I’m Samuel Okocha and this is 234Digest: an independent, nonpartisan, reader-focused newsletter that informs you in less time with fact-based news, features and insights about Nigeria. In this edition, we’re covering the latest with Nigeria’s cash shortage crisis, a $672 million fund and more.

One top headline

Use of old naira notes extended amid cash crunch

Nigerian banks are beginning to dispense old naira notes after the central bank confirmed the notes will continue as legal tender until year-end in compliance with a court order earlier this month.

How we got here? Late last year, the Central Bank of Nigeria launched the redesigned denominations of 200 (43 U.S. cents), 500 ($1.08) and 1,000 naira ($2.17) notes and new limits on large cash withdrawals to help curb money laundering and encourage digital payments in Africa’s biggest economy.

But a cash shortage since January has left many businesses struggling to stay afloat and many unable to withdraw money because redesigned notes were not enough to replace the old ones, causing widespread anger in a country where many rely on cash for daily transactions.

The cash crises has cost Nigeria’s economy an estimated 20 trillion naira ($43 billion) as the shortage crippled trade, stifled the informal economy and caused contraction of the agricultural sector, according to Lagos-based Center for the Promotion of Private Enterprises.

Long stories short

Nigeria launches fund for tech and creative industries 

Nigeria has launched a $672 million fund to support young tech and creative entrepreneurs in need of capital.

The fund comes as concerns grow locally about the failure of US based Silicon Valley Bank, SVB, known for supporting startups in Africa. In 2021, an SVB-led $100 million investment made Chipper Cash Africa’s most valuable startup. In Nigeria, about $1.2 billion funding for tech startups may be reportedly threatened. Chipper Cash and another Africa focused fintech firm Flutterwave have downplayed their exposure to SVB.

Nigeria has the largest number of tech startups in Africa which have attracted funding from banks and venture capital firms overseas.

Nigerian credit-led fintech acquires PayForce

Nigerian digital lender Fairmoney has acquired PayForce, a merchant payment service serving small businesses, as it looks to deepen its appeal to merchants.

Nigeria’s Tems makes Oscars debut amid rising music career

Tems — born Temilade Openiyi — became the first Nigerian Oscar nominee ever this year when she was recognized for her with work with director Ryan Coogler and Rihanna on the Wakanda Forever track “Lift me Up,” adding to her list of milestones already in music. She also went viral with her looks highlighted by a white boned fabric that curved up around her head, seemingly frozen in space and a skirt that spilled over to surrounding seats.

Barbados targets direct flights to Nigeria

Barbados' Caribbean Community Ambassador, David Comissiong, says negotiations with the Africa Export-Import Bank and Nigeria's Air Peace airline could lead to commencement of direct route between the island and Nigeria this year.

Nigerian police rescue journalist from kidnappers

The Nigeria Police Force said they rescued a kidnapped journalist identified as Oduneye Olusegun, in the Idimu area of Lagos State. Olusegun was kidnapped by some gunmen at Ijebu Ode on Thursday on his way from Abeokuta, the Ogun State capital. He was rescued on Saturday, police said.

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