E-Financial
Mobile Money Agents Decry High Rate of Decline PoS Transactions in August
Mobile money and banking agents at the hinterland have decried high rate of decline transactions they experienced last month compared to other months.
Some of the agents that spoke with Nigeria Communicationsweek lamented that about 50 per cent of their Point of Sale terminal transactions in the month under review where declined, heightening lack of confidence in the reliability of the use of PoS in the agency banking business.
Fasasi Sarafadeen Atanda, managing director, Partner de Ecosystem – an agent network management company, said: “almost 50 per cent of our PoS transactions failed in the August and the implication of this situation is dwindling customer trust. I think this was caused by switching and card processing factors. We look forward to a better service in September.”
Olowu Babs Azeez, chief executive officer, OBAT Global Investment, corroborated Atanda on downtime experienced by agents last month. “That could be true because I could remember NIBSS and Interswitch was down certain time. Although some agents that are not on the same switch trunk were having successful transactions.
Explaining the major cause of decline PoS transactions especially at the hinterland, Babatunde Obrimah, chief operating officer, Fintech Association of Nigeria, said that decline in PoS transactions are mostly network issues. “So if local network is not stable transactions are not likely to even get to NIBSS which is the aggregator.
“I think investigation has to start with Telecommunications services. Not impossible that with more people working from home, there is an increase in usage putting pressure on existing infrastructures.
“So, I think we need to increase and upgrade existing infrastructures such that if network is adequate, transactions can be consummated.
“Agents need to also document these declines so that the data is made available to NIBSS and they should be able to track and confirm if the transactions actually got to their network or not. Unless we are sure of where the problem lies, it may be unfair to blame NIBSS as the problem,” he said.
Emmanuel Agha, managing director, Innovectives- a Super-Agent in the financial inclusion ecosystem, attributed decline in transaction with a PoS device to some factors such as when the customer did not put the right parameter as required by the device, these include wrong Personal Identification Number or customer account number.
“More so, there could also be a decline in transaction when the customer’s bank cannot be reach, this has to do with connectivity issues that is provided by telecommunications operators,” he added.
E-Financial
Banks Lose N10Bn to Cyber Fraud in 2023’
Stakeholders in the banking and financial ecosystem, yesterday, decried the surge in cyber fraud as Deposit Money Banks (DMBs) lost N10 billion in the second quarter of 2023, representing almost 300 per cent year-on-year compared to the previous year.
At a Mastercard forum convened to tackle fraud and cybersecurity threats in the financial sector, Kari Tukur, vice president, Customer Solutions Centre, East and West Africa at Mastercard, said despite the massive awareness and innovations aimed at combating cybersecurity, the amount lost last year by DBMs was “staggering”.
She said, “With Nigeria’s rapidly growing economic expansion, we are starting to see an increase in the adoption of digital financial services, and the financial landscape is also evolving at an astronomical speed.
“What was staggering for me was in spite of the huge investment around innovation, funding in the cyber space, DBMs lost almost N10bn in Q2 last year, and that was almost 300 per cent growth year-on-year when compared to the previous year.”
She noted that there was the need for collaboration among stakeholders “to combat this rising sophistication of cyber security threat.”
Tukur further stated that Mastercard was deeply committed to cyber security and fraud prevention within the payment industry, disclosing that the company invested $250m “to assist small businesses in addressing their cyber security needs.”
She disclosed that Mastercard payment portals incorporated multiple layers of security such as tokenisation technology, encryption and biometrical to stay ahead of cyber attackers.
She added that, “The sector continues to struggle with the aforementioned challenges, necessitating vigilance, proactive action and comprehensive security strategy, and Mastercard remains committed to providing safe, secure and seamless payment services and experiences for our partners and customers in Nigeria and beyond.”
Celestina Appeal, chairman, Committee of e-Business Industry Heads (CeBIH), stated that the total loss to the banking industry in the last couple of years totalled hundreds of billions of naira while Nigeria’s Consumer Awareness and Financial Enlightenment Initiative had projected a $6trn loss by 2030 to cybercrime within and outside Nigeria.
Represented by Mr Temitope Onibaniyi, secretary of the committee, she stated that the committee was ever-willing to collaborate with industry stakeholders to fight against the perpetrators who “constantly rob banks and other stakeholders in the payments industry of their hard-earned money.”
She said the need for collaboration could not be overemphasised as no individual organisation was immune to cyber security attacks.
E-Financial
Tinubu Rejigs SEC Board, Makes New Appointments
President Bola Tinubu has approved the appointment of some Nigerian professionals to the Board of the Securities and Exchange Commission (SEC).
This is contained in a statement issued by Ajuri Ngelale, special adviser to the President on Media and Publicity.
Tinubu appointed Mr. Mairiga Aliyu Katuka as the Chairman of the board of SEC, while Mr. Emomotimi Agama has been appointed as the Director-General of the board.
The president also appointed Frana Chukwuogor as Executive Commissioner (Legal and Enforcement) of the board.
Tinubu further appointed Mr. Bola Ajomale as the Executive Commissioner (Operations) of the board, while Mrs. Samiya Hassan Usman is the Executive Commissioner (Corporate Services) of the board.
Also appointed into the board are Mr. Lekan Belo as Non-Executive Commissioner and Mr. Kasimu Garba Kurfi as Non-Executive Commissioner.
According to Ngelale, the president anticipated that “all members of the Board of this critical commission will bring to bear their wealth of experience and competence in advancing the commission’s core mandate of developing and regulating a capital market that is dynamic, fair, transparent, and efficient, to bolster investor confidence and contribute immeasurably to the nation’s economic development.”
E-Financial
Ecobank Repays $500m Eurobond
Ecobank has announced the successful repayment of its $500 million five-year Eurobond issued in 2019. According to a statement filed on the Nigerian Exchange Limited (NGX), the Eurobond garnered considerable interest from a diverse range of global investors, including long-term development partners such as FMO and Proparco, who served as anchor investors.
Commenting on this achievement, Ecobank Group Financial Officer, Ayo Adepoju, said: “The bond was listed on the main market of the London Stock Exchange with a coupon rate of 9.5 per cent. The principal and interest repayment, totalling $524 million, was distributed to bondholders through the transaction agent on the bond maturity date of April 18, 2024.
“This inaugural bond we are retiring today was critical in introducing our firm to a wider array of global investors and contributed to the increased visibility of our brand in the capital markets.”
Against the backdrop of challenges posed by the global operating environment, including disruptions in the world supply chain and financial markets, Adepoju highlighted the Group’s resilience. He cited strong liquidity, a robust balance sheet, and a solid leadership team as key factors enabling Ecobank’s success.
He added that the successful repayment of the Eurobond underscores Ecobank’s commitment to financial stability and investor confidence, positioning the firm for continued growth and success in the global market.
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