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Card Usage to Grow Over the Next Few Years – Kyari

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16 years ago

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Bukar Kyari is the managing director of ValuCard Nigeria Plc., an electronic payment card service provider. ValuCard is owned by Visa Inc. and a consortium of leading Nigerian banks. He worked with Hewlett Packard (HP) in the United States for 19 years after which he came to Nigeria. He also worked with FSB International Bank now part of Fidelity Bank as an executive director in charge of IT and Operations before joining ValuCard in 2001. Kyari spoke to funmi ilesanmi on issues in the Nigerian e-payment space.

Low PoS Penetration
There are few challenges related to point of sale (PoS) terminal usage. First there is this notion that the cards people carry are used for cash withdrawals at ATMs only. Stakeholders, that is the service providers and the banks need to encourage usage of cards at PoS terminals by card holders. There is a strong need to increase awareness for customers to use their cards at PoS terminals at merchants’ locations to purchase goods and services. One of the things that could be done is to tell customers that usage of their cards at PoS terminals do not incur any cost. There is no cost to the card holders for using their cards at merchant locations. This means that they are not charge for using their cards to make purchases. Since it’s free it is actually better than going to the ATM of another bank to withdraw your money and pay N100, and what do you do with the money? You take the money and give it to your merchant. That is one of the fundamental value propositions that we need to sell to customers, all of us.
The second thing is that merchants tend to restrict card usage at their establishments. I am talking about merchants that have the PoS terminals at their establishments. There may be incentives by the cashiers to discourage usage of cards because there is no balance; you know people leave their “change” with the cashier. These are things that could impede usage of cards at PoS terminals. The other value proposition to the merchants is that the less cash they have, the less “change” of pilferage or theft they have at their establishments. That is another angle of the awareness campaign that needs to be there. I would even go further to suggest that we as a nation, if we want to see the proliferation of card usage in the country which actually by the way assists economic growth, regulators or the federal government need to come in and provide incentives both to the merchants and to card holders. There are countries where such have been done and tremendous amounts of success have been recorded in those countries viz -a -viz card usage. South Korea is one country that comes to mind where usage of cards was encouraged by the government by giving discount or what is the equivalent of VAT there. I believe they gave somewhere in the neighbourhood of 20 to 25 percent discount of VAT for every transaction. That savings actually is hitting the bottom-line of the merchants in their case, so the merchants were the ones that were clamouring for card usage or for card transactions and more as well more small businesses that were not even considering accepting cards went ahead and applied for it because they see a huge benefit in it. I believe those are probably the reasons we do not see a huge access in card usage at point of sale terminals or at merchant locations. Also the number of merchants that are accepting cards are actually growing; the growth rate is quite phenomenal. However, if we share the transaction amount or the transaction volume at those locations, it is no where near those that we see at ATMs.
Does IT literacy have something to do with this?
I think it is more of the awareness of what you have because it is more convenient for me to use my card than to fiddle around using dirty naira notes. It is not about IT literacy, I think it is just general awareness of the convenience of using the card. If we can manage to convince my uncle or my grandmother in the village to use cards if there are locations where cards would be accepted in his or her neighbourhood, once you convinced them and they used it once or twice and finds it to be very convenient, you would see that person adopting the habit of using that card. So it is the need to convince an individual to use it once or twice, hopefully if they used it three or four times, I believe they will get hooked.
Prediction of the Nigerian e-payment Space
I expect to see a large number of cards in the market in the next 10 to 15 years; that would be a prediction that would have to be checked maybe after my retirement so it may not be a decent prediction but certainly card usage will continue to grow by leaps and bounds over the next few years. The other thing I can actually predict is that of mobile payment, of course it is around the corner, so it is actually no brainier in the sense that mobile payment would also come into the space. What will happen with the mobile payment that is going to come into the space is that it will not eat into the card business. What it will do is that it will be a complementary service or supplementary to the card business so what we may see is that because of the proliferation of mobile payments, we will also see card growth as a result. There will be in tandem growth because mobile will be a different channel, card will be a different channel so there are certain things you can do with cards which is a token that you carry around with you and use it for both present and non present transactions and so on. I can see interesting developments in the e-payment space in Nigeria. There would be other interesting services and solutions provided by either niche players or the general service providers that would make cards more secure than they have been and I think one of those events if I would call them is the pronouncement by the Central Bank of Nigeria that all cards issued in Nigeria must be EMV. That will go a long way in addressing some of the fraud issues we face.
Relevance of National Central Switch  
My understanding of the National Central Switch is that it is an entity that is supposed to create a level playing field for new entrants. This means that, if I were to come up with a new card scheme and I’m just about starting in Nigeria; I don’t necessarily have to go to each bank and connect to them because it might be cumbersome, it might take time and resources. All I need to do is plug on to the Central Switch. For those of us that are called primary switches, we are also mandated to hook up to the Central Switch. By doing that, my understanding is that one, all systems are interconnected and it will bring about interoperatability. But, there is something I need to say about interoperatability that many players in the industry miss, is that interoperatability is usually something that is done by acquirers; meaning that if I am an acquirer for one kind of scheme let’s say I am an acquirer for Visa and you are an acquirer for MasterCard only, we could go into a commercial agreement to say that rather than deploying two terminals at Shoprite, you would deploy only one terminal and both of us would share it. When a Visa card is used, you send it to me, when MasterCard is used it goes to you and for sharing that device we also share the cost associated with putting that device there and we also share the income that comes as a result so there is a commercial undertaking between the two acquirers in this example for interoperatability to happen. It is not something that happens by force, no one can force you to come into a commercial agreement with me. If I offer you 10 percent and I’m going to keep 90 percent of all the transactions, you might not like it. If we decide to do it 50-50, it might be fair so there is an underlining commercial agreement that has to be factored into interoperatability. Interoperatability is about acquirers sharing a device in ATMs. This is at the PoS level, PoS acquirers are the entities that acquire the transactions at the merchant locations, usually they are banks or in the case of Visa in Nigeria it is ValuCard. Those acquirers must then go into an agreement to have interoperatability mandate. I know that the Central Bank will also come up and say that it would be nice for the market to interoperate and that high level guideline could then be the drive for the players to engage in interoperatability.
At the ATM level, the ATM acquirer is actually the owner of the ATM so if you own ATMs, let’s say you are one of those ATM-Cs, one of the ATM companies that the CBN gave license to or you are a bank, you would want to open your ATMs to all cards because the more cards are on your ATMs the more your potential income. That means that for interoperatability purpose, you should get certified with all scheme vendors whose card you are going to acquire on your ATMs and since you are either connected to the Central Switch or you are connected to one of the primary switches, the card transactions will go to their final destinations in a manner that would meet the conditions of the CBN. I suppose that may bring about the relevance of the Central Switch.
Mobile Money      
My take on mobile money is that it has a place in the market. One, we are in an emerging market; two, we have seen tremendous phenomenal growth in mobile penetration. When mobile came in it was used for voice and now data and so the next value proposition is its use as a mode of payment or money transfer. Of course there are things that need to be addressed because this is more or less virtual money, so regulators such as the CBN ought to be the one driving it not the telcos. The different models that the CBN had put in place appear to be something that I strongly support and what could happen is the trust, the confidence of the average person. If you and I begin to have confidence in the security of the transactions we do on mobile, then more and more people would join the fold. If I am not mistaken, I understand that the CBN limit for amounts is what we might consider micro payments; N3,000 or less per transaction. Now, those are things that will gradually build confidence among the population and when that happens, we can see a proliferation of mobile money of mobile payments and the mobile channel becomes another model of the payment process.
ValuCard Innovations
ValuCard pioneered EMV, we were the first to issue EMV cards in the country. As a technology company we will continually offer unique products and services. We were also the first to come out with 3D secure online payment so people can go online and have confidence that the transaction they are about to perform will not be compromised. We do have some new products in the pipeline which are at the preliminary stage but there would be some exciting products that would be announced in the market probably in the next six months or so. I know that the banks are also introducing new Visa products into the market.
Challenges
I will put it in two different forms, there are internal challenges that we face and those are keeping up with technology and processes and our people having the necessary skills to execute; so those are what I call manageable challenges. There are challenges that are beyond our control but we still end up coming up with creative solutions in tackling them, such challenges include communication links. Communication has improved tremendously over the past five years. However, we still have our hiccups because we rely on GPRS for most of our PoS communications and we have had incidences of those failing. To address those issues, we have two SIMS from two networks in many of our PoS terminals and that way even when one network fails, we could automatically fall over to the other network and we’ve seen improvement in availability as a result of that. The other challenges are environmental challenges or what I call the business climate which ought to be addressed by the government and that is power. We have to run on generator close to 70 percent of the time in a year and that means PHCN only gives us power at 30 percent level so running a business with a pair of generators plus diesel cost and so on is actually not good for the environment. It makes the cost of doing business extremely high for us and for everybody else. If those costs are not there, we would end up passing those costs to customers and it would be of immense benefit to the economy.       
        
Checkmating Fraudsters
One of the challenges facing the payment space is that we always have to deal with fraudsters. It is not just payment, the reason this guy who was a notorious armed robber in the US when asked why he robbed banks, he said because that is where the money is. So wherever there is money, you will find bad people who are after the money that doesn’t belong to them. Fraudsters see it as an avenue to defraud the system. Some are very crude like the one that is common here in Nigeria which is somebody sending an email to ask for your card number and PIN. That’s phishing. Fortunately for us in Nigeria, cards, emails and Internet are new so the person who is gullible enough to fall victim ends up loosing a lot of money. The awareness campaign here whether it be the news media, the banks or some of us stakeholders in the industry including the regulators is to educate people and tell them never to respond to such messages, never to give their PIN to anybody either by email solicitation or SMS solicitation or somebody calling you on the phone to say I work for bank so and so and we seem to have problems with your card, can you tell me what your PIN is, don’t! You don’t share your PIN with anybody and that message has to be there constantly on people’s minds so that when they see those kinds of messages, they just ignore it. If that is taken care of, I think a great deal of the fraud level will reduce but there is also an underlining fraud with the old cards in the market, the magnetic stripe cards which we have addressed by having EMV cards which cannot be cloned. In the case of Visa cards and the Vpay cards issued in Nigeria, fraudsters will not be successful in defrauding the customer and the reason is that we have included a lot of security features to the original cards that a copy would certainly not have. Those are the safeguards we have put in place technologically to stay one step ahead of the fraudsters. Obviously human beings are very crafty and so far we have been successful in addressing that type of challenge. That is why some banks in Nigeria have strategically decided to issue Visa cards only because they have seen that with Visa there is higher level of security and higher level of safeguards in securing customers’ accounts.

 


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AfCFTA, AGRA Collaborate to Reduce Non-tariff Barriers to Intra-African Food Trade

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21 hours ago

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February 17, 2026

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The African Continental Free Trade Area (AfCFTA) secretariat signed a Memorandum of Understanding with nonprofit organisation Alliance for a Green Revolution in Africa (AGRA), towards improving agricultural trade in the continent.

On the margins of the 39th African Union Summit over the weekend when the MoU was signed, Wamkele Mene, secretary-general of the African Continental Free Trade Area (AfCFTA) Secretariat, said the three-year ‘Agriculture Trade Action Plan’, was created to ensure better distribution of food products and solve enduring food insecurity for producers, processors and consumers across the continent.

“The continent of Africa in the last few years has been undergoing a food crisis. Africa has the grains but we continue to be a net food importer.” The Secretariat would leverage on the “technical skills,” and “the expertise of AGRA combined with trade tools to enable movement of agric products across the African continent.”

“The main objective is to reduce the cost of food import bill in Africa,” he added.

On its website, AGRA says it is an African-led institution focused on scaling agricultural innovations that help smallholder farmers to increase incomes, live better, and improve food security.

Mene said the Secretariat had spent the last three years working on the plan that is expected to “reduce the cost of food and help to develop agro processing industries. Ministers of trade will adopt it and take it to heads of state for adoption,” he said.

Alice Ruhweza, president of AGRA said the partnership was about “virtual water.”

“When we trade maize, citrus and processed dairy across borders, we’re also trading the water we use to produce them,” she said “And by integrating our markets, water-abundant regions can nourish water-scarce regions,” she said.

AGRA and the AfCFTA said they will commit to protecting food systems from drought and floods, by linking food corridors and food baskets into agro-processing zones that utilise sustainable water management

“We will empower smallholder farmers to ensure the free trade prosperity reaches farmers and youth who farm our land and protect our streams,” they promised, with the end goal being that “ no child goes to bed hungry.” “Let this partnership prove that when Africa trades with itself, it feeds itself,” Ruhweza said.


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NDPC Orders Probe into Temu over Alleged Data Privacy Breaches

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February 17, 2026

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Nigeria Data Protection Commission (NDPC) has launched an immediate investigation into the data processing activities of popular e-commerce platform Temu, amid allegations of violating key provisions of the Nigeria Data Protection (NDP) Act.

Dr Vincent Olatunji, National Commissioner/CEO of NDPC, personally directed the probe following mounting concerns over Temu’s handling of personal data, including issues of online surveillance, accountability deficits, failure to uphold data minimisation principles, lack of transparency, inadequate duty of care, and questionable cross-border data transfers.​

Preliminary inquiries by the commission reveal that Temu, a fast-growing global online marketplace, processes personal information belonging to approximately 12.7 million data subjects within Nigeria alone, while boasting 70 million daily active users worldwide. These figures underscore the platform’s massive reach and the potential scale of any non-compliance with local data laws.​

In a stern public advisory, Dr Olatunji warned data processors engaging in activities on behalf of controllers to rigorously verify their partners’ adherence to the NDP Act, stressing that failure to do so could expose them to direct liability under the legislation.​

The investigation was formally announced by Babatunde Bamigboye Esq., CDPRP, NDPC’s Head of Legal, Enforcement and Regulations, who emphasised the commission’s commitment to safeguarding Nigerians’ privacy rights in the digital age.​

This action fits into NDPC’s broader enforcement drive against data mishandling in Nigeria’s booming tech sector. Just last year, the commission probed over 1,369 firms for similar infractions and launched sector-wide audits targeting fintechs and other high-risk processors. Earlier cases included investigations into the National Identity Management Commission (NIMC) over alleged privacy lapses and Optasia for data rights violations.

Experts view the Temu probe as a signal of heightened regulatory vigilance, particularly for foreign platforms tapping into Nigeria’s vast consumer base without full alignment to local laws. “Cross-border transfers without safeguards pose real risks to data sovereignty,” noted one digital rights advocate, speaking anonymously.

For millions of Nigerian shoppers drawn to Temu’s bargain deals, the development raises urgent questions about the security of their personal details, from payment information to browsing habits. NDPC urged affected users to monitor official channels for updates and report suspicious activities.

As the investigation unfolds, processors across the e-commerce ecosystem are bracing for potential audits, with non-compliant entities facing fines, operational curbs, or forced data localisation under the NDP Act.

NDPC reaffirmed its mandate to enforce compliance, promising swift action to protect citizens in an era of pervasive data-driven commerce.


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Leo Stan Ekeh Foundation, Zinox Group To Invest 10B on 1000 University Tech Scholarships for Indigent Nigeria Wiz-kids

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February 16, 2026

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By Eunice Omokaro

Africa’s foremost tech icon and Chairman of Zinox Group,  Leo Stan Ekeh, who turns 70 on February 22, this year, has explained why he is not celebrating his 70th birthday with a mega party, preferring to offer University scholarships to additional 1000 Nigerian indigent wiz-kids to study Computer Science in Federal Universities so that the country’s private and public sectors could have a new generation of tech wiz-kids to support the growth of the economy.

Leo Stan Ekeh Foundation, Zinox Group To Invest 10B on 1000 University Tech Scholarships for Indigent Nigeria Wiz-kids

Leo Stan Ekeh

He anticipates that these students who will not be bonded, shall disrupt global wealth equation in favour of Nigeria and defend our tech independence. Selection shall be based on a minimum Intelligent Quotient and age nationwide, and they shall be schooled and exposed beyond tech to become global Tech Citizens.

Speaking on phone, Ekeh said “Each shall have a tech mentor from year one, as I plan a partnership with Computer Society of Nigeria and every vocation they shall be engaged resourcefully. Beneficiaries shall be from poor homes and those with parents who earn below Government Level 10 and its equivalent in the private sector. The first batch starts this September, and I expect each to earn first class degree. This is my Group of companies’ and my little way of appreciating my country, individuals and corporates that gave us the opportunities in the last 40 years and still patronizing our Tech Group – Task Systems, TD Africa, Zinox Technologies, Konga etc. If we are successful with this spiritual mandate, I can then celebrate my 100 years on earth with a bang. With God and AI, I am aiming to make 120 years,” he said.

Ekeh, a largely humble and private person not known for celebrating birthday milestones, explained that rather than throwing a lavish birthday party befitting his newly attained septuagenarian age, he has chosen with his Group’s Management to provide world-class tech human capital to support growth of the nation’s economy.

“We need quality and tech-savvy wiz-kids who can drive the future of government and e-governance and those who will become change-makers in the private sector.

“I have been blessed and bruised in this country and I thank God. Frankly, I don’t see enough Nigerian tech wiz-kids who can defend the massive development anticipated in the next 5 – 10 years in the oil and gas, banking, agriculture, manufacturing, mining, entertainment, etcetera, and public sectors. We are becoming slaves in our own country in a knowledge century which is unfortunate. We are all arrogantly living just for today, forgetting that only four God-anointed tech wiz-kids can alter the GDP of this country in five years. The man who controls your tech resources decides your profit level and how far your country and corporations can grow in this second quarter of the 21st Century and in future,” he said.

Ekeh, who was once decorated by President Olusegun Obasanjo as ‘Icon of Hope’ on Nigerian Independence Day in 2003, for his tech-driven transformative impact on Nigerian economy and the youths, said Nigeria must begin to plan for the disruptions coming.

“The future is here but very fragile and disruptive, it’s either you are something or nothing at all. No middle ground. We need to alter the digital trajectories of our people. Technology is realistically the only profession in the world today that can alter the destiny of brilliant and humble kids from poor families and position them as huge wealth creators and sustainers. Though I am not really from a very poor family, but I am a testimony and shall tell the whole story in my book that shall be published last quarter of 2027. It shall be most revealing.

“This is my additional contribution amongst others to appreciate Nigerians, the Federal Government, sub- nationals and corporations that have been supporting my tech commitments and innovations on this side of the Atlantic,“ the soon-to-be septuagenarian said.

When asked how much it will cost to undertake such gigantic project, he said: “It is a spirit-driven project to thank those who supported and are still supporting companies within the Zinox Group. It has an annual cost that shall run into billions of Naira and my group is committed to it amongst other social responsibility projects like TD Africa Project to produce 10,000 female tech experts out of which 400 have graduated and are fully employed in different corporates in Nigeria. This is a 10-year project with other perks. The full package shall be revealed online on April 22, 2026,” he said.

However, beyond his birthday and the scholarship initiative, Ekeh in the last 40 years has been a worthy role model for philanthropy and a living exemplar of what it means to live for public good. He has been decorated with a lot of local and international awards. His group has trained and retrained over 3000 Nigerians and donated tech centres to over 25 institutions nationwide just to mention a few.

Ekeh was a former mass servant and chorister in his local community Catholic Church at Ubomiri, a sprawling community on the fringes of Owerri, Imo State.

One of his favourite pastimes is to seek out the poor and help them come up the ladder of life. He is an entrepreneur who draws a distinct line between capitalism and welfarism? He believes that capitalism must wear a human face; that profit must not take the place of empathy as no one came with and shall leave this earth with cash.

His philanthropy is not limited by geography. From south to the north, his imprints of charity dot many educational institutions. A couple of years ago, he built a church complete with rectory in his Ubomiri community, the same church where he was once a mass servant.

At the dedication of the church, he recalled in an emotion-laden voice: “My grandfather produced a Reverend Father who was ordained same day with Rev Canon Tansi. My father as a past time was a soloist in this church, and he served God with all his might; I was a mass servant and a member of this choir (pointing to the horde of choristers robed in red outfit). I have never tasted alcohol or smoked since I was born and I don’t know why. It was something that never appealed to me or fascinated me. I believe our good God decided to save me from birth.

“I come from a lineage of people who served God dedicatedly. I think I am a miracle child and was clear who I wanted to be from the day I launched out as a tech entrepreneur. I saw myself as an only Child even though I have siblings and, as an orphan even though my parents were alive and a bit civilized because no person around me even though educated, had tech knowledge to advise me, so I decided to take the pain before pleasure alone.

“I love God and will never hesitate to do anything in the service of God and humanity. I built this church as a mark of God’s special love and mercy towards me. I have the best wife any man would wish to have. She is a super star. She is intelligent, beautiful and unlike some women, she is not expensive and more importantly, we operate on the same tech wavelength. If for any reason I get stuck, she is the one to figure out the solution for me. God blessed me with brilliant and responsible children too. I am grateful to God because He has seen me through the valleys and mountains of life. As a mark of God’s mercy to me, I pay corporate tithes for all my companies. I didn’t read it in the Bible but I do it”, he told the audience.

“God is the architect of my success. As an entrepreneur, I have strategised, stayed up late, made projections but if there was no mercy of God and His grace to help me implement these, there will be no success. God has done me well; even for me to be alive, to come from the family I come from, the village, town, region and country I come from. Most importantly, God has managed me because He gave me a proactive personality, removing all the holes in my life. The temptations are there, you can imagine them. Maybe if I was taking alcohol, I would have been a mental guy. I work an average of 20 hours a day and near zero holidays and I have no health challenges,” he once told some journalists.

For Ekeh, the Forbes Best of Africa Leading Tech Icon, the scholarship for 1,000 Nigerian students remains a tiny drop in the ocean of multitude of philanthropies he has extended to persons and institutions across the continent quietly. Through his Leo Stan Ekeh Foundation (LSEF), his family’s non-profit, and the various companies under the Zinox Group, he has impacted humanity and institutions both in cash and kind, especially human-capital development, upskilling the hitherto unskilled in tech-techniques, institutionalising entrepreneurship in select universities and awarded countless local and overseas scholarships to Nigerians of all tribes and tongues to advance their quest for knowledge.

In the last two years alone, the Foundation launched three entrepreneurship centres at St. Augustine University in Epe, Lagos, Federal University, Birnin Kebbi, Kebbi State, Imo State University (IMSU) etc. The centres had been upskilling young men and women turning them to wealth and job creators, rather than job-seekers. At the IMSU centre, it was a moment of joy for about 200 young Nigerians who were the first set of beneficiaries of a 3-month entrepreneurship boost programme.

They were taught the fundamentals of entrepreneurship by the best coaches and experts drawn from Nigeria, United States and United Kingdom. Not only were they tutored by the best whizzes in diverse fields of human endeavour, they were also kept on a stipend throughout the duration of the programme to augment their weekly commute to the centre. In addition, each trainee was gifted a brand-new Z-pad tablet to aid their learning and upskilling process. Some also received interest free loans to launch their businesses.

What’s unique about Ekeh and his philanthropy is that he does them behind the scene. No cameras flashing. No media buzz. Just humane acts of a man fated for greatness and encased in God’s grace.


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