Telecom
Monieworx Enables 3 SMEs Raise N100M in 10 days through Regulation Crowdfunding, Nigeria’s First
Alternative Finance Limited (Obelix), Nigeria’s SEC-regulated Crowdfunding Intermediary, on Wednesday announced that it has fundraised N100 million from 9,324 registered small-ticket retail investors for 3 promising small and medium enterprises in just 10 days, thus successfully pioneering an alternative way of raising badly-needed cash for SMEs operating in Nigeria.
The investors were wholly from its waitlist of 42,545 early adopters. The average investment in the Private Notes was N10,725 with the smallest and biggest tickets being N1,200 and N20,000 respectively. The longest duration of the new asset class for individual investors is 90 days, with a fixed rate of 12% p.a.
Formal SMEs number 40 million in Nigeria, contribute 84% of total employment, 45% of GDP but just 8% of exports and tax collections by the Federal Inland Revenue Service (FIRS) according to a recent joint report by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the National Bureau of Statistics (NBS).
A total of 15 eligible applications to raise funds were considered by the company’s Screening Committee but only 3 of the SMEs were accepted by Obelix to utilise monieworx®, its registered Funding Portal, to embark on their crowdfunding campaigns. All the fundraisers have a good corporate governance record and are SMEDAN-registered. The 3 most promising small and medium enterprises that have their securities offerings hosted are, namely: Imose Technologies Limited, Alatiron Nigeria Limited and Q21 Solutions Limited.
According to a Formal MSME Finance Gap in Developing Countries report by the World Bank, the unmet financing needs of Nigeria’s formal SMEs is estimated at US$22 billion yearly. For context, total banking loans was US$66 billion as of December 31, 2022, giving SME loans an 8% share of the loan book.
The risk in this sub-sector is priced in the range of 28% to 35% p.a. Gaining access to finance is by far the biggest constraint to SME growth. Over 70% of the 40 million SMEs cited a lack of finance and access to financing as the main constraint to their business growth. Access to advisory services and access to markets weighed in at a distant second and third.
According to the Credit Bureau Association of Nigeria (CBAN), only four percent of the 40 million SMEs have access to credit from Nigerian banks. 80% of new SMEs in Nigeria thus die before their fifth year.
Obelix was able to onboard 42,545 users on monieworx®, over a 12-month period, through a combination of extensive community engagements to build a suitable “banking replacement”, and the first-of-its-kind early access programme (EAP) that nudges users to join a community or a group.
A surprising insight from its target audience poll of 100,000 people is that they are willing to invest in the absence of outsized financial returns. Specifically, when asked what they value most, regulated products (15%), small ticket sizes (13%), money-on-demand without a withdrawal penalty (12%), short-term securities (11%), weekly coupon payment (10%), Web3-first approach (10%) and Community Subscription Offer Plans (9%) had a combined response rate of 80%. Outsized returns (8%) ranked a distant eighth. On aggregate, individual investors are most interested in near-term liquidity (stacked up to 43% of the response rates).
According to McKinsey’s Global Private Markets Annual Review 2022, “private debt is an asset class for all seasons as evidenced by continued fundraising growth, making it the only private asset class to grow fundraising every year since 2011, including through the pandemic”.
“monieworx® has broadened participation in a very significant way”, said Lanre Showunmi, Director and Co-founder of Obelix. “Debt is the safety part in a portfolio, and we are on course to become the dominant portal through which small-ticket investors enter the debt capital market in keeping with our commitment to make investing fair, accessible, and inclusive”, he stated.
“SME financing is at an inflection point. We have been presented with a once-in-a-lifetime opportunity to win customer primacy and we intend to seize it with both hands”. Thus, Ali Yakubu-Concern, the Managing Director and CEO said, “owning alternative investments will become increasingly valuable”.
“It is said that regulation is how you cap risk”, said Titus Akintola, the Chief Compliance Officer. “This forms the building block in our plan to build a global layer of services for small and medium enterprises”, he continued. We aspire to adopt a safety-first approach in delivering on our “Better – Faster – Cheaper” service charter.
“This is a critical first step in our aspiration to build technology that can create a single Capital Market”, said Salvation Arinze, the Chief Technology Officer. “We are an innovative provider of online retail and SME financial and lifestyle services”.
“There is 100% custody of funds and investment contracts through an arrangement with First Bank, Nigeria’s oldest bank that is registered with Nigeria’s SEC to be a Custodian Bank”, said Abubakar Maibe, Director at Alatiron Nigeria. “This reinforces our confidence and lessens the administrative burden imposed on fundraisers by the Investment Crowdfunding Rules, 2021”.
“Debt crowdfunding presents us with a unique opportunity to access growth capital during this acute funding crunch leveraging alternate financing options that are non-dilutive and founder-friendly by design, on the one part and provides an incentive for the communities in which we operate to get involved through co-creation of value, on the other part”, said Osaretin Sule, the Chief Operating Officer at Imose Technologies Limited. “This way, the local economies become more resilient”.
“We went to Obelix first over our traditional banks”, said Eunice Adeyemi, the Creative Director at Q21 Solutions, “and this was a no-brainer because monieworx® hosted our debt-based securities with more favorable terms, lower interest rates, quicker approval times, and a simpler application process”.
Obelix is widely recognized as the poster child of regulation crowdfunding (Reg CF) and the SME-focused financier of first choice in Nigeria. Crowdfunding is proving itself as a financial solution that speaks to the largest numbers through its simplicity, its transparency, and the service it provides to the local economy and to projects that are meaningful for retail investors.
Airtel Africa, a telecommunications and mobile money services provider with presence in 14 countries across the continent, has appointed of Dinesh Balsingh as the Managing Director and Chief Executive Officer of Airtel Nigeria, effective 1st November 2024. By this appointment, Balsingh also becomes a member of the Executive Council for the Airtel Africa Group.
He takes over from Carl Cruz, who returned to his home country, The Philippines, at the end of October.
Balsingh has extensive experience across the telecommunications industry and returns to Nigeria following his appointment as Managing Director and CEO of Airtel Tanzania in 2022. Prior to his move to Tanzania, he served as the Chief Commercial Officer (CCO) at Airtel Nigeria and therefore brings with him considerable experience of the Nigerian telecommunications market.
Balsingh’s career in the telecommunications industry spans over 24 years, having begun his career in 2000 with Hutchison Essar, before moving to Airtel India as a Marketing Director in 2006 and then Tata Docomo in 2011. Balsingh joined Airtel Nigeria as Marketing Director in 2013, before taking over as CCO in 2018.
During his tenure in Airtel Tanzania, Balsingh led the business to achieve record growth through intelligent pricing, product enhancements and disciplined execution of projects, resulting in strong Revenue Market Share (RMS) gains in the highly competitive market.
Speaking on the leadership changes, Airtel Africa Chief Executive Officer, Sunil Taldar said, “Mr. Balsingh’s deep telecommunications experience and strong operational execution, combined with his knowledge of the Nigerian market, will be instrumental in further supporting our corporate purpose of transforming lives across Nigeria.”
Balsingh holds a Master of Business Administration from Thiagarajar School of Management.
Meta recently hosted its first Youth Summit in Lagos, Nigeria, bringing together over 200 young professionals, students, recent graduates, creatives, tech enthusiasts and aspiring entrepreneurs.
A cross-section of some of the attendees and the Meta team.
Themed ‘Empowering Youth Through Technology, Innovation and Entrepreneurship’, the summit included a series of thought-provoking panel discussions, a mentoring session and an interactive workshop designed to equip young Nigerians with the skills, insights and networks needed to thrive in today’s tech-driven world.
Commenting about the event, Phil Oduor, Head of Policy Programs, Sub-Saharan Africa said, “At Meta, we believe that today’s youth are tomorrow’s change-makers.
“Through initiatives like the Youth Summit, we aim to foster innovation, promote digital literacy and empower young Nigerians with the tools and opportunities to realise their potential and contribute to Nigeria’s growing digital economy.”
Delivering the keynote address, Femi Aluko, CEO/Co-Founder, Chowdeck, shared his journey of breaking barriers to achieve success in tech. He encouraged attendees to embrace the limitless opportunities within today’s technology ecosystem.
A panel discussion, led by Chinny Francis, Public Policy Manager at Meta, featured panellists Nifemi Akinwamide, Head of Operations, Alt School; Adaora Mbelu, Co-Founder of Lumination Global and Obaloluwa Adeagbo, Marketing Lead at Talstack.
They shared valuable insights about the future of work, emphasising the importance of storytelling to build a personal brand, practicing self-awareness, developing soft skills, lifelong learning and honing problem-solving skills to thrive in a digitally transformed world.
Francis Sani, Technical Adviser for Innovation, Entrepreneurship & Capital at the Federal Ministry of Communications, Innovation & Digital Economy, spoke at the event.
He highlighted the 3 Million Technical Talent (3MTT) program, emphasising that the program aims to build Nigeria’s technical talent backbone to drive the digital economy and position Nigeria as a net talent exporter. He encouraged youth to take advantage of this opportunity.
Another panel of industry experts took the stage during the ‘Lunch and Learn: Navigating Entrepreneurship in a Rapidly Changing Landscape’ session, moderated by Sade Dada, Head of Public Policy for Anglophone West Africa at Meta.
Seye Bandele, CEO of PaidHR and Damilola Teidi-Ayoola, Head of Platform and Networks at Ventures Platform Fund, shared their invaluable insights.
Seye highlighted the importance of grit, curiosity and candour, while Damilola reinforced the need to understand one’s target audience, deliver value through their business and embrace data-driven decision-making in the dynamic entrepreneurial landscape.
The event also featured inspiring conversations with leading figures in the creative industry. Miss Techy, an award winning tech content creator and Salem King, a creator, storyteller, author and speaker, shared their experiences and advice on achieving long-term success.
Attendees also benefited from an interactive workshop and a mentoring session, where industry experts shared practical advice and strategies for entrepreneurs and tech enthusiasts.
Meta’s Youth Summit 2024 highlights a commitment to driving positive change, championing youth empowerment and advancing economic opportunities in Nigeria. Through investments in key areas—such as the creative industry, digital literacy, economic impact and youth job training—Meta is dedicated to empowering young Nigerians to thrive in today’s tech-driven world.
Telecom
Empowering Financial Literacy: Mastercard Academy Unveils ‘Master Your Card: Finance Demystified
Mastercard Academy, one of the leading providers of world-class training solutions in the payments space, has unveiled a free online financial literacy course: ‘Master Your Card: Finance Demystified’.
Designed in partnership with the Mastercard Center for Inclusive Growth, the course aims to empower individuals with the financial knowledge needed to navigate complex personal finance tools and improve their overall financial well-being.
According to the latest S&P Global FinLit Survey, only 33% of adults – 35% of men and 30% of women – worldwide are financially literate. This means that around 3.5 billion adults, most of them in developing economies, lack an understanding of basic financial concepts.
Mastercard’s financial literacy program removes geographical barriers to financial education and promotes greater access to financial services in line with the company’s goal of connecting one billion individuals worldwide to the digital economy by 2025.
The engaging course features interactive lessons, quizzes and real-world examples across four key areas: electronic payments, budgeting, credit scores and financial security.
Available worldwide, the new proposition underscores the importance of education in advancing Mastercard’s mission to power economies and empower people on a global scale.
“At Mastercard, we are dedicated to democratizing financial literacy and ensuring that everyone has access to the tools they need to achieve their financial goals.
“Our new free online course removes the confusing jargon and cracks the code on everyday finances.
“This way, it equips individuals, particularly those in underserved communities and young adults, with the knowledge and tools needed to manage their personal finance with confidence, achieve their financial goals and avoid common financial pitfalls,” said Driss Belemlih, Executive Vice President of Customer Delivery, EEMEA at Mastercard.
Additionally, Mastercard’s customers can leverage the free access to the course to reach the unbanked, youth and gig worker segments in their regions, helping integrate them into the digital economy and establish brand affinity early on.
A report published in The World Bank Economic Review shows that individuals who participate in financial education programs are likely to see a significant improvement in their financial knowledge and adopt more positive financial behaviors.
Mastercard Academy offers access to on-demand and instructor-led training from over 200 experts across Mastercard’s global network.
Their comprehensive online learning platform equips the company’s customers and partners – and now also the public – with professional insights, skills and knowledge they need to succeed in the world of payments.
Asein, DG NCC Seeks IP Policy for Every University
Foreign Transactions on NGX Hit N744.34bn in 10 Months, Up 156% YoY
Airtel Nigeria Gets Dinesh Balsingh as New CEO
Copyright Commission Pledges Support to Creatives on Contracts
Empowering Youth: Highlights from Meta’s First Youth Summit in Lagos
Edo State Launches Data Centre in Benin
Echefu Launches LUFT TV, another Pay TV after Failed TSTV Project
UBA, Mastercard Launch Special Debit Card for 75th Anniversary
QNET’s Amezcua Workshop in Lagos: A Glimpse into Wellness & Innovation
Jumia Nigeria Expands E-commerce Access Nationwide as it Kicks Off 2024 Black Friday Campaign
Telecom2 days agoNCC, CBN to Resolve Telecoms, Banks’ USSD Debt Issue
Telecom2 days agoProf. Adewale Obadare Shares Key Insights on Breaking into Cybersecurity
Telecom2 days ago9mobile CEO Highlights Key Solutions for Securing Electronic Money Transfers in Africa
E-Business2 days agoNITDA DG Harps on the Role of Innovation in Nigeria’s Sustainable Development
Broadcasting2 days agoFirst Women Radio Virtual Assistant Makes a Debut in Nigeria
News1 day agoCourt Orders Arrest of Echefu, Businessman over Alleged $651,280 Fraud
E-Financial2 days agoPalmPay Reaffirms Commitment to Ensuring a Safe Financial Ecosystem @ Anti-Fraud Walk
News2 days agoN57Bn Theft Allegations: SERAP Calls on Tinubu to Investigate Buhari