Connect with us

Feature/OPED

How Stablecoin Can Help in Easing Africa’s Cross-border Remittance Challenges

Published

on

stablecoins cross-border challenge

The African stablecoins market is growing. In a region that suffers trade deficits and struggles with efficient foreign exchange remittance channels, the stablecoin boom is a welcome development.

Stablecoins are cryptocurrencies pegged to another variable. For the most part, they are pegged to the US dollar, commodities, and sometimes algorithms, giving the coin a 1:1 value. Most stablecoins are pegged to the US dollar. If stablecoins are pegged to the value of the dollar, which has almost zero volatility, why do people hold them? To have access to critical foreign exchange.

The world thrives on trade. Economic systems are based on the intricate balance between local production and trade with other nations. Since everyone has different comparative advantages, there will always be a need for trade, as each country focuses on its strengths. However, trading often faces limitations. For a region like Africa, foreign exchange is one of the greatest risk factors for efficient trading.

How Do Stablecoins Work?

Stablecoins maintain their pegs via four popular methods: Fiat collateralization, crypto collateralization, algorithmic collateralization, and hybrid collateralization.

Fiat-Collateralized Stablecoins are achieved by maintaining a reserve of fiat currency (like USD or EUR).

Each stablecoin issued is backed by an equivalent amount of the fiat currency held in reserve. Many times, stablecoin companies maintain over-collateralization to ensure maximum stability in case of increased volatility. Tether (USDT) is a good example of a fiat-collateralized stablecoin.

Crypto-Collateralized Stablecoins are stablecoins whose value is pegged to another cryptocurrency. The collateral usually exceeds the value of the stablecoins in circulation to account for crypto volatility.

The peg is maintained by automated systems. If the collateral’s value drops, the system automatically liquidates or requires more collateral to maintain the peg. If the price of the stablecoin rises above the peg, users might borrow against their collateral to buy and burn the stablecoin, reducing supply. Dai (DAI) is an example of a crypto-backed stablecoin that maintains its peg through a system of smart contracts within the MakerDAO protocol.

Algorithmic Stablecoins do not have “tangible” collateral but use algorithms to control supply. They maintain the peg by constantly adjusting the total supply of the stablecoin. When the stablecoin’s price is above the peg, new tokens are minted and sold, increasing supply. When below, tokens are bought back and burned, reducing supply. They are the riskiest type of stablecoin because their effectiveness relies on an algorithm, which could fail or be exploited. Terra Luna is an example of an algorithmic stablecoin. It, however, crashed in 2023, sending the crypto market into a free fall.

Commodity-Pegged Stablecoins are backed by the price of commodities. A good example is PAX Gold (PAXG), a stablecoin issued by Paxos and backed by physical gold.

Hybrid Stablecoins use a combination of the above to maintain the peg. These stablecoins are well-collateralized and also use algorithms to maintain the peg. TrueUSD is an example of a hybrid stablecoin.

How Stablecoins Can Help Ease Africa’s Cross-Border Challenges

If anything is critical in cross-border transactions, it’s speed. Speed is important when sourcing liquidity to meet user needs. A businessman might need to move money urgently to pay his suppliers in China, but delays associated with existing transfer methods might be a stumbling block. This is often a challenge with traditional foreign exchange methods, with many users having to wait hours, if not days, for money to reach their counterparties, sometimes missing deadlines.

Stablecoins, on the other hand, enable faster cross-border payments by eliminating intermediaries and facilitating instant value transfers across countries. For instance, remittance done via the Lightning Network takes seconds to reach the counterparty, while most other networks provide value within a few minutes.

Foreign exchange in Africa does not come cheap. The number of intermediaries required to facilitate a conventional money transfer from country A to B means higher charges. Stablecoins provide a low-cost alternative for remittances and trade by bypassing high transaction fees and costly currency conversions.

Stablecoin transfers mostly cost a few cents to $1 for any amount. This is because middlemen are eliminated, and the only payment made is the network fee. Stablecoins also reduce costs by storing transaction records on a single platform, which is replicated across multiple nodes, thereby streamlining processes. For example, sending $5,000 to a Nigerian account on Wise costs $33.56 in fees. Sending this same money from a Binance USDT wallet only costs $1. The disparity in stablecoin-enabled transfers is enormous.

Although financial inclusion in Africa has improved in countries like Nigeria, Kenya, South Africa, and Senegal in recent years, many African countries still have low financial inclusion levels. For these countries, stablecoins have proven to be an excellent tool for bridging the gap between the banked and the unbanked. Their popularity means people can access foreign exchange even in remote areas with little to no financial infrastructure.

No lengthy processes are needed to transfer money from one jurisdiction to another. This opens up financial integration and fosters economic growth. Businesses in these regions can now sell via exports, import needed raw materials and expertise to add value to goods and services, creating a positive spiral effect on economic development. Businesses like Ledig makes access to liquidity possible for companies with foreign exchange exposure to Africa.

Finally, one of the salient uses of foreign exchange, which is the tool used for cross-border remittances, is its use as an inflationary hedge. Many times, people open domiciliary accounts, not because they want to pay business partners abroad, receive money for imports, or carry out foreign exchange tasks, but because they want to protect their local currencies from inflation.

According to data, the Nigerian Naira was N899 against one dollar on 1st January 2024, but closed the year at N1,538, losing 71% of its value during the year. People often convert their local currencies to avoid these kinds of situations. Businesses, large organizations, and even individuals often convert local currencies to stable ones like the dollar to mitigate value erosion.

With stablecoins, this is not just accessible to those able to undergo the stringent rules for opening domiciliary accounts, but also accessible to everyone with basic means of ID and adulthood. Stablecoins have democratized foreign exchange access in Africa.

With Stablecoins businesses can now tap into the vast global market by curating services and offering them to businesses around the world, without challenges in processing payments. It simplifies cross-border trade for SMEs, freelancers, and businesses by enabling seamless trade settlements and access to global markets without traditional banking barriers.

Feature/OPED

Championing Ethical Sourcing Within Dairy Communities

Published

on

Arla Nigeria

Human Rights Day often centres on themes of dignity, equity, and freedom. Yet for many Nigerians, these rights are not debated in courtrooms they are expressed in the ability to access nutritious food, build meaningful livelihoods, and secure a healthy future for their families. Nutrition, in this sense, becomes a fundamental human right.

Despite a growing population and rising nutrition needs, Nigeria faces a pressing dairy reality. The country remains heavily dependent on dairy imports, leaving nutritional access vulnerable and local capacity underdeveloped. This is not just an economic concern; it is a human one. When families cannot easily access affordable, high-quality dairy, the foundations of health and development are weakened.

It is within this context that Arla Nigeria operates not merely as a dairy company, but as a nutrition powerhouse committed to nourishing a nation. Our ambition extends beyond selling products. We are working to build the foundations of a stronger, more resilient local dairy sector that supports food security, economic participation, and national progress.

At the heart of our efforts is the Damau Integrated Dairy Farm in Kaduna Statea fully operational modern farm designed to demonstrate what responsible, efficient, and scalable dairy production can look like in Nigeria. Arla Nigeria produces its own milk on-site, ensuring quality, safety, and consistency as we continue building the systems required for a sustainable local value chain. In fact, until our yoghurt factory launches, the reverse is true: some stakeholders purchase milk from us.

But infrastructure alone is not the story. What truly matters is the human impact surrounding the farm.

Arla Nigeria has been intentional about engaging and empowering the communities around Damau. By creating employment opportunities for local residents, providing skills development, and contributing to community growth, we are ensuring that the benefits of dairy development extend beyond production lines. This is development rooted in people where progress is measured in livelihoods improved and opportunities created.

As Arla Nigeria continues to expand operations, our long-term commitment remains clear: to contribute meaningfully to local milk sourcing and value chain development, strengthening Nigeria’s capacity to feed itself. Backward integration is not a slogan for Arla Foods; it is a structured pathway with building responsibly and sustainably. From farm systems to future household milk initiatives, the goal is to create a model that supports farmers, enhances productivity, and drives economic inclusion in the years ahead.

On Human Rights Day, the conversation often revolves around preventing harm avoiding exploitation, ensuring fair labour, and upholding ethical standards. These are essential, but they are only the beginning. True respect for human rights means creating enabling systems that allow people to thrive.

With Arla Foods, that begins with nutrition. Milk is a super food, rich in essential nutrients that support growth and development. Ensuring access to such nutrition contributes directly to national well-being and productivity. When we help secure a healthier population, we strengthen the foundation for education, economic participation, and long-term prosperity.

This is why Arla believes that dairy is not just food it is nutrition, livelihood, and progress. By investing in sustainable production, community development, and future local sourcing capabilities, Arla Nigeria is contributing to food security and economic growth in a tangible, measurable way.

Ultimately, ethical business is not defined by corporate language or labels. It is defined by the stability, nourishment, and dignity it brings to people’s lives. As Nigeria celebrates Human Rights Day, let us recognise that the right to nutrition and the opportunity to build a better future are among the most powerful rights we can help protect.

Continue Reading

Feature/OPED

In Praise of Nigeria’s Elite Memory Loss Clinic

Published

on

memory loss clinic Busayo Cole

By Busayo Cole

There’s an unacknowledged marvel in Nigeria, a national institution so revered and influential that its very mention invokes awe; and not a small dose of amnesia. I’m speaking, of course, about the glorious Memory Loss Clinic for the Elite, a facility where unsolved corruption cases go to receive a lifetime membership in our collective oblivion.

Take a walk down the memory lane of scandals past, and you’ll encounter a magical fog. Who remembers the details of the N2.5 billion pension fund scam? Anyone? No? Good. That’s exactly how the clinic works. Through a combination of political gymnastics, endless court adjournments, and public desensitisation, these cases are carefully wrapped in a blanket of vagueness. Brilliant, isn’t it?

The beauty of this clinic lies in its inclusivity. From the infamous Dasukigate, which popularised the phrase “arms deal” in Nigeria without actually arming anything, to the less publicised but equally mystifying NDDC palliative fund saga, the clinic accepts all cases with the same efficiency. Once enrolled, each scandal receives a standard treatment: strategic denial, temporary outrage, and finally, oblivion.

Not to be overlooked are the esteemed practitioners at this clinic: our very own politicians and public officials. Their commitment to forgetting is nothing short of Nobel-worthy. Have you noticed how effortlessly some officials transition from answering allegations one week to delivering keynote speeches on accountability the next? It’s an art form.

Then there’s the media, always ready to lend a hand. Investigative journalists dig up cases, splash them across headlines for a week or two, and then move on to the next crisis, leaving the current scandal to the skilled hands of the clinic’s erasure team. No one does closure better than us. Or rather, the lack thereof.

And let’s not forget the loyal citizens, the true heroes of this operation. We rant on social media, organise a protest or two, and then poof! Our collective short attention span is the lifeblood of the Memory Loss Clinic. Why insist on justice when you can unlook?

Take, for example, the Halliburton Scandal. In 2009, a Board of Inquiry was established under the leadership of Inspector-General of Police, Mike Okiro, to investigate allegations of a $182 million bribery scheme involving the American company Halliburton and some former Nigerian Heads of State. Despite Halliburton admitting to paying the bribes to secure a $6 billion contract for a natural gas plant, the case remains unresolved. The United States fined the companies involved, but in Nigeria, the victims of the corruption: ordinary citizens, received no compensation, and no one was brought to justice. The investigation, it seems, was yet another patient admitted to the clinic.

Or consider the Petroleum Trust Fund Probe, which unraveled in the late 1990s. Established during General Sani Abacha’s regime and managed by Major-General Muhammadu Buhari, the PTF’s operations were scrutinised when Chief Olusegun Obasanjo assumed office in 1999. The winding-down process uncovered allegations of mismanagement, dubious dealings, and a sudden, dramatic death of a key figure, Salihijo Ahmad, the head of the PTF’s sole management consultant. Despite the drama and the revelations, the case quietly faded into obscurity, leaving Nigerians with more questions than answers.

Then there is the colossal case of under-remittance of oil and gas royalties and taxes. The Federal Government, through the Special Presidential Investigatory Panel (SPIP), accused oil giants like Shell, Agip, and the NNPC of diverting billions of dollars meant for public coffers. Allegations ranged from falsified production figures to outright embezzlement. Despite detailed accusations and court proceedings, the cases were abandoned after the SPIP’s disbandment in 2019. As usual, the trail of accountability disappeared into thin air, leaving the funds unaccounted for and the public betrayed yet again.

Of course, this institution isn’t without its critics. Some stubborn Nigerians still insist on remembering. Creating spreadsheets, tracking cases, and daring to demand accountability. To these radicals, I say: why fight the tide? Embrace the convenience of selective amnesia. Life is easier when you don’t worry about where billions disappeared to or why someone’s cousin’s uncle’s housemaid’s driver has an oil block.

As World Anti-Corruption Day comes and goes, let us celebrate the true innovation of our time. While other nations are busy prosecuting offenders and recovering stolen funds, we have mastered the fine art of forgetting. Who needs convictions when you have a clinic this efficient? Oh, I almost forgot the anti-corruption day as I sent my draft to a correspondent very late. Don’t blame me, I am just a regular at the clinic.

So, here’s to Nigeria’s Memory Loss Clinic, a shining beacon of how to “move on” without actually moving forward. May it continue to thrive, because let’s face it: without it, what would we do with all these unsolved corruption cases? Demand justice? That’s asking a lot. Better to forget and focus on the next election season. Who knows? We might even re-elect a client of the clinic. Wouldn’t that be poetic?

Now, if you’ll excuse me, I have a new scandal to ignore.

Busayo Cole is a Branding and Communications Manager who transforms abstract corporate goals into actionable, sparkling messaging. It’s rumored that 90% of his strategic clarity is powered by triple-shot espresso, and the remaining 10% is sheer panic. He can be reached via busayo@busayocole.com. 

Continue Reading

Feature/OPED

How Nigerian Companies are Leading More Responsible Digital Transformation

Published

on

Kehinde Ogundare 2025

By Kehinde Ogundare

Artificial intelligence is everywhere–in polished social media posts, in the recommendations that guide our viewing habits, and in the bots that handle customer queries before a human agent steps in. On LinkedIn, AI-assisted writing has become standard practice.

A year ago, more than half of English long-form posts that went viral were estimated to have been written by or assisted by AI. If that’s the norm on the world’s biggest business network, it’s no surprise that AI is driving conversations in Nigerian boardrooms as companies move from experimentation to embedding AI into their daily operations.

Part of the package

The Nigeria Data Protection Act (NDPA), modelled on the European Union’s General Data Protection Regulation, together with the Nigeria Data Protection Commission, requires companies to build privacy into their systems from the outset rather than adding it later. This clear regulatory framework has evolved alongside a rapid rise in AI adoption.

New research from Zoho on responsible AI adoption highlights the impact of the regulations. As per the report, 93% of Nigerian companies have already started using AI in their daily operations; 84% have tightened their privacy controls after adoption, and 94% now have a dedicated privacy officer or team, which is well above global averages.

The survey, conducted by Arion Research LLC among 386 senior executives, shows just how deeply embedded AI has become in Nigeria. One in four companies already uses it across several departments, and nearly a third report advanced integration. Financial services firms are pioneers in this sector, using AI to automate client interactions, streamline operations and sharpen their marketing, while staying compliant with data protection rules.

The NDPA has helped make privacy part of business planning. Four in ten companies now spend more than 30% of their IT budgets on privacy. Regular audits, privacy impact assessments and explainability checks are becoming standard practice.

Skills, compliance and capacity

Rapid adoption brings challenges. More than a third of businesses say that their biggest obstacle is a lack of technical skills, and another 35% cite privacy and security risks. Instead of outsourcing, most are building capacity in-house: nearly 70% of companies are training staff in data analysis, more than half are improving general AI literacy, and 40% are investing in prompt engineering for generative tools.

The understanding of the NDPA regulation, which came into force in 2023, has also improved. 65% of organisations see compliance as essential. Many voluntarily apply data-minimisation and transparency standards even when not required to do so, aligning more closely with international norms and easing collaboration with global partners.

Privacy is increasingly influencing business decisions — from investment priorities to system design. Companies are asking tougher questions: is specific data essential? How can exposure be limited? How can fairness and transparency be proven?

Trusted systems

As privacy becomes part of how technology is built, companies are being more cautious about the tools they use because they now want systems that protect customer data, with clear boundaries between data and model training, straightforward controls, and reliable records for compliance teams.

Demand for business software that balances productivity with privacy is also growing. Zoho, among others, has seen strong customer growth as more organisations are looking for platforms that support responsible data handling.

The study identifies three main reasons behind AI adoption: to make work more efficient by automating routine tasks, to support better decision-making by identifying patterns sooner, and to improve customer engagement through faster, more relevant interactions. But none of this can succeed without trust. Nigeria’s experience shows that privacy and innovation can reinforce each other when they’re built together.

There’s still work to do because some industries are moving faster than others, and smaller businesses often face the biggest hurdles in time, cost and skills. Enforcement is also patchy; while the law is clear, application across sectors and geographies is a work in progress.

The next steps are more practical, requiring investment in skills – from data analysis and AI literacy to sector-specific training – and for governance to be put in place, with clear responsibilities, written policies, and a plan for managing errors or breaches. Privacy impact assessments should become part of every new system rollout, enabled by technology.

As AI becomes fundamental to doing business, Nigerian companies that build it carefully and responsibly will be better able to compete at home and abroad.

Kehinde Ogundare is the Country Head for Zoho Nigeria

Continue Reading

Trending