Dia dhuit,
Victoria from Techpoint here,
Here's what I've got for you:
- Gokada files for US bankruptcy protection
- 5 ways to navigate blockchain regulation in 2025
- Why PoS withdrawal charges are on the rise
Gokada files for US bankruptcy protection
Gokada, once a prominent name in Lagos’ last-mile delivery and ride-hailing scene, has hit a rough patch, filing for Chapter 11 bankruptcy protection in Delaware on October 18, 2024, per regulatory filings.
What does this mean? Essentially, they are asking a court to help them sort out their debts so they can stay in business while figuring out how to pay back what they owe.
However, there’s bad news for people or businesses they owe money to but don’t have any legal guarantees (unsecured creditors). The filing says there’s no money set aside for them, so they might not get paid at all. Essentially, Gokada is trying to survive, but not everyone they owe will walk away happy.
Here’s a backstory: Gokada’s journey started in 2017 with co-founders Fahim Saleh and Deji Oduntan. Initially, it was all about motorcycle ride-hailing, but the story took a turn in 2020. The Lagos State government imposed a ban on okadas (commercial motorcycles) in key city areas, essentially crippling Gokada’s core business overnight. The company had to lay off staff and scramble for a new game plan, pivoting to logistics and food delivery.
This wasn’t Gokada’s first challenge, though. In 2019, they temporarily paused operations to retrain their pilots and improve service quality. But the okada ban was a massive blow. They tried to bounce back with new offerings like G-Boat (water transport), GoMedic (medical transport), and partnerships with platforms like Jumia Food. Unfortunately, the results didn’t match the effort, and profitability remained out of reach.
Things worsened in July 2020 with the tragic death of CEO Saleh. His loss created a leadership vacuum during a crucial restructuring phase, making it even harder for the company to regain its footing. Despite all efforts, Gokada struggled to find its place in the urban mobility and delivery market.
Give it a try, you can unsubscribe anytime. Privacy Policy.
Gokada’s struggles aren’t just its own; the fallout from the okada ban sent shockwaves across the sector. Competitors like MAX.ng and ORide, also reliant on motorcycle taxis, faced similar challenges and had to pivot to logistics and delivery to survive. Meanwhile, commuters in Lagos lost a reliable mode of transport, adding to the chaos of urban mobility in the city.
What’s more, as the company navigates bankruptcy proceedings, all eyes are on whether it can emerge stronger — or become a footnote in Nigeria’s urban transport history.
5 ways to navigate blockchain regulation in 2025
2024 was a rollercoaster year for Nigeria’s crypto scene. One moment, the hammer was coming down hard on crypto companies, and the next, the first crypto exchange licences were being handed out.
But don’t get too comfortable — 2025 might be just as chaotic since regulators are still figuring out how to handle the industry. For blockchain businesses, this means staying on their toes and finding ways to protect themselves in a murky regulatory environment.
At Techpoint Africa’s webinar, Navigating Regulation as a Blockchain Company in Nigeria, Chioma Onyekelu, a blockchain forensics and compliance pro, didn’t hold back. She explained that trying to dodge compliance is a risky game.
From the regulator’s side, Azeeza Hassan-Jibril of the Securities and Exchange Commission (SEC) highlighted their main goal: to create a stable and trustworthy market that people can have confidence in. While the SEC has made strides in providing clearer rules, many blockchain businesses still feel like they’re wandering through a fog when it comes to operating in Nigeria.
So, what can businesses do? One key step is to prioritise compliance from day one. Onyekelu pointed out that a lot of blockchain companies focus on profits first, telling themselves they’ll deal with compliance later. But that’s a dangerous mindset. “Building with compliance in mind from the start is essential,” she said, adding that seeking expert advice early can make a huge difference.
Zone, a Nigerian blockchain payments company, has cracked the compliance code. Ifunanya Anamelechi, their VP of Legal and Compliance, shared their approach: “For us, compliance isn’t just a box to tick — it’s built into everything we do.” It’s part of their DNA, ensuring they stay on the right side of regulations while growing their business.
Want to learn more tips for navigating Nigeria’s tricky regulatory waters? Bolu’s got you covered with four more strategies in his story. Check it out here.
Why PoS withdrawal charges are on the rise
PoS withdrawal charges in Nigeria have been climbing, and it’s not sitting well with customers. According to PoS agents, the rising costs come down to two main things: cash scarcity and higher expenses.
Here’s the deal. PoS agents are a lifeline for many Nigerians, especially in areas where ATMs are hard to find. They’ve played a massive role in financial inclusion, but their services aren’t cheap anymore.
Not long ago, withdrawing ₦5,000 or less would cost you ₦100, and pulling out between ₦5,000 and ₦10,000 was ₦200. That changed during the cash crunch caused by the CBN’s currency redesign, where charges shot up briefly. Now, they’ve settled at higher rates: ₦150-₦200 for under ₦5,000 and ₦300 for ₦5,000-₦10,000.
Nathaniel, a PoS operator in Enugu, says he had to up his charges after banks introduced a levy on transfers above ₦10,000. Add the struggle of getting cash from banks to this, and things get even more expensive. Agents often buy cash from businesses, passing the costs onto customers.
But not everyone’s happy. Customers have complained, though they mostly keep using PoS services because alternatives are limited.
The Association of Mobile Money & Bank Agents of Nigeria (AMBANN) says the increase was bound to happen, given rising costs like electricity, logistics, and even the receipt paper used at PoS terminals. According to Lagos Chapter Chairman Oluwagunwa Ibirogba, they’re negotiating with banks to lower levies and urging agents to keep fees reasonable. But enforcing this is a different ballgame.
For many Nigerians, these high charges feel like a slap in the face, especially since PoS services were meant to make financial transactions easier and cheaper. There’s growing pressure on the CBN to step in and regulate the fees. But the solution isn’t that simple. If cash becomes easier to get, it might slow down Nigeria’s push for digital payments.
The challenge is clear: how do you make cash accessible without undermining the shift to digital transactions?
In case you missed them
- X explores live streaming as part of its evolution into an everything app
- Getty Images and Shutterstock merge in $3.7 billion deal to embrace AI-driven future
- Kenya's telecom regulator to hike satellite ISP licensing fees by over 800%
What I'm watching
- The Philosophy of Comedy | Henri Bergson
- Israel vs. Palestine: Whose land? AI debates
Opportunities
- Moniepoint is hiring for several roles. Apply here.
- Celebrate the New Year with delightful stories like Smart Couples. Call 421 on your Airtel line now — you won't be charged! Alternatively, call 07080601391 at your network's regular rate. Learn more here.
- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a beautiful Thursday!
Victoria Fakiya for Techpoint Africa.
