Economy
Kenya Tops Nigeria in Mobile Money Transfers
By Modupe Gbadeyanka
Latest data from Central Bank of Kenya has shown that Kenyans moved a record $33 billion via mobile money platforms such as Safaricom, Airtel or Mobikash in 2016, up from $27.8 billion from the previous year.
However, Nigerians moved N756 billion or $2.4 billion in the same period under review, though Nigeria surpassed Kenya using other electronic platforms.
It was gathered that despite the economic downturn in Nigeria last year, over N56 trillion, about $177 billion was moved through the electronic channels in the Nigerian financial system.
The surge in mobile money transactions in Kenya by about $6 billion consolidates the country’s global position in the use of the technology that has revolutionised its financial sector.
The volume of cash transacted on the platform surpasses Kenya’s 2017/2018 budget, which is estimated at 25 billion dollars, underlying the role of the service to citizens and the economy.
In 2016, mobile money use peaked at $3.1 billion per month in December, according to the regulator’s data, up from $2.6 billion last year.
Christmas and New Year festivities normally give mobile money use a boost as Kenyans send and receive various amounts of cash from their loved ones.
On the opposite, the least transactions during the period were carried out in January, with Kenyans moving $2.4 billion.
Kenyans on average transacted during the period $2.7 billion a month up from $2.3 billion in the previous year.
Kenyans use mobile platforms to perform a range of financial services that include making money deposits, remittance delivery, payment of bills, withdrawal of cash and access of micro-finance credit.
Therefore, mobile money has become a necessity in the lives of Kenyans. Many citizens are unable to operate without it.
In the period of review, according to the Central Bank, the number of mobile money subscribers hit 35 million from 31.6 million in 2015, which means only less than 10 percent of the country’s people has not subscribed to mobile money.
The number of agents during the period clocked 165,908 from 143,946 at the end of 2015 as the sector continued to be a key employer.
Monthly transactions similarly swelled considerably, with East African nation citizens making over 146 million transactions a month from 107 million in 2015.
Kenya has six mobile money service providers namely Safaricom, Airtel, Orange, Equitel, Tangaza and Mobikash.
Safaricom’s Mpesa is the most popular, carrying out over 90 percent of the transactions. The company last week partnered with its peers in Rwanda, Tanzania and Uganda to enhance use of Mpesa in East Africa, an indication of expected growth.
The apex bank’s figures paint a healthy picture of growth of mobile money but Treasury has warned that collapse of service poses fiscal risks to the economy since various financial products have been leveraged on the payment channel increasing linkage between the technology and the banking sector.
“If this system was to be compromised, the impact would be substantial considering the linkages and the corporate tax revenue for government. The financial and other institutions linked to this system would be susceptible,” notes Treasury in its budget policy statement for this financial year.
Analysts expect mobile money use to sustain growth in the coming years as companies continue to innovate, people go for paperless transactions and unsubscribed embrace the service.
In contrast to Kenya, mobile money is yet to catch on in Nigeria.
In 2016, N756 billion or $2.4 billion was transacted through the channel. The number of mobile money customers in the country as at the end of last year stood at 5.54 million that are being cared for by 23,877 agents working for 21 Mobile Money Operators (MMO).
Likewise, goods and services worth N759 billion had been paid for using the 112,847 active POS terminals across the country. Payments through e-bills channel had the lowest volume of transactions of one million. Total value of transactions done through e-bills channel for the whole of 2016 stood at N339 billion.
Payments through webpay for 2016 stood at N132.36 billion which was done in 14.09 million transactions. NIBSS said in 2016, it has processed 11.7 million cheques with a value of N5.8 trillion. Corporate cheques accounted for the largest chunk of this figure as 5.9 million Corporate cheques valued at N3.7 trillion had been processed during the year while 2.7 million individual cheques valued at N0.94 trillion was processed.
Nigeria however scored higher in other electronic platforms.
This is asides the cash transactions done over the counter in the banking halls.
Total transactions through electronic payment platforms such as Automated Teller Machines (ATMs), Point of Sale Terminals (PoS), web payments, online transfers and mobile money from January to December last year hit N56.886 trillion.
According to the Nigeria Inter Bank Settlement System (NIBSS) which records and settles all electronic transactions in the country, online payments through the NIBSS Instant Payment (NIP) recorded the highest value, accounting for 67 per cent of total value of transactions while ATMs had the largest volume of transactions.
The value of funds that changed hands through NIP stood at N38 trillion which was done in 154.5 million transactions. On a daily basis, an average of 422,142 transactions had been done through the NIP channel as more Nigerians adopt the cashless policy of the Central Bank of Nigeria.
Total bank accounts held in the country by banks at the end of 2016 rose to 96.22 million from 85.02 million in 2015, while active accounts rose from 58.97 million to 65.48 million by the end of last year.
NAN
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has disclosed that seven additional insurance companies have secured full recapitalisation approval from the National Insurance Commission (NAICOM), bringing the industry-wide recapitalisation exercise to a successful conclusion.
In a statement on Friday, NIA Chairman, Mrs Ebelechukwu Nwachukwu, said the milestone represented significant progress towards building a stronger, more competitive and trusted insurance market in Nigeria.
She said the seven companies, alongside the 41 insurance companies and two reinsurance companies earlier approved, had demonstrated resilience, financial discipline and corporate strength by successfully completing the final verification process.
“Having successfully navigated the rigorous final verification process, these companies, alongside the earlier approved 41 insurance companies and two reinsurance companies, have demonstrated exceptional resilience, corporate fortitude, and financial discipline,” Mrs Nwachukwu said.
She added that the successful recapitalisation had positioned the companies to deliver greater value to policyholders and contribute to deeper insurance penetration nationwide.
Mrs Nwachukwu commended NAICOM for its regulatory oversight during the exercise, describing the commission’s approach as fair, structured and focused on strengthening market integrity.
“NAICOM’s strategic foresight and structured execution have elevated the Nigerian insurance industry, reinforcing its position within the broader financial sector as a substantially stronger, highly resilient, and globally competitive market,” she said.
The NIA chairman reaffirmed the association’s commitment to supporting insurance companies as they adapt to new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She said the association would continue to work with NAICOM to promote a sustainable and future-ready insurance sector.
Mrs Nwachukwu also assured policyholders, investors and other economic stakeholders that the recapitalised industry was better positioned to support economic growth.
“With this recapitalization complete, the Nigerian insurance sector enters a transformative era. The industry is fully equipped to settle genuine claims promptly, absorb higher local and international risks, and serve as a cornerstone of financial stability, directly supporting President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030,” she said.
By Aduragbemi Omiyale
Capital market operators have been directed to immediately freeze the assets, funds, and other economic resources belonging to six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee (NSC).
This directive was given by the Securities and Exchange Commission (SEC) via a circular to all Capital Market Regulated Entities (CMREs), warning that failure to comply would constitute a violation of the Investments and Securities Act, 2025, and the SEC Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations.
It said violations could attract regulatory sanctions, including fines, suspension of operations or revocation of registration, reminding capital market operators that all unusual or suspicious transactions must be promptly reported to the NFIU.
The regulator, which stated that the designations were made in line with the Terrorism Prevention and Prohibition Act (TPPA) 2022, listed the six individuals as Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim. The three designated entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, Hammajama was listed on June 18, 2026, for involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP), while Usman was designated for providing material support to a designated terrorist organisation through repeated financial transactions.
The commission said Abubakar was listed for involvement in terrorism financing and membership of ISWAP, while Chiroma was designated for allegedly using Bureau De Change (BDC) operations and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed on June 15, 2026, for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell, while Ibrahim was designated for providing material and financial support to the ISWAP Kogi cell.
The SEC said the three entities were listed for their alleged involvement in facilitating and channelling funds connected to the ISWAP Okene financing network.
The commission directed CMREs to immediately identify and freeze, without prior notice, all funds, assets and other economic resources in their possession belonging to the designated persons and entities.
They are also required to report frozen assets and other compliance actions, including attempted transactions, to the Secretariat of the Nigeria Sanctions Committee.
In addition, the SEC directed regulated entities to immediately file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of the financial activities.
It further instructed operators to report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after receipt of the sanctions list.
The regulated entities are also required to prohibit dealings with the designated persons and entities and continue monitoring for transactions involving them.
The SEC said any findings should be reported to the Nigeria Sanctions Committee through its designated reporting channel.
By Adedapo Adesanya
Dangote Sugar Refinery Plc, Nigeria’s biggest sugar producer, has raised N486 billion ($356 million) through an oversubscribed rights issue as the company moves to reduce its debt burden and strengthen its capital base after three consecutive years of losses.
The company, founded by Mr Aliko Dangote, raised the funds through the issuance of 8.1 billion ordinary shares at N60 per share, according to a filing with the Nigerian Exchange (NGX) Limited on Friday.
The development follows shareholders’ approval of the capital-raising plan at the company’s 20th Annual General Meeting held in April.
In a statement signed by the Company Secretary, Mr Temitope Hassan, the sugar firm said the rights issue is part of efforts to improve its financial position and provide funding to support its long-term growth plans.
The company’s directors are authorised to raise up to N500 billion through a rights issue, on terms and at a time to be determined by the Board.
Dangote Sugar increased its share capital to accommodate the new shares issued under the rights issue. The sugar producer’s board also authorised to allot the shares and the management of any fractional holdings in accordance with regulatory requirements.
The organisation said any shares remaining unallotted after the offer would be cancelled as permitted by law, describing the capital raise as one of the largest rights issues in Nigeria’s corporate history.
The capital raise comes against the backdrop of improved revenue performance but continued losses at the company.
In its 2025 audited results, Dangote Sugar recorded a 24.56 per cent increase in revenue to N829.2 billion, compared with the previous year. The growth was driven largely by strong demand for 50kg sugar, which generated N807 billion in revenue.
Retail sugar sales contributed N17.7 billion, while molasses and freight income generated N4.02 billion and N66.4 million, respectively.
Cost of sales increased by 11.35 per cent to N706.5 billion, largely due to raw material costs of N573.3 billion. This resulted in a gross profit of N122.6 billion.
Despite the improvement in revenue and gross profit, the company recorded a pre-tax loss of N72.2 billion in 2025, although this represented a significant improvement from the N270.8 billion loss reported in 2024.
Lagos remained the company’s largest market, accounting for 55.82 per cent of regional sales, followed by the North with 35.35 per cent, the West with 6.45 per cent and the East with 2.38 per cent.
The fresh capital is expected to provide Dangote Sugar with additional financial capacity as it works to reduce its debt obligations, strengthen its balance sheet and advance its long-term expansion plans.
