BD Insider 240: Data of Nigerian Citizens sold online for 100 Naira

The big three! 

#1 Sensitive Data of Nigerian Citizens Sold Online for Just 100 Naira

A digital rights organisation, Paradigm Initiative, has revealed that millions of Nigerians’ personal information is being sold online for as little as 100 Naira (7 cents). This includes personal data such as the National Identity Number (NIN), Bank Verification Number (BVN), virtual NIN, Driving License, International Passport, Company details, Tax Identification Number (TIN), Permanent Voter’s Card (PVC), and Phone Numbers.

In a statement released on June 20th, 2024, the digital rights organisation implicated AnyVerify.com.ng, a platform operating in Nigeria’s digital space since November 2023. According to Paradigm Initiative, this website was visited five hundred and sixty-seven thousand nine hundred and ninety (567,990) times in February 2024 and one hundred and eighty-eight thousand three hundred and sixty (188,360) times in April 2024. 

“We tested the website, archived it and could pay for NIN slips belonging to Bosun Tijani the minister of Communications, Innovation and Digital Economy and Vincent Olatunji, the commissioner of the NDPC,” said Gbenga Sesan, the executive director of Paradigm Initiative.

Context: This is not the first time such a breach has occurred. In March 2024, a website called XpressVerify was accused of selling personal data. The National Identity Management Commission (NIMC) denied that XpressVerify was a licensed partner.  An investigation by the Nigeria Data Protection Commission (NDPC) found NIMC’s security infrastructure compliant and indicated that the March breach was due to access abuse by an NIMC agent.

In 2021, NIMC was also accused of negligence after a self-service app for identity verification was breached, and personal data was sold on the dark web.

Why It Matters: Paradigm Initiative highlights the potential consequences, including identity theft, financial fraud, and even physical harm if criminals exploit access to home addresses.  The economic impact could also be significant, with potential disruption to the banking system and a decline in public trust in financial institutions.

Zoom in: Paradigm Initiative is investigating the breaches and taking legal action against relevant government agencies.  They argue that the National Identity Management Commission (NIMC) has been irresponsible in granting access to personal data without proper oversight.

The NIMC has denied allegations of any data breach. In a press statement signed by Kayode Adegoke, Head of Corporate Communications, on Saturday, June 22, the Commission reassured the public that their data remains secure and has not been compromised.

They identified several websites, including idfinder.com.ng, Verify.Ng/signin, championtech.com.ng, trustyonline.com, and anyverify.com, as unauthorised data harvesters. It clarified that licensed partners or vendors are not permitted to scan or store NIN slips but are only authorized to verify NINs through approved channels.

NIMC further warned the public against providing personal data to these sites, labeling them potentially fraudulent. It also announced an ongoing collaboration with security agencies to apprehend individuals posing as online vendors who will face legal consequences.

#2 WIOCC Group to Raise Over $50 Million for Digital Expansion in Africa

West Indian Ocean Cable Company (WIOCC) Group, a high-capacity connectivity provider, plans to raise a significant funding package of over $50 million from a consortium of international institutions to finance its expansion plans across three key African nations: Nigeria, South Africa, and the Democratic Republic of Congo (DRC).

The institutions include the International Finance Corporation (IFC), a member of the World Bank Group; Proparco, a development finance agency and a subsidiary of the Agence Française de Développement Group; and RMB Corvest, a private equity company.

Why It Matters: This funding is a major boost for bridging the digital divide in Africa. By expanding its digital infrastructure, WIOCC will enhance internet connectivity across the continent. This improved connectivity will empower individuals, unlock economic growth opportunities, and contribute to the overall development of African nations.

“We are excited to conclude this next stage of our capital raise, which will enable significant expansion, adding further capacity to our open-access data centre operation and extending open-access hyperscale national, international, and metro connectivity across our key markets in Nigeria, southern Africa, the DRC and Greater East and Central Africa,” said Chris Wood, CEO of WIOCC Group.

Context: Since its inception in 2007, WIOCC has been a prominent player in Africa’s digital transformation journey. The company has consistently invested in building open-access infrastructure, meeting the ever-growing demand for reliable internet connectivity solutions across the continent.

In 2021, WIOCC completed a $200 million debt and equity capital raise, which was used to expand its connectivity within Africa and internationally. Through Open Access Data Centres (or “OADC”), it launched a network of pan-African data centres optimised to serve the needs of the cloud provider and wholesale community.

This new funding strengthens WIOCC’s commitment to digital development and positions them to significantly increase their footprint in key African markets.

Zoom In: The partnership seeks to raise over $50 million in funding and has raised $41.7 million so far, with $10 million, ZAR 200 million ($11.07 million) coming from IFC, and $20 million from Proparco. WIOCC plans to sign a loan of $10 million in the next few weeks with RMB Corvest, a private equity company, to expand in Nigeria.

The secured funds will be used for a two-pronged approach.  First, WIOCC plans to expand its core and edge data centers in Nigeria, South Africa, and the DRC.  These data centers play a crucial role in storing and processing vast amounts of data, forming the backbone of a robust Internet infrastructure.  Second, WIOCC will invest in growing its fiber networks, which act as the physical pathways for data transmission.  

By expanding data center capacity and fiber network reach, WIOCC aims to bridge the digital divide in Africa, offering more individuals and businesses access to reliable internet connections.

#3 Crypto Traders Face Sars Scrutiny

Crypto traders in South Africa are facing a harsh reality — the South African Revenue Service (Sars) is actively pursuing them for tax on their crypto profits.  Those who haven’t declared their crypto earnings are receiving notices from Sars requesting information, and failure to comply could result in criminal charges.

What It Means: This marks a significant turning point for the cryptocurrency market in South Africa.  For years, some crypto traders operated under the misconception that their transactions were invisible to Sars.  However, this is no longer the case.  Sars is wielding its authority and leveraging information-sharing agreements with crypto exchanges to identify tax evaders.

Context:  In the past, many crypto traders believed their activity remained hidden from the watchful eye of Sars.  This perception likely stemmed from the decentralized nature of some cryptocurrencies.  However, Sars has been quietly working behind the scenes, establishing data-sharing partnerships with crypto exchanges.  This allows them to access transaction records, similar to how they obtain information from traditional banks.  Additionally, Sars is deploying data analysis tools to identify inconsistencies in tax returns that might indicate undeclared crypto holdings.

Zoom In: Cryptocurrency exchanges like Luno advise users to cooperate with Sars and disclose their crypto holdings accurately. “An important thing that taxpayers need to consider is that even though you need to report on the profits to see where your tax liability lies, you can also report on the losses,” Christo De Wit, South Africa country manager for Luno, said in an interview about the new rules.

De Wit disclosed that cryptocurrency exchanges do not generally share client data with Sars. However, if Sars asks for specific data during an investigation, the exchange is obliged to provide that information. 

One major point of contention in this clash is the lack of clear guidance from Sars on how they classify crypto transactions for tax purposes. Uncertainties remain around whether crypto profits are considered capital gains or income, making it difficult for some traders to determine their exact tax obligations.

State of Funding in Africa

Here’s a roundup of African startups that secured funding last week:

• Immobazyme, a South African biotechnology start-up, has raised $1.3 million in a recent funding round. The round was led by the University Technology Fund (UTF) and the University of Stellenbosch Enterprises.
• Downforce Technologies, a London-headquartered climate tech startup, has raised $4.2 million. Equator VC, Tiverton Agriculture Impact Fund, Dragonfly Enviro Capital, Perivoli Innovations, and the Clean Energy Finance Corporation (CEFC) led the funding round.

Noteworthy

Here are other important stories in the media:

• On NDIC’s disbursement of ₦650 bn to 2.3 million insured Heritage Bank depositors: The Nigeria Deposit Insurance Corporation (NDIC) has begun paying out of trapped funds of depositors at Heritage Bank.
• Anonymous threatens Kenyan officials ahead of vote over unpopular 2024 Finance Bill: Hacker group threatens to expose corrupt deals involving meme era of the Kenyan parliament. 
• DR Congo biometric national ID project faced cancellation over alleged financial irregularities: The contract to produce biometric national ID cards in the Democratic Republic of Congo (DR Congo) is at risk of being cancelled due to allegations of financial irregularities.
• Nvidia surpassed Microsoft as the world’s most valuable company: Nvidia became the world’s most valuable public company.
• Finally, Amazon Alexa is about to get a big AI overhaul: Amazon is working on AI-powered updates to Alexa.
• Nigeria to send first citizen to space in partnership with SERA and Blue Origin: The partnership will see Nigeria send a citizen to space.

Opportunities

Jobs

We carefully curate open opportunities in Product & Design, Data & Engineering, and Admin & Growth every week.

Product & Design

• Butter — Product Designer, Remote 
• Earna — Associate Product Manager, Lagos
• Ladder — Product Marketer, Remote
• Nairagram — Product Manager, Lagos

Data & Engineering

• Finyard — Automation QA Engineer, Remote
• Whitespectre — Senior Fullstack Engineer, Remote 
• Luxehub — Backend Developer, Remote
• Flutterwave — Senior Data Engineer, Lagos 

Admin & Growth

• Literal Humans —Project Manager/Account Manager, Remote 
• Talentsquare — Chief Operating Officer, Lagos
• Yana Finance — Sales Lead, Abuja 
• Ventures Platform — Programs Manager — VP Foundation, Lagos

Thanks for reading this edition.

Have a great week!