E-Financial
The Insecurity of Things
Evolution in technology is enabling more “things” to connect more often around the world, at a pace that’s showing no sign of slowing down.
By 2020, 70 percent of people across the world will be smartphone users and countries in Asia, Africa and the Middle East will account for 80 percent of the new subscriptions.
More people currently have access to a mobile phone than a clean toilet, safe water or reliable energy – and their prevalence is expected to keep growing.
This has led to the inevitable widespread adoption of generic cloud and social technologies in emerging markets with access to freeware or inexpensive public services such as Gmail and Dropbox.
While this holds great opportunity for developing countries, the rapid spread of technology compounds a broader issue concerning infrastructure.
Within the developed world, the fines payable for not protecting personal data are hefty in regulated industries such as financial services and healthcare.
Governments have increasingly woken up to the seriousness of the cyber threat. To keep on top of the risks, more regulators have hardened their stance on cyber security infrastructure.
As cities in developing countries are expanding rapidly, it is likely that infrastructure will not be able to keep pace with their growth nor the increased expectations of their populations. This suggests lower standards of technology governance which can put personal data at risk.
Having said that, developing countries have the opportunity to leapfrog by avoiding the mistakes made by other advanced countries and applying the lessons learned from the development of smart city infrastructure.
If managed effectively, there is huge potential for technology to increase the efficiency with which developing infrastructure can be managed.
The use of big data, the Internet of Things and the ubiquitous nature of smartphones use promise to revolutionize developing cities to become truly smart cities built on safe and secure infrastructure.
The line between the digital and the physical world is blurring. Action to close the infrastructure gap has never been more important and will heavily influence the potential of risks with catastrophic cascading effects.
Securing the infrastructure – it starts at enrolment
In developing markets, where new players are able to gain early access, influence consumer behaviour and acceptance, it is easy to see how the systems established for payments will be under pressure by “quick and easy access”.
It could result in a weakening of the process, enabling non-credible players to enter the payment ecosystem.
It’s vital for secure infrastructure to be built from the ground up to minimise vulnerabilities and to keep pace with technological advancement.
EMV, widely known for its chip & PIN application, is a global security payment standard that serves as the foundation for future payment technologies, across cards, contactless, mobile and remote payment channels.
Already deployed in 150 countries, it is fundamental to building secure payment infrastructure. EMV technology allows dynamic data to be created, making each transaction unique and virtually impossible to replicate.
While research shows a 200 percent growth in transactions originating from mobile devices in 2015 compared to 2014, EMV has still not taken root in some of the world’s developing economies. Its effectiveness as a first line of defense is clear – with significant adoption of EMV transaction penetration (chip card on chip terminal transactions) in Africa and Middle East (61.2 percent), Canada, Latin America and the Caribbean (71.7 percent) and Western Europe (83.5 percent).[3]
Employing a multi-layered security approach for any organization is what will lead to decrease in fraud.
EMV is just the beginning. To ensure our consumers can benefit from the same level of safety in the digital world, we are basing our future payments products on proven technologies like M/Chip that significantly reduce counterfeit fraud.
M/Chip features in mobile phones will be a key component of emerging devices. The MasterCard Digital Enablement Service or MDES is our core platform for provisioning M/Chip-enabled payment devices with tokenized payment credentials.
MDES together with M/Chip provides the same level of EMV-like security and interoperability for the digital world as we have in the physical world
In addition, 3D Secure Standard is an automatic online security service that secures you against unauthorised use online. It uses a private code that gives added protection when you shop at participating online merchants.
Government adoption of secure technology can also be a part of the solution.
In Egypt, with 85 percent of the population lacking access to formal banking, the mobile phone is rapidly becoming the method of choice for making payments and managing money.
The Central Bank of Egypt issued strict mobile payment regulations to guarantee safety and security for people, resulting in significant reduction in fraud.
This is indeed a necessity considering that the mobile penetration in Egypt is currently at 115 percent of the total population, meaning that some people have more than one phone.
Similarly in Thailand, the government is taking active steps to improve cybersecurity for electronic transaction on mobile phones. Being the second largest smartphone market in Southeast Asia, the country is pursuing its ambition to become a cashless society.
Here, the government is relying on biometric technology to prove people’s identity via mobile phones as a means to reduce fraud. Like Egypt, Thailand’s saturated mobile phone market is relied upon heavily for payments and money transfers.
Nigeria is another example of how deploying secure infrastructure has resulted in huge benefits to the country’s development. Nigeria’s National Identity Smart Cards are embedded with biometric identification chips and electronic payment capabilities, another example of biometric technology being employed to curb fraud. The introduction of the chips helped reduce fraud from counterfeit cards and transactions in Nigeria.
Adapting known solutions for a digital world
The security solutions that already exist in the physical world are ready to be implemented in the digital world. We just need the motivation, regulation and coordination to ensure everyone is able to benefit, wherever they are in the world. The alternative, in today’s unregulated environment of the Internet of Things development, could be a thing of security nightmares.
Working in partnership with those who can make a difference is vital to remain one step ahead and change the current mindset from one that sees security innovations as optional, to one that recognises they are an absolute necessity.
Through the right global standards, best products and services, and our desire to constantly innovate, we can ensure everyone is protected and financially included everywhere, which will ultimately define and defend the future of payments.
Access Holdings Plc has received the approval of its shareholders to raise additional capital of up to N40 billion or such other amount or their equivalent in foreign currencies, via private placement.
The shareholders gave the approval as part of the special resolutions at Access Holdings Plc Extraordinary General Meeting (EGM) held on Thursday December 18.
In a notice to the Nigerian Exchange Limited (NGX), Access Holdings said the new ordinary shares created in connection with the private placement, will be allotted at a price of N20.25 to one or more investors in such tranches and on such terms and conditions as shall be determined by the Board.
Access Holdings Plc Board of Directors is authorised to consider, negotiate, approve, and finalise the list of potential private placement investors; determine the structure, valuation, modalities, and timeline for the private placement.
The Board was also authorised to consider, negotiate, approve and finalise the list of potential private placement investors; determine the structure, valuation, modalities and timeline for the private placement.
The shareholders also approved for the issued share capital of Access Holdings Plc to be increased from N26 658 billion to N27.646 billion by the creation and addition of 1,975,308,641 ordinary shares of 50 kobo each ranking pari-passu with the existing ordinary shares of the Company.
Nigeria Customs Service (NCS) has imposed a three per cent surcharge on Deposit Money Banks (DMBs) over delays in the remittance of Customs revenue by designated banks.
The development was disclosed by Abdullahi Maiwada, national public relations officer of the Service, in a statement titled “Nigeria Customs Service Commences Enforcement of Penalties Against Designated Banks for Delayed Remittance of Customs Revenue.”
The agency stated that delays in remitting collected Customs revenue constitute a breach of remittance obligations and negatively impact the efficiency, transparency and integrity of government revenue administration.
Maiwada explained that any Designated Bank that fails to remit collected Customs revenue within the prescribed period will be liable to penalty interest, adding that affected banks will receive formal notifications detailing the delayed amount, applicable penalty and the timeline for settlement.
“The NCS has noted instances of delayed remittance of Customs revenue by some Designated Banks following reconciliation of collections processed through the B’Odogwu platform. Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency and integrity of government revenue administration.
“In line with the provisions of the Service Level Agreement (SLA) executed between the Nigeria Customs Service and Designated Banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.
“Accordingly, any Designated Bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay. Affected banks will receive formal notifications indicating the delayed amount, applicable penalty and the timeline for settlement.”
Maiwada further advised Designated Banks to strengthen their internal controls, ensure strict adherence to remittance timelines and comply fully with the provisions of the SLA.
He reiterated that the Service remains committed to enforcing accountability, safeguarding government revenue and promoting a transparent and predictable financial system in support of national economic development.
“The Service further notes that persistent or repeated non-compliance with the terms of the SLA may attract additional sanctions, including regulatory and administrative measures, as provided under the Agreement and relevant laws guiding Customs revenue collection.
“The NCS reiterates that prompt, accurate and complete remittance of Customs revenue is a fundamental obligation of Designated Banks. Any payment of collected revenue into unauthorised accounts, whether deliberate or erroneous, will be treated as a serious violation and addressed in accordance with the SLA and applicable legal frameworks.
“Designated Banks are therefore advised to strengthen internal controls, ensure strict adherence to remittance timelines and comply fully with the provisions of the SLA. The Service remains committed to enforcing accountability, safeguarding government revenue and promoting a transparent and predictable financial system in support of national economic development,” he added.
The World Bank is set to approve a $500m loan to Nigeria on Friday (today) as part of efforts to expand access to finance for micro, small and medium enterprises across the country, according to Punch.
The proposed facility, titled the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) Project, aims to mobilise private capital and promote innovative financial products for small businesses, according to information obtained from the World Bank.
Negotiations on the loan are ongoing, and approval by the World Bank Group’s board is expected on Friday.
The approval, expected on December 19, 2025, will see the World Bank commit $500m to the project out of an estimated total cost of $2.39bn.
Of the World Bank financing, $400m will be provided by the International Bank for Reconstruction and Development, while $100m will come from the International Development Association.
The Federal Government will be the borrower under the arrangement, with the Development Bank of Nigeria serving as the implementing agency with overall responsibility for managing the funds.
The remaining $1.89bn required for the project is expected to be provided by commercial lenders as unguaranteed financing.
According to the World Bank, the FINCLUDE project will leverage the platforms of the Development Bank of Nigeria and its subsidiary, Impact Credit Guarantee Limited, to deepen credit access for MSMEs.
“The proposed FINCLUDE Project leverages the platforms of the Development Bank of Nigeria and its subsidiary, the Impact Credit Guarantee Limited, to drive inclusive MSME finance,” a document from the World Bank read.
“Through these catalytic institutions, the project will deploy a package of complementary, inclusive, and innovative instruments tailored to the diverse needs of MSMEs in Nigeria.”
The World Bank described DBN as “a partner well known to the World Bank with high implementation capacity and a proven track record in designing and executing complex, innovative projects,” noting that its role would be central to the success of the intervention.
The project is structured around three main components. These include the provision of inclusive and innovative MSME finance products, the de-risking and mobilisation of private capital through partial credit guarantees, and technical assistance aimed at modernising and digitising Nigeria’s MSME finance ecosystem.
Under the first component, the World Bank said the project would provide Tier 2 subordinated capital to eligible financial institutions and support the establishment of an MSME investment fund to deliver equity and long-term debt financing to small businesses.
The bank said this approach would help “crowd-in private capital, test market innovations and promote financial sustainability” within the MSME segment.
Also, the project will offer targeted technical assistance to strengthen the capacity of financial institutions, improve regulatory oversight and modernise the MSME finance value chain linking DBN, lenders and entrepreneurs.
In its appraisal report, the World Bank highlighted Nigeria’s ongoing economic reforms, describing the country as being “in a critical transition.”
It noted that the removal of fuel and foreign exchange subsidies, alongside the unification of exchange rates, had begun to stabilise the economy and restore investor confidence.
“These reforms have improved fiscal space, enhanced FX liquidity, and eased inflation to 18 per cent as of September 2025,” the report stated, adding that growth prospects were strengthening, with the International Monetary Fund projecting 3.9 per cent real GDP growth in 2025.
Despite these improvements, the World Bank warned that access to finance remained uneven, particularly for MSMEs, women and the agriculture sector.
It noted that agriculture accounted for just over five per cent of total bank credit in 2024, while high interest rates and shallow credit penetration continued to constrain lending to smaller enterprises.
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