General News
Digital merchant payments can help de-risk local business environments: here’s how
By Murray Gardiner, Managing Director, Bluecode Africa
Over the course of the past 12 months, the world has learned a lot about uncertainty. The financial space is no exception, having gone through the kind of ructions not seen in nearly a century. As governments around the world look beyond recovery and towards avoiding a similar crisis, financial regulators will look to take the risk out of their local financial markets and payment systems.
The Covid crisis has highlighted the risk of an increasingly perilous debtor book. This usually implies increasing capital adequacy and provisioning requirements and increasing the audit and fraud detection controls. Further consolidation can be expected. But one particularly poignant impact has been related to fraud with the spike in online transactions. Securing online payments and mobile banking channels has never been more urgent.
Tightening credit and doubling down on legacy payment security will have an economic dampening effect as African markets plunge into recession. A powerful tool that regulators have to respond to this crisis is by encouraging in-country digital merchant centric payments to focus on stimulating the local SME and informal business sector. Doing so not only improves the efficiency and security of payments, the digital transparency deepens the relationship between banks and business which in turn is good for consumers and producers alike.
Benefits from SMEs to Financial Institutions
One of the biggest benefits in-country digital payments have when it comes to de-risking local business environments is that they bring a greater degree of transparency and formalisation of the financial relationship between the bank and the SME.
In the SME space, for example, the advantages include contactless payments, instant access to funds on acceptance of payment, and digital transparency with their acquiring bank. The digital transparency and reliability of the in-bound receipts from digital payments to the acquiring bank promotes access to a wider range of financial services (insurance, savings, credit facilities, EFT payments) and establishes a business track record with suppliers and other service providers. A bank that can see the SME’s cash flow and rely on regular inbound payments can safely extend credit and other essential services that it could not reasonably do otherwise.
It also gives businesses a chance to open new sales channels, such as e-commerce and sales agent networks, and to offer value-added services to promote customer loyalty, sales campaigns, and partner programmes.
Importantly, these measures bring a greater degree of stability to these businesses and their workers, further helping the economies they operate in to reduce risk.
Financial institutions, meanwhile, benefit by being able to use digital transparency and data to understand the business and reduce lending risk and cost, increasing the size of the addressable market. Technology reduces the transaction costs associated with onboarding merchants as customers and creates a data-rich relationship that turns a thin file client into a data-rich client that is bankable. Digital merchant payments are a gateway to more comprehensive and conclusive finance to support and stimulate the productive economy.
Regulation and incentivisation
This is why it is important that governments embrace digital merchant payments on account rails, away from cards in a local scheme governed by local rules. This is a gateway to more comprehensive and meaningful finance to support growth and development of the productive economy.
It is often cited that digital disruptors run ahead of legislation by finding ways around the rules that were not anticipated when the rules were designed. The South African Reserve Bank has recently warned about a new activity with “Instant EFT start-ups that use a practice called “screen scraping” where a third-party is given access to a consumer’s bank account data and acts on behalf of said-consumer, using that consumer’s online banking access credentials to simulate instant clearing.
It’s important that regulators protect consumers and the confidence the public has in digital payments and needs to set parameters for the kind of digital payments adopted in their markets. Payments must be safe and customer data must be protected. But the payment also has to be sufficiently valuable to merchants and profitable enough for the financial institutions to build a meaningful commercial financial relationship bringing the merchant into the formal economy and create a merchant customer.
Minimising risk
While it’s impossible for regulators to totally eliminate risk particularly from unpredictable “black swan events” such as we have experienced in 2020, they can prepare payment systems for shocks and defend financial markets by encouraging transparency and financial inclusion with secure account rail digital payments.
While in-country digital merchant payments are just one measure, their use is one of the most powerful ways of generating growth in the local economy and “lighting up” the shadow economy. Ultimately, a local digital payment on the account rail can prove vital to a more comprehensive and conclusive impact to stimulate the productive economy.
National Information Technology Development Agency (NITDA) has reaffirmed its commitment to promoting indigenous technology operators, dismissing allegations that it encouraged the deployment of fake locally made personal computers.
Responding to accusations from the Certified Computer Manufacturers of Nigeria (CCMON) regarding the alleged spread of counterfeit locally produced PCs, NITDA stressed that it limits government IT contract registration to firms with at least 51 percent Nigerian ownership.
The agency stressed that it aligns with the Federal Executive Council–approved “Renewed Hope Nigeria First Policy” of May 2025, which prioritises Nigerian-made goods and mandates foreign procurements only when no local alternative exists.
NITDA said it is also investing in talent development through its Office for Nigerian Digital Innovation (ONDI), supporting startups, SMEs, and training public servants to meet global standards.
Addressing the “SpeedStar PC saga,” NITDA clarified that the project in question dates back to 2019, and any hardware faults after six years of use cannot be attributed to the agency.
Meanwhile, Beta Computers makers of the SpeedStar PC and a founding member of CCMON has petitioned the Ministry of Communications, Innovation and Digital Economy over the alleged deployment of counterfeit SpeedStar units by NITDA contractors.
In an April 3, 2025 petition, Will Anyaegbunam, managing director, Beta Computers’ accused certain contractors of sabotaging presidential directives on patronising locally made computers.
He claimed that despite repeated requests since August 2024, NITDA has refused to reveal the identity of the contractor linked to counterfeit SpeedStars supplied to an institution in northern Nigeria.
Anyaegbunam further alleged possible collusion within the agency and vowed to pursue legal action to protect the brand’s equity, which has been trademarked since 1996.
Beta Computers has also filed a Freedom of Information request to obtain the names of all contractors who supplied SpeedStar PCs to Gombe State University and other institutions since 2019.
Airtel Nigeria has taken another bold step in its digital transformation and quality of service drive with the launch of Airtel Assist, a WhatsApp-based self-service chatbot designed to offer real-time support to millions of the network’s customers.
Built to meet the growing needs of today’s digital consumer, Airtel Assist provides round the clock full-service experience that allows customers to check balances, buy airtime or data, make secure payments, troubleshoot issues, and access personalised assistance all from the convenience of WhatsApp.
At the core of this innovation is Airtel Nigeria’s commitment to putting people first, ensuring customer experiences are faster, more intuitive, and deeply personalised.
Speaking on the launch, Airtel Nigeria CEO, Dinesh Balsingh, said, “This is Airtel meeting Nigerians exactly where they are, on platforms they trust and use every day.
With Airtel Assist, we are adapting technology at the personal level. It’s fast, secure, and always available, designed to serve real people with real needs, in real time. As a company with a constant focus on customer satisfaction, this is one of the ways we make customer care more accessible.”
The new chatbot highlights Airtel’s continued integration of AI-powered tools to scale service delivery, reduce wait times, and maintain secure customer interactions, solidifying its position as a customer-first, innovation-led brand in Nigeria’s telecom landscape.
It also demonstrates the company’s clear ambition to lead innovation in Nigeria’s telecom sector by adopting tools that are secure, scalable, and inclusive.
To emphasize this perspective, Ismail Adeshina, Director of Marketing at Airtel Nigeria, noted that Airtel Assist was developed with both convenience and empathy in mind.
Ismail said, “Everything about Airtel Assist is designed to simplify and enhance the way our customers engage with us. Whether it’s to check data balance in the middle of a conversation, buying data while commuting, or resolving issues after hours, Airtel Assist is always available, right there on their phones.”
Meanwhile, the product’s intuitive design and ease of use is a demonstration of adaptive technology, adapted for the nuances of local consumers, added Oyebowale Akideinde, Head of Digital Products & Innovation.
“With Airtel Assist, we’re unlocking a human way to connect on one of Nigeria’s favourite digital platforms: WhatsApp! You can now recharge, check balances, and get help instantly,” he said. He also noted that all Airtel subscribers may activate Airtel Assist by sending a WhatsApp message to +2348028800000 or clicking https://wa.me/2348028800000.
By bridging the gap between digital sophistication and everyday convenience, Airtel Nigeria is setting a new benchmark in customer care, one that puts the power of self-service, choice, and real-time resolution into the hands of every user.
Reported cyber attack on the Information Communication Technology (ICT) platform of the Nigeria Customs Service (NCS) has caused significant disruptions to cargo clearance operations at ports across the country.
Licensed Customs agents are already counting their losses to demurrage charges on their consignments as a result of the disruption.
Confirming the development, Mr. Maiwada Abdullahi, spokesman and assistant comptroller of Customs, told Vanguard that the attack occurred sometime ago, adding however, that the system has been restored.
He stated: “Yes, our platform was attacked some time ago, but it has been rectified and is now fully operational. We have strengthened our systems to ensure that cybercriminals will find it much more difficult to penetrate in the future.”
Regarding potential compensation, Abdullahi disclosed that discussions are ongoing with several stakeholders on the matter and hinted at possible relief measures for importers whose goods were delayed during the system outage.
Reacting to the development, Mr. Lucky Amiwero, president, National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA), said that there is a default in the new B’Odogwu home grown ICT platform being promoted by the Customs.
Amiwero also said that the same glitch being experienced also occurred before the B’Odogwu initiative.
He, however, lampooned the Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, (NACCIMA), for their docile stand against happenings at the Port.
He stated: “The government needs to overhaul the newly introduced B’Odogwu ICT platform, there are defects that needs to be corrected.
“The same defects that was experienced during the era of West Blue before Ngozi Okonjo Eweala who was the Finance Minister at that time intervened, is the same issue currently affecting the B’Odogwu system.
“The glitch has resulted to huge demurrage, huge storage charges, distortion in business plan and high cost of clearance.
“Manufacturers Association, Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) are all there doing nothing. They cannot even react to the situation. All they do is to hold conferences.
“These groups ought to be at the Vanguard of protest against these anomalies rocking the port industry but they chose to keep quiet as if all is well.”
Similarly, Mr. Olawale Odu, an importer and licensed Customs agent, said that the government through the Nigeria Customs Service should engage terminal operators and shipping companies to find a way to assuage the losses to importers by granting them waivers.
NITDA Reacts as Firm Petitions over Deployment of Fake PCs
Airtel Nigeria Launches ‘Airtel Assist’ on WhatsApp
Cyber Attack Hits Customs Platform, Disrupts Clearance Operations
ATU, AFRINIC Urge Governments, Regulators to Develop Internet Resilience Framework
NDPC, Bauchi State Partner to Boost Data Governance
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