General News
Oil Prices: OPEC No Longer in Charge
The failure of the cartel partners in the Organization of the Petroleum Exporting Countries (OPEC) to agree to a production cut that would put a brake on plummeting crude prices show that the cartel may have outlived its usefulness, NY Times has suggested
The greatest beneficiary is the United States where since the economically crippling oil embargo of 1973, every American president has pledged to seek and achieve energy independence.
On Friday, the benchmark American price for crude oil continued the free fall that began on Thursday, closing at $66.15, its lowest price in more than four years.
The inability or unwillingness of OPEC to act showed that the cartel was no longer the dominating producer whose decisions determine global supplies and prices. Suddenly, the United States — which is poised to surpass Saudi Arabia as the world’s top producer, possibly in a matter of months — is in that position, although the resiliency of that new command must still be tested.
“This is a historic turning point,” said Daniel Yergin, the energy historian. “The defining force now in world oil today is the growth of U.S. production. The outcome of the OPEC meeting is a clear indication that the oil exporters now recognize that this is a new market.”
For decades, the United States faced dwindling domestic production and rising demand, leading President George W. Bush to call on the country to get off its “addiction” to imported oil. But around eight years ago a few small oil companies began experimenting to produce oil from hard shale rocks in North Dakota and Texas, using hydraulic fracturing — fracking — and horizontal drilling techniques that proved effective in producing natural gas a few years earlier.
Domestic oil production has soared more 70 percent over the last six years, to roughly nine million barrels a day. The country is still a net importer, but with production growing by more than a million barrels a day every year, it is importing less and less almost every month.
Imports from OPEC producers have been cut by more than a half in recent years, forcing increasing competition among Saudi Arabia and other exporting countries seeking to replace the American market with Chinese and other Asian markets. That has produced more cracks in an organization in which competition between Saudi Arabia and Iran is already fierce.
That remarkable global turnaround has been a windfall for the United States, helping keep inflation in check, lower the trade deficit, strengthen the American dollar and bring relief to consumers.
On Friday, Americans paid an average of $2.79 a gallon for regular gasoline, according to the AAA motor club, nearly 50 cents less than a year ago.
For David Goldwyn, the State Department’s coordinator for international energy affairs in the first Obama administration, OPEC’s decision not to cut was “strategic .”
“What we have now is a yearlong game of chicken,” he said. “The Saudis are waiting to see how much U.S. production adjusts because of prices and they are waiting to see how much pain the other major oil producers can take before they are willing to make meaningful cuts.” Referring to the global oil benchmark, he added, “If Brent sinks below $60, I think you will see OPEC hit the panic button pretty fast.” That would mean an extraordinary OPEC meeting, and emergency cuts in production.
The Brent price has fallen more than a third since June and closed on Friday at $70.15 a barrel.
For OPEC producers like Venezuela and Iran, the tumbling price in oil has produced economic hardship and potential political problems.
Venezuela and Algeria contend that OPEC needed to band to together to cut production and raise prices. But Saudi Arabia has by far the most sway in OPEC, since the kingdom produces roughly one-third of OPEC output alone. It also has the financial muscle and spare capacity to lower or raise production whenever the Saudi royal family deems necessary.
Saudi Arabia resisted calls for lower production mainly because the countries that were most vociferous in calling for cuts would be the countries least able to actually cut their production since their cash-short governments are dependent on more, not less oil revenue.
And there was no guarantee that a cut in OPEC production would raise prices. Even if it did, that would only encourage more American output. So far, United States oil production has proved resilient no matter the price.
Even as prices slid in October, production in the Bakken shale field in North Dakota and the Eagle Ford field in Texas — the two primary promoters of the American oil production boom — increased more than 3 percent over the month before.
That is because American producers keep improving the efficiency and output of their wells with new technology, and because in the short run, lower prices can actually encourage companies to produce more to pay debts and dividends.
Energy experts caution that there is no guarantee that the United States will permanently keep its new powerful edge on world markets. Eventually, low oil prices will drive down production in higher-cost fields, drive marginal companies that are deeply in debt out of business and encourage major companies to slow down their investment in new wells. Several companies have already shaved their 2015 exploration budgets.
And OPEC has been weakened before, only to stage a comeback. The cartel is still able to produce about a third of the global oil market.
After the oil price spikes of the 1970s, the United States and other industrialized countries raised their strategic reserves, put into effect conservation policies and incentivized oil production. New output from places like Alaska and the North Sea in the 1980s helped produce a glut, sending oil prices plummeting. Saudi Arabia lobbied its OPEC partners for production quota cuts, and the kingdom cut its own production. When other OPEC members failed to comply with the new quotas, prices collapsed in 1986, and Saudi Arabia lost valuable markets for years to come.
OPEC has never completely regained the power it once had, but in the early 2000s, oil prices spiked again primarily because of the rapid growth in demand from China and other developing countries and increasing unrest in several oil-producing countries like Nigeria and Venezuela. With the oil market growing tighter, Saudi Arabia expanded its spare capacity and kept a lid on spiraling prices.
An equilibrium price of around $100 a barrel kept producing and consuming countries reasonably happy. But now the United States production, combined with slowing economic activity in China and Europe, have broken the balance.
“OPEC still has power in that they can still cut production and raise price if they choose to do so,” said Michael C. Lynch, president of Strategic Energy and Economic Research and sometimes an adviser to OPEC. But he added, “They don’t have the same power they once did because so many of the members are in bad financial condition and so it’s harder for them to cut production and lose revenues in the short term to raise prices.”
General News
Nearpays, Nigerian Fintech Becomes First African Startup to Win UN’s AI for Good Innovation Factory
Nearpays, Nigerian fintech, has won the AI for Good Innovation Factory grand finale — the first African startup ever to take the global title in the competition, which runs as part of the United Nations’ AI for Good Global Summit.
The competition drew more than 500 startups worldwide, each pitching AI solutions aimed at social and economic challenges.
The summit itself is organised by the UN through the International Telecommunication Union (ITU) in partnership with several UN agencies, convening governments, researchers, startups, and technology companies around AI’s role in development.
Nearpays’ route to the title ran through Johannesburg, where it won the African regional competition, before advancing to the global finals in Geneva.
There, the company progressed through the semi-finals and claimed the grand finale — a first for the continent.
The company describes the win as bigger than a corporate milestone, calling it a victory for African innovation and proof that technology built to solve local problems can compete, and win, on the world stage.
Nearpays was founded to close a stubborn gap in African payments: small and medium-sized businesses that can’t afford or access traditional point-of-sale terminals.
Cost, availability, and deployment hurdles have kept many merchants — particularly in rural and underserved communities — locked out of digital payments.
Its answer is SoftPOS: an AI-powered platform that turns compatible Android smartphones into payment acceptance devices, letting merchants take contactless card payments with nothing more than their phones. AI is embedded across the platform, supporting payment processing, compliance, fraud detection, and business operations.
Crucially, the platform was built for African infrastructure realities — it works both online and offline, so merchants can keep accepting payments even without internet connectivity.
The company credited its team’s years of product development and customer engagement for the result, and thanked the UN, the ITU, and the AI for Good initiative for building a platform where innovators can apply AI to real-world problems.
It also said it hopes the win encourages more African founders to build technology that answers local needs while competing internationally.
For Nearpays, the title closes one chapter and opens another, as the company pushes on with expanding digital financial infrastructure across Afric
The Lagos State Government has signed four major concession agreements across healthcare, transportation, digital governance and outdoor advertising sectors, paving the way for private sector participation into areas central to the State’s infrastructure and service delivery agenda.
The agreements were signed at a ceremony coordinated by the Office of Public-Private Partnerships, in collaboration with the Ministries of Health, Transportation, Justice, Environment and Water Resources, as well as the Motor Vehicle Administration Agency (MVAA), Lagos State Blood Transfusion Committee (LSBTC) and the Lagos State Signage and Advertisement Agency (LASAA), in Lagos.
One of the key projects is the development of MyLagosApp, a unified digital platform designed to make government services more accessible to residents and visitors.
Under a 10-year concession agreement, LA Crème Nigeria Limited, with technical support from MTN Nigeria, will design, finance, build, operate, maintain and transfer the platform. Once operational, it will provide users with seamless access to a wide range of government services, including payments, traffic updates, emergency support, business information and tourism resources through a mobile application.
The State also signed a 20-year concession agreement with Anchor Advisory Partners for the full automation of the Lagos State Motor Vehicle Administration Agency (MVAA).
Reflecting on the significance of the agreements, the Special Adviser on Public-Private Partnerships, Mrs. Bukola Odoe, said the projects demonstrate how strategic partnerships can translate government policy into tangible improvements in the lives of Lagosians.
She added, “Government is at its best when it is practical – when policy leaves the boardroom and shows up in the hospital ward, at the licensing office, on the commuter’s phone and along the streets of our city. That is what today is about.”
In his response, Mr. Oluwaseun Osiyemi, Commissioner for Transportation, commended all stakeholders who contributed to the successful execution of the agreements.
He also noted that the signing reflects the State’s determination to continually improve public service delivery, adding that residents would begin to experience the benefits as implementation progresses across the various sectors.
By John Kokome
In today’s business environment, success is no longer determined solely by the quality of a product or the sophistication of technology. Increasingly, it is shaped by how effectively an organisation communicates, especially in periods of uncertainty. For fintech companies operating in Nigeria and across Africa, communication has become as critical as innovation itself.
The world has become what strategists describe as a VUCA environment, volatile, uncertain, complex and ambiguous. Economic shocks, fluctuating exchange rates, changing regulations, cybersecurity threats, misinformation, and evolving customer expectations have made the financial services landscape more unpredictable than ever. In such an environment, silence creates suspicion, while poor communication erodes trust. For fintech brands whose business model depends almost entirely on trust, getting communication right is no longer optional; it is existential.
Unlike traditional banks that have spent decades building institutional credibility, many fintech companies are relatively young. They rely on digital interactions rather than physical branches. Customers often never meet anyone representing the company. Every notification, social media post, customer service response, email, and public statement, therefore, becomes an opportunity either to strengthen or weaken confidence.
The collapse of several global crypto platforms, periodic payment service disruptions, and increasing incidents of digital fraud have made consumers more cautious than ever. Users now ask difficult questions before trusting any financial technology platform. Is my money safe? Is my data protected? Can I rely on this platform during periods of market uncertainty? The answers are communicated not only through actions but through consistent, transparent and timely messaging.
Communication during crises often separates resilient brands from those that struggle to recover. Too many organisations still believe that crisis communication begins when a system fails or when negative stories trend online. In reality, crisis communication starts long before a crisis emerges. It begins with building credibility over time.
When service interruptions occur, as they inevitably will in any technology-driven business, customers rarely expect perfection. What they expect is honesty. They want prompt acknowledgement, clear explanations, regular updates, and realistic timelines for resolution. Delayed responses or corporate jargon often inflict more reputational damage than the technical failure itself.
The same principle applies to regulatory communication. Nigeria’s fintech ecosystem continues to evolve under the guidance of regulators seeking to balance innovation with consumer protection. Policy adjustments, licensing requirements, compliance directives, and foreign exchange reforms frequently affect operations. Fintech companies must resist the temptation to hide behind legal language. Instead, they should translate regulatory developments into simple, customer-friendly information that explains what is changing, why it matters, and what customers need to do.
Equally important is internal communication. Employees are often the first ambassadors of any organisation. During uncertain economic conditions, staff members also seek reassurance about business direction, leadership decisions, and organisational stability. When employees receive little information, rumours fill the vacuum. Companies that communicate openly with their teams are more likely to maintain morale, improve customer experience, and protect their reputation.
Another defining feature of the VUCA economy is the speed at which misinformation spreads. A single misleading social media post can trigger panic withdrawals, damage investor confidence, or create unnecessary anxiety among customers. Fintech brands therefore require active reputation management, digital listening, and rapid response mechanisms. Waiting for mainstream media to pick up a story before responding is increasingly a costly mistake.
Beyond crisis management, communication should also educate. Financial literacy remains relatively low across many parts of Africa. Many customers still struggle to understand digital payments, cross-border transactions, digital assets, savings products, or cybersecurity risks. Fintech brands that invest in continuous customer education position themselves not merely as service providers but as trusted financial partners. Educational communication creates confidence, drives adoption, and builds long-term loyalty.
Leadership visibility also matters. In uncertain times, people trust people more than logos. Founders, chief executives, and senior executives should communicate regularly, not merely during product launches or fundraising announcements. Thought leadership, media engagements, stakeholder dialogues, and community participation help humanise brands and reinforce credibility.
Perhaps the greatest communication challenge for fintech companies is balancing optimism with realism. Marketing campaigns naturally celebrate innovation and growth. Yet credibility demands acknowledging challenges while demonstrating preparedness. Customers are increasingly sophisticated; they recognise exaggerated promises and quickly lose confidence when expectations are not met.
As competition intensifies across Africa’s digital financial services industry, product differentiation alone will become increasingly difficult. Features can be copied. Pricing can be matched. Technology can be replicated. Trust, however, remains a durable competitive advantage, and trust is built through consistent communication.
The fintech brands that will thrive in this VUCA economy will not necessarily be those with the most sophisticated applications or the largest funding rounds. They will be those who communicate with clarity, consistency, empathy, and transparency. In an era where confidence is currency, effective communication is no longer a support function; it is a strategic asset that can determine whether a fintech brand merely survives uncertainty or leads through it.
John Kokome is the Corporate Communications Manager at FlashChange, a fintech platform redefining secure digital asset exchange. With experience across fintech, cryptocurrency, telecoms, and development communications in Africa. He currently leads strategic storytelling, reputation management, and stakeholder engagement initiatives at the company, focusing on building trust, transparency, and financial literacy in the digital assets space.
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