Economy

Last week, Nigeria’s National Identity Management Commission (NIMC) announced a new solution for Nigerians carrying multiple ID cards to prove their identity: a single General Multipurpose Card (GMPC).

The GMPC is said to serve as both an identification and a payment method, and compared to the nine years it took at least 104 million Nigerians to register for the most prominent form of ID, the National Identification Number (NIN), the new multipurpose card seems to be much easier to obtain.

How? According to NIMC, citizens can apply for the GMPC with their NIN through familiar channels— their respective banks, just like applying for a debit or credit card. They can also apply for the card through the NIMC online portal, or a NIMC office. Once approved, they can pick it up at a designated centre or have it delivered for a fee.

The GMPC eliminates the need to juggle multiple ID cards, and combines verification and financial functionality, due to a collaboration between NIMC, the Central Bank of Nigeria (CBN), and the Nigerian Inter-bank Settlement System (NIBSS).

Zoom out: Nigeria follows in the footsteps of Kenya, trying to roll out multipurpose Identification for its citizens. In October 2023, the Kenyan government introduced a digital ID, the Maisha Namba, also referred to as a Unique Personal Identifier, that will serve as a child’s school ID through primary and secondary education. By adulthood (18), it becomes their national ID, further integrating with essential services like health insurance, social security, driving license, and even death certificates.

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Acquisitions

Since 2020, French Broadcasting group, Canal+, has gradually increased its share in Multichoice, owners of DStv, Showmax, and SuperSport. Canal+ first acquired 6.5% of Multichoice shares in 2020. By 2023, Canal+ had increased its stake to about 32.6%. 

The incremental ownership was Canal+ parent company’s signature move in acquiring companies. According to South African laws, companies must make a mandatory takeover offer after reaching the 35% shareholding threshold. With the law requiring Canal+ to make a takeover bid, the French broadcast giant bid to acquire Multichoice in February, offering the broadcast 105 Rands ($5.6) per share. While the deal was above Multichoice’s current share price of R79, the broadcaster refused the deal, saying it was undervalued. 

Canal+ seems to be taking things up a notch.

The news: Last week, Canal+ upped its stakes in the company offering an all-cash of about 125 rand ($6.6) per share up from R105 ($5.6) which was previously offered. The new deal gives Canal+ about 41% ownership in Multichoice, making the company its largest shareholder. The new deal values Multichoice at 55 billion rand ($2.9 billion). 

Per Bloomberg, Canal+ is in talks with JPMorgan Chase & Co. and Bank of America Corp to prepare a formal offer letter which is due by April. Multichoice is also assembling an independent board to review and advise on the new offer. 

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Banking

Recently, Nigeria’s apex bank, the Central Bank of Nigeria (CBN), set new capital requirements for different bank tiers in the country. Capital requirements are the minimum amount of money that banks are required to have on hand. The CBN said the move was to protect the country’s economy from global shocks and help achieve President Tinubu’s goal of a trillion-dollar economy by 2030.

The new capital requirement ranges from ₦10 billion ($7.6 million) for smaller banks, to ₦500 billion ($380 million) for banks with international operations.

The search for a new fund: As banks around the country race to meet up with the new requirements, Guaranty Trust Holding Company, the parent company of GT Bank, Nigeria’s 5th biggest bank by assets has sought shareholder approval to raise $750 million. GT Bank will raise new capital by issuing new ordinary shares, preference shares, convertible notes, bonds and other instruments.

The caveat: While the bank hopes to protect itself against external and domestic shocks, GT Bank’s new capital injection will dilute the shares of existing shareholders as the bank will be raising money by issuing new shares.

GT Bank is not alone in the search for new funds. Since the CBN announced the new capital requirement, two other banks—Access Bank and First Bank—have been in the market for fresh funds.

This is not the first time that Nigeria’s apex bank has set new capital requirements. In 2005, the CBN upped the minimum capital requirement for banks from ₦2 billion to ₦25 billion, triggering mergers and acquisitions and reducing the number of banks to 25, down from 89. While the CBN has set a hard stop of April 30 for banks to announce fundraising plans, this report suggests that 17 of Nigeria’s 24 banks might not meet the new capital requirements.

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Telecoms

In a bid to implement the free regional roaming regulation, Niger is considering joining Togo in a free-roaming partnership, potentially becoming the fifth country to sign an agreement with Togo. 

In March, representatives from Niger’s telecom regulatory authority explored this possibility with their counterparts in Togo.

Togo is roaming West Africa freely: Togo has signed free roaming partnerships with Ghana, Mali, Benin and Côte d’Ivoire with delegations from Comoros and Mauritania visiting Togo to gain insights from the Togolese regulatory authority, ARCEP prior to Niger’s visit. 

In October 2023, Benin and Togo entered into a memorandum of understanding (MoU) to enable free international mobile network roaming between them. The agreement was scheduled to commence in January 2024.

Subsequently, in November 2023, Ghana’s National Communications Authority and Togo’s communications authority reached an agreement to offer bilateral roaming services The project was set to launch in March 2024.

Furthermore, in December 2023, Togo and Mali finalised a free-roaming partnership, with the respective telecom authorities of both countries signing the agreement last week. According to this arrangement, mobile phone users travelling between the two nations will enjoy complimentary calls for the initial 30 days of their visit.

Togo and Côte d’Ivoire also signed a free roaming agreement in December 2023 with the partnership set to come into effect on February 1, 2024, making calls free for Ivorian users roaming Togo for at least 30 days.

These collaborations follow the elimination of roaming charges in 13 ECOWAS countries as confirmed by the Executive Secretary of the West Africa Telecommunications Regulators Assembly (WATRA) Aliyu Yusuf Aboki who expects this to boost cross-border trade and economic activity. “Businesses will benefit by using their phones for essential tasks like checking prices and communicating with partners, all without worrying about high roaming costs,” he said. 

GITEX Africa returns a second time on May 29–31, 2024, to Marrakech, Morocco, discussing ways to accelerate the continent’s digital health revolution. GITEX is the continent’s largest all-inclusive tech event renowned for uniting the brightest minds in the technology industry. 

Grab your tickets here.

Crypto Tracker

Source:

Coin Name	Current Value	Day	Month
Bitcoin	$64,938	+ 1.66%	– 6.25%
Ether	$3,138	+ 3.11%	– 14.81%
IOTA	$0.22	+ 1.65%	– 35.77%
Solana	$148.09	+ 6.60%	– 21.35%

* Data as of 05:40 AM WAT, April 15, 2024.

Events

• The second edition of TechCabal’s Moonshot Conference is set for October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria. Moonshot will assemble Africa’s biggest thinkers, players and problem solvers on a global launchpad for change. If you want to join the stakeholders in Africa’s tech ecosystem for three days of insightful conversations, then get an early-bird ticket at 20% off. 
• Nigeria’s biggest women-only festival, Hertitude, is back for a third time. For those new to the scene, Zikoko brings all the girls to the yard every year to let their hair down, form bonds and celebrate what it means to be a hot babe. It’s happening on April 20, 2024, in Lagos and will feature everything from talent shows and karaoke sessions to spa services, live music performances and an afterparty. Click here to get tickets.
• Attention all music lovers! On Saturday, May 11, 2024, Zikoko wants you outside for a day of link-ups, games, drinks and live performances at Muri Okunola Park, Lagos. Strings Attached is an opportunity for friends to reconnect, lovers to bond and individuals to make friends and build community. To get a free ticket, download the Onebank by Sterling App and sign up using ZIKOKO as the referral code. You’ll get your ticket in your email once tickets are available. Click here to get the app.

Here’s what you should be looking at

• Layoffs and job security push Nigeria’s tech workers to traditional industries
• Incentro Africa denies laying off staff at the beginning of 2024
• Southern Africa is now the top investment region in Africa, according to private capital report
• Goldman Sachs sees Nigeria’ss naira extending world-beating rally 
• Currency crisis pushes consumer groups from Nigeria

Written by: Mariam Muhammad, Towobola Bamgbose & Faith Omoniyi

Edited by: Timi Odueso

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