Infotech Person
Mitchell Elegbe: Celebrating A Visionary Who Transformed E-payments In Nigeria
Published
4 years agoon
“Give me my tally number” – This would sound weird to millennials and young adults as the days of ‘tally numbers’ are long gone.
Well, “who is the last person on the queue?” or “your machine has ‘swallowed’ my card”, may sound more familiar as people try to perform electronic payments using Automated Teller Machines (ATM) in the country.
Well, e-payments in Nigeria has arguably taken an innovative turn since one man, Mitchell Elegbe, Founder and Group CEO of Interswitch, took it on himself to champion the vision and a series of strategic interventions over almost 2 decades towards transforming and revolutionizing electronic transactions as we’ve come to know it today.
Interswitch is an Africa-focused integrated digital payments and commerce company that facilitates the electronic circulation of money as well as the exchange of value between individuals and organisations on a timely and consistent basis.
The company envisioned and midwifed by Mitchell, along with a team of young, like-minded pioneers started operations in Nigeria in 2002 as a transaction switching and electronic payments processing company that builds and manages payment infrastructure as well as deliver innovative payment products and transactional services throughout the African continent.
Interswitch Limited, now a pan-African company, provides technology integration, advisory support, transaction processing and payment infrastructure services to governments, banks and corporate organisations and high-net individuals.
Mitch, as he is fondly called, is an Electrical/Electronic Engineering graduate from the University of Benin in Nigeria.
He is an alumnus of the IESE/Wharton/CEIBS Global CEO Programme and he is a Bishop Desmond Tutu fellow of the African Leadership Institute. He had worked as the Group Head for Business Development at Telnet, a fast-growing telecommunications company, and was a Wireline Engineer at Schlumberger.
As a student, Mitch struggled to make ends meet by making a business out of dubbing cassettes he borrowed from friends but an encounter with an ATM seizing his card in Scotland inspired the idea for Interswitch.
One of his ideas as a young engineer working at the telecom firm, Telnet, at the time—modernizing Nigeria’s payment system—grew into Interswitch, which makes life easier for Nigerians of all economic backgrounds to make financial transactions, mostly, cashless.
When he envisioned Interswitch at the turn of the century, the cash that dominated Nigeria’s economy had become worrisome. An example: With banks closing on Friday afternoons, Nigerians withdrew cash to last the entire weekend. This led to crime (robberies) or getting exhausted if more expenses are encountered.
Developing electronic payment in Nigeria required overcoming a strong cultural bias toward cash as Nigerians use cash as a solution to almost any situation including giving cash as gifts at weddings, at burials, at childbirth, and other occasions.
Smartly, Mitchell decided that the best approach is not to eliminate cash but to preach a message that there is a more efficient way to use it.
He also had to overcome skepticism captured in questions such as: ‘How do you run a 24/7 business in a country where power is not constant? In a country where telecom is still very unreliable? When the people you target are predominantly in love with their cash? How do you get the human resources needed for an entirely new area like electronic payment?’ etc.
Mitch knew that electronic payment could be appealing to banks as well as the Nigerian people because transactions are a significant source of banking revenues. He partnered with Accenture to develop a business case and a business plan.
The plan avoided the ‘one-man business’ syndrome but gave ownership to institutions that were needed from a corporate governance point of view to assist in growing the business. Banks owned about 85 per cent of the company, with one or two IT companies to ensure that proper corporate governance was followed.
This close partnership with key players in finance and IT helped Interswitch stay ahead of the competition and to avoid some of the pitfalls of sole ownership.
Even though the company was built on his idea, he began life at Interswitch as an employee with no shareholding. His priority was not ownership of the company, but rather to see out the execution of what he believed was a brilliant idea.
His stellar leadership of the company eventually earned him and his team stakes in the enterprise. With the benefit of hindsight, he is convinced that his decision to forgo ownership of the company at inception was correct and had a significant impact on the company’s stable growth in its early days.
In 2004, Interswitch won a gold medal for innovation at the Computerworld Honors, an international award program which recognizes individuals and organizations whose achievements in ICT have impacted society. Before receiving the award, the company had seven local banks on its network.
Thereafter, the number increased to 13, and the first set of non-banks, including an ATM consortium and Globacom, a mobile telecommunications provider, were added. Today, the company has almost all Nigerian banks and 11,000 ATMs on its network.
Eight years after it was set up, Interswitch’s shareholders decided to tweak the ownership model of the company. With the company valued at over $170 million, a private equity deal was structured and two-thirds of the company was sold to a consortium.
The equity injection bolstered Interswitch’s balance sheet and paved the way for it to begin realizing its ambition for the continent, which was soon reflected by its acquisition of Bankom, Uganda’s leading transaction switching company.
From 2014 to 2019, Nigeria’s fintech scene took in more than $600m in funding, according to a report by McKinsey, the consultancy. In the past three years, fintech investments in Nigeria almost tripled, while in 2019, Nigerian fintech took in one-quarter of all funding raised by African start-ups, the report said, Interswitch was not left out.
As a leader, Mitch fosters creativity at Interswitch and encourages employees to air their views and to pursue ideas and passions not directly tied to their job description. The company also sponsors a “Hackathon” in which its engineers work on a project for 72 hours and showcase to a panel of judges.
Interswitch has a division dedicated to training their staff, as well as third party individuals in their business operations as Mitch believes that by investing in an employee’s professional development, you are showing them that they can build a future in the company.
Interswitch also has profit-sharing policies that are tied to performance and rewards hardworking employees, allowing them to achieve additional earnings if given targets are met.
In recognition of his stellar attributes and his success with Interswitch, Mitch has won several awards including the CNBC/Forbes All African Business Leader (AABLA) for West Africa and Ernst and Young Entrepreneur of the Year Award among others.
He was named a winner in the African Banker Awards 2019 as the African Banker Icon. He was awarded the Transformational Business Award by the African Leadership Network at the 2013 Africa Awards for Entrepreneurship. The award is in recognition of a notable business leader who has created a significant socio-economic impact in Africa by building a business with revenues greater than US$50m.
Undone, Interswitch also wants to expand and introduce the use of electronic payment into sectors like transportation and health services as he believes Fintech is yet to tap into a tenth of what is happening as far as electronic payments are concerned.
Currently, Nigeria’s economy is dominated by the informal sector and the Nigerian government, which is now promoting a cashless economy, estimates that the direct cost of handling, processing, and managing cash exceeds $1.2 billion as at 2012.
Seeing that banks are a major source of funds used for the country’s development, Interswitch also contributes to the country’s development by working with microfinance banks as all of Nigeria’s microfinance banks are now part of the Interswitch network.
Today, Interswitch is demonstrating how electronic payment can work in Nigeria. In time past, you had to travel to a physical bank branch or office and wait in the queue to obtain money or deposit money or pay a bill.
Now, you can do these things, and more, from whatever location, at your comfort, instantly by cell phone, at an ATM, or through a wide network of merchants. You not only reap the benefits in security but also in productivity and time.
Having seized the opportunity to make a difference within the African business space, using technology and human capital development as a springboard, which is what fueled the vision that has become ‘Interswitch’ today, he strongly believes that leadership creates opportunities not only to articulate a vision for a generation but also to shape what tomorrow will be.
However, Mitchell has somewhat become disenchanted with successive years of policy failure across sectors of governance and policy in Nigeria (and Africa) that hold the greatest propensity to drive socio-economic impact if executed right; although he currently sits within the private sector, he however sees an impending evolution of his roles and responsibilities over the next few years, moving into the forefront of championing public-private sector-driven initiatives, evolving into key policy/advisory/consulting roles supporting government, whilst not ruling out the possibility of getting actively involved in the mainstream of public sector leadership at some point in the future.
If Mitchell made us love the new face of payment in Nigeria, little wonder what he will bring into public sector leadership.
Guess we can only watch out for this man!!!
Kudos Mitch!!
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Infotech Person
Dr Vincent Olatunji, National Commissioner of NDPB appointed into Forbes Technology Council 2023
Published
2 years agoon
June 15, 2023Dr Vincent Olatunji, the National Commissioner, NDPB has been appointed into Forbes Technology Council for 2023, an invitation-only community for world-class CIOs, CTOs and Technology Executives.
Scott Gerber, Forbes Councils’ founder said they are really excited to welcome Dr. Olatunji to the Council. He stressed that their mission with Forbes Councils is “to bring together proven leaders from every industry, creating a curated, social capital-driven network that helps every member grow professionally and make an even greater impact on the business world.”
“I am delighted to be counted worthy to join the Forbes Technology Council,” Dr. Olatunji said. “It is another confirmation of our modest effort to ensure that our country is recognized among the global leaders in Data Protection compliance.”
Dr. Olatunji holds a doctorate degree in Geography and Planning from the University of Lagos. He is a Certified Public Private Partnership Specialist (IP3 Specialist) and a PECB Certified Data Protection Officer.
He is an accomplished professional with proven track records of delivering impactful results thereby excelling in building strong relationships across sectors and achieving tangible outcomes. He has also successfully led teams, conducted extensive research, developed effective policies, and implemented strategic initiatives at all levels of government in Nigeria. His expertise lies in driving human growth and process transformation, and he is highly skilled in negotiation, networking, and public speaking. He has worked in the public sector for over 30 years thereby bringing his wealth of experience and professionalism on board Forbes Technology Council.
Dr. Olatunji joined the National Information Technology Development Agency (NITDA) in 2002 and has worked in various departments thereby rising to the position of a director in 2014 and Acting Director General in 2016.
Prior to his appointment in February 2022 as the NDPB’s pioneer National Commissioner of NDPB, he worked as the Director of eGovernment Development and Regulations at NITDA where he led a formidable team to deliver various initiatives on Nigeria’s digital transformation.
As Nigeria’s Data Protection Ombudsman, Dr. Olatunji’s relentless efforts and expertise have propelled him to the forefront in shaping policies and frameworks that align with international standards, bolstering Nigeria’s and Africa’s position in the global data protection landscape.
He has attended many Capacity Building programmes in various areas such as Public Sector Management, Project Planning and Management, Digital Transformation and Data Protection amongst others. He is a member of many committees of experts and has represented Nigeria at several local and international engagements.
Infotech Person
APPON Honours Danbatta For e-Procurement Delivery
Published
2 years agoon
June 15, 2023The Association of Public Procurement Practitioners of Nigeria (APPON) has conferred the Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, with the “Excellent Service Delivery and Accountability Award”.
The award was in recognition of Danbatta’s outstanding performance and contribution to the canons of the public procurement profession in Nigeria by ensuring that the NCC complies strictly with the provisions of the Public Procurement Act (PPA) 2007.
He received the award at the 3rd Annual National Conference and Awards Ceremony organized by the APPON in Lagos recently.
Danbatta was adjudged to have led an NCC that is transparent and open and compliant with the provisions of public procurement as enshrined in applicable laws of the land.
In his remark, APPON National President, Akparawa Kanico, congratulated the EVC for his remarkable leadership and ability to inspire everyone around him towards ensuring effective procurement process in the Commission.
He stated that the leadership finesse and administrative prowess of Danbatta have reflected in the impressive growth that the telecoms sector has witnessed in being an enabler of growth in other sectors of the economy and the national economy as a whole.
Responding, the Danbatta appreciated the organisers of the Awards for the recognition while describing it as ‘a great motivation to him and the Commission to be more transparent, open and process-driven in its procurement activities.’
Meanwhile, speaking on the topic: “Implementation of e-procurement in Nigeria: Prospects and Challenges” at the event, Danbatta said broadband connectivity, being driven by the Federal Government, through the Commission, will enhance electronic procurement (e-procurement) that will ensure greater accountability and transparency in governance process in Nigeria.
He stressed that e-procurement was the way to go and that the Commission will continue to create the enabling environment required for e-procurement to thrive through NCC’s dedicated commitment to driving the attainment of ubiquitous broadband connectivity across Nigeria.
Danbatta said Nigeria’s investment in broadband infrastructure is yielding substantial benefits for the country’s e-procurement sector, revolutionizing the way businesses engage in procurement processes, especially Government-to-Business (G2B) and other e-government activities.
“With the new administration in the country making broadband connectivity an outstanding pillar in its policy thrust, the Commission would continue to focus on improving broadband infrastructure to change the landscape of procurement governance, and help to unlock new possibilities for businesses and public institutions.
“With improved Internet connectivity, businesses across the country now have faster and more reliable access to e-procurement platforms, enabling them submit proposals, monitor tender opportunities in real time, and participate in online bidding process,” he said.
At the event, two members of staff of the Commission were inducted as APPON Fellows. They are Adejoke Atte, NCC’s Head of Procurement Department and a Principal Manager in the department, Bernard Kwembeh.
Events
PREMIUM TIMES Books Unveils New Title on Cyber Politics, Nigerian Elections
Published
2 years agoon
June 14, 2023Premium Times Books, the book publishing arm of the Premium Times Group, is pleased to announce the release of a new title, Cyber Politics: Social Media, Social Demography and Voting Behaviour in Nigeria.
The book, written by Omoniyi P. Ibietan, is officially making its way to physical and online bookshop Monday morning in a unique alignment with the symbolic rituals of June 12, Nigeria’s Democracy Day.
In 460 pages spread over 12 chapters, Cyber Politics: Social Media, Social Demography and Voting Behaviour in Nigeria gives expression to a critical phase within the distinct trajectory of Nigerian democracy through its elections.
Like June 12, which created a watershed in the country as Nigerians sought to rupture the yoke of military rule through the ballot, this book by Omoniyi P. Ibietan engages with another national watershed moment, as the nascent digital culture involving Internet use, and particularly the social media, converges with the articulation of voter choice, ultimately impacting Nigeria’s electoral fortunes in the process.
Nigeria’s 2015 presidential election is utilised as the sounding board from which analyses that offer great insights into the future of voting behaviour in the country are made in this new title, that is both skilful in its rendition and ground-cutting in its intellectual approach.
In an Introduction he wrote for the book, Dapo Olorunyomi, the Chief Executive Officer of the Premium Times Group, said “The universe of this new book is intriguing in its exploration of the “digital effect on elections.”
He also pointed out how Mr Ibietan’s work demonstrates “clearly that social media systems do enrich electoral democracy by expanding access to registration, participation, voting and organising at a scale we have never contemplated.”
He further observed that, “In the context of the Nigerian market framework, we also get to appreciate, through his lenses, the comparative appeal of each of the social channels. WhatsApp is the battle axe, while Twitter, hysterical though it is, remains limited.” Also, “Ibietan demonstrates how Facebook appeals to age and its abstract commitment to attention and community makes its credentials for advancing democracy a suspect.”
Equally, in his Foreword to the book, Umar Danbatta, a professor and executive vice chairman of the Nigerian Communications Commission, noted that: “the author situates the historical context of Nigerian politics and democracy” and more so “…the nexus between social media and voting behaviour, and the influence of the social media ecosystem among others in the electoral process.”
Importantly, as Professor Danbatta put it: “The book is a compelling narrative, a scholar’s guide and companion on the various political communication themes it interprets. It is difficult to put down this work once you are drawn by its alluring and free-flowing prose and incisive analysis.”
For a prominent commentator, who is also a former Minister of Information and Communication in Nigeria, Frank Nweke II, “the book represents an uncommon body of work by an intellectual visionary”, and he is of the conviction that the “extrapolation of the lessons and recommendations of this book will find perfect expression in other climes beyond the 2015 Nigerian general elections scenario.” Nweke thus commends “Dr Ibietan for this remarkable work, and…recommend(s) this book for practitioners and academics in the fields of strategic communications, new technologies, and social change.”
The author of this new book, Omoniyi P. Ibietan, holds a doctorate in Political Communication from North-West University in South Africa, and earlier degrees in Communication Arts from the Universities of Uyo and Ibadan.
With a career spanning journalism, stints in the civil society and academia, he is presently a directorate cadre staff in the Nigerian Communications Commission (NCC), where he heads the media relations management unit.
Over the past two decades, Mr Ibietan has researched deeply in the emergent interface between communication studies and psephology, which explains his richly nuanced understanding and far sight into issues involved.
Cyber Politics: Social Media, Social Demography and Voting Behaviour in Nigeria is available as physical copies both in the hard back and soft back versions in bookstores across the country from today, 12 June. The electronic copies of the book can also be purchased on online platforms, including Amazon.