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.
Space in Africa, the Lagos-based firm Oniosun founded, is expecting its Egusi melon seeds to splash down in the Pacific Ocean Saturday—fresh from a trip to the International Space Station.
Once Earthside, experiments will begin on what is being hailed as the first food native to West Africa to be sent to space.
As Oniosun told AFP on Friday, it could herald an era where space exploration reflects the planet’s diversity.
“When we talk about humans colonizing other planets, this is not just an American mission or a European mission—this is a global mission,” he told AFP.
And future African space explorers might enjoy a taste of home.
Experiments on extraterrestrial food, which is to say tested in space, have been going on for years.
Growing food in space is seen as a crucial part of long-distance space flight and long-term missions, where frequent resupply won’t be feasible.
Scientists at the University of Florida in the United States, and the International Institute of Tropical Agriculture, in the southwestern Nigerian city of Ibadan, will examine the seeds “to see the effects of exposure to space” and zero gravity, including on the seeds’ DNA.
Once planted, researchers will monitor their post-space performance and germination.
The seeds went up to the ISS on a SpaceX flight last week, as part of NASA’s partnership with private firms.
Oniosun said the inclusion of Egusi seeds marked an important step forward, both for those on Earth as well as future astronauts.
High in protein, they are typically used to prepare soups and stews across West and Central Africa.
Africa’s most populous country has a small space industry, but the launch of the seeds seemed to generate more excitement on social media and in newspapers than previous launches of Nigerian satellites, he said.
“The moment that we’re sending food that they love, a food that holds significant cultural contexts to Nigeria… everybody starts getting interested in the subject,” Oniosun told AFP.
“The launch of Egusi melon seeds into space is more than a symbolic gesture,” he added.
“The future of humanity among the stars must reflect the diversity and richness of life on Earth.”
Whether pounded yam—the key dish served alongside Egusi soup—will make its way to the final frontier remains to be seen.
In a powerful demonstration of its commitment to the Renewed Hope Agenda of the present administration of President Bola Ahmed Tinubu GCFR, the National Information Technology Development Agency (NITDA) has launched the second cohort of the IgniteHer Bootcamp for Women Entrepreneurs, a strategic initiative aimed at accelerating gender inclusion and economic empowerment through digital innovation.
The bootcamp, themed “Empowering Women Entrepreneurs for Growth and Innovation”, was launched in partnership with the Japan International Cooperation Agency (JICA) and brought together selected women entrepreneurs from across Nigeria, both physically and virtually, for rigorous training in digital skills, innovation management, business development, and investor readiness.
The NITDA Director General, Kashifu Inuwa CCIE, who declared the bootcamp open, reaffirmed the Agency’s role in aligning Nigeria’s digital development with the national priorities of reforming the economy for sustained inclusive growth and accelerating economic diversification through industrialisation and digitisation.
“Through IgniteHer, we are actualising President Bola Ahmed Tinubu’s Renewed Hope Agenda by expanding women’s access to technology and economic opportunity,” he stated.
The DG, who was represented by the agency’s Acting Director of the Digital Literacy and Capacity Building department, Dr. Ahmed Tambuwal, noted that inclusive innovation is a cornerstone of NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0: 2024–2027), which supports national aspirations for inclusive growth, poverty eradication, and youth empowerment.
“We are not merely imparting skills; we are creating self-reliant entrepreneurs, change-makers, and leaders,” he added.
Inuwa disclosed that the IgniteHer Bootcamp is also a key component of the National Gender Digital Inclusion Strategy (NGDIS), through which NITDA is working to empower 12.7 million Nigerian women with digital literacy skills by 2027. He averred that the programme complements broader government efforts to bridge gender gaps, enhance productivity, and reduce unemployment, especially among young women.
Citing a report by the World Wide Web Foundation, the DG emphasised that closing the digital gender gap in Nigeria could unlock an estimated $13 billion in GDP growth over the next decade.
“This training is a step towards harnessing this economic potential and ensuring that women play an integral role in shaping the digital landscape of Nigeria,” he noted.
He therefore called on participants selected from over 12,000 applicants to seize the moment and shape the future of Nigerian entrepreneurship.
While highlighting NITDA’s leadership in strategic partnerships, the DG commended JICA and the Government of Japan for their ongoing collaboration in supporting digital empowerment through programmes like IgniteHer and the iHatch Incubation Programme, which provides startup support, mentorship, and innovation development to early-stage entrepreneurs.
“At NITDA, we believe that inclusive innovation is not just an ideal but a critical strategy that ensures the growth of a stronger economy, the development of smarter solutions, and the existence of more resilient communities. Through IgniteHer, we are dismantling barriers and replacing them with pathways to opportunity,” he concluded.
In his remarks, the Japanese Ambassador to Nigeria, Matsunaga Kazuyoshi, reaffirmed Japan’s long-standing commitment to innovation and gender inclusion in Nigeria. He announced that Japan, through JICA, is currently supporting two grant projects worth $30.9 million, focused on improving Nigeria’s startup ecosystem, strengthening the investment climate, and building an inclusive innovation hub.
The Ambassador also referenced the upcoming Tokyo International Conference on African Development (TICAD 9), themed “Co-create Innovative Solutions with Africa”, as further testament to Japan’s dedication to deepening Africa-Japan cooperation on digital transformation and entrepreneurship.
Lead Facilitator of IgniteHer, Hajiya Hafsat Salabi-Dange, described the programme as a catalyst for social and economic transformation. While praising NITDA’s visionary approach to development, she stated that the programme is a movement that is bridging the digital gender divide and fostering economic independence.
Encouraging the participants to remain curious, intentional, and bold, she said, “What you will gain here goes beyond business; it is a tool for community upliftment, national growth, and generational impact.”
Nigerian Air Force (NAF) and Nigerian Communications Satellite (NIGCOMSAT) Limited have entered into a strategic alliance aimed at advancing operational effectiveness, sovereignty, and sustainability through space-based innovations.
This was during a courtesy visit by Jane Egerton-Idehen, managing director and chief executive officer of NIGCOMSAT, to Air Marshal Hasan Bala Abubakar, chief of the Air Staff (CAS), at the NAF Headquarters in Abuja on Wednesday, August 7, 2025.
According to Air Commodore Ehimen Ejodame, director of Public Relations and Information, Headquarters, Nigerian Air Force, discussions during the meeting focused on leveraging NIGCOMSAT’s satellite capabilities to enhance the NAF’s mission-critical functions, particularly in the areas of secure communication, real-time intelligence, surveillance, and reconnaissance.
Both parties acknowledged that the future of national defence lies in digital dominance and home-grown technological solutions.
Abubakar stressed the urgent need for indigenous systems to support the evolving demands of modern air operations.
“We must continually seek innovative ways to improve our capabilities and reduce reliance on foreign systems.
Strategic collaboration with institutions like NIGCOMSAT is essential to ensure secure communication and real-time situational awareness across our theatres of operation,” the CAS said.
In her remarks, Egerton-Idehen praised the Air Force’s proactive approach and expressed NIGCOMSAT’s readiness to support the military with tailored satellite solutions that align with national security objectives.
“This partnership is not only timely but critical in strengthening Nigeria’s digital defence infrastructure.
NIGCOMSAT stands ready to deploy its expertise in support of the Nigerian Air Force and contribute meaningfully to national security,” she said.
Both organisations reaffirmed their shared commitment to advancing Nigeria’s security architecture through the use of indigenous space technologies.
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