Mastercard CEO: We’re Bringing $2bn in Forex to Nigeria Yearly

• Tinubu assures Miebach of Nigerian youths’ competence

Deji Elumoye in Abuja

Mastercard’s Global Chief Executive Officer, Michael Miebach, has said the company is bringing into the Nigerian economy $2 billion in foreign exchange, while preventing nearly $200 million in fraudulent financial activities.

Miebach spoke yesterday, when he led a delegation from the company to President Bola Tinubu at State House, Abuja.

The Mastercard CEO also assured Tinubu of his company’s commitment to helping to achieve the administration’s economic reforms.

Tinubu told the delegation that Nigeria’s teeming youth population was the country’s greatest asset, assuring foreign investors of a ready-to-learn, tech-savvy workforce that can easily integrate into the global market.

Miebach stated, “It’s been a long-standing history, and today we facilitate a big aspect of the economy.

“In Nigeria, we are preventing $200 million in fraud and bringing in $2 billion in foreign exchange. We are helping the SME sector thrive and, of course, partner with your banks.”

He added, “We have a business here since 2011, and we have seen the country grow, and we have seen the country lead. We have seen your obviously clear alignment of fiscal and monetary policy that you have driven. In our world systems, there is a lot of momentum in Nigeria.

“A little anecdote: I was the one who set up the Master Card business in Nigeria in 2011. I was in Lagos, and hired the employee number one.  So it’s a little bit like coming home.”

Miebach explained, “We recognise the moment that we are in. We spent time with the CBN Governor and had an opportunity to meet the leading bankers yesterday in Lagos, to see where everything is going and the opportunity here to unlock the power of the 40 million SMEs in Nigeria, to really connect the diaspora to the homeland and ensure Nigeria is the most thriving and biggest economy on the continent.

“We want to drive the intra-African digital economy.”

He also said, “Many small businesses would like to have a digital part of their business, and they don’t know how to do that.  Capacity building of small businesses vis-a-vis just opening a shop and keeping them safe in a cyber-world.

“We have a three-year programme for small businesses. A technical workshop has been planned for this, so it is not just talk but action and impact.”

Miebach assured Tinubu of investments in inclusivity, participation, trust, and resilience in a digital world, as well as a Cyber Centre of Excellence that captured and shared threat intelligence, incident response, AI risks, and other emerging risks.

Tinubu declared his confidence in the competences of the country’s youth.

He welcomed Mastercard’s proposal to train five million businesses and equip them with digital skills.

According to him, the Nigerian economy has been repositioned and stabilised to fully participate in the global economy, with a focus on empowering youths and small businesses with digital skills and tools.

The president assured that more Nigerian youths would be empowered with digital skills to tackle present and future challenges.

He stated, “The most important asset is our youth. I missed one thing in your remark: whether you met with the Bank of Industry (BOI). BOI has a database of Micro, Small, and Medium Enterprises.

“Payment plans and platforms are very necessary for the inclusion of small and medium-scale businesses.

“What you have been doing with our young population is commendable, and we will continue to support that in every form. As the host country, the agreements we have with you are valid, and I want you to see us as partners.”

Tinubu stated that the ongoing formalisation of Nigeria’s largely informal small-business sector would create more opportunities for digital transitions, investments, employment, and growth.

“I am glad that you are very familiar with the terrain. I can classify you as a Nigerian. MasterCard has a very big reputation in financial management, and opportunities are spreading in Nigeria,” he added.

He said the business orientation was gradually changing, with more small businesses registering and embracing technology.

Earlier, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the economic reforms had provided opportunities for integration, particularly in credit and payment systems.

Oyedele stated, “You do more than payments, and that includes the work which you are doing in Nigeria through the MasterCard foundation to support and strengthen small businesses and the informal sector.

“This aligns well with the reforms of Mr President in different areas, cutting across the public and private sectors, including the ongoing efforts to digitise government services. We aim to enhance and empower at least three million youths in Nigeria.

“We are creating opportunities for work within the digital economy, the formalisation of the very large informal sector that we have in Nigeria.”

The minister added, “One of the major reforms by Mr President in fiscal and tax matters has led to more than 10,000 informal businesses applying for registration every day over the past few months.

“This speaks to the opportunities that abound in Nigeria for organisations like MasterCard.”

Oyedele said the president’s policy also cut across the credit economy, including mortgages, personal loans, consumer credit, auto loans, small-business credit, and student loans.

He highlighted significant opportunities in the credit economy for MasterCard to improve payment systems in Nigeria and across Africa, such as using the naira for swaps without third currencies, adding that five of the nine fintech unicorns are in Nigeria.