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Neobank, Carbon, Shuts Down Debit Card Operations in Nigeria

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Ngozi-Dozie
Nigerian fintech company, Carbon, has announced the cessation of its debit card operations in Nigeria

Nigerian fintech company, Carbon, has announced the cessation of its debit card operations in Nigeria, two years after their initial launch. This decision was disclosed by Carbon’s co-founder and CEO, Ngozi Dozie, via a Substack post on Wednesday.

Although Dozie did not explicitly detail the reasons behind discontinuing the card service, his post suggested that the introduction of the cards might have been a strategic misstep. Additionally, the current forex challenges, which increased the operational costs due to the dollar-denominated card expenses, likely played a significant role in this decision.

“When I take a step back with the benefit of hindsight (and a card operation bill denominated in USD$), I question why practically all neobanks are pushing cards or even getting into it. Was this the right strategy for ALL of us, or was Carbon just unlucky?” Dozie wrote.

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Founders’ Errors

Dozie reflected on common mistakes made by founders, including making decisions based on insufficient information without proper analysis. He admitted that if he had thoroughly analyzed the industry, he might have avoided launching the card operations.

“Nigerians already have many debit cards,” he acknowledged. “If I had done the analysis…and truly evaluated the opportunity, I don’t think I would have been that gung-ho about pushing a strategy to provide consumers with their fifth debit card. The decision might have been the same, but perhaps with more respect for the potential risks.”

Dozie also noted that he might have believed that offering a debit card would increase customer trust in Carbon, akin to traditional banks. He advised fintech startups to critically analyze the industry before venturing into debit card offerings.

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Context and Comparison

Several other fintech companies like Kuda, Moniepoint, and OPay have rolled out debit cards for their customers. Unlike Carbon, which partnered with the international card provider Visa, these companies have opted for Verve cards, providing them with a local advantage amidst the current forex issues.

When Carbon launched its debit cards in August 2021, it marked a significant step in transitioning from Nigeria’s biggest digital lender to a microfinance bank licensed by the CBN. The debit card allowed Carbon bank account holders to access funds via online and offline channels like ATMs and POS machines. Carbon aimed to enhance user experience, a common issue among customers of financial institutions, and build on its customer base of 3 million users by offering a more comprehensive banking experience.

Carbon’s decision to discontinue its debit card operations underscores the complex challenges fintech companies face in balancing innovative services with operational realities. This move serves as a cautionary tale for other fintech startups considering similar ventures, highlighting the importance of thorough market analysis and strategic planning.

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Australian Nurses Suspended Over Antisemitic Video Amid National Crackdown on Hate Speech

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Australian Nurses Suspended Over Antisemitic Video Amid National Crackdown on Hate Speech

Two Australian nurses have been suspended after a video surfaced showing them making violent antisemitic remarks, including threats to harm Israeli patients. The incident, which allegedly took place at a hospital in Sydney, has sparked outrage and is now under police investigation.

New South Wales (NSW) Health Minister Ryan Park confirmed that the two individuals had been stood down immediately and would never work in the state’s healthcare system again. Authorities are conducting a thorough review of hospital records to ensure no patients were harmed, though a rapid preliminary check found nothing unusual.

Australian Prime Minister Anthony Albanese condemned the video as “sickening and shameful,” emphasizing that antisemitism has no place in Australia. His comments come just days after the country passed stricter hate crime laws in response to a surge in antisemitic incidents.

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The video, shared online by Israeli content creator Max Veifer, appears to have been recorded in a hospital setting. In the footage, a man claiming to be a doctor tells Veifer he has “beautiful eyes” but adds, “I’m sorry you’re Israeli,” before making a throat-slitting gesture and stating he sends Israelis to “Jahannam” (an Islamic concept of hell). A woman later appears on screen, saying she refuses to treat Israelis and will “kill them” instead.

Despite the video being edited with emojis and censoring certain comments, authorities have not questioned its authenticity. NSW Police stated they have identified the individuals involved and are investigating whether criminal charges should be pursued.

Albanese vowed that anyone found guilty of committing hate crimes will “face the full force of our laws.” Park echoed this sentiment, apologizing to the Jewish community and reassuring them that NSW hospitals remain committed to providing “first-class” healthcare to all patients, regardless of background.

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Coca-Cola May Increase Plastic Bottle Use Due to Trump’s Aluminium Tariffs

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Coca-Cola May Increase Plastic Bottle Use Due to Trump’s Aluminium Tariffs

Coca-Cola has warned that it may have to increase the use of plastic bottles in the U.S. if President Donald Trump’s new tariffs make aluminium cans too expensive. The announcement was made by Coca-Cola CEO James Quincey during a call with investors.

Trump’s recent order imposes a 25% import tax on all steel and aluminium entering the U.S., a move expected to raise costs for canned food and beverage manufacturers. Quincey acknowledged that Coca-Cola could shift more emphasis to PET plastic bottles to manage affordability.

“If aluminium cans become more expensive, we can put more emphasis on PET bottles,” he said, while noting that packaging costs are only a small fraction of the company’s overall expenses.

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This shift comes shortly after Coca-Cola scaled back its sustainability goal of using 50% recycled materials in its packaging by 2030, adjusting the target to 35-40% by 2035. The beverage giant has been under pressure from environmental groups, which have labeled it the world’s “top global plastic polluter” for six years in a row.

Aluminium cans, despite being pricier, are far more recyclable than plastic bottles. The U.S. imports nearly half of its aluminium, according to the United States Geological Survey, making the tariffs a significant factor in production costs. Unlike in 2018, when some can-makers received exemptions from similar tariffs, Trump has now ruled out any exceptions for products or countries.

In a separate move, Trump also signed an executive order rolling back efforts to replace plastic straws with paper alternatives in government facilities—undoing a policy introduced by former President Joe Biden, who had called plastic pollution a “crisis.”

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U.S. Justice Department Orders Prosecutors to Drop Corruption Case Against NYC Mayor

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U.S. Justice Department Orders Prosecutors to Drop Corruption Case Against NYC Mayor

The U.S. Justice Department has directed federal prosecutors to drop the corruption case against New York City Mayor Eric Adams, citing concerns that the indictment was hindering his ability to address illegal immigration and crime.

The directive came from Acting Deputy Attorney General Emil Bove, a former defense attorney for President Donald Trump, who stated in a memo that no further investigative steps should be taken until after the 2025 mayoral election. The memo also instructed prosecutors to work toward restoring Adams’ security clearance.

Adams, a Democrat, has recently forged a closer relationship with Trump and ordered city law enforcement to cooperate with federal immigration raids—a move that critics argue undermines New York’s sanctuary city policies. However, he denies having discussed his case with Trump.

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Adams was indicted in September on five charges related to accepting over $100,000 in illegal gifts and campaign contributions from Turkish officials in exchange for political favors, including allegedly assisting with safety regulation exemptions for a Turkish consulate in New York. He has pleaded not guilty.

Despite the Justice Department’s order, prosecutors have not yet confirmed whether they will comply. Any decision to drop the case must be formally submitted to the court and approved by a judge.

The move has sparked concerns about political influence in the justice system. While Bove’s memo states that the decision does not assess the strength of the evidence against Adams, it acknowledges that his past criticism of immigration policies under the Biden administration “cannot be ignored.”

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Adams, who attended Trump’s presidential inauguration and recently met with him in Florida, has faced backlash from Democratic leaders for aligning with the Republican president. Meanwhile, Trump has previously claimed that both he and Adams were “persecuted” for opposing Biden’s immigration policies.

The Justice Department’s decision to delay potential future prosecution until after the next mayoral election raises questions about the case’s trajectory and whether it may be revisited under a new administration.

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