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Expert Calls for Risks Mitigation on Mobile Payment

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Emmanuel  Okoegwale, principal consultant at MobileMoneyAfrica, has said that there need proper understanding of the risk involved in providing financial services through the mobile phone to banked and unbanked populations using the agent networks.

Okoegwale’s call came on the heels of the expected licensing of applicants from financial institutions and independent providers forming consortia eagerly to provide mobile payment in the country.

He told Nigeria CommunicationsWeek that the mobile payment industry will change the way consumers interact with financial services and make payments.

According to him, mobile financial services will include consumer accounts information, updates, alerts, bill payments, person to person transactions and remittances.

Okoegwale said to achieve this that there are several risks to be dealt with and mitigated with workable and proven approaches in a new entrant country like Nigeria.

He said, the outcomes of not putting mitigants in place might be severe and will determine the success of the outcomes.

According to him, there are numerous risks like systemic, reputation, liquidity, legal and operational.

The consumer is to be protected and potential effects of risks mitigated so as to establish service level that can protect them. In situation where there are shortcomings, the consumer will be faced with some situations that might have significant negative effect on service delivery.
Scenario One
Customer is charged illegal side fees that are not authorized by the mobile money provider?
Agents are signed on to serve the provider as the last mile to the customer and most customer facing transactions will take place at the agent point. Agents can take advantage of customers’ illiteracy or limited pricing information to charge extra charges. This presents operational and reputational risk for the providers.
The mitigation for the above will include, providers using picture based simple diagrams to explain fees charges for different service levels and must be conspicuously displayed at all agent locations. This should also be translated into different local languages and mandatory pricing disclosures must be strictly managed at agent locations.
In case of customers attempt to seek pricing clarification from provider aside the agents, providers support centres should be accessible and able to provide such information in a clear and easily understood format.
Scenario  Two
Provider’s Agent collected cash from client but fails to provide e-money or transfers the amount to recipient bank account or desired third party.
Agent receives funds from a service user but misdirects funds to the agent’s own benefit. This situation could arise in one of two ways:
The consumer could be an existing customer without their phone with them, so they would not receive the transaction confirmation while with the agent.
The consumer may not be a customer but requests that the agent sends money to an existing customer, so does not receive independent phone confirmation of the transaction.
Mitigation:
Require that service users receive, and know they have a right to receive, clear confirmation that funds have been received and where they have been directed. This may include a paper receipt, if the customer does not have a phone. Service providers should also enforce transaction log books to be signed off by the agent and end users. This can be the only evidence that will be available for a future audit trail.
End user education and awareness that users should have their cell phone available to ensure receipt of transaction Confirmations. Cell battery level should be checked before transactions and sms inbox availability is key.
The above scenario is a Reputational risk which could also lead to legal risk.
Scenario Three
Individual poses as agent to collect deposits or payments from unsuspecting customers. Some criminal elements will take advantage of the new systems to defraud end users by posing as agents especially in the rural outpost or busy commercial centres to pose as agents.
First steps is to rely on the end users education to transact only at recognized and registered agent location with consistent and verifiable Agent ID which is clearly displayed at the agent location and in some cases where rogue agents are on the increase, providers may adopt a colour code same method used by Mobile network operators at airtime vendors outlets.
Ability for any user to check status of agents anytime should be build into the system. Some agents might had been decommission or deactivated but are still actively trading. Simple sms solutions like sending agent ID to a short code should be provided. Example,send LAG 027  to short code  3030 ( where Lag means Lagos, 027 – Agent Number).
The regulator will also update agent list on a periodic basis and make such information available to the public.
Above represents an operation, reputational and legal risk for the provider.


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Prof. Aliyu, AI Practitioner to Keynote ABoICT 2024

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CommunicationsWeek Media Limited, a certified global ICT company with over two million online subscribers, is delighted and proud to announce Prof. Yakub Aliyu, as the keynote speaker at Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture series 2024.

 

Aliyu, will be speaking on the theme: Artificial Intelligence (AI): The Good, The Complex and The Anticipated”, this leans heavily on the fact that AI changing our lives– we just need to know where to look today.

This year’s rebranded Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture/Awards Series is slated for Saturday, May 25, 2024 at the Four Points by Sheraton, Lagos.

The event is the most prestigious annual event that brings together captains of industry in both technology and financial worlds.

According to Ken Nwogbo, CEO, Communication Week Media Ltd, organisers of the ABoICT Distinguished Lecture/Awards Series, “the choice of Prof. Yakub Aliyu is deliberate because of his exceptional career in Artificial Intelligence (AI)”.

He added that, AI is considered to have the potential to instigate a fourth industrial revolution,1 and is dramatically changing people’s patterns of interaction and economic activities.

“The traditional factors of production and physical capital and labour may no longer promote substantial economic growth. It is generally believed that AI will be one of the most important factors determining future economic growth,” he said.

A professor of microelectronics and a scholar-practitioner in artificial intelligence and deep machine learning for industrial applications and high-speed application processors. His research interests include Multimodal AI models for high-efficiency industrial robot applications and Human AI interactions.

He also has adjunct academic professorships at five African, USA, and UK universities. Holds a BS in Applied Physics Electronics from Karlsruhe and A Bello Universities in Germany and Nigeria, an MBA in International Business Management from the University of London, an MSEE (Master of Engineering, Electronics), and a Ph.D. in Electronics Engineering from the University of Wales.

Prof. Aliyu is the global quality director for Bourns Inc., Riverside, California, USA, an electronics system, and components manufacturer. I oversee quality functions in 21 factories worldwide.

He has also held quality and operational management leadership positions at National Semiconductors, Bell Labs-Lucent Technology, Texas Instrument, Global Foundries, and Roper Technologies USA.

Authored and coauthored over 30 Advanced Technology United States-issued patents in High-Speed Application Processors and Contributed to over 40 international impact Journals, chapters, and conferences; FASI, SMIEEE USA, MIEE UK, M. Inst pf Physics Chartered Phys and C Eng UK.

Past lecturers included Dr. Ernest Ndukwe, then executive vice chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Uche Orji, managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodu Omoniyi, Managing Director/CEO, VDT Communications; Ayotunde Coker, Managing Director, Rack Centre Limited; Peter Adedayo Arogundade, managing director and chief executive officer, Sidmach Technologies Nigeria Limited; Dr. Adewale Obadare, chief visionary officer, Digital Encode and John Obaro, CEO and founder of Systemspecs; Prof. Isa Pantanmi, minister of Communications and Digital Economy; Dr. Seyi Akindeind, co-founder, Digital Encode; Dr Krishnan Ranganath, Regional Director, Africa Data Centres.


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Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria

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Legit.ng recently joined forces with the Shade of Life Foundation to become a voice of autism, and drive advocacy for improved media support during Autism Awareness Month.

Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria

Participants at the event

Conversations around media support exploration was led by Joseph Omotayo, head of Department for Human Interest Stories at Legit.ng, and Dr. Eziafakaku Nwokolo, founder and CEO of the Shade of Life Foundation,

This partnership is a response to the concerns raised by organizations like the Shade of Life Foundation about the level of support received from the media in discussing autism as a disability.

While other disabilities may receive attention, autism, with its critical developmental implications often lacks adequate representation in mainstream media.

Recognizing the importance of addressing these concerns, Legit.ng took proactive steps by integrating itself into the essence of autism awareness.

It facilitated a one-hour workshop with Dr. Nwokolo, the founder of the foundation, to deepen our understanding of autism, its various spectrums, and the language boundaries associated with it.

Other steps we took in advocating autism awareness in the media, can be seen in our attached press release.

Legit.ng believes that by amplifying the voices of autism and advocating for better media representation, we can contribute to creating a more inclusive and accepting society for all.

 

 

 

 

 

 

 

 

 


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As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply

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While 85 per cent of Nigeria is in darkness, Tanzania, an African country has shut down five hydroelectric stations in a bid to reduce excess electricity in the national grid.

As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply

Kassim Majaliwa, prime minister, Tanzania, has said the main plant, Mwalimu Nyerere Hydroelectric Station, alone generated enough electricity to power major cities, including Dar es Salaam, the country’s commercial hub.

It is the first time Tanzania, which suffers chronic power shortages, has closed hydroelectric stations due to excess production.

“We have turned off all these stations because the demand is low and the electricity production is too much, we have no allocation now,” an official from state-run power company, Tanesco, said.

The 2,115MW Julius Nyerere Hydropower Dam is said to be almost filled with water following heavy rains that started early this year.

Meanwhile, while the country has an installed capacity of 1,938MW and the grid installed capacity of 1,899MW, Nigeria which has an installed capacity of 13,000MW is struggling to electrify 85 per cent of its electricity consumers.


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