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Expert Canvasses Further Down-sizing of Insurance Firms

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As the financial sector continues to reap the gains of consolidation initiated by the Charles Soludo- led Central Bank of Nigeria (CBN) insurance stakeholders are agitating for further down-sizing of registered insurance companies, with a view to strengthening them like the banks. While acknowledging the fact that the present level is a big achievement, considering the weedy level prior to consolidation, Barrister Olugbenga Tobe, insurance and pension consultant has called on the National Insurance Commission (NAICOM) and the ministry of finance to commence another round of consolidation, which would further reduce the number of operators to fifteen mega insurance companies nationwide. He stated that such exercise would not only financially empower the operators, but would engender public confidence which has eluded the industry over the years. He applauded the fact that the insurance consolidation boosted the industry image, having reduced the number of registered insurance firms from the over 100 pre- recapitalization level to the present 50. He however added that it was the needed move to further consolidate insurance business in Nigeria and boost the confidence of the insuring public, especially if the growing confidence in the sector is to be sustained.
While reflecting on the challenges facing the industry over the years, he explained that poor public image, sharp practices such as rates-cutting and perceived negative public views that insurance companies often repudiate from paying claims to the insured are some of the issues which have impacted negatively on the industry.  The consultant stressed “going by the last mandatory recapitalization, insurance companies that are rendering life insurance had an N2bn minimum requirement, while non-life was pegged at N3bn and N10bn for the reinsurance companies.”
This, he said was a  “significant lift from the hitherto low level where the highest  capitalized insurance company in Nigeria  could not even fit into the categories of the poorest in the world.”
He said even now, the highest capitalized insurance companies in Nigeria even though it has risen sharply through private placement, are still within the bracket of  the weak ones in the world, going by the industry international standard. The insurance consultant explained that the best way to address the contending issues in the industry is to merge operators of like minds, while combining   to raise their capital base, adding that the present number of registered operators which stand at 50 should be further reduced to a maximum of twenty.
He explained that the present large number is still not good enough for the industry; stating  that with fewer companies, rate-cutting will be eliminated, while corporate governance will be deeply entrenched for the over-all growth of the industry. While emphasizing that he was not advocating for a deregistration of the present operators, he opined that mergers and acquisition will lead to mega insurance companies that can compete anywhere in the world. He emphasized that this would give the industry a competing edge with banks instead of the present trend where banks are dictating the pace in the financial market.
Tobe called on operators to close rank and adhere strictly to the rules of insurance business.  For instance, he said, “If all members of the Nigerian Insurance Association (NIA) take sustainable steps to address the key issues confronting the industry, a decisive step to shun rate- cutting, it could be eliminated once and for all.
He said merger and acquisition has helped the developed economies to come out of their woods, stressing that Nigeria cannot be different. He said going by our current standard, there is no way any Nigeria insurance company can meet the rating of global rating agencies like Standards and Poor and Fitch Rating Agencies.
“For Nigeria insurance companies to get to the level of international companies, it would need to merge and recapitalize continually.” he said. 

 


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Identy.io Targets Nigeria, Kenya in Its Africa Expansion Strategy

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Nigeria and Kenya are the next target markets for Identy.io, a global provider of digital identities, as it expands into Africa. Facial, fingerprint, and palm identification are among the safe, mobile biometrics that the company specialises in.

According to Indenty.io, its platform runs locally on smartphones, eliminating cloud storage while maintaining security and privacy.

It goes to say this is achieved by leveraging standard smartphones for fingerprint and face scans, the company aims to bridge the continent’s digital divide, where a significant number of adults still lack basic identification.

To spearhead this rollout, the firm has appointed a specialised regional leadership team, including industry veterans from Nigeria’s Bank Verification Number programme, to integrate their automated Biometric Identification System into national digital public infrastructure.

The company says the significance of this move lies in the departure from traditional, “clunky” biometric models.

Historically, digital ID enrollment in Sub-Saharan Africa has been throttled by the high cost of specialised scanners and the logistical nightmare of deploying them to rural areas.

Identy.io notes that its approach shifts the heavy lifting to mobile software.

Identy.io is positioning itself to capture a market the World Bank’s Identification for Development initiative identifies as critical for financial inclusion.

If successful, this could accelerate government-to-person payments and healthcare access in regions where coverage currently sits below 70%.

“We are transforming the traditional industry model, which often relies on expensive and inflexible digital infrastructure,” says Antony Vendhan, Co-founder of Identy.io. “This allows our clients to reach underserved communities by providing individuals with multimodal access to secure their digital identities.”

The company will face established players like IDEMIA and Thales, who have long dominated government contracts.

Furthermore, Identy.io will face competition from up-and-coming regional fintech identity firms such as Smile ID, which already has a significant presence in Know Your Customer services throughout Africa.

To gain an edge, Identy.io has aligned itself with Modular Open Source Identity Platform (MOSIP).

By being listed on the MOSIP marketplace, the company says its tech becomes “plug-and-play” for governments building open-source national ID systems, a growing trend among nations wary of “vendor lock-in.”

While the primary focus remains on Nigeria and Kenya, Identy.io’s long-term roadmap includes a phased rollout to other emerging markets.

 


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Russia Blocks WhatsApp, Pushes State App Max as Alternative Amid Telegram Clampdown

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Russia has confirmed the blocking of popular messaging platform WhatsApp, directing its citizens to switch to the state-backed Max messenger, in a move escalating restrictions on foreign digital services.

Russia Blocks WhatsApp, Pushes State App Max as Alternative Amid Telegram Clampdown

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The decision, announced by Kremlin spokesperson Dmitry Peskov on Thursday, stems from WhatsApp’s parent company Meta’s alleged failure to comply with Russian laws, though specifics were not disclosed. This action follows days after authorities intensified curbs on Telegram, another widely used app among millions, including military personnel, officials and state media.

Peskov described Max as “an affordable alternative on the market for citizens, a developing national messenger,” emphasising its role in replacing non-compliant foreign platforms. WhatsApp, owned by Meta—which also operates the already banned Facebook and Instagram—responded sharply, accusing Moscow of attempting a full block to force users onto a “state-owned surveillance app.” The company stated: “Trying to isolate over 100 million users from private and secure communication is a backwards step and can only lead to less safety for people in Russia,” vowing continued efforts to reconnect users.

The block is not isolated. Earlier this week, Roskomnadzor, Russia’s communications regulator, announced further restrictions on Telegram for refusing to remove “criminal and terrorist” content, throttling its performance nationwide. Telegram founder Pavel Durov countered that such pressures would not deter the platform’s commitment to “freedom of speech and privacy.” This builds on prior measures, including August 2025 restrictions on video and voice calls on both WhatsApp and Telegram to combat criminal activity, which WhatsApp then decried as access limits.

Max, developed by VK and launched in beta in March 2025, positions itself as a WeChat-like super-app with messaging, voice/video calls, group chats up to 1,000 users, cloud storage, end-to-end encryption for private chats, payments via Russia’s Faster Payment System, and integrations for government services and identity verification. Since September 2025, it has been pre-installed on all new smartphones, tablets and smart TVs sold in Russia, alongside the RuStore app store, as part of a broader “sovereign internet” strategy to monitor communications and replace Western tech amid geopolitical tensions.

Users report partial WhatsApp access via VPNs, but Russian authorities have ramped up countermeasures, restricting 439 VPN providers and enacting a September 2025 law banning ads for bypass tools while deeming VPN use an “aggravating circumstance” in crimes. Fines for individuals deliberately accessing blocked content via VPNs reach 5,000 rubles (about $64). Critics warn these steps enhance state surveillance, while state media insists Max requires fewer user data permissions than rivals.

The clampdown reflects Moscow’s long-running push for digital control, with over 60 percent of VPN users previously accessing banned social media. As Russia promotes domestic alternatives, the moves could reshape communication for its 100 million-plus messaging users, raising global concerns over privacy and internet freedom.


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Nigeria Market Powers Jumia’s Momentum as E-commerce Platform Demand Accelerates

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Nigeria powered Jumia Technologies AG’s strongest growth in 2025, cementing its position as the company’s most important market as rising consumer demand, SME activity and logistics expansion boosted performance across the e-commerce platform.

In the fourth quarter of 2025, Jumia’s Nigeria operations recorded a 50% year-on-year increase in Gross Merchandise Value (GMV) and a 33% rise in orders. The performance highlighted growing adoption of online shopping and Jumia’s increasing relevance to African consumers.

Nigeria’s momentum helped drive 36% year-on-year GMV growth and 34% revenue growth across the group in the quarter, alongside a 26% increase in quarterly active customers. Growth was supported by stronger customer retention and higher order frequency.

Beyond sales growth, Jumia said its Nigeria operations are delivering wider economic impact. The platform supports thousands of local SMEs, enabling them to reach customers nationwide, while continued investment in fulfilment centres and last-mile delivery is creating income opportunities for logistics partners and sales agents.

Efficiency gains were also evident. Fulfilment costs per order declined 12% year-on-year, contributing to a 39% reduction in operating losses and a 47% drop in adjusted EBITDA losses in the fourth quarter. Cash used in operating activities fell sharply to $1.7 million, compared with $26.5 million a year earlier, while liquidity stood at $77.8 million at year-end.

Temidayo Ojo, Chief Executive Officer of Jumia Nigeria, said the results reflect growing trust from consumers and businesses. “Nigeria is central to Jumia’s growth,” Ojo said. “Each order supports local sellers, delivery partners and jobs, while improving access to affordable products for consumers.”

For the full year, Jumia reported 14% GMV growth and 13% revenue growth, with losses narrowing significantly. Looking ahead, the company expects Nigeria to remain a key growth driver as it targets 27–32% GMV growth in 2026 and aims to reach adjusted EBITDA breakeven by the fourth quarter of 2026.

 


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