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E-commerce Boosting the Shift from Cash to Digital Economy

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The impact of e-commerce on the Nigerian economy is getting bigger and increasingly prominent by the day. E-commerce has not only given rise to a league of sophisticated digital consumers, but also a league of digital market entrepreneurs, and lately disrupting the informal retail sector, where activities of market aggregators like Alerzo are giving retailers improved market experience.

Giving credence to this is recent data by Nigeria Inter-Bank Settlement System Plc (NIBSS), which shows that e-commerce brands and fintechs are driving growth in agency banking with Point Of Sale (POS) transactions.

According to the body that tracks payment volumes and value through the Nigeria Instant Payment System and Point of Sales terminals, N53.83tn was transferred through the NIP system, while N1.15 trillion was processed through PoS terminals in the first two months of 2022. It said individuals used electronic channels 86.57% more in the first two months of 2022 than they did in the corresponding period of 2021.

Also, GSM Association, the global body for telecommunication companies, said mobile money transactions hit more than $1 trillion in 2021, with Nigeria and other countries in the Sub-Saharan region contributing N697.7bn to total mobile money value during the year. “Between 2012 and 2021, the number of active agents grew more than 10 times, from 534,000 to 5.6 million, unlocking access to financial services for the most underserved customers,” it said.

Industry analysts have observed this progressive shift away from cash transactions in the economy, which is largely driven by rising mobile internet penetration, investment by banks and other payment-based fintech companies in payment technology infrastructure. “You can’t separate the impact of the e-commerce community from the significant leap in internet based transactions recorded in recent months.

There’s a lot of investment going into this sector; e-commerce companies invest hugely in payment service to give their customers a complete brand experience. Not just that, such investment increases financial inclusion among Nigerians,” said Industry analyst Samuel Elegba.

The Nigerian informal retail sector is a huge market estimated at over $100b, however, transactions in the market are largely done in cash. With B2B e-commerce companies springing up to bridge the age-long digital gap in the sector, the expert said the rate of instant payment and PoS transactions could triple the current figures in the next six months.

“If you look at the channels responsible for the improved data by NIBSS, you will see that they are tools that are very much part of e-commerce services. With the recent rate of inroad by B2Bs into the informal market, these transaction figures will keep increasing monthly, and we could have more than triple the current number of transportations within the next six months.

“Like I do say, informal retail will contribute a lot to Nigeria’s digital economy due to the rate of transactions in that sector. Imagine our digital marketplace with just 20% of the cash transactions in the retail market brought onboard. Products like Alerzopay and others coming in, will surely lead to a major boost in the sector. The overall good in this is that the foundation for the digital economy boom is taking shape,” he said.

According to Per data from research consultancy, Briter, B2B ecommerce ventures in Africa secured more than $256 million in disclosed funding in 2021. Projecting the industry, Statista Digital Market Outlook said e-commerce penetration rate in Africa will continue to increase, and by 2025 reach around 40%, while the overall African market is expected to reach $180 billion by 2025.


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E-Business

OADC Lagos Reinforces Commitment to Local Data Hosting and Digital Transformation @ NDPC’s National Privacy Week Summit

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Open Access Data Centres (OADC) Lagos has reaffirmed its commitment to Nigeria’s data protection and digital transformation agenda through its sponsorship and active participation in the Nigeria Data Protection Commission’s (NDPC) National Privacy Week Summit.

The National Privacy Week Summit, organised by the NDPC, convened policymakers, regulators, technology providers, and industry stakeholders to promote data privacy awareness, strengthen compliance with the Nigeria Data Protection Act (NDPA), and advance conversations around data security, sovereignty, and responsible data governance.

As a sponsor of the event, OADC Lagos demonstrated its continued support for the Federal Government’s drive toward local data hosting and data domiciliation, which are increasingly critical to safeguarding sensitive information, enhancing regulatory compliance, and building trust in Nigeria’s digital economy.

Through its carrier-neutral, Tier III Design certified data centre in Lekki, Lagos, OADC provides secure, resilient, and compliant infrastructure that enables government institutions and private sector organisations to host and manage data locally while meeting international best practices.

Commenting on the engagement, Adesola Adesugba, Country Marketing Manager, Open Access Data Centres Nigeria, said: “We are proud to have supported the Nigeria Data Protection Commission through the National Privacy Week Summit and to stand alongside the government in advancing Nigeria’s digital transformation objectives.

“Strengthening local data hosting and domiciliation is fundamental to national data sovereignty, improved security, and sustainable digital growth, and OADC Lagos remains committed to enabling this future.”

OADC’s participation at National Privacy Week Summit underscores its role as a trusted digital infrastructure partner to government and enterprise, supporting secure cloud connectivity, regulatory compliance, and the long-term development of Nigeria’s digital ecosystem.

Open Access Data Centres is part of the WIOCC Group and operates open-access, world-class data centres across Africa, serving cloud providers, network operators, enterprises, and public sector institutions.


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Kaspersky Launches OT Calculator to Align Cybersecurity Investments with Business Goals

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Kaspersky’s new online tool has been specially developed for industrial organisations to assess the potential costs associated with insufficient operational technology (OT) security.

By offering detailed financial forecasts, the calculator empowers senior management to make well-informed decisions regarding security investments.

Industrial organisations increasingly depend on interconnected systems, elevating cybersecurity to a critical factor in business resilience and profitability.

According to VDC Research, over 60% of industrial companies last year reported that cybersecurity breaches had led to significant costs. Despite this, a persistent disconnect remains between security teams and executive leadership as security professionals focus on minimising risk, while executives must balance cybersecurity concerns with broader business objectives. This misalignment often results in competing priorities and underfunded security initiatives.

To bridge this gap, Kaspersky has launched the OT Cybersecurity Savings Calculator, an innovative online tool designed specifically for industrial organisations to assess the potential costs of inadequate operational technology (OT) security¹.

The primary aim of this tool is to translate cyber risks into tangible financial metrics and support strategic discussions around priorities and budget allocation. By entering details such as their sector, sub-sector, region, company size, breach history, and existing cybersecurity measures, organisations can estimate their potential cost savings and receive customised, actionable recommendations.

The calculator benchmarks performance against industry peers and highlights the company’s position within the current threat landscape.

“We believe this calculator is a powerful resource for transforming complex cyber risk data into straightforward financial insights. It enables OT leaders, security professionals, and executive teams to develop clear, data-driven business cases and recognise the value of cybersecurity investments. With actionable guidance, it promotes a comprehensive approach to resource management and strengthens overall organisational resilience,” comments Andrey Strelkov, Head of Industrial Cybersecurity Product line at Kaspersky.


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Local App Developers Rake $1m in Sales in 2025- NOTAP

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National Office for Technology Acquisition and Promotion (NOTAP) has said Nigerian software developers have reached significant milestones with locally made applications generating over one million Dollar in sales across domestic and regional markets.

Local App Developers Rake $1m in Sales in 2025- NOTAP

Dr Obiageli Amadiobi, director-general of NOTAP, said this in an interview with the News Agency of Nigeria (NAN), on Thursday in Abuja.

Amadiobi said the development signified the growing strength of Nigeria’s digital innovation ecosystem and how local innovation powers digital growth.

She said it was also a direct outcome of targeted support initiatives led by NOTAP.

She added that the initiative helped to build capacity, protect intellectual property, and connect developers to market opportunities.

According to the NOTAP boss, the journey from concept to impact started with understanding and securing intellectual property (IP) rights, a step many local innovators missed.

“Whether it’s a literary work, a laboratory invention, or a creative digital product, the process of bringing an idea to life demands immense time, skill, and dedication.

“An innovator might wake up with a solution to a pressing problem; spend months testing and refining it and achieve remarkable results; so it is their fundamental right to patent that creation and claim ownership.

“Without this protection, someone else could easily replicate their work; patent it in their name; and legally control what was built with Nigerian brainpower,” she said.

Amadiobi said that the challenge was compounded by widespread digital piracy and counterfeiting, which hit the ICT sector hardest.

“From copied software applications to replicated content on social platforms like TikTok, unauthorised duplication has become a major barrier to growth.

“We see talented young creators develop unique digital content or tools, only to watch others rebrand and profit from their work within weeks,” she said.

The DG noted that most popular online personalities with distinctive styles often don’t realise they could protect their original contributions through IP registration.

She said that to address these gaps and unlock the value of Nigerian innovation, NOTAP implemented a multi-pronged strategy,- a cornerstone initiative – which is the Local Vendor Policy.

“The Local Vendor Policy mandates that foreign technology firms entering Nigeria partner with domestic counterparts,’’ she said.

Amadiobi said that among the performing apps are solutions addressing critical local challenges such as a mobile health platform that now serves 750,000 users across six states.

“There is also the agricultural marketplace connecting smallholder farmers to buyers; and an educational tool that has been adopted by 200 schools to improve learning outcomes,” she said.

She added that the apps were developed by teams that gained skills and resources through NOTAP’s Local Vendor Policy.

According to her, the policy requires foreign technology firms operating in Nigeria to allocate a portion of their technical service fees to local partners.

“Three years ago, many of these developers were only providing support services to foreign companies.

“But today, they are building their own products that compete globally. 60 per cent of last year’s sales came from other African countries, showing our developers can lead on the continent,” she said.

The D-G explained that the one million dollar figure represented sales from over 50 locally developed apps, with individual developers earning between 5,000 dollars and 80,000 dollars from their products.

“Looking ahead, NOTAP aims to double these sales figures by 2027, with plans to expand support to developers focusing on fintech, renewable energy management, and climate adaptation tools.

“These are the sectors identified as high-growth opportunities for Nigerian innovation,’’ Amadiobi said


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