Legacy systems are holding back Africa’s fintech growth, can blockchain unlock a new era for payments?

By: technext24|2025/05/06 21:30:01
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Nigeria has built one of Africa’s most dynamic digital payment ecosystems, but the very systems that powered this transformation are now showing signs of strain.Over the past two decades, bank transfers, mobile wallets, and point-of-sale (PoS) devices have become embedded in everyday life. The country’s real-time payment infrastructure, led by the NIBSS Instant Payments (NIP) system, has helped Nigeria outpace many emerging markets; earning global recognition as the continent’s undisputed leader in instant payments.Yet behind the scenes, the rails that underpin this system are under pressure. Downtime is common, transaction failures are rising, and fraud continues to grow. For financial institutions processing millions of transactions daily, the cracks are widening.The limitations of legacy infrastructure are no longer just a technical issue. They now represent a structural bottleneck in the future of financial inclusion, commerce, and innovation across Africa.Nigerian BanksThe cash crunch of 2023 served as a stress test for Nigeria’s payments ecosystem. As digital transactions surged in response to limited cash supply, the system buckled. According to NIBSS, PoS transaction volume jumped from 113 million in February to 178 million in March, a 30% increase in just one month. But that spike came at a cost: failed and unresolved transactions reportedly hit 40%.For consumers, this meant longer waits, missed payments, and rising frustration. For businesses, it translated into real losses. And with 90% of payments in Nigeria still cash-based, the volume on digital rails is only set to increase, raising questions about the system’s capacity to scale.A more resilient alternative for paymentsBlockchain, once associated mainly with cryptocurrencies, is emerging as a viable infrastructure play for financial systems seeking speed, transparency, and resilience. Unlike traditional payment networks that rely on central intermediaries, blockchain-based systems allow institutions to process transactions directly, securely, and in real time.The benefits are both technical and operational: faster settlements, lower costs, tamper-proof records, and a shared ledger that gives all participants visibility into transaction data. In fraud-prone environments, this level of transparency could be a game-changer, allowing issues to be flagged and resolved instantly.Critically, blockchain doesn’t just replicate existing systems. It rewires them.Image credit: Fintechnews AfricaOne company taking this vision from theory to reality is Zone — Africa’s first regulated blockchain network for payments. Rather than routing transactions through central switches, Zone enables banks and fintechs to connect directly, exchanging value on a decentralised ledger.This shift eliminates common failure points: no intermediaries means fewer delays, and the shared infrastructure reduces errors and chargeback fraud — a growing concern in Nigeria’s digital economy.Zone’s architecture also aligns with regulatory requirements. By partnering with NIBSS — Nigeria’s central switch and payment aggregator — the company allows real-time regulatory oversight while still preserving the decentralisation and efficiency of blockchain.That’s not just innovation. Its alignment: compliance embedded into the network itself.Already, major financial institutions including Zenith Bank, First Bank, FairMoney, and PalmPay have joined the Zone network. Their bet? That a decentralised system offers the performance and security needed to keep up with rising volumes — and rising expectations.But the stakes are high. Scaling blockchain at a national level isn’t trivial. Questions remain about how these systems will perform under the full weight of Nigeria’s transaction volumes, and whether other institutions will move quickly enough to adopt new rails before legacy systems buckle further.Still, early signals are promising. By reconciling innovation with regulatory oversight, Zone offers a blueprint for how blockchain can modernise not just Nigeria’s infrastructure, but potentially serve as a model for other emerging markets grappling with similar limitations.A crossroads for African financeNigeria’s payment system stands at a crossroads. The old rails delivered unprecedented progress — but the future demands more. As digital volumes rise, service outages and fraud cannot be treated as routine.Blockchain, once viewed as a speculative frontier, is now showing its utility in the most practical way possible: making payments work better, faster, and safer. If adoption continues — and if performance holds — Nigeria could become the first country in Africa to prove that a blockchain-based financial system isn’t just possible, but preferable.And in doing so, it may just light the path for the rest of the continent.See also: Nigerian Box Office records ₦1.29bn revenue in April 2025 driven by ‘Sinners’ and ‘Ori: The Rebirth’

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DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.


2025 Full-Year Financial Highlights


Revenue: Expected to be between $39 million and $41 million, reaching a new company high.


Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.


Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.


Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.


Core Consumer Food Business Performance


In 2025, DDC's core consumer food business maintained strong operational performance.


The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.


In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.


Bitcoin Reserve Update


In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.


As of December 31, 2025: The company holds 1,183 BTC.


As of February 28, 2026: Holdings increased to 2,118 BTC


Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC


DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."


Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation


About DDC Enterprise Limited


DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.


The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.


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