Business
Is Cyber Café Losing Business To Smartphones?
Few years ago, run
ning a cyber café was still highly profitable in Nigeria, while many people were attracted to that business.
Today, the story is different; many cyber café operators can hardly make ends meet, while those who cannot persevere have left the business.
The reason, according to computer analysts, is the rise in smartphones, as people now access the internet from the comfort of their rooms.
“Internet cafes across the developing world, including Nigeria are reporting dwindling numbers of customers as smartphones make the mobile web less attractive.
“After all, why pay for web access on someone else’s old PC when you can access Facebook and other internet facilities on your smartphone device from anywhere you like? Mr Maxwell Okechukwu, an ICT expert, asked.
A Lagos based Information Technologist, Mr Oluwaseun Adeboye, however said that a recent study showed that people had continued to rely on public venues like the cafes to access the web.
According to him, a five-year study released by the University of Washington in July, 2013, shows that web users continue to rely on public venues for web access even when smart phones are available.
“One technology does not replace the other and smartphone will not solve the access problems,’’ Adeboye said.
But many cyber café operators complained that the emergence of smartphones had greatly reduced the number of people patronising their services.
Mr Kunle Aribisala, who has been in the cyber café business for seven years, said that patronage was low in recent times.
The 36-year-old Aribisala, has a cyber café with 10 computers in Osogbo, Osun State.
“Making money was easy in the beginning, when there were not so many home computers or smartphones.
“It has become more and more difficult to attract consumers. People would rather play with their smartphones,” he said.
Sharing similar sentiments, a café operator in Ibadan, Mr Tunde Iyiola, said many people now preferred to use their smartphones to browse rather than visit a cyber café.
“Although, we enjoy a reasonable level of power supply in this area, many people prefer to browse on their smartphones.
“The only time people come to the café is when they want to scan a document or do a print out,’’ he said.
Another operator, Mr Kazeem Hammed, said he was planning to close his shop for another business due to low patronage.
Hammed said that many people had resorted to the use of smartphones rather than visit a café, adding that the practice was not encouraging the business.
“The golden days have passed. It is impossible to earn money easily like we did in the past.
“The few people that come to café once in a while are the university candidates who want to print out their admission letters or scan a document. This is not too good for the business.
“ The cyber cafes are not so attractive to the users as they used to be since most of their functions have been replaced by mobile internet devices,“ Hammed said.
Another operator, Mrs Ibironke Isiaka,said cyber café was a lucrative business before the advent of smartphones.
“You know technology is improving every day. Most people now use their phones to browse, and indeed, I do not see any reason why they should patronise the café again,’’ she said.
Analysts say that many people now prefer to use their smartphones because they are cheaper and more convenient.
Miss Chisom Maduike, said that she bought only N1,000 data plan for a month to browse.
“My smartphones can satisfy my needs, why should I visit a café?
“It saves extra cost and provide me with the comfort and ease to do whatever I want, ‘’Maduike said.
A student of Osun State University, Emmanuel Oladipupo, said after buying a smartphone a year ago, he stopped visiting cyber cafes.
“I can play games and get news on my phone. Then why visiting cyber café again?
“Besides, these phones have the option of Wi-Fi and USB tethering; a person can connect his or her laptop/computer with the phone and surf the internet.
“Also, facebook, twitter, gmail, nimbuzz, all these services are present in a mobile phone (even a feature phone), thereby reducing the need to go to a cyber café on a regular basis.
“ My colleagues will rather play video games on their phones than go to a cyber café because it’s more convenient and cheaper.
“Most of my classmates have computers, and we need not go to the cyber café to search online information like our predecessors did,” he said.
Also speaking, a journalist, Mr Kolawole Idowu, said the internet on smartphones was always on, be it GPRS or 3G.
“If the pack is good enough, a person does not have to worry about spending any extra money on cyber café since they have become similar to broadband.
“Also the price of an hour in a cyber cafe is about N140, whereas a subscription on smartphone is about N1, 000 per month.
“This means that to subscribe on smartphone is cheaper than to visit a café,“ Idowu said.
As experts say, “ one technology does not replace the other,’’ cyber café operators should exploit their areas of comparative advantage in order to remain in business.
Adeoti is a staff of News Agency of Nigeria.
Victor Adeoti
Business
33 Banks Raise N4.65tn As Recapitalisation Ends
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
Business
SMEs Dev: Firms Launch N100m Loan Scheme
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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