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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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Downing Street Indicates UK Would Arrest Netanyahu if He Visits

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Downing Street Indicates UK Would Arrest Netanyahu if He Visits

Israeli Prime Minister Benjamin Netanyahu could face arrest if he enters the United Kingdom, following an international arrest warrant issued by the International Criminal Court (ICC), according to indications from No 10.

A spokesperson for UK Prime Minister Rishi Sunak declined to comment on the specifics of Netanyahu’s case but affirmed that the government is committed to fulfilling its “legal obligations.”

The ICC issued arrest warrants on Thursday for Netanyahu, alongside former Israeli Defense Minister Yoav Gallant, citing alleged war crimes in Gaza. As a signatory to the ICC treaty, the UK is obligated to enforce such warrants.

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Under the International Criminal Court Act 2001, the UK government must transmit ICC arrest requests to a judicial officer, who then determines whether to endorse the warrant for execution within the country.

“The government would fulfil its obligations under the act and its legal obligations under both domestic and international law,” the spokesperson said, emphasizing the UK’s commitment to its treaty obligations.

When asked if Netanyahu would be detained upon arrival in the UK, the spokesperson refrained from commenting on “hypotheticals.” However, the legal framework leaves little room for discretion if a visit occurs, given the binding nature of the treaty.

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Judge Delays Sentencing for Donald Trump for the Third Time

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Judge Delays Sentencing for Donald Trump for the Third Time

A New York judge has delayed the sentencing of President-elect Donald Trump for a third time as legal battles over his conviction remain unresolved. Trump’s attorneys continue to press for his conviction to be dismissed, citing presidential immunity and potential interference with his upcoming duties as president.

Originally scheduled for sentencing on November 26, Trump was convicted in May on 34 felony fraud charges. The Manhattan District Attorney, who led the prosecution, opposes efforts to overturn the conviction but has suggested delaying sentencing until after Trump’s second presidential term.

Justice Juan Merchan, presiding over the case, has paused all proceedings to review legal briefs from both sides. These submissions are due in December, but no new sentencing date has been set.

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With Trump’s inauguration looming on January 20, the court faces increasing pressure to decide whether the conviction will stand or if sentencing will proceed.

Trump’s legal team argues that his conviction undermines the principle of presidential immunity, asserting that legal proceedings during his term would interfere with his ability to govern effectively. Critics, however, have pushed back, asserting that no one, including the president, is above the law.

This legal standoff marks another chapter in the contentious relationship between Trump and the judiciary, as the nation watches closely to see how the case unfolds in the lead-up to his second inauguration.

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ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas Commander Over War Crimes

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ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas Commander Over War Crimes

The International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, former Defense Minister Yoav Gallant, and Hamas military commander Mohammed Deif, accusing them of war crimes and crimes against humanity.

The ICC’s pre-trial chamber stated that there are “reasonable grounds” to believe all three men bear responsibility for atrocities committed during the conflict between Israel and Hamas. These include allegations of murder, persecution, torture, and the use of starvation as a weapon of war.

For Netanyahu and Gallant, the charges stem from Israel’s military response to Hamas’s deadly October 7, 2023, attack, which left 1,200 Israelis dead and 251 abducted to Gaza. Gaza’s Hamas-led health ministry reports over 44,000 deaths during Israel’s subsequent military campaign.

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The ICC accuses Deif, Hamas’s military leader, of orchestrating crimes such as murder, extermination, rape, and hostage-taking during the initial attack. Despite Israel’s claim that Deif was killed in an airstrike in July, the ICC included him in the warrants.

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  • Israel dismissed the ICC’s decision as “antisemitic” and reaffirmed its stance that the court lacks jurisdiction over the matter, as Israel is not a signatory to the ICC.
  • Hamas hailed the warrants for Israeli leaders as a “historic precedent,” while rejecting the charges against its own commander.
  • United States condemned the ICC’s actions, while European Union foreign policy chief Josep Borrell called for respecting and implementing the court’s decisions.

The warrants raise questions about enforcement, as neither Israel nor Hamas recognize the ICC, and compliance depends on the court’s 124 member states. The development marks a pivotal moment in international law’s attempt to address the human toll of the ongoing Israel-Hamas conflict.

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