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Paystack Creates Holding Company as Profitability Fuels Broader Expansion

Paystack, the Nigerian fintech acquired by Stripe, has restructured its operations under a newly formed holding company, The Stack Group, as the company reports group-wide profitability and positive monthly cash flow. The new structure brings Paystack, its consumer payments app Zap, Paystack Microfinance Bank, and a venture studio under a single umbrella, marking a shift toward a multi-brand technology group with ambitions beyond merchant payments. While Stripe’s $200 million acquisition made Paystack a wholly owned subsidiary, The Stack Group introduces a different ownership structure. The holding company is jointly owned by Paystack chief executive officer Shola Akinlade, Stripe, and existing Paystack employees, known internally as Stacks. The company declined to disclose the breakdown of the cap table. The launch coincides with a period of strong financial performance, with Paystack growing payment volumes more than twelvefold since the Stripe acquisition and reaching profitability across the group. Akinlade said the new structure reflects a broader long-term ambition. He added that the holding company sets the tone for the company’s next decade, allowing it to pursue multiple growth paths while preserving focus on its core payments business. The restructuring formalises a transition that has been underway for over a year. With the rollout of Zap and the launch of Paystack Microfinance Bank, the company has gradually expanded from merchant payments into consumer finance and banking, seeking greater control over the flow of funds and new revenue streams. By separating its merchant payments business from newer verticals, The Stack Group allows each unit to pursue independent strategies while limiting regulatory, operational, and reputational spillovers. Payments, banking, and consumer financial products carry different risk profiles, and housing them under a holding company allows licences, compliance, and oversight to be managed separately. The structure also allows Paystack’s core business to remain a focused merchant payments provider, while Zap and Paystack Microfinance Bank compete in Nigeria’s crowded consumer finance market without diluting the Paystack brand. Paystack was founded in 2016 and quickly rose to prominence as a low-cost alternative to existing online payment processors in Nigeria. It became the first Nigerian startup accepted into Y Combinator and achieved one of Africa’s largest technology exits when it was acquired by Stripe in 2020. Since then, the company has expanded operations to five African countries and now processes trillions of naira in payments each month. Its improved balance sheet has enabled it to experiment beyond payments, including the creation of a venture studio focused on developing new products using emerging technologies. The Stack Group will operate with a separate board from its subsidiaries, continuing a governance model that maintains multiple boards across the group in line with regulatory requirements. Subsidiaries will retain operational autonomy, with leadership structures tailored to their individual stages of growth. The company joins other Nigerian technology firms, including Moniepoint and Interswitch, that have adopted holding company structures to support multi-business ecosystems and long-term expansion. Despite entering competitive consumer payments and banking markets, Paystack said it remains focused on long-term ambition rather than short-term rivalry. The company plans to draw on its experience serving African businesses, while acknowledging that scaling consumer-facing financial products presents challenges distinct from merchant payments.

Culture, News In Brief

Nigeria Tightens Capital Rules for Fintechs and Digital Asset Operators

Nigeria’s Securities and Exchange Commission has raised minimum capital requirements for a wide range of capital market operators, tightening financial thresholds for fintech companies, virtual asset service providers, and other regulated firms. In a circular issued on January 16, 2026, the regulator said the revised standards are designed to strengthen the financial resilience of market participants while ensuring that regulatory requirements reflect the growing scale, complexity, and risk exposure of modern financial services businesses. The updated framework applies to fintech operators, virtual asset service providers, crowdfunding platforms, robo advisers, fund managers, and market infrastructure institutions. The SEC said the changes form part of a broader effort to improve market stability, enhance investor protection, and align Nigeria’s capital market rules with evolving global best practices. Among the most notable revisions are higher capital requirements for robo advisers, which provide automated investment and financial planning services. Under the new rules, the minimum capital threshold for robo advisers has been increased to ₦100 million from ₦10 million previously. Crowdfunding intermediaries will also face higher requirements, with minimum capital doubled to ₦200 million from ₦100 million. Virtual asset service providers are subject to some of the sharpest increases. Digital asset exchanges and digital asset custodians must now maintain minimum paid up capital of ₦2 billion each. Ancillary virtual asset service providers are required to hold at least ₦300 million. The rules also raise capital thresholds for alternative investment fund managers. Private equity fund managers must now maintain a minimum capital base of ₦500 million, while venture capital fund managers are required to hold at least ₦200 million. The SEC said affected operators have until June 30, 2027, to comply fully with the revised requirements. Firms that fail to meet the new thresholds within the stipulated timeframe risk regulatory sanctions, including suspension of operations or withdrawal of registration. The regulator said the measures are intended to ensure that only adequately capitalised firms operate in Nigeria’s capital market, particularly as fintech and digital asset activities expand and become more interconnected with the broader financial system.

Culture, News In Brief

Microsoft Trains 4 Million Nigerians in Tech Skills, Certifies 70,000 in Three Years

Between 2021 and December 2024, Microsoft trained four million Nigerians in digital and artificial intelligence skills, with 70,000 earning globally recognized certifications. What began as an ambitious national conversation has become one of Nigeria’s largest coordinated digital skilling efforts, aimed at tackling unemployment and closing the country’s widening skills gap. When discussions first started between Microsoft executives in Nigeria and government officials in 2021, the target sounded almost unattainable. The goal was to reach five million Nigerians with future ready digital skills at a time when unemployment was high, the education system was under pressure, and access to advanced technology skills remained limited. According to Microsoft, the scale of the programme was intentional. It was built through collaboration with government, academia, and civil society, with a strong emphasis not only on training but also on certification as proof of competence in a global digital economy. Nonye Ujam, Director of Government Affairs at Microsoft West Africa, said the early conversations focused less on technology and more on jobs. “The government was very focused on employability,” she explained during a press briefing on December 16, 2025. “Our discussions centred on how digital skills could translate into real economic opportunity.” Microsoft aligned its skilling platforms with government priorities and worked through online tools and local partners to reach Nigerians across different states, income levels, and sectors. By the end of the first phase, four million people had accessed Microsoft’s digital learning resources. The company describes this as reach, but insists that exposure alone is not enough. Out of the four million Nigerians reached, about 350,000 actively engaged with the training programmes. More importantly, 70,000 earned Microsoft backed certifications in areas such as AI, software development, and data engineering. “Certification is the proof,” Ujam said. “It shows that someone completed the programme and met a global standard.” Microsoft argues that this distinction is critical in labour markets where informal learning is common but difficult for employers to verify. Certified credentials give learners a portable and trusted signal of skill, reducing the need to constantly prove competence. To scale effectively, Microsoft structured its strategy around three key groups. The first was organisational leaders in both the public and private sectors. While many are not technical, their understanding of digital transformation determines whether organisations adopt new technologies at all. The second group was developers and engineers, who received deeper technical training on modern development tools, cloud platforms, and AI frameworks. The third group was everyday technology users. Microsoft describes this as AI fluency, the ability to understand and use AI responsibly without being a specialist. The aim was to ensure AI skills are widely accessible rather than limited to a small elite. “These three groups form an ecosystem,” Ujam noted. “If one is missing, transformation slows down.” Microsoft says the programme’s reach would not have been possible without Nigerian partners. One of the most significant was Data Science Nigeria, which helped design and deliver locally relevant training. “We didn’t just reuse existing content,” said Aanu Oyeniran, Business Lead at Data Science Nigeria. “We built blended curricula using Nigerian examples.” The partnership adopted a hub and spoke model, with training centres across the country providing access to computers, internet connectivity, and trainers. Trainers were equipped to pass skills into their communities, creating a multiplier effect. Oyeniran shared the example of a trainer in Edo State who now helps small businesses analyse data and improve operations, while also training others in his community. Lagos Business School also played a key role, partnering with Microsoft to deliver AI leadership programmes for senior public sector officials. According to Professor Olayinka David-West, Dean of the school, the focus was on building capacity rather than chasing hype. “You can build all you want,” she said, “but if there is no capacity to absorb it, you are building for the sake of building.” Through the programme, 99 senior public servants from 58 government agencies completed intensive AI leadership training. Each participant developed a capstone project linked to their agency’s mandate, ensuring practical application of their learning. Microsoft’s skilling efforts run alongside Nigeria’s National AI Strategy, which was co-created by more than 100 Nigerian AI experts from around the world. As an industry partner, Microsoft contributed global insights while adapting them to local realities. Abideen Yusuf, General Manager of Microsoft Nigeria and Ghana, highlighted the urgency of the effort. “Nigeria’s AI adoption is still under 10 percent,” he said. “But the potential upside is enormous.” He noted that while Nigeria has growing data centre infrastructure, none are currently equipped to support AI workloads. Without a skilled workforce, investments in infrastructure alone will not deliver economic growth. Microsoft says the publicly reported figures do not include its enterprise focused training programmes within private organisations. Even so, training four million people and certifying 70,000 represents a rare attempt at population scale digital skilling in Nigeria. The company has announced an additional one million dollar investment to train another one million Nigerians, with the aim of completing its original target by June 2026. For Microsoft, the long term impact lies in how skills spread. “We see impact like an inverse pyramid,” Ujam said. “One person learns, teaches others, and the effect multiplies.” Whether that momentum translates into sustained economic growth will depend on continued government support, infrastructure investment, and Nigeria’s ability to absorb newly skilled workers into productive roles.