Asalaam alaikum,
Victoria from Techpoint here,
Here’s what I’ve got for you:
- CIG Motors takes charge as Zenolynk’s LagRide contract is cut
- Contactless payments could take over Nigeria in 2025
- Vodacom takes its Maziv bid to court
CIG Motors takes charge as Zenolynk’s LagRide contract is cut
Last Friday, my colleague and I ordered an Uber, but when the car pulled up, it had a LagRide logo on it. Pretty confusing, right? It’s not exactly new for e-hailing drivers to switch between Bolt, Uber, and even inDrive, but seeing a LagRide-branded car show up for an Uber ride was a bit strange. And I think I know why.
This could be the why: Zenolynk Technology Ltd., the former tech provider for Lagos State’s LagRide ride-hailing platform, says the government abruptly ended their five-year contract, per Condia. This explains why CIG Motors, the representative of GAC Motor in Nigeria, recently took over LagRide’s operations.
Per Zenolynk, they officially exited on March 10, 2025, after getting a termination notice out of the blue. The deal was meant to last five years, with an automatic renewal for another five, but the company believes the government’s shift in strategy led to the sudden decision.
Zenolynk’s CEO, Tumi Adeyemi, had been involved for nearly five years, making the breakup seem messier than it appears. Things got even more suspicious when LagRide experienced a week-long disruption, possibly over access to the platform’s source code.
After Zenolynk was out, CIG Motors launched a new app, but drivers weren’t happy. They complained about low fares, bad functionality, and strict payment rules. Not exactly a smooth transition.
Despite the abrupt exit, Zenolynk highlighted its achievements over its 1,084-day run. They processed 7.2 million ride requests, completed 1.2 million trips, and covered 24 million kilometres. The biggest challenge? Not enough vehicles. LagRide operated with just 1,000 cars under an asset financing model.
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Zenolynk also said it pulled in over ₦7 billion ($4.5 million) in revenue, with ₦2 billion ($1.28 million) paid out to drivers. They claim their tech and partnerships helped them hit the No. 3 spot in Lagos’ ride-hailing scene within a year. But as they put it, “every beginning must have an end.”
Contactless payments could take over Nigeria in 2025
Remember when Access Bank launched Tap to Phone on March 7, 2025? They teamed up with Visa to make it happen. Now, merchants no longer need a POS terminal; just an NFC-enabled Android phone and an app.
Customers can simply tap their cards or payment-enabled devices on the merchant’s phone to pay. This news came right after Moniepoint and PalmPay introduced their contactless payment solutions.
But that’s not all. Sudo Africa also joined the wave with Digital First Cards, eliminating the need for physical cards. Instead, customers can just use their phones for payments. You can go fully digital from day one without waiting for a plastic card.
With more banks and fintechs pushing contactless payments, this could be the biggest digital payment trend of 2025 in Nigeria. From tap-to-pay cards to full-on digital wallets, everyone’s looking for ways to make transactions smoother and cheaper.
One big reason digital cards are taking off? Cost savings. Kabir Shittu, Co-founder and COO of Sudo Africa, says that issuing digitised cards is 77% cheaper than physical ones, dropping costs from ₦1,800 ($1.70) to just ₦400 ($0.26). Given how expensive it’s becoming to make physical cards, banks and fintechs are looking for alternatives.
The rising cost of physical cards isn’t just about naira depreciation; there’s also a global chip shortage. Since COVID-19, semiconductor production has struggled to keep up with demand. Factories shut down, while the demand for gadgets — laptops, gaming consoles, smartphones — skyrocketed. Payment card manufacturers were left hanging, making physical cards even harder to get.
So, will contactless payments fully take over Nigeria in 2025? It’s looking that way. Want to dive deeper? Read Bolu’s latest story for all the details.
Vodacom takes its Maziv bid to court
Vodacom and Remgro, an investment holding company in South Africa, have told shareholders that the Competition Appeal Court has set dates for a hearing on the telco’s blocked bid to buy a 30–40% stake in Maziv, the company behind fibre giants Vumatel and DFA.
The hearing is locked in for July 22-24, 2025, but there’s still one big problem: the Competition Tribunal hasn’t explained why it rejected the deal in the first place.
Vodacom first announced this deal in November 2021, planning to merge its fibre assets with Community Investment Ventures Holdings (CIVH), which owns Vumatel and DFA. In return, Vodacom would get a 30% stake in the combined entity, with the option to push that to 40%. The offer? A mix of cash and assets worth at least R13.2 billion.
Regulatory approval took forever. ICASA, South Africa’s telecoms regulator, gave the green light in November 2022, but competition authorities dragged it out for another 20 months. After a long back-and-forth, the Competition Commission shut it down in August 2023, saying the merger could reduce competition. Then, after weeks of public hearings, the Competition Tribunal officially blocked the deal in October 2023.
The problem? The Tribunal still hasn’t explained why, even though the law says it should provide reasons within 20 business days. It’s been four months and counting. When pressed, they said the case is too complex and involves competition risks and public interest concerns.
Now, Vodacom, Maziv, and even Trade Minister Parks Tau have all filed their intentions to appeal, but they can’t submit a proper appeal until the Tribunal releases its reasons. Tau even revealed that filing the government’s intention to appeal has already cost taxpayers R105,578.05.
Tau argues that the merger had strong public interest benefits, like boosting fibre and mobile investment, economic growth, and job creation. But until the Tribunal finally speaks up, everyone, including Vodacom, Remgro, and the South African government, is stuck in limbo.
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Opportunities
- Flutterwave is hiring to fill in several positions. Apply here.
- OPay is looking for a State Manager. Apply here.
- Interswitch is hiring a Senior Software Developer. Apply here.
- PalmPay is recruiting a Business Developer. Apply here.
- Standard Bank Group is looking to fill several positions across Africa. Apply here.
- Paystack is hiring for several roles. Apply here.
- Moniepoint is hiring for several roles. Apply here.
- Follow Techpoint Africa’s WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a productive week!
Victoria Fakiya for Techpoint Africa.
