Nigeria and West Africa unite for digital driver's licences

·
October 31, 2024
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5 min read
ECOWA

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Zdravstvuyte,

Victoria from Techpoint here,

Here's what I've got for you today:

  • One licence to drive West Africa
  • Nigerian bank expands Kenyan footprint
  • MTN’s ex-CEO steps in as Globacom’s new CEO

One licence to drive West Africa

ECOWAS

Nigeria’s Federal Road Safety Corps (FRSC), alongside other West African nations, is set to implement a unified digital driver’s licence and vehicle registration system under the West African Road Safety Organization (WARSO). 

The idea is to standardise driver’s licenses and vehicle documentation across the region, which the FRSC and Economic Community of West African States (ECOWAS) say will improve safety, reduce vehicle theft, and simplify vehicle movement between countries. 

On the surface, this digital upgrade looks like a big step forward. Having one uniform system could mean fewer registration headaches for West African drivers who cross borders frequently. 

Plus, linking driver’s licences to bank accounts, as the FRSC proposes, could allow faster payments for traffic fines or other fees, which might make life a bit easier for law-abiding drivers. 

FRSC Corps Marshal Shehu Mohammed has said that using digital number plates and documentation would help keep track of vehicles, discourage multiple registrations, and potentially aid in the fight against vehicle theft.

However, questions remain. For instance, many countries have struggled to enforce such systems effectively; the initial rollout will likely come with a learning curve, not to mention potential privacy concerns over linking sensitive financial information to driver profiles. 

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Also, Nigeria’s FRSC has faced criticism for inefficiencies and alleged corruption, with delays in issuing licenses and claims of bribes being reported regularly. These challenges make some sceptical about the FRSC’s ability to implement and manage a digital system on a regional scale without similar issues.

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Regions like the European Union (EU), Gulf Cooperation Council (GCC), and the Association of Southeast Asian Nations (ASEAN) have had mixed experiences with similar initiatives, benefiting cross-border drivers but facing enforcement and interoperability challenges.

So, while a unified system sounds promising, it will likely require thoughtful implementation to be genuinely effective. The FRSC will need to work hard to ensure this isn’t just another well-intentioned but under-delivered initiative. Or what do you think?


Nigerian bank expands Kenyan footprint

Access Bank building
Access Bank building; Image source: Leadership

Access Bank is nearing the final stages of acquiring the National Bank of Kenya (NBK) from the KCB Group, having passed a key milestone with approval from Kenya’s Competition Authority (CAK). 

Proposed in March 2024, the acquisition now only requires the Central Bank of Kenya’s sign-off, anticipated for November.

The CAK set some conditions for Access Bank’s market entry. The Nigerian bank must retain at least 80% of NBK’s current 1,384 employees for one year and keep all 316 employees at Access Bank Kenya on board.

Should any layoffs occur, the bank must adhere to Kenyan employee compensation laws. Alongside NBK, Access Bank will also acquire KCB’s insurance arm, National Bank Insurance Brokers Ltd. (NBBIL), adding further to its footprint in the Kenyan market.

Once finalised, this acquisition will boost Access Bank’s market share from 0.2% to 1.9% in Kenya’s Tier 3 banking sector. CAK acknowledges that this may give Access Bank a competitive edge, though it has enforced conditions to balance the merger’s impact. 

This deal marks another milestone in Access Bank’s 2024 expansion strategy. Earlier this year, it acquired 80% stakes in Uganda’s Finance Trust Bank and African Banking Corporation in Zambia and Tanzania. 

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The NBK acquisition showcases Access Bank’s ongoing commitment to strengthening its African presence through strategic acquisitions.


MTN’s ex-CEO steps in as Globacom’s new CEO

Ahmad Farroukh, new Globacom CEO
Ahmad Farroukh

Globacom is reportedly bringing in Ahmad Farroukh, former MTN Nigeria CEO, as its new chief executive.

While some sources indicate this is still in the works, one report claims he’s already started in the role.  Well, this leadership move would mark the first time the company hasn’t been led by founder Mike Adenuga since its 2003 launch. 

Sources familiar with the matter disclosed that Globacom has informed the Nigerian Communications Commission (NCC) and has appointed a new board with regulatory approval.

The expected change comes as Nigerian telcos, including Globacom, have been hit hard by the recent National Identification Number (NIN)-SIM verification mandate, which has led to substantial subscription losses across major players. 

Globacom saw a massive drop, with active users declining from 62.1 million in March to just 19.1 million by September 2024, losing over 43 million subscriptions.

Ahmad Farroukh’s extensive telecom experience could be key for Globacom as it navigates the shifting telecom landscape. He has held senior positions across MTN Nigeria, MTN Ghana, and MTN South Africa, along with roles at Mobily in Saudi Arabia and Smile Communications in Nigeria.


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Have a great Thursday!

Victoria Fakiya for Techpoint Africa.

She's autistic and interested in mental health and how technology can help Africans with mental disorders. Find her on Twitter @latoria_ria.
She's autistic and interested in mental health and how technology can help Africans with mental disorders. Find her on Twitter @latoria_ria.
She's autistic and interested in mental health and how technology can help Africans with mental disorders. Find her on Twitter @latoria_ria.

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