Diaries has also received funding from the Bill & Melinda Gates Foundation, the Argidius Foundation, the Aspen Network of Development Entrepreneurs, and Australian National University.

The project’s overall research design is based on the experience of FAI and its research partners with previous financial diaries studies, such as Portfolios of the Poor, the US Financial Diaries, and the Bangladesh Garment Worker Diaries.

The advisory board for the multi-country study will include leading researchers on small firms and practitioners with expertise in digital and financial services and business support programs, with experience spanning the private sector, government, and academia.

Current board members include: Tamara Cook, CEO, FSD-Kenya; Matthew Guttentag, Director of Research & Impact at the Aspen Network of Development Entrepreneurs; Machal Karim, Executive, Development Impact at CDC; Leora Klapper, Lead Economist at the World Bank and founder of the Global Findex; and David McKenzie, Lead Economist within the Development Research Group at the World Bank.

The Small Firm Diaries is a collaboration led by the Financial Access Initiative at NYU Wagner, with independent researchers at The Graduate Institute of International and Development Studies in Geneva and Oxford University; research implementation partners L-IFT, MFO, and EDI Global; and local partners, including the University of the South Pacific (Fiji), SMERU (Indonesia), National Bureau of Statistics and Lagos Business School (Nigeria), and FSDU (Uganda).

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Anambra Cracks Down on Illegal ISPs, Cites Security, Service Concerns

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Anambra State Government has begun a crackdown on illegal Internet Service Providers (ISPs) operating across the state, citing concerns over data breaches, poor service quality, and environmental defacement.

The enforcement, led by the Anambra State Physical Planning Board (ANSPPB) and the Anambra State ICT Agency, follows numerous complaints about unauthorized road excavations and the indiscriminate erection of poles, which deface infrastructure.

Investigations revealed that several ISPs were operating without approval or submitting deployment plans, a violation of regulations governing telecommunications infrastructure.

Authorities stress that the objective is not exclusion but compliance, ensuring only registered ISPs approved by the Nigeria Communications Commission (NCC) operate in the state.

Residents are urged to report unlicensed ISP activities via the dedicated hotline 02014143039.

Speaking on the development, Barr. Chike Maduekwe, Executive Chairman of ANSPPB, said: “This isn’t about shutting anyone out but about ensuring everyone follows the right process. If you want to offer internet services in Anambra, go through the proper channels. We will support those who comply, but we will not tolerate shortcuts.”

Similarly, Chukwuemeka Fred Agbata (CFA), Managing Director/CEO of the Anambra State ICT Agency, emphasized: “The internet is no longer a luxury—it’s a necessity. Governor Soludo has implemented a zero right of way policy to encourage players, but the first step for any ISP must be regulatory approval. The people of Anambra deserve services from providers they can trust.”

The Anambra State Government remains committed to fostering a safe, fair, and well-regulated digital landscape where residents can enjoy secure, high-quality internet services without fear of exploitation.

The enforcement drive signals a new era of accountability in the state’s fast-growing digital space.


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Instagram Unveils Teen Safety Features in Nigeria

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Ibrahim Suleiman, Actor and Architect; Emanuella Samuel, Comedienne/Actress; Titilayo Oyinsan, TV Host & MC and Oluwasola Obagbemi, Head of Communications, Sub-Saharan Africa at Meta
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In a significant step towards enhancing online safety for teenagers, Meta is proud to announce the launch of Teen Accounts on Instagram in Nigeria. This initiative is part of Meta’s broader commitment to ensuring safe, private, and positive online experiences for teens across Africa.

As more Nigerian teens join Instagram, it is crucial to prioritise their safety and privacy. Parents want to feel confident that their teens can use social media to connect with their friends and explore their interests, without having to worry about unsafe or inappropriate experiences.

Teen Accounts were designed to better support parents and give them peace of mind that their teens have the right protections in place.  Teen Accounts have built-in protections that limit who can contact them and the content they see, and we’ll automatically place teens in Nigeria into Teen Accounts, and teens under 16 will need a parent’s permission to change any of these settings to be less strict.

Key protections offered with Teen Accounts include:

  • Private Accounts: Teen accounts are set to private by default and teens under 16 can only change this setting with parental guidance.

  • Messaging Restrictions: Teens can only receive messages from people they are already connected to.

  • Sensitive Content Control: Teen Accounts are automatically set to see less sensitive content in search results and recommended content in Explore, Feed and Reels.

  • Limited Interactions: Teens can only be tagged or mentioned by people they follow, and the strictest anti-bullying feature, Hidden Words, is enabled by default.

  • Time Limit Reminders: Notifications prompt teens to exit the app after 60 minutes of daily usage.

  • Sleep Mode: Enabled from 10 PM to 7 AM, this feature mutes notifications and sends automatic replies to DMs overnight.

“We’re excited to bring these features to Nigeria and help families navigate online spaces safely. Teen Accounts are designed to give parents peace of mind, allowing teens to connect with friends and explore interests without worrying about unsafe experiences,” said Sylvia Musalagani, Safety Policy Manager, Africa, Middle East & Turkey (AMET) at Meta.

Since Meta started reimagining its apps for teens with Teen Accounts globally in September 2024, Meta has enrolled 54 million teens into Teen Accounts on Instagram, with 97% of those aged 13–15 remaining within the strict default protective settings.

While Teen Accounts come with built‑in safety protections, Meta understands many parents want to take a more active role in their teens’ online experiences. With the enhanced supervision tools, parents can:

  • See who their teen has interacted with: While message content remains private, parents can now view a list of people their teen has messaged over the past seven days.

  • Set daily time limits on Instagram: Parents can decide how long their teen can spend on the app each day. Once the limit is reached, Instagram will be inaccessible for the rest of the day.

  • Schedule downtime from Instagram: Parents can block access to Instagram during specific hours, like bedtime, with just a tap.

  • View the topics their teen is exploring: Parents can see which age-appropriate interest areas their teen is choosing to follow and engage with.

“Meta’s new policy aligns with several core priorities outlined in NITDA’s strategic roadmap, particularly concerning data privacy and protection for minors, now under the purview of the Nigerian Data Protection Commission, and child online protection and digital well-being, which we have collaboratively addressed with our sister agency, the Nigerian Communications Commission.

“NITDA has been a strong advocate for child online protection through various initiatives, including national strategies and proposed legislation, such as the Online Harms Protection Bill, which addresses age verification and parental controls.

“This policy reinforces the need for age-appropriate online experiences and promotes digital well-being.” commented, Barr. Emmanuel Edet – Director Regulations and Compliance Department, NITDA

To mark the launch, Meta hosted an exclusive event where parents, content creators, policy stakeholders, media and teens could engage on the available safety features and tools.

Meta remains committed to developing tools, resources and partnerships that protect teens and foster safer online experiences for families in Nigeria.

For more information about Teen Accounts and updates to parental supervision tools, visit here


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Telcos Threaten to Disconnect Banks over Misinformation on New USSD Charges

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Telecommunication companies have threatened to withdraw their Unstructured Supplementary Services Data (USSD), services from banks over what they called misinformation.

Telcos Threaten to Disconnect Banks over Misinformation on New USSD Charges

MTN Nigeria, Airtel, Globacom and 9Mobile- the  telcos disclosed that the banks’ notice to their customers on the new billing system and airtime deductions for USSD services was misleading.

Also, Association of Licensed Telecom Operators of Nigeria (ALTON) also denied that the directive was from the Nigerian Communications Commission (NCC).

USSD is done via shortcodes on mobile phones and allows bank customers to make transactions in places with limited or no internet service.

Recall that banks earlier this week claimed that NCC has directed them to begin charging them from their airtime rather than from customers’ accounts.

The notice from the banks read in part: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.

“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.

“Under this new billing structure, each USSD session will attract a charge of ?6.98 per 120 seconds, which will be billed by your mobile network operator.

“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.

“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”

Reacting, ALTON, umbrella body of telecom operators in Nigeria, said the banks’ notice is a gross misinformation deliberately hatched to suit their selfish interests.

Hence they threatened to withdraw network support to the banks’ USSD services.

Engr Gbenga Adebayo, chairman of ALTON  told Vanguard: ” I don’t understand why the banks are twisting agreements and distorting information just to favour their selfish interests. In the first place, the information wasn’t a directive from the NCC but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, CBN witnessed by the telcos and the banks. The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.

“The reason for that clause was because the telcos insisted that the process of migration is such that will not allow a customer to be billed twice; in other words, that a subscriber would not have his airtime deducted and also have his or her money deducted for same services from his or her bank account.

” As we speak, some of the banks have cleared their debts, but the majority are yet to do so. So, even if all the modalities of migrating to end-user billing have been perfectly carried out, the implementation cannot even begin because the banks are yet to clear the USSD debt owed to the telcos.

“Our position now is that if that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But, they should clear the debts as agreed,” he added.

 


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