In a significant regulatory development, Paystack, a leading Nigerian fintech company, has been slapped with a ₦250 million ($155,400) fine by the Central Bank of Nigeria (CBN) for violating licensing rules. The fine, which is Paystack's largest publicly known regulatory penalty since its approval in 2016, underscores the risks fintechs face as they expand into consumer-facing products.

The CBN claims that Paystack's newly launched product, Zap, operates as a wallet, which requires a microfinance and banking license. However, Paystack holds a switching and processing license, which only allows it to route financial transactions between banks and other institutions, but not to hold customer funds. The fintech has yet to make any public comments on the matter.

Zap, which was launched just over a month ago, does not hold user funds directly but operates in partnership with Titan Trust Bank, which is licensed to hold deposits. Despite this, the CBN argues that Paystack's product violates its regulatory license. The fine serves as a reminder of the importance of regulatory compliance in the fintech industry.

In other news, Bolt, a mobility company, has launched electric tricycles in Lagos, Nigeria, in partnership with SGX Mobility. The company aims to provide a more environmentally friendly and cost-effective alternative to traditional tricycles. MTN Nigeria, the country's largest telecom operator, has also reported a profitable Q1 2025, thanks to a tariff hike. The company's revenue grew by 51.6% from Q1 2024, with data and voice remaining its top revenue sources.

Meanwhile, Nigeria's Web3 sector is struggling to attract investor faith, with local startups only raising $20 million in 2024. The sector faces an uneven playing field, with foreign Web3 companies enjoying deeper pockets and better support in their home markets. Despite this, some success stories, such as Nestcoin and Xend Finance, have shown that it is possible to win global attention.

The Token2049 event, a major crypto and Web3 conference, is set to take place in Dubai, UAE, and will feature some of the biggest thinkers and creators in the space. The event aims to discuss the future of Web3 and provide a platform for networking and collaboration.

As the tech industry continues to evolve, regulatory compliance and innovation will remain key themes. With fintech companies like Paystack pushing the boundaries of financial services, and mobility companies like Bolt pioneering sustainable transportation, the future of tech in Africa looks promising. However, it is crucial that investors, policymakers, and industry players work together to create a conducive environment for growth and innovation.