In case you missed some of the key happenings this week, here’s a quick rundown of the major news that caught our attention.
Business & Finance
1. Investor Excitement Grows Around MTN Nigeria
Investors seem optimistic about MTN Nigeria again! In fact, share trading activity spiked significantly in mid-April. Subsequently, it hit the highest single-day volume ever for MTN on the NGX. What’s fueling this hope? Well, there’s buzz about a potential profit in their upcoming Q1 results (due April 29th). Specifically, this follows a hefty 50% hike in service tariffs. Previously, remember, the naira’s devaluation hit them hard. Consequently, it led to big losses over the past couple of years.
- Why it matters: MTN holds over half the telecom market share. Therefore, its performance often signals wider tech sector trends here.
- Also happening: Additionally, they recently rebranded their fibre service to FibreX. Naturally, this hints at growth plans. Furthermore, they announced a public offer. However, its timing depends on profits returning. Ultimately, the goal is to reduce the MTN Group’s stake. This move aims to boost local ownership.
- Contrast: Meanwhile, Airtel Africa hasn’t seen the same investor frenzy. This is despite similar tariff hikes. Perhaps their stock is less actively traded (illiquid). Also, an ongoing share buyback program plays a role.
- Challenges remain: Of course, keep in mind, rising inflation is still a hurdle. Similarly, economic hardship affects consumer spending power. Nevertheless, analysts are cautiously hopeful about MTN’s turnaround.
2. Transcorp Hotels Posts Strong Q1 Results
Now, let’s switch gears to hospitality. Transcorp Hotels Plc reported impressive Q1 2025 numbers. Notably, their revenue shot up 52% year-on-year. It reached ₦21 billion! Gross profit likewise jumped nearly 60% to ₦15.84 billion.
- Key takeaway: Impressively, they achieved this growth despite the tough economy. Moreover, they even improved profit margins by cutting sales costs. Profit before tax was solid at ₦6.16 billion. This was slightly up from last year. Remarkably, this happened without a big forex gain they had in Q1 2024.
- What’s new? They successfully launched a new event venue. The Transcorp Centre holds 5,000 people. Therefore, it should open up fresh income streams. Management credits strategy and team dedication for the results.
Tech, Startups & Financial Innovation
3. A New Spin on AI for Africa
Artificial intelligence is transforming the world. Yet, Africa faces unique hurdles like limited data and tech infrastructure. However, a recent bootcamp, BRAIN 4.0, highlighted a practical path. Specifically, the focus is Small Language Models (SLMs).
- Why SLMs? In contrast to huge LLMs, SLMs need fewer resources. Therefore, they work well with smaller, local datasets. As a result, this makes them perfect for many African contexts. Stanford lecturer Younes Bensouda Mourri stressed their importance.
- Real-world example: For instance, Tanzanian healthtech TanzMed uses SLMs now. They digitize healthcare in a country with few doctors. Their smart systems use TanzMed’s own data. Currently, they serve over 300,000 users.
- Funding focus: Beyond the tech, the bootcamp also tackled funding issues. Getting backing for deeptech ventures is crucial. Thus, it connected founders with investors and mentors.
4. Nigerian Fintech Trials AI Biometrics for Loans
Getting credit is tough in Nigeria without formal documents. Fortunately, Lendsqr, a lending software startup, has an innovative AI model. It aims to tackle this challenge head-on.
- How it works: The AI analyzes borrowers’ voices and facial cues. This happens during conversational interactions (via video or voice). It assesses character and capacity to repay small loans (₦30k-₦50k). Essentially, the goal is bypassing paperwork.
- Early results: The pilot phase shows promise. Indeed, it has a 76% prediction accuracy so far.
- Wider impact: If successful, this could unlock credit for millions. Interestingly, Lendsqr even plans to share its data. This could help others improve their tools too. Overall, they aim to boost financial inclusion across Africa. Potentially, they might even help immigrants in Canada. They want 90% accuracy before a wider rollout.
5. New Nigerian Startup Targets Documentary Streaming
Remember Aba’s role in the DVD era? Well now, OptimalVid, a startup from Aba, enters the streaming game. Their unique focus is documentaries.
- The pitch: OptimalVid launches globally soon. Notably, it offers a $2 monthly subscription. Plus, a standout feature lets you pause your plan. You can pause for up to 10 days each billing cycle. This flexibility targets budget-conscious users. Hence, it’s helpful in developing economies.
- Content strategy: Initially, they’ll start with royalty-free content. Then, later, they’ll license affordable documentaries. Thereby, they are tapping into a growing market. It’s projected to nearly double globally by 2034.
- The challenge: However, it’s a very crowded space. They face giants like Netflix. Likewise, specialized platforms like CuriosityStream are competitors. OptimalVid seeks $1.5 million in seed funding. Eventually, they know exclusive content will be key.
6. Get Ready: Open Banking Launches in Nigeria This August!
Finally, this is huge news for Nigerian finance! Open banking officially launches this August 2025. Consequently, Nigeria becomes the first in Africa to fully implement it.
- What it means: Banks will securely share customer data. This includes transaction history and balances. It happens via standard APIs. Crucially, it requires customer consent.
- Why it matters: As a result, this should spark lots of innovation. Additionally, it will increase competition. Furthermore, it is expected to significantly boost financial inclusion. Fintechs especially could benefit. They can access verified bank data. Thus, this improves credit scoring. It also helps develop personalized financial products. Think better loans or budgeting tools.
- Governance: Importantly, independent committees will provide oversight. These groups are led by financial professionals. This addresses earlier industry feedback about centralizing control.
