Here are three big stories from Africa’s business and policy landscape you might have missed but should keep in mind this week:

Banks cleared a ₦120 billion debt

Nigerian banks have agreed to repay a heavy debt of ₦120 billion, money owed to telcos for using USSD services. Umar Danbatta, the head of NCC, shared this update at the Telecom Executives and Regulators Forum (TERF) on Thursday, September 7th.

Danbatta said that after the Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, intervened, banks agreed to pay off the accumulated debt and continue to pay for the USSD service under the corporate billing term. The telcos were reportedly considering alternative payment plans from the banks in August 2023.

Before that, in May 2023, the NCC had given the top telcos —MTN, Glo, Airtel, and 9mobile— the green light to stop USSD services for the banks. The telcos agreed to do this if the banks did not pay their dues.

CBN promises to clear $10 billion backlogs in two weeks

On Monday, September 4th, Mr Ade Shonubi, the acting governor of the CBN, said the apex bank was partnering with local banks to clear out forex backlogs —estimated at $10 billion— in two weeks. These backlogs are unmet requests from manufacturers and importers who buy raw material inputs from abroad, parents who pay their children’s tuition fees abroad, Nigerians who pay medical bills abroad, travellers who source Business Travel Allowances (BTAs) and Personal Travel Allowances (PTAs), etc.

According to Shonubi, banks have already catered to “a large amount” of foreign exchange demand. Also, he said local banks control three times (75 per cent) more foreign currency transactions than the central bank. This statement seems consistent with the apex bank’s move to recede from being a regular player in the market to a regulatory background. He added that the bank’s involvement in the FX market was because of the restructuring with the banks and that the backlog would be cleared in “the next one or two weeks.” The only concern is that the central bank gave little detail on how it would do so within such a short time.

Nigeria partnered with India to grow its ed-tech sector

On Thursday, August 7th, Bosun Tijani, Minister of Communication and Digital Economy, disclosed that he signed a Memorandum of Understanding (MoU) with India’s Ministry of Electronics and Information Technology. The goal of this move was to accelerate Nigeria’s digital transformation and support the growth of ed-tech.

According to Tijani, the partnership will allow for the exchange of innovative digital solutions and expertise to improve the educational landscape in both countries. India is popular for its contribution to the global ed-tech market, as it is the world’s second-largest e-learning market after the US.

ICYMI: Market roundup

  • The Nigerian stock market gained 0.91% last week, taking the NGX All-Share Index and Market Capitalization to 68,143.34 and N37.295 trillion respectively.
  • The top gainers were CWG Plc (+44.14%), Tantalizers Plc (+39.39%), Oando Plc (+38.74%), Beta Glass Plc (+32.95%) and Omatek Ventures Plc (+26.09%). The top decliners were Chellarams Plc. (-18.77%), Cornerstone Insurance Plc (-11.43%), Consolidated Hallmark Insurance Plc (-11.30%), Morison Industries Plc. (-9.89%), Vitafoam Nig Plc. (-9.27%).
  • The naira closed at N736.62 against the dollar at the Investors and Exporters window.
  • Brent crude closed trading at $90.36 per barrel, while West Texas Intermediate closed at $87.51 per barrel.
  • The cryptocurrency market had a flat trading week, maintaining its $1.04 trillion market cap. Bitcoin started the new week at $25,843, ETH at $1,615 and BNB at $212.
  • Talent City, now known as Itana, has raised a $2 million pre-seed to establish a digital free zone.
  • Ariika, an Egypt-based home and decor e-commerce brand, raised a Series A round by selling a 20% stake in the company.
  • Nestcoin has received $1.9m in strategic funding to strengthen its balance sheet and accelerate the growth of its new product, Onboard.
  • Asaak, a Ugandan fintech company, has acquired FlexClub Mexico to mark its entry into the Latin American market.
  • Okra Solar, a mesh-grid technology company, raised a $12 million Series A round to scale its technology.
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