In a bid to guide the management of risks related to making payments in the country, the Central Bank of Nigeria (CBN) has released the Nigerian Payment System Risk and Information Security Management Framework.
The framework was released yesterday 6th January 2020, is expected to provide answers to several concerns of stakeholders.
Why it matters: It is meant to address systemic risks, credit risks, liquidity risks, operational risks, compliance, legal and regulatory risks, settlement risks and information security risks. The framework will help identify and tackle the sources of systemic risks within the payment ecosystem in the country.
The new guidelines will also be expected to establish sound governance arrangements to oversee the risk management framework by ensuring that risks are identified, monitored and treated; establish clear and appropriate rules and procedures to carry out the risk management objectives. It employs the resources necessary to achieve the payments system and to integrate risk management into the decision making processes.
The Central Bank stated that the framework would guide the operators and users of the payment systems across the country but it does not apply to arrangements for the physical movement of cash or systems for settling securities nor apply to market infrastructures such as trading exchanges, trade-execution facilities, or multilateral trade-compression systems.
Meanwhile, explaining why the Nigerian Payment System Risk and Information Security Management Framework is imperative, the CBN disclosed that the rapid growth in the volume and value of financial transactions call for the initiative.
it added that the transactions represents an important source of revenue for the providers of payment services particularly banks and therefore altering significantly the risks associated with the payment and settlement of transactions.
The apex bank also said the risk associated with the payment system might increase, shift, concentrate, or transform risks in unanticipated ways. The failure of one or more of the participants in a payment system to settle their payments would be catastrophic and would undermine the public confidence in the nation’s financial system
COVID-19: World Bank approves $114 million response funds for Nigeria
FG is expected to provide grants from the CoPREP to the 36 states and the FCT.
The World Bank has approved the sum of $114 million to assist Nigeria in its fight against the coronavirus pandemic.
The fund is to help Nigeria prevent, identify and respond to the dangers associated with the coronavirus disease with special focus on the various states and the Federal Capital Territory.
This was disclosed in a statement from the bank on Friday, August 7, 2020.
According to the statement, the funds come in the form of $100 million credit facility from the International Development Association (IDA) and $14 million grant from the Pandemic Emergency Financing Facility.
It also states that the Federal Government is expected to provide grants from the COVID-19 Preparedness and Response Project (CoPREP) to the 36 states and the Federal Capital Territory.
The World Bank Director for Nigeria, Shubham Chaudhuri, in a statement on Friday, said, “Nigeria has ramped up its efforts to contain the Covid-19 outbreak, but more needs to be done at the states level, which are at the front line of the response.”
He disclosed that the project would provide the states with the much needed direct technical and fiscal support in order to strengthen their position in the fight against the pandemic.
The World Bank Chief also pointed out that the project would finance federal procurements of medical equipment, laboratory tests and medicines to be distributed to the states based on their needs.
According to the World Bank, CoPREP would finance further support to all the 36 states and the FCT through the NCDC to implement the COVID-19 Incident Action Plan.
Nigeria has recorded about 45,687 confirmed cases of the coronavirus disease with 936 fatalities and 32,637 people discharged as at August 7, 2020. Some serious concerns have been raised about the country’s testing capacity, which though has improved is still regarded as inadequate.
How Nike rejection birthed sports wear industry in Nigeria
To Udezue, sport is more about creating opportunities than just winning trophies.
For many years, Nigerian sports had to depend on foreign brands for all kinds of sporting and leisure wears. In doing this, Nigeria was also ceding to these countries the opportunities that came with the business of sports. None of these changed, until Africa for Africa (AFA) Sports started out in Nigeria years ago.
Recently on Nairametrics Business Half Hour show, Founder of Africa for Africa (AFA) Sports talked about how Nike’s rejection became the birth of an industry in Nigeria.
Ugo Udezue had come to Nigeria to establish the Continental Basketball League, (CBL) after spending 17 years with BDA Sports management in California. At this time, he saw sports as being “more about creating opportunities than just winning trophies”.
What he saw was the prospects of creating a whole economy built around the game – alternate relaxation options for workers who had spent long hours at work, and better opportunities for people to trade their wares and entertain guests during the games.
A major kitting challenge came up for the CBL, as most of the foreign brands did not seem to cater for the African climate. The kits and balls being used had been designed by foreign brands using their weather condition and environment as the guiding factor. Because of this, they could not cater to the needs of the Nigerian basketball players.
“The balls were not designed to absorb sweat and so the players kept dropping the balls. Even the jerseys and shoes had clearly not been designed for the African weather since we did not play the game in air-conditioned courts,” he explained.
When Udezue reached out to Nike to seek Apparel sponsorship for the CBL, he received the shocking news that “Africa was not in their plans at the time”.
This rejection, though a short term challenge, became the inspiration behind founding AFA Sports, done by Africans to cater to the sporting needs of Africans.
As you may well know, there were foreign companies sponsoring Nigerian teams at the time, making jerseys and other apparel. But because they were not producing these things locally, they were depriving the country of the opportunities and benefits which should have come with such ventures.
Gradually, Udezue and his team moved from the initial years of chaos and unprofitability, to growing AFA Sports into the biggest performing sports brand in Africa. The company’s products are now shipped to different countries.
In a couple of years, the dream started to materialise when AFA sports became the official apparel sponsor of the Nigerian National Basketball team D’Tigers during the Afro Basket 2017 competition. It was a major game-changer for sporting in Africa.
An industry waiting to explode
Manufacturing in Nigeria is often thought of along the lines or agricultural and industrial products, without much attention on the sporting and leisure industry. From jerseys to tracksuits, leisure wears, boots, balls, caps and others, there is a whole economy waiting to be explored.
“I saw sports as a way to create wealth. I realised that it was an opportunity to create jobs for Nigerians while meeting the need for football clothing, and for as long we keep sourcing these materials from the foreign brands, we will miss out on ways we could have used it to empower our economy,” Udezue said.
With these items produced locally at the factories and even exported to other countries, jobs are created for Nigerians. AFA sports, for instance, has three factories in Lagos state where it employs people to carry out its productions of sports and leisure wears.
Beyond saving Nigeria the cost implications of importing such products, the products are now being exported to other African countries bringing in some foreign exchange for Nigeria.
As Nigeria moves towards self-sufficiency, there is the need to pay attention to the sports economy and its attendant benefits. Much more than sponsorships, hosting games in local economy can turn the fortunes of small business owners in the locality, given them a wider market and increased income.
Facebook, Microsoft lash out at Apple over gaming apps
Microsoft and Facebook facing challenges in bringing cloud gaming services on iOS devices.
The world’s leading technology brands, Facebook and Microsoft, recently bashed Apple for its restrictive App Store policies, which they claim prevents them from launching their gaming services on Apple devices.
Microsoft also disclosed that it will no longer be launching a limited testing version of the app on iOS. The gaming platform Microsoft had created for Apple devices can only support one game, which Microsoft said was due to Apple’s App Store policies.
Microsoft revealed that such policies set by Apple will make it unable to launch its game streaming service commercially on iOS due to these limitations.
“Unfortunately, we do not have a path to bring our vision of cloud gaming with Xbox Game Pass Ultimate to gamers on iOS via the Apple App Store,” a Microsoft spokesperson said in a statement Friday.
“Apple stands alone as the only general-purpose platform to deny consumers from cloud gaming and game subscription services like Xbox Game Pass. And it consistently treats gaming apps differently, applying more lenient rules to non-gaming apps even when they include interactive content.”
The social media giant finally struggled to launch an Apple version of its gaming app on Friday, but it disclosed that it was compelled to make a concession to bring it on Apple’s App Store and had to remove the ability to play games instantly.
“Unfortunately, we had to remove gameplay functionality entirely in order to get Apple’s approval on the standalone Facebook Gaming app – meaning iOS users have an inferior experience to those using Android,” Facebook’s Chief Operating Officer Sheryl Sandberg said in a statement Friday.
“We’re staying focused on building communities for the more than 380 million people who play games on Facebook every month — whether Apple allows it in a standalone app or not.”
Microsoft and Facebook seem not to be the only ones facing challenges in bringing cloud gaming services on iOS devices. Google’s Stadia and Nvidia’s GeForce had also experienced difficulties in launching iOS versions of their apps due to the App Store’s guidelines.
READ MORE: Apple unveils a new credit card, Apple Card
Will Apple cave in?
“There is quite a lot of pressure building from different entities, and they are attempting to build consumer awareness of the issues involved as a way to convince Apple to change its policies,” Piers Harding-Rolls, research director of games at Ampere Analysis, told CNBC.
“Is it inevitable that Apple will cave in? Not necessarily. Apple is plowing its own path with privacy and how it wants to manage its ecosystem.”