E-Financial
Covid-19 Digital Converts Are the New Army that Arose from a Pandemic – Ogungbade
If the COVID-19 outbreak felt like a terrible dream to you, you are not alone! The rude awakening to the fact that the disease might be with us for a while is a new reality we all have to grapple with.
What started as some distant news in faraway China has suddenly transformed into a constant threat for those in major African cities as a clear and present danger.
Beyond the hazard that the COVID-19 disease poses to our health and wellbeing, it has also wreaked complete havoc on our economies, stemming from the practice of social distancing and stay-at-home orders that have extinguished the fuel of commerce – social interactions.
Businesses, forced to close their brick and mortars, as well as governments across the world that declared lockdown to keep people safe at home, were unprepared for continuity. Conversely, online retailers and service providers experienced a massive rise in earnings as more people embraced digital commerce for essentials in preference to the risky infection-prone visit to the grocery stores or supermarkets.
Worldwide, lives have been upturned, business models have either collapsed or pivoted, with people unsure of their finances and future. With an estimated reduction in Africa’s GDP by up to -1.1% (Source: AUC,2020) and -3.4% in Nigeria’s GDP due to COVID-19, the once socially distant African economy has started to experience the ramifications of the pandemic due to globalization.
Leon C. Megginson, an American author, and Professor of Management, once said that “it is not the strongest or the most intelligent who will survive, but those who can best manage change.”
This saying holds true more than ever in Africa today, with the emergence of CDCs (COVID-19 Digital Converts), a term coined and used by Tunde Ogungbade, the Managing Director of Global Accelerex. He used it to describe the new set of consumers coming online due to the impact of COVID-19 in Africa and perhaps beyond the continent.
Speaking recently at NIBSS Fintech Webinar, Tunde explained how these late entrants to anything digital – the CDCs – are taking an expedition into a digital financial services lifestyle because of the pandemic. The CDCs have been forced to embrace change to survive due to the unprecedented challenge and scale of the global pandemic.
In the business world, no one ever imagined a situation where staff of organizations and SMEs would be compelled to work from home, on lockdown away for an extended period from business gatherings and events. With these corporate and other restrictions on physical gatherings in compliance with social distancing norms, never before have there been an appetite for virtual meetings and events like we see today.
Businesses with products and services enabled for this new virtual reality for social interactions have experienced a dramatic increase in patronage and revenue. Business Insider reports that the Founder of the video conferencing app, Zoom, Eric Yuan, joined the Forbes’ billionaire list in April 2020, following a 135% increase in the company’s shares.
And the reason is not far-fetched. The company experienced 20X participant growth, making it the platform of choice for many people across the world who had to move their meetings, learning, or fraternizing online.
We have even encountered some exciting improvisations: players in the entertainment industry resorting to virtual concerts and games! Online education has been available for more than a decade and without mainstream adoption. COVID-19 changed educational content delivery globally.
And in the corporate environment, while nothing is more desirable than physical training for corporate staff, there is a significant surge not only in the providers of online training but also in the number of participants due to risk of infection.
There has been a boom in agency banking, online retail businesses, online healthcare consultation and e-commerce. Unprecedented but sustainable business models have either emerged or are fast emerging and will shape the future of businesses in Africa.
The swell in online purchases during the pandemic is proof that more online payments are being made. Without a doubt, COVID-19 has done a better job of convincing previously skeptical Africans to embrace digital payments as the new normal.
With more physical bank branches closed in a bid to reduce the potential spread of the disease, customers were compelled to explore digital payment alternatives. This indicates that COVID-19 has been a critical driver of the African CDCs’ venture into digital financial services. CDCs are likely the best tech evangelist in comparison to the billions of dollars spent by financial service providers to achieve the same result.
The best times are ahead for Fintechs in Africa. COVID-19 has compelled industry players to go back to the drawing board to rethink products and solutions that solve real problems for a post-COVID-19 Africa.
We foresee a future of hybrid products and solutions to address, not only financial inclusion problems, but other challenges in health, agriculture, education, and essential but neglected sectors pre-COVID-19. Without any doubt, COVID-19 Digital Converts (CDCs) are here to stay.
Ecobank Transnational Incorporated announced its plan to raise up to $250m in Additional Tier 1 capital through a private placement of contingent convertible notes.
In a statement filed on the Nigerian Exchange Limited recently, the capital raise was approved by shareholders at the company’s Extraordinary General Meeting held in Lomé, Togo. The private placement offer was launched on July 9 and will run for ten days.
“Following the approval of the shareholders at its Extraordinary General Meeting held on May 28, 2025, in Lomé, Togo, to raise up to $250m in additional Tier 1 capital qualifying instruments via a private placement of contingent convertible notes, Ecobank Transnational Incorporated announces the launch of the AT1 effective July 9, 2025, for ten days. Renaissance Capital Africa has been appointed as the transaction adviser to ETI.”
The move is an initiative aimed at strengthening Ecobank’s capital adequacy, enhancing financial resilience, and supporting its long-term growth ambitions across its diversified pan-African banking platform.
Additionally, Madibinet Cisse, Ecobank’s Company Secretary, said, “This proposed capital raise represents a critical step in our efforts to fortify the bank’s financial foundation and support sustainable growth across Africa.”
It would be recalled that Ecobank Transnational Incorporated, the parent company of the Ecobank Group, has raised an additional $125m through a Eurobond tap, bringing the total size of its 2029 notes to $525m.
Ola Olukoyede, chairman, Economic and Financial Crimes Commission (EFCC), has announced that the body has recovered lost funds from the CBEX fraud scheme.
Olukoyede did not announce the amount recovered, but he assured Nigerians that the EFCC is taking action against the promoters of the scheme.
The EFCC Chairman emphasised that the suspects found are facing prosecution.
“We have found a lot of people culpable. Those who promoted that scheme are within our jurisdiction and have been arrested. So, at this moment, they are being prosecuted. And we can also say that money has been recovered, even though the process is still ongoing for us to finally forfeit it,” he said.
Olukoyede also urged Nigerians to exercise caution when investing their resources into online platforms.
“Ponzi schemes remain one of the most pervasive threats facing unsuspecting investors. The CBEX case is a clear example. We all remember the outcry that followed the collapse of the scheme, but these unfortunate situations are preventable. Nigerians must begin to conduct due diligence before committing their resources to such platforms,” Olukoyede said.
He also stressed that the body remains committed to fishing out the culprits and recovering the lost funds.
“It was only when the bubble burst that people wanted EFCC to perform magic and recover their money. In the case we investigated in Lagos, which we dubbed Operation Flush, we arrested a large number of foreigners involved in various cybercrimes, including CBEX. I want Nigerians to know that as of today, we have secured close to 150 convictions. Some of them are already serving their jail terms. And when they are through with that, we are going to send them back to where they came from. So we are monitoring them,” he added.
He urged the public to stay vigilant, assuring them that the body will see the case to the end.
“We are no longer the EFCC that drops cases halfway. Whatever we start, we will finish. Nigerians should trust us and believe in our capacity to do justice. Some of these cases are complex and may require cross-border investigations, but we are up to the task,” he said.
E-Financial
Financial Fraud in Nigeria Surges by 45 Percent, 70 Percent of Losses Linked to Digital Platforms – CBN
Central Bank of Nigeria (CBN) has raised the alarm over a significant rise in financial fraud cases in the country, revealing that fraud surged by 45% within one year, with 70 Percent of the resulting losses traced to digital channels, particularly unregulated virtual asset platforms.
Olayemi Cardoso, governor, CBN,
This was disclosed by Olayemi Cardoso, governor, CBN, in a speech delivered on his behalf by Muhammad Sani Abdullahi, deputy governor for Economic Policy, at a public lecture organized by the Economic and Financial Crimes Commission (EFCC) on Thursday in Abuja.
He added that findings from the CBN’s Financial Stability Report 2024 reveal a sharp increase in fraud.
“The CBN Financial Stability Report 2024 reveals a 45% surge in financial fraud cases, with 70% of losses linked to digital channels, including unregulated virtual asset platforms. Furthermore, over 30 Ponzi-style investment schemes exploiting digital currency narratives have been flagged by the SEC and other agencies.
“These developments pose major risks, including loss of consumer confidence, weakening of financial integrity and reputational challenges for Nigeria in the global financial system.
“In Nigeria, over $56 billion in crypto-related transactions were recorded between July 2022 and June 2023, making us Africa’s digital transaction leader. But this growth is not without consequences,” Cardoso stated.
Cardoso noted that while digital innovation has enabled broader financial inclusion, it has also introduced complex regulatory and security challenges.
“The present era of rapid technological transformation has made the adoption of digital financial services in Nigeria, including cryptocurrencies and tokenized investments, increase exponentially.
“The surge in digital innovation has brought benefits, such as greater financial inclusion and also given rise to complex challenges, such as fraud and money laundering,” he stated.
Emomotiti Agama, director general, Securities and Exchange Commission (SEC), emphasized the growing risks posed by virtual asset fraud to investor confidence and market integrity.
“Corruption remains a significant impediment to Africa’s economic growth, social development, and investor confidence.
“Today, as digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams, exploiting unsuspecting investors.
“These threats undermine market integrity, erode trust, and divert resources meant for sustainable development,” he said
Agama reiterated the SEC’s dedication to enhancing investor protection through increased education and awareness on how to identify and avoid fraudulent schemes.
He also emphasized the Commission’s efforts to update regulatory frameworks in response to emerging risks in virtual assets and digital investments, while promoting international cooperation to tackle corruption and illicit financial flows.
Malam Lanre Issa-Onilu, director general, National Orientation Agency (NOA), commended the EFCC for its efforts in combating financial crimes. He warned that the human cost of fraud extends far beyond the financial system.
“Experience has shown that deception is foundational to fraud, and if its impact goes far deeper, it undermines citizens’ confidence in their country. Every Naira lost to fraud causes far-reaching effects.
“It is about a child pulled out of school, a livelihood ruined, and an enterprise destroyed. These crimes are not abstract. They affect people, and our country pays dearly for it.”
He said the NOA had launched a nationwide campaign against the “get rich quick” mentality among Nigerians.
“At the National Orientation Agency, we believe that value orientation is our most powerful tool. That is why we launched a nationwide campaign several months ago against the spread of get-rich-quick syndrome. The initiative is helping all Nigerians, especially young people, to understand that lasting success comes from honesty and hard work, and it takes time.”
Hussaini Ishaq Magaji, registrar general, Corporate Affairs Commission (CAC), stressed the need for regulators, institutions, and stakeholders to remain vigilant and proactive in addressing emerging threats such as fraud, money laundering, and financial manipulation.
Magaji noted the CAC’s ongoing collaboration with the Securities and Exchange Commission (SEC) and other sector-specific regulators to strengthen corporate governance and enforce compliance, ensuring transparency and accountability within Nigeria’s financial ecosystem.
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