Akkam,
Victoria from Techpioint here,
Here's what I've got for you today:
- IHS Towers lays off 100 employees
- Invest like a pro in Nigeria
- Nigeria’s SEC to issue first crypto licence
IHS Towers lays off 100 employees
IHS Towers has laid off over 100 employees, with senior staff and the network surveillance team bearing the brunt of the cuts.
Many who got the boot had been with the company for over a decade and received significant severance packages.
The telecoms infrastructure provider emphasised that the layoffs were due to the challenging economic conditions, not because of any underperformance by the affected staff.
Operating over 40,000 towers across Africa — around 25% of the continent’s tower infrastructure — IHS Towers reported a jaw-dropping $1.9 billion loss in 2023 — a whopping 304% increase from the previous year.
The company attributes this financial disaster mainly to the devaluation of the Nigerian Naira and the resulting foreign exchange (FX) losses, which have hit its profits hard.
The company has been under pressure from investors since 2022, especially after one shareholder questioned an unexplained $1.5 billion used for investing activities, as noted in their cash flow statements.
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The devaluation of the naira has been particularly brutal for IHS Towers, costing them $409 million in the last quarter of 2023 alone. This hit their revenue hard, leading to massive FX losses from US dollar loans.
Although their share price bounced back slightly to $3.56 in August 2024, their market cap has plunged to $1.3 billion, a far cry from the $6 billion it was worth in 2021 when shares traded at $21.
Invest like a pro in Nigeria
Imagine a 400% growth in your investment—that’s pretty much the dream for passive income!
Well, guess what? In 2023, five Nigerian stocks saw more than that kind of growth. Companies like Transcorp Corporation Plc, Chams Plc, and MRS Oil Nigeria all had their stocks surge by 400% last year.
But before you get excited about jumping into Nigerian stocks, you need to figure out where to buy them.
There are a bunch of options, but the first thing you should check is whether the platform or broker you're using is safe and properly regulated.
Brokers are the middlemen who connect you with the financial world, so you want to ensure they’re licensed by the Nigerian Securities and Exchange Commission (SEC). This helps protect your investments and keeps you safe from potential scams.
Also, don’t forget to compare fees and charges. Things like transaction fees and hidden costs can eat into your returns, so it’s good to be aware of them.
Bolu’s got a great story on the top places to buy Nigerian stocks and tips on choosing the right ones. Check it out here!
Nigeria’s SEC to issue first crypto licence
Nigeria’s Securities and Exchange Commission (SEC) is gearing up to license Virtual Asset Service Providers (VASPs) as more people embrace digital assets.
Director-General Emomotimi Agama announced that the commission will start issuing licenses for digital services and tokenised assets sooner than expected. Yeah, starting this month, August.
He thinks this will give young people more chances in fintech, as the market is huge and growing fast.
Agama stressed the need for a formal system to organise everything and make information more accessible. He also cautioned against using cryptocurrency to mess with the naira’s value.
Nigeria’s crypto market is already worth over $400 million, with several people involved, and he expects it to grow to $52.5 million by 2028.
This push for regulation coincides with a new initiative from the Federal Inland Revenue Service (FIRS). Executive Chairman Zacch Adedeji announced plans to introduce new tax laws, including ones specifically targeting the Nigerian crypto industry, by September 2024.
He stressed the importance of regulating cryptocurrency in a way that supports economic development.
In July 2024, the SEC ordered all VASPs, including crypto companies, to set up offices in Nigeria as part of its Accelerated Regulatory Incubation Programme (ARIP). This came after the commission announced plans to remove the naira from all peer-to-peer platforms to tackle currency manipulation in the forex market.
Nigeria has been making strides to regulate the crypto scene, arguing that it will help curb naira manipulation.
In case you missed them
- NIBSS joins Zone’s blockchain payment network to include PoS standardisation functions on the blockchain
- Flutterwave expands payment options for Nigerian merchants with American Express
What I'm watching
- They Lied about the First 100 Years of Christianity | DOCUMENTARY
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Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.
