Category: e-Business

JumiaPay,  the payment platform of Africa’s e-commerce company, Jumia Technologies AG, has posted a 38 per cent decline in transactions.

  According to Jumia’s first quarter (Q1) for this year released at the weekend, the company however reported a total revenue of $46.3 million, reflecting a marginal decline of three per cent on a year-over-year basis. However, when constant currency is considered, the revenue increased by a noteworthy 24per cent.

Jumia CEO, Francis Dufay, said the company is shifting its strategy to pursue a different approach to growth. This involves three key elements: firstly, enhancing the supply and variety of products available by attracting reputable brands and suppliers in important e-commerce sectors like phones, electronics, home appliances, fashion, and beauty. Secondly, improving the tools and processes used to manage vendors on the Jumia platform, thereby enhancing the overall experience for customers. Lastly, the company aims to expand its consumer base by effectively targeting underserved markets in urban centres and rural areas, where traditional supply and retail options are limited, and tapping into the large consumer populations in these areas.

 He said the Q1 results demonstrate excellent progress towards the goal of achieving profitability. Despite facing challenging macroeconomic conditions and temporary headwinds, Jumia, he stated, remained focused on driving sustainable long-term growth for the business.

Despite the decline in transact on JumiaPay,  29 per cent of orders placed on the platform during the period under review were completed, underscoring the continued importance of JumiaPay as a preferred payment method for customers.

Jumia said it remained committed to making JumiaPay a more effective enabler of its e-commerce business. In Kenya, it successfully rolled out JumiaPay payment on delivery, resulting in 20per cent of postpaid orders completed using JumiaPay in March. These initiatives demonstrate Jumia’s dedication to refining its payment services and reducing the inefficiencies associated with cash-on-delivery, which will further strengthen its position in the e-commerce market.

According to the report, its gross profit which reached $28.6 million, representing a five per cent increase compared to the same period last year. The growth was even more substantial, reaching a monumental 24per cent on a constant currency basis. The gross profit margin as a percentage of GMV improved significantly, rising to 14.4per cent compared to 10.8 per cent in the same quarter last year.  Its focus on driving operational efficiencies and implementing strategic initiatives led to significant year-over-year growth in gross profit, demonstrating its ability to deliver value to its stakeholders.   

The company said its new management redoubled efforts to drive sustainable long-term growth for the business, building upon the previous management’s blueprint from the fourth quarter of 2022. As a result, the e-commerce giant experienced a substantial reduction in losses by optimising its revenue streams, enhancing logistics services, and adopting a disciplined marketing approach.

Jumia’s Q1 results showcased a significant reduction in losses and a commendable effort towards profitability. The company’s operating loss decreased by a remarkable 54per cent year-over-year, reaching its lowest quarterly level in over four years at $31 million. This substantial reduction in losses can be attributed to Jumia’s successful cost reduction initiatives, with all operating costs decreasing sequentially and on a year-over-year basis.

There was also 70per cent reduction in marketing and advertising expenses. This disciplined approach to marketing investments has led to an improvement in marketing efficiency ratios, with sales and advertising expenses per order decreasing by 58per cent and as a percentage of GMV improving by 451 basis points. Despite the significant cut in marketing expenditures, Jumia still managed to achieve growth in revenue. While overall revenue experienced a slight decline of three per cent year-over-year, it demonstrated a substantial 24per cent increase on a constant currency basis. Marketplace revenue, particularly commissions, experienced significant growth, increasing by 40 per cent year-over-year. This growth was driven by commission take-rate increases implemented in mid-2022. Jumia’s ability to reduce marketing expenses while maintaining revenue growth reflects a fundamental shift in their approach to sustainable and cost-effective growth.

Jumia’s focus on cost reduction across various expense categories has yielded positive results. Fulfilment expenses decreased by 34er cent year-over-year, aligning with the decline in orders, while fulfilment expenses per order showed a notable improvement of 20per cent. Sales and advertising expenses witnessed a remarkable reduction of 69per cent year-over-year, indicating a more disciplined approach to marketing investments. Technology and content expenses decreased by nine per cent year-over-year, showcasing the company’s commitment to enhancing the consumer experience and operational efficiency. General and administrative expenses also decreased by 16per cent year-over-year, reflecting the impact of organisational changes implemented in Q4 2022. These cost reduction efforts contributed to an overall operating loss reduction of 54per cent year-over-year. With a focus on enhancing the fundamentals of the platform and implementing comprehensive cost efficiency measures, Jumia remains on track to achieve long-term growth and profitability.

The Nigerian Communications Commission (NCC) has called for the development of technological features that can aid easy access to telecoms services by people living with disabilities (PWD) and the elderly.

At the telecom consumer parliament organised by the commission at the weekend in Lagos, the Executive Vice Chairman of NCC, Prof Garba Danbatta, said there was a need to prioritise providing solutions for all persons with or without disabilities.

With the theme “Consumer protection of persons living with disability and the elderly”, Danbatta said ensuring access to the public was a core value for the commission.

He, however, added that PWDs and senior citizens are significantly not duly served, hence, the event.

“Technology has a mission to carve out a place for everyone, without exception. Disability-related advancements in science and technology have made it feasible for impaired individuals to live as independently as possible.

“Current technologies include technical improvements specifically designed for communities whose lives are shaped by their experiences with disabilities and accessibility.

“Researchers are pioneering assistive and adaptive innovations which reflect the preached culture of acceptance and bridge the divide between the abled and disabled communities.

“Accessibility for persons living with disabilities in the communications sector concerns the design and provision of communications products and services with a specific focus on ensuring that they can be used by people who urge their usage.

Read Also: NCC raises alarm over increase in electronic fraud

“If everyone is to have equal opportunities to participate in social and economic life in today’s information society, then the complete range of ICTs must be e-accessible,” he said.

Danbatta further urged telecom operators to provide innovative initiatives that would support underserved individuals.

“As you are aware, the commission as empowered by the Nigerian Communications Act (NCA) 2003 has the responsibility of ensuring that the needs of disabled and elderly persons are taken into consideration in the provision of communications services.

“In recognition of the requirements of the NCA regarding this group of people and in line with the NCC’s consumer-centric approach to regulation, the commission has taken a number of telecom service provisioning initiatives toward the protection of the rights of persons with disabilities and the elderly in the communications sector.

“Therefore, incorporate principles into the individual code of practice for providing services to PWDs and the elderly. Develop appropriate policy frameworks to deal with the issue of accessibility for persons with disabilities in the telecom sector.”

General Manager, Lagos State Office for Disability Affairs (LASPODA), Dare Dairo lauded the effort of NCC in creating room for people with special needs.

Speaking on inclusion, Dairo said the incoming government should also provide positions of leadership for people with disabilities.

“It is important for the government to critically look at social inclusion, financial inclusion, and social integration of persons with disability and I am happy that the NCC is already laying that good example, in terms of quarter employment for people with disability,” Dairo said.

“I also think that as the new administration is coming up, we are going to see that spirit of inclusion in terms of appointments into leadership positions and offices to create that sense of belonging.  

Emerging technologies such as artificial intelligence (AI), augmented reality (AR), blockchain, drones, Internet of Things (IoT), robotics, 3D printing and virtual reality (VR) have struck the world with fear of job loss. Lucas Ajanaku reports.

Like the bubonic plague, sack fever has gripped virtually every facet of human endeavours. From aviation to manufacturing, law and medicine, the fear of losing jobs to emerging technologies is real. The emergence of Chat GPT on the stage has further heightened this fear.

Investment bank Goldman Sachs had predicted that 300 million jobs will be lost or degraded by the emergence artificial intelligence (AI).

The World Economic Forum also found that the global economy will shed 14 million jobs over the next five years as the economy weakens and companies boost the adoption of AI technologies.

A management consultant in Africa, Project Management Institute (PMI), has, however, assured young people that the invention and usage of CHATGPT by organisations will not take their jobs.

The Youth Lead, Sub-Saharan Africa, PMI, Joanna Baidu, said: “Concerns around the use of AI, from its potential misuse and ethical implications to the balance of innovation vs disruption, have been swirling since ChatGPT went mainstream. There is great unease at the thought of AI replacing jobs.

“Students across various educational institutions have good reasons to be anxious. According to the Institute of the Future, 85 per cent of the jobs that will exist in 2030 have not been invented yet! While it is easy to speculate about the types of jobs automation will make obsolete, it is with no certainty that we can make any assumptions. There is no denying that AI will profoundly impact the future of work. Tech innovations of the past decade have already made bank tellers, cashiers, telemarketers, and travel agents relics of the past. Generative AI holds the potential to take over segments of marketing, copywriting, design, customer support, legal work, etc. It remains aware of its limitations, though, and believes that “jobs that require a high degree of creativity or interpersonal skills are less likely to be replaced by AI. These skills are innate to project managers.”

PMI’s Talent Gap has, however, predicted an increase in the number of jobs requiring project management-oriented skills from higher demand due to economic growth and retirement rates. These trends will create a global need for 25 million new project professionals by 2030. If the roles are not filled, it could result in a possible loss of up to $345.5 billion in global gross domestic product (GDP).

Baidu added: “Regardless of which way the pendulum swings and which jobs AI swallows, it is prudent that the youth commit to lifelong learning and upskilling. Joining a professional association is strongly recommended for students and early career professionals. Staying informed about trends, access to learning resources, and being intentional about professional development will give the youth the head start to prepare for the future of work. Power or soft skills are one of the most essential skills a membership can help you sharpen. Being a member of an association opens avenues to volunteer. One can step into multiple “official” roles, such as youth ambassador and student coordinator, which will help develop power skills. Having real-world experience using power skills to accomplish goals or overcome obstacles gives one a tremendous edge when job-hunting. There are associations or organisations that cater to nearly every type of profession. For project management, it is the PMI a not-for-profit organisation.

At PMI, student members enjoy the same valuable benefits afforded to practitioners. Student members receive digital downloads of the latest PMBOK Guide, certification discounts, and access to tools and resources such as PMI’s Career Navigator, which supports career progression by creating a personalised plan. Student members also gain access to networking opportunities through various events and activities and instantly join a network of over 450,000 project professionals worldwide, she added.

According to reports, ChatGPT has had more airtime than world’s most renowned celebrity. Its arrival has sparked questions and concerns that some did not even think to ask, including if it is a threat to our critical thinking skills.

The National Youth Service Corps (NYSC) has signed a Memorandum of Understanding (MoU) with New Horizons Nigeria to train corps members in ICT 4.0 skills and other latest e-business programs to boost employability and job creation opportunities for members.

In addition to the MOU, the ICT firm also donated about 1,000 ICT courses and a new learning portal (www.NYSClearns.com) to support the Skills and Entrepreneurship Department (SAED) during the commissioning of its ultra-modern NYSC ICT centre in Abuja to mark 50 years of the establishment of NYSC.

In his appreciation, the Director-General, NYSC, Brig General YD Ahmed, thanked New Horizons Nigeria’s CEO, Mr. Tim Akano, for his support of NYSC concerning the empowerment of youths in the area of ICT.

According to Ahmed, “The objective of this administration is to contribute to the overall national efforts at addressing the problem of youth unemployment. In this regard, management recognises the imperative of strengthening our working relationship with worthy partners such as New Horizons to enlist their technical and material support.

The NYSC DG believes that New Horizons is one of the largest IT solution providers in Nigeria. “The scheme is glad to be associated with the company; no doubt, your cutting-edge training programmes will enhance the value and employability skills of our corps members.

“Under this MoU, we shall put into effective use the ICT sections of the NYSC Skill Centres in Ekiti, Gombe, Nasarawa, Ogun, and Yobe States, as well as others, for the benefits of both the corps members and members of the host communities.

Ahmed concluded by assuring everyone that the management will play their part by providing the enabling environment for the smooth implementation of this partnership.

“We called on corps members to avail themselves of this training opportunity to enhance their chances of becoming self-reliant and contributing to the growth of our national economy,” Ahmed said.

On his part, the MD/CEO of New Horizons Nigeria, Tim Akano said the company donated 1000 ICT courseware and a new learning portal to support the SAEED empowerment Initiatives) to celebrate NYSC at 50 years.

He noted that today’s job market is looking for graduates who are digitally literate, able to solve problems and meet the needs of organisations, contribute to their bottomless and help scale companies.

Akano further stated that the 21st century organisations are demanding more from their employees and the only way to get through is to be equipped with the ICT tools and services.

At the commissioning of the ultra-modern NYSC ICT center built by NYSC, the special guest of honor, former Head of State, Gen (rtd) Dr Yakubu Gowon urged the corp members to use the ICT books, the portal and the newly commissioned ICT centre to improve their skills, employability and contribute positively to the growth and development of Nigeria’s economy and human capital.

An Information Technology (IT) solutions company, Tenece Professional Services Limited, at the weekend in Lagos, said it is eyeing more expansion into the African continent and looking to make an impact in agriculture, real estate, entertainment and other sectors of the economy.

Its Chief Executive Officer, Kingsley Eze, who spoke during a panel discussion entitled: Excelling Beyond All Limits on the occasion to mark the company’s 15th anniversary in Lekki, said the road has been rough but the company has remained focused on delivering excellent solutions that have deepened the industry in the countries where it currently operates.

 He said, like every other business, the company has also taken a huge hit on foreign exchange fluctuations which has sometimes eroded some of its gains. According to him, the company had to lose money in the course of executing projects for clients because it would not be fine for projects associated with the company to fail.

He underscored the place of trust in all businesses, especially in the IT environment that is competitive. He said the customer must trust the organisation; the end user must trust the organisation will deliver, adding that this must also cascade to the ordering process which involves the distributor who will also order through the original equipment manufacturer (OEM). He said trust is not a commodity that could be purchased on the shelf but something that is won. “You must work on how the people in the value chain will perceive you,” he said.

He said the company has learnt not to be pushed by fear but could be paranoid. He recalled that when the COVID-19 pandemic broke out, it caught every organisation unawares, especially those that had not witnessed a global pandemic before. And when it happened, he recalled that management called for a meeting where he urged everyone to brace for the challenge for at least one year. The workers, he said, had to redouble their efforts to ensure that the company pulled through, adding that management had to embark on a pay cut. He said revenue jumped 40 per cent thereafter.

On the Japa epidemic besetting every sector of the economy, he said the company has not suffered ‘attrition’ saying the workers that left the organisation either travelled out to further their education or got a better work offer.

With the theme: “Beyond our Dreams” he acknowledged that the company’s achievements in the IT solutions industry over the past 15 years have been exemplary, exceeding all set projections.

Founded in 2008 with a vision to be the foremost Enterprise Technology Consulting Services firm in Nigeria and Africa by 2030, Tenece has expanded beyond the 36 states of Nigeria to  become a truly pan- African tech company with presence in other African countries such as Ghana, Cote d’Ivoire, Kenya and Ethiopia, and the UAE.

He said since inception, Tenece has no record of a failed or uncompleted project, no capital injection, and over 3,000 successfully implemented solutions to customers in the educational sector, financial service institutions, fintechs, oil & gas, government, telecommunications, and manufacturing across the 36 states of Nigeria and Africa.

MD of Tenece Hold Co, Lina Eze (Ph.D.) said the occasion is a significant milestone for the entire team, particularly the pioneers, as it beams light on all the passion-driven efforts that have morphed Tenece into a remarkable pan -African tech solutions provider.

There appears to be no end in sight to the lingering trade dispute between commercial banks and telecom operators over the debt of N120 billion owed the latter for the use of Unstructured Supplementary Service Data (USSD) services, LUCAS AJANAKU reports.

For Gbenga Adebayo, the Chief Executive Officer of Communication Network Support Services (CNSSL) and Chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), the umbrella body of telecoms operators including MTN Nigeria, Globacom Limited, Airtel Nigeria, 9mobile, Mafab and many others, the trade deal between his members and commercial banks that went awry ought not to have been allowed to drag for this long. Since it was a trade dispute, the necessary clauses in the deal would have been activated and when actions are taken, aggrieved parties would have either have resorted to arbitration or go to court.

But the matter was left to drag because of regulatory interventions from the Minister of Communications and Digital Economy, Prof Isa Pantami, CEO, Nigerian Communications Commission (NCC), Prof Garba Dambatta and Central Bank of Nigeria Governor, Mr Godwin Emefiele. These interventions were done in good faith because when two elephants fight, the grasses always suffer.

Ostensibly miffed by the hide and seek game of the deposit money banks (DMBs), the NCC gave the all-clear signal to Mobile Network Operators (MNOs) to disconnect DMBs over their failure to pay the debt owed to operators for USSD services which has climbed from N30 billion to  over N120 billion.

ALTON stated that the approval was granted because, despite multi-party stakeholder efforts to resolve the situation and prevent any impact on services, the DMBs have continued to incur greater and greater debt, without making the commensurate payments.

 “ALTON wishes to inform the Nigerian public that the NCC has granted approval for our members –MNOs – to disconnect DMBs if they fail to pay the debt owed to operators for USSD services which amount to over N120 billion,” the group had said in a statement.

It added that every time some progress is made, the DMBs come up with reasons to take stakeholders several steps back, in this matter.

Genesis

ALTON recalled that MNOs and DMBs have had protracted disagreements concerning the appropriate USSD pricing model for financial transactions, transparency of charges, mode of collection and liability for payment of the outstanding and continuous service fees due to the MNOs.

Due to the inability of MNOs and DMBs to reach an agreement on the issues, MNOs in 2021 sought to disconnect DMBs due to the unpaid debts which stood at N42 billion as at that time. However, Prof. Pantami intervened and asked the MNOs not to disconnect DMBs as the action will negatively impact on the Digital and Financial Inclusion policy of the Federal Government.

The NCC, Association of Telecommunications Companies of Nigeria (ATCON) and DMB represented by the Chairman, Body of Bank CEOs subsequently met on March 15,2021 to discuss the indebtedness of DMBs to MNOs for USSD services.

Further to the meeting, CBN and NCC issued a joint press statement on the agreement reached by all stakeholders (link: https://ncc.gov.ng/media-centre/news-headlines/969-joint-statement-by-central-bank-of-nigeria-nigerian-communications-commission-on-pricing-of-unstructured-supplementary-service-data-ussd-services).

Pantami, others intervene

Pantami and Dambatta have made several efforts to get the banks to show good faith and sign an agreement, in the national interest, based on the resolutions reached at the meeting but unfortunately, their patriotic interventions have been taken for granted by the DMBs, as two years after, the banks have failed to sign a final agreement.

Emefiele

Emefiele who had earlier stood on the side of the banks on the issue recalled that during a meeting with some telecoms companies and leading banks in Nigeria at the CBN in Lagos, the issue on cost of USSD came up. “We came to a conclusion that the use of USSD is a sunk cost, meaning that it is not an additional cost on the infrastructure of the telecoms companies. But the telecoms companies disagreed with us and said it was an additional investment in infrastructure.

Emefiele now it has been a herculean task trying to mediate on the debt issue between the DMBs and the MNOs, warning that if it is not resolved urgently, ordinary Nigerians, especially “users of banking services will suffer”.

Emefiele, however, assured of quick resolution of the dispute because of its adverse impact on deepening financial inclusion among rural dwellers.

 “The USSD technology was brought into place primarily because we felt that it will be a deep enabler of our vulnerable people living in the nooks and crannies in Nigeria; those who we need to encourage to really get into the financial inclusion programmes of the CBN.

 “Everything has been done to deepen our payment system infrastructure through various mechanisms. At some point we said we will bring the telcos into it and then there was a tug of war between the banks about how they should share the income and of course you have heard the story about USSD which we are making deliberate effort to resolve because it was a thug of war between the banks and mobile network operators,’’ he added.

 “I am very certain that we are going to get to the end of it, because if we do not resolve the problem the people who will suffer when this kind of disagreement goes on will be the users of banking sector services,” Emefiele said.

GTCO high data cost, technology

Group Chief Executive Officer, Guaranty Trust Holding Company (GTCO), Segun Agbaje, while announcing GTCO’s financial statement, said the company’s USSD value dipped by 22per cent. The reason for this dip, according to him, is that “the N6.98 charge is a punitive cost and most people do not want to pay that just to use the USSD. That’s why it has stopped growing.”

Nigeria currently has a smartphone penetration of 35 per cent which, coupled with rising device and data costs, makes the switch from feature phones less attractive.

Agbaje does not believe the use of USSD in transferring funds would deepen the cashless policy being pursued by the CBN.

He said the future, and the best way to have financial inclusion and increase literacy is to crash data cost, “so the data becomes more affordable.” He said what obtains in India is that it has the same demographics as Nigeria.

He said besides the huge associated cost, the technology driving USSD is clumsy, pointing out that internet banking is far more robust, and driven by superior technology.

The fight, or clapper by USSD, he said, “has been a fantastic distraction to all of you by the telcos.”

If anything, he argued, “the banks are protecting you and saying to all of you, pay for successful transactions; do not pay for transactions that were not calculated on your account. What if you, as customers, want to take a swim? Perhaps we’ll let you pay. But I keep telling everybody who would listen. USSD is not the answer’’.

“All of you who use less data, or mobile banking, which is more advanced, which is easier to use, you need to get the cost of data down in Nigeria, the cost of data, compared to India, really we are being exploited.

“We should have the cost of data down so that we can increase inclusion, or we can increase our interest. So, I’m not going to get into this. If you want you can pay the telcos for USSD. For me, my clamour is that it should be technology at a lower cost of data.

ALTON reacts

Like a red rag to a bull, ALTON said the banker must have read a prepared speech which he had no opportunity of going through before reading out to members of the public.

Adebayo challenged Agabje to name the successor technology to USSD which is used all over the world to execute a string of commands riding on telecoms infrastructure.

He said much as Agbaje is a respected banker, he believes he read from a prepared speech because there is no basis for him to say data cost is high in Nigeria and to suggest that USSD is an obsolete technology.

He said if Agbaje is serious about lowering the cost of data, he should start by lowering the cost of lending to telecoms operators, adding that the punitive cost of lending remained, among others, the reason why the business operating environment remained hostile.

He therefore challenged Agbaje to lower the cost of borrowing to operators so that he will be justified for complaining about the cost of any telecoms services for that matter.

According to him, the cost of borrowing from the DMBs is not only exploitative, it is also unstable and unpredictable as loans obtained at an agreed interest rate will oscillate in accordance with the unreliable monetary policy of the CBN.

He said: “First, I think they gave him a prepared speech which he did not go through before reading out. That is what I think because he can’t come out and say USSD is obsolete because all over the world, these are strings of command that are used to do different things via the telephone operators network; so if he now says they are obsolete, I challenge him to bring out the latest technology that is the successor of USSD.

“Two, is it now that they realise that data is expensive after the fact, after the service has been provided? Is it now they realise that the service is expensive and if I can speak to this matter as it affects his comments, I think I know him very well, he is a respected bank leader but truly, and really, I think the speech they gave him to read, he himself didn’t go through it before reading it out.

“If he says we should lower data cost, I challenge him to also lower the interest rate. Let him start from there. Let the banks lower the interest rate to telecoms operators then they will have the basis to challenge the cost of any telecoms service whatsoever, not just USSD service. Part of our high cost of doing business here is the high interest rate of the banks, not just the high interest rate but the very unstable interest rate.”

Implications

Emefiele said there is a drive to deepen financial inclusion in Nigeria. He had said: “I had made my commitments to Bill Gates Foundation as well as Queen Maxima that we would deepen financial inclusion and that by 2020 the rate of financial inclusion would have accelerated to about 80 per cent.

“At this time, we are close to about 65 per cent. We moved from about 42 per cent to 65 per cent in about 18 months and we believe that we can achieve this 80 per cent if everybody that is the bank and telecom company cooperate with us.”

According to the CBN, the financial inclusion rate in Nigeria currently stands at 64 per cent which is far below the 70 per cent target set for the year 2023.

It is pertinent to note that the contract between MNOs and DMBs on the use of USSDs for banking transactions is strictly commercial and MNOs are at liberty to withdraw the services if it is established that the transaction is unprofitable to them.

MNOs have invested billions of naira in expanding their systems to accommodate the USSD needs of DMBs over the years. This has resulted in more Nigerians having access to banking services in addition to enabling banks to trim down costs by requiring fewer branches to service their growing customers. Unfortunately, MNOs are not getting paid for their services and the debt that stood at N42 billion in 2021 has now risen to over N120 billion.

It is obvious that the level of debt is unsustainable given the time/value of the huge cost of the continuous upgrade and operation of the systems and infrastructure dedicated to supporting USSD transactions of DMBs.

In the world of e-commerce, there are many success stories of entrepreneurs who have created fast-growing companies that have disrupted traditional retail industries. One of these success stories is the CEO of an e-commerce B2B brand-maker company.

DeGenius, whose real name is Raphael Paul N, has been an entrepreneur for several years, running his own e-commerce brand focused on the USA market. With that experience, he thought it wise to create software that will help African youth start their own brands instead of venturing into internet fraud. In a recent interview, he tells us about his journey in tech.

Since he started his career in the tech industry, he has been able to launch several projects, like Dropazz, VerifiedBic, Genius Homes, and The BIC City, under his main company, DeGenius Inc.

His most well-known brand, Dropazz, is a brand creation software that enables users to launch any e-commerce product business without the need to have capital for procuring products, webstores, server hosting, etc. Known as the African Shopify alternative, it was launched on April 20th, 2020, and currently has over 20,000 sign-ups. According to Raphael, Dropazz offers its users the essentials they require to test their entrepreneurial skills without buying and storing products for international and Nigerian markets. Users can own e-commerce websites with products to sell to any market of their choice to earn dollars or naira.

Speaking on how to access Dropazz, he said, “Dropazz only takes users once a month, or sometimes a maximum of six times in a year. Our next selection will be on the 15th of June. Only verified users gain access to Dropazz. You can access the world of Dropazz by simply creating an account at https://dropazz.com.” On his early mentors, Dropazz’s CEO admitted that he had no direct mentor. “I don’t study people; I study their sales strategies. I study the methods they use to close deals online or offline, which include word of mouth and body language, marketing videos, graphics, etc. Anyone that catches my attention, I try to do the same and do it better,” he further said.

Read Also: ‘Nigeria’s e-commerce industry major growth driver’

DeGenius further talked about his hunger for solving problems and how he had closed a hotel business he created in GRA, Benin City, because it wasn’t serving him that satisfaction. He talked about how that was one of the things that inspired his idea of BIC CITY, one of his brands. BIC CITY is a new project that will offer users of Dropazz software a land reward as they successfully build a brand online. This brand has yet to be officially launched. When asked what BIC means, he said “Billionaire Internet Citizens.”

He generates new ideas by paying attention to his competitors. He said, “They are my strong motivation for creating something exciting sometimes. Shopify inspires the market for e-commerce web stores and drop shipping. Which is why we focus on helping Africans tap into the global e-commerce market through Dropazz’s warehouse system and suppliers.

The Dropazz CEO explained that his roots were a key driving force in his becoming an entrepreneur. He talked about asking his father if he had made his first million naira. “He hadn’t, so I made that my first challenge. I did it in weeks. I saved every single dollar I made in my store. After that, when my uncle mentioned that the most money he had made in his booming cement business was 50 million naira, I knew that was my starting point,” he narrates.

Asking about Dropazz’s compared to Shopify, he explained that Dropazz has an easier store make-up system, offers more direct business relationships with users, and is cheaper than Shopify. “For example, Shopify charges for the pro plan $92 (that is, N46, 000+) per month with an extra 2-4% per sale, whereas Dropazz charges $29.99 (N14, 999) per month without charges per sale. Giving entrepreneurs more flexibility to start their own drop shipping brand with the ability to receive money using PayPal, Flutterwave, cash on delivery, etc.”

When asked about the success rate of Dropazz users, he explained, “Success in business is not what we can point at; therefore, we screen readiness before allowing people to use Dropazz. Which is one reason active users can make an average of $500 to $5,000 per month in their businesses. What we guarantee is that anyone in the world can start a business servicing the European and African markets (Nigeria) without the heavy cost of procuring products, the technical know-how of building webstores from scratch, etc. There’s no limit,” he concludes.

Entry submissions for the 5th Edition of the Nigerian National Cooperative Awards (CoopAWARDS) will close on July 19, 2023.

This was made known by the Director of Media & Publicity, Cooperative Rating & Award Society of Nigeria (CRASoN), Mrs Louisa Olaniyi in a recent statement.

“Cooperatives and Cooperators can submit entry nominations for the 5th Edition of the Nigerian National Cooperative Awards (CoopAWARDS),” the statement reads in part.

The award is organized annually by Nigeria’s premier cooperative rating and awards institution, CRASoN in collaboration with the Federal Department of Cooperatives (FDC) under the aegis of the Federal Ministry of Agriculture and Rural Development (FMARD).

According to Olaniyi, all the award entries must be made online at the CRASoN official website, by logging on to www.crason.coop/entries.

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She said that applicants can enter more than one category if they operate in such an area and have performed excellently to earn the award. “Please, WhatsApp or Call 08024472797 for more information on it.”

This year’s award is tagged “THE TRAILBLAZERS – LAGOS 2023,” while the Award Symposium and Exhibitions is themed “REIMAGINING COOPERATIVE IN NIGERIA: OUR SUCCESS STORIES, CHALLENGES & THE WAY FORWARD”

Olaniyi explained that CoopAWARDS over the years has gathered momentum that led to an increase in the award categories due to the Stakeholder’s demands for recognition of their efforts in coop development. “We now have fifty (50) types of categories, broadly grouped under four (4) Award sections to be vied for by all stakeholders,” she said.

The grand finale is scheduled to hold in Lagos in November 17th to 19th.

As a cooperative rating and awards institution reports the tracks, monitors, evaluates and report economic performances and social impacts of Cooperative Societies on their members and the Nation at large.

They confer annual national recognition honors and awards on Cooperatives and Cooperators that are outstanding in their contributions to our Nation’s socio-economic development cum GDP and SDGs achievements, as well as celebrate exceptional leaders committed to good governance, and enterprises doing well.

Vivo the Official Smartphone and the only Official Sponsor of the FIFA World Cup Qatar 2022™ in the smartphone industry, has unveiled the latest additions of its stylish V series range of devices: V27 5G and V27e, with superior photography features, the two smartphones have been designed for users who express themselves through video and photography and will undoubtedly add extra-ordinary delight as users express their creativity. 

“vivo constantly strives to develop leading technology such as the studio-level lighting effect of Aura Light Portrait System in its smartphones to improve performance and user experience. The latest V27 5G model comes with flagship-level cameras, video capabilities, and high-performance 4nm chip which will help users who lead an active social life capture and share special moments. The V series smartphones are well-known for their aesthetic beauty and vivo has continued this strong tradition with Fluorite AG Glass with color-changing effect on V27 5G. Looking ahead, vivo will continue to push the boundaries with its smartphones to ensure users enjoy the best experience,” said Mr Woody, Country Manager, vivo Nigeria. 

V27 5G—Capture exciting photography with flagship-level camera technology 

V27 5G is the complete smartphone for users looking to capture the delight in every portrait of their exciting lives. People with active lives require cameras with groundbreaking hardware as well as software specifications. The Aura Light Portrait System of V27 5G provides natural night portraits thanks to its 50 MP OIS Ultra-Sensing rear camera, studio-level soft lighting effect, and portrait-enhancing capabilities. Featuring a flagship-level Sony IMX766V sensor, and exclusive Aura Light and Portrait algorithms working in tandem, the camera lights up great portraits at night.​ With Hybrid Image Stabilization (OIS + EIS) , it can perform stabilization computations and movements up to 10,000 times per second, giving users smoother, more stable, and clearer footage. The V27 5G also gives the best selfie experience in its class, thanks to its 50 MP AF Selfie Camera. 

​Additionally, the Real-Time Extreme Night Vision feature available in Night mode allows users to see how bright the image is in preview mode, providing a real-time view of the brightness level of the final image. 

Stand out from the crowd with dynamic colors and stunning screen

Adhering to the stylish aesthetic for which V series is known, V27 5G has a beautiful design flow which gives it a dynamic, artistic, simple, and elegant look. The Magic Blue edition adopt the Fluorite AG Glass with color-changing effect under UV light, giving them graceful yet distinctive appearances. The Noble Black edition also uses Fluorite AG Glass but with an embossed glitter texture on the surface that resembles stars in the night sky. 

Furthermore, V27 5G has a 6.78” 3D curved screen which provides a more immersive and engaging visual experience with a refresh rate of 120 Hz, and ultra-high brightness and contrast.  In addition, V27 5G is the thinnest phone with 3D curved screen in vivo’s history, with a 7.36mm thickness and weighing 180g, giving the phone a comfortable grip. 

High-performance chip seamlessly switches between apps

V27 5G features a 4 nm advanced processor, Dimensity 7200, exceptionally low power consumption, higher processing speed, and a substantial performance boost over the previous generation of MediaTek chip. 

Furthermore, V27 5G is equipped with Extended RAM up to 8 GB, which means, for example, an 8 GB RAM phone has equivalent RAM of 16 GB.  Working in tandem, 4 nm chip to help people seamlessly switch between apps and store data. 

Longer battery life provides more enjoyment

The battery of the new V27 5G model allows users to continuously enjoy activities such as watching YouTube videos for up to 21 hours and playing games for up to 8 hours when fully charged. Coupled with vivo’s in-house developed 66W FlashCharge technology and the further support of an advanced cooling system, the phone can be charged to 50% in only 19 minutes while the screen is off. The battery lets users play videos, music, games, or simply stay connected continuously for longer, and has twice the lifespan compared to the industry standard.

V27e—Unparalleled Camera Capabilities and Glam Portraits

V27e is a lightweight, stylish phone which combines functionality and style for users looking for a better all-round photography experience. The flagship 64MP OIS Ultra-Sensing Camera at the back of the phone with the Aura Light Portrait feature improves the portrait image quality through the integration of optical photography and computing photography to make images stand out. The Hybrid Image Stabilisation (OIS + EIS) allows users to take videos with bright and clear details in dimly lit environments. The new colours are richer and more engaging, with different visual experiences. The Aura Light and Portrait Mode work in tandem to help the camera light up faces for great portraits at night and help users record beautiful moments. ​ 

Creating brighter videos has never been easier

Shoot brighter, more dynamic, detailed videos thanks to Hybrid Image Stabilization (OIS + EIS) of V27e. Hybrid Image Stabilisation (OIS + EIS) can perform stabilisation computations and movements up to 10,000 times per second, giving users smoother, more stable, and clearer footage. 
Vibrant colors delight and surprise users

V27e captures and pays tribute to the vibrant colors of nature. The phone has a beautiful design flow which gives it a dynamic, artistic, simple, and elegant look. The Lavender Purple edition uses the nano-scale photoetching technique and features a glowing peacock feather pattern, and giving itself a majestic, eye-catching look. The Glory Black edition features a silky, glittery pattern which has a sense of glamour and refined luxury. 

The flat frame, the slim body of 7.7mm thickness, and a weight of 185g provide an ultra-thin grip and give the phone a slender and elegant look which is accentuated by the stunning flat screen.  

Visually stunning screen

V27e has a 6.62′′ 2.5D screen which provides a more immersive and engaging visual experience with a refresh rate of 120 Hz and ultra-high brightness and contrast. The 120 Hz AMOLED Display also features self-developed ambient light sensors combined with luminescent materials which intelligently adjust the screen’s brightness and deliver vivid authentic colors, allowing users to enjoy a high-quality visual experience. 

Longer battery life provides more enjoyment

The battery of the new V27e allows users to continuously enjoy activities such as watching YouTube videos for up to 21 hours and playing games for up to 8 hours when fully charged. Coupled with vivo’s in-house developed 66W FlashCharge technology and the further support of an advanced cooling system, the phone can be charged to 50% in only 19 minutes while the screen is off. The battery of V27e has twice the lifespan compared to the industry standard, and supports up to 1,600 charging cycles compared to the industry standard of 800 charging cycles.

Energy-efficient Helio G99 chip delivers solid performance 

More and more users are looking for energy-efficient smartphones with improved performance. V27e is equipped with MediaTek’s Helio G99 platform of 6 nm advanced mechanism. It combines graphite sheets of ultra-high thermal conductivity with high-efficiency heat dissipation materials to create an efficient cooling system to boost performance. Furthermore, V27e is equipped with Extended RAM up to 8 GB, which means, for example, an 8 GB RAM phone has equivalent RAM of 16 GB, doubling the space.

Overall, the V27 series packs unparalleled features, setting a new standard for smartphone portrait photography and modern smartphone design. Vivo yet again demonstrated its commitment to innovation and excellence, cementing its position as an industry leader and pioneer in the country.

Both devices will be available at any official store across the country. The V275G will be available for ₦289,900 while the V27e goes for ₦209, 900. 

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These are certainly not the best times in the information communication technology (ICT) sector as a new bill proposing to wipe out the gains of the sector is pending before the National Assembly. Stakeholders in the ecosystem have, therefore, rejected the bill, warning it’s an illwind that will blow no one any good. LUCAS AJANAKU reports.

A new bill proposing to replace an existing Federal Government information technology (IT) development agency law is threatening the nation’s largely private local and international investment estimated at near $100billion, it was gathered at the weekend.

The bill is seeking to repeal the National Information Technology Development Agency (NITDA) Act No 28 of 2007 with a new law that industry players say will wipe out their huge investments in the industry.

The players in the sector that will be affected by the proposed law include telephone operators (PNL/Fixed line operators, mobile network operators (MNOs)/ Indirect Access (IDAs) operators, Infrastructure Providers (interconnect, data centre operators, towers/base stations providers); Internet Services Providers (ISPs) (Wholesale Segment, Retail Segment), Value Added Services Providers (VAS), Over The Top (OTT) players, financial technology (fintech/e-commerce operators, telecom/ICT equipment manufacturers, telecom/ICT consulting firms, and telecom/ICT equipment dealers, have kicked against it.

In 2021, the Executive Vice Chairman, Nigeria Communications Commission (NCC) Prof Umar Garba Danbatta, said over $70 billion had been invested in telecommunications infrastructure deployment in Nigeria since the liberalisation of the industry in 2001.

He said the cash represented a larger chunk of local and Foreign Direct Investment (FDI) attracted into the sector within the period.

Last year, two telecoms companies, MTN Nigeria and Airtel, invested N468.96 billion in expanding the nation’s broadband infrastructure in the first nine months of the year.

The operators spent the cash on expanding their 4G and 5G reach. This signified a 33.93 per cent increase from what they spent in the corresponding period of 2021.

Also, 9mobile said it has invested over N70 billion for its ongoing network modernisation. It has also added 600 new sites, equipped with 4G LTE facilities for enhanced operations and market competitiveness.

Its Chief Executive Officer, Juergen Peschel, said the new sites were being deployed alongside new broadband services to enlarge its fibre network across some Nigerian cities, amongst other technical, digital, and organisational upgrades to demonstrate the company’s core values of Innovation, Quality of Service, and Customer-centricity.

According to stats from the Nigeria Bureau of Statistics (NBS), the ICT sector contributed N12.32trillion to the Gross Domestic Product (GDP) of Nigeria in real terms last year as a result of rising number of telecom subscribers.

So far, the Federal Government has earned $820.8 million from the auctioning of the fifth generation (5G) licence alone to three players in the telecoms space.

Mafab Communications Limited and MTN Nigeria Plc, had emerged the two successful winners of the 3.5 gigahertz (GHz) spectrum auction for the deployment of 5G technology to support the delivery of ubiquitous broadband services in Nigeria.

In addition to the revenue generated from the 5G spectrum, revenue is being generated from other spectrum fees.

“For example, in 2020, N26,428,642,451.61 was generated as spectrum fees.

“MTN, Mafab and Airtel all have participated in the auction process and each obtained a lot of 100 MHz from the 3.5GHz spectrum after successfully participating in the auction process.

“This generated $820.8m for the Federal Government. 5G services are now available in at least 225 sites across eight states in Nigeria,” he said.

But the stakeholders, acting under the aegis of the Association of Telecommunications Companies of Nigeria (ATCON) and Association Licensed Telecommunications Operators of Nigeria (ALTON), at the weekend, warned against the passage of the bill in its format as it is capable of wiping out the gains the industry has made over the last two decades.

ATCON National President, Tony Izuagbe Emoekpere and ALTON Chairman, Gbenga Adebayo in separate reactions, are unanimous that the new proposal, if allowed to sail through, would increase the operational expenditure of the sector as well as its tax burden.

ATCON said if the bill is passed it poses great danger to the telecom and ICT industry in Nigeria as it will ultimately lead to loss of confidence by both local and international investors in the telecom and ICT sector of the Nigerian economy. The proposed Bill allows for takeover of telecom and ICT infrastructure by NITDA based on their determination that they should do that without going through any legal process and that means any private business can be shut down or taken over by NITDA at will. This will destroy investors’ confidence in the sector.

He said the Bill turns NITDA from a development agency to a regulator and the proposed mandate directly infringes on the regulatory activities of other regulators including the banking, financial services, insurance, health care, commerce, education, agriculture, telecommunications etc. The Bill calls for levy and penalties on industry operators that cuts across these other sectors and that will be in direct conflict to the roles of the established regulators in these sectors.

The Bill calls for the establishment of an operating company. It is not clear the role and services this company will be involved in, but it is contrary to the policy of the government in deregulating the economy and not creating state operated companies that will be in direct competition to the private sector. Galaxy Backbone is capable of playing any role required to address the needs of the Federal Government under the provision of digital services to the public sector. “There are thousands of private companies operational in Nigeria to meet the need of the general public hence it is counterproductive to setup another government operated company to compete with the privately funded companies. This will create a situation where the regulator is also competing with the companies it regulates and raises questions in the area of neutrality,” he said.

The Bill imposes huge penalties and fees on the companies doing business in the country. The private sector is already suffering from multiple taxation and a huge burden in the cost of doing business in Nigeria. This Bill if passed will worsen the financial burden on the Nigerian citizens as the private sector will ultimately pass this cost of business to the citizens in the form of higher tariff

The proposed NITDA 2022 Bill infringes on the functions of the NCC as stated in the NCA 2003, warning that the existence of two agencies of government in the same space will create unnecessary double regulation, double taxation, confusion, discourage capital investment and negatively impact the Ease of Doing Business Initiative of the Federal Government.

ATCON’s review of the proposed third schedule on companies and enterprises to pay levy  under section 17 (2) (a) of this Act includes -mobile and fixed telecommunications companies;  information technology companies, gaming companies, and ecommerce companies;   foreign digital platforms targeting the Nigerian market;  pensions managers and pension-related companies;  banks, financial institutions, and fintech companies; insurance companies; and such other companies and enterprises as may be determined by regulations from time to time by the Agency.

“Following our review of the third schedule stated in the NITDA new bill, it is glaring that the whole essence of NITDA wanting to repeal its current Act is geared towards arrogating powers to itself and making monies from not only telecommunication companies but the entire strata of the economy which we can foresee and predict that is going to create unnecessary tension and legal tussles in the country,” Emoekpere said.

On permit and authorization, he said granting of permit and authorization by NITDA should be limited to information technology as the use of “Operators” is ambiguous hence the need for specification. The Digital Economy Sector includes the telecom segment of the industry and will also advocate that NITDA specify the affected segment of the sector to avoid double license and permit from related commission.

On the proposed establishment of a digital infrastructure and service provision company in the NITDA‘s Bill of 2022, ATCON said the establishment of a digital infrastructure and service provision company is not needed as NCC has already licensed Infrastructure companies (InfraCos) for the six geopolitical zones in Nigeria which have not been able to take off and deliver services because of lack of funding and inability of government to provide the promised funding to holders of the licenses which is principally politically hindered, adding that Galaxy Backbone is already in operation for Federal Government infrastructure implementation.

Adebayo said the powers of the Agency as provided for in Section 6(1) and (12) of the Bill, the Agency is empowered to “implement all government policies on information technology and digital economy,” and “issue and renew licenses and authorizations for the provision of information technology and digital services.” What constitutes information technology and the digital economy are defined in Section 33 of the Bill. By the said provision of Section 33, “Digital Economy” is defined to mean “any aspect of the Nigerian Economy that is based or driven by digital technologies,” while “Information Technology” is defined to include “all forms of technology used to create, store, exchange and use information in its various forms (business data, voice, conversation, still images, motion pictures, multimedia presentations and other forms including those not yet conceived).”

“Going by the foregoing, it is apparent that the Agency is being empowered to regulate activities which are already under the purview of the NCC. Presently, the NCC regulates the activities of all telecommunications companies that fall within the purview of digital economy and information technology.

“Specifically, the NCC with regards to the digital economy is responsible for the monitoring and implementation of the National Broadband Plan (2020 – 2025) and the National Digital Economy Policy and Strategy.

“Closely related to the above are the provisions of Section 6(2) of the Bill, which empowers the Agency to test and approve the use of information technology infrastructure and services before adoption in Nigeria and Section 20, which clothes the Agency with powers to make regulations and issue licenses and authorization for operators in the information technology and digital economy sector.

“This again replicates the power of the NCC, which includes “carrying out type approval tests on communications equipment and issuing certificates on the basis of technical specifications and standards prescribed from time to time by the Commission” as stipulated by the provisions of Section 4(n) of the Nigerian Communications Commission Act (NCA) 2003, and for which the NCC Type Approval Regulations exists,” ALTON said, warning, “If the Bill is passed as presently constituted, there is the risk that the Agency, acting properly under the Bill may issue regulations, guidelines and standards with regards to the use of information technology and digital services, which will conflict with the functions of the NCC. It will also result in double and possibly conflicting regulation for telecommunications companies in Nigeria.”

The group therefore sought its exclusion from the group of persons (Operators) who will come under the control and regulation of the Agency with regards to information technology and digital services.

On the establishment of the National Information Technology Development Fund by Section 13, which shall be used for the advancement of the country’s digital economy objectives and related purposes, Adebayo said in order to fund the activities of the Fund, the Bill provides that, companies and enterprises, including mobile and fixed telecommunications companies with a turnover of N100 million shall pay a levy of one per cent of the profit before tax.

“While ALTON as an association and our members as individual corporate entities are always observant of their tax obligations and other responsibilities, we submit that the tax sought to be introduced by the Bill, in addition to existing taxes and levies will overburden telecommunication companies. Presently, the telecommunications companies in Nigeria are overburdened with over 39 different taxes and levies, a bulk of which are multiple or excessive. If this new tax is added to existing taxes, it will effectively increase Nigeria’s corporate income tax rate to about 36 per cent which is one of the highest rates in the world. This will not give a good image about our country and give the impression that our campaign for ease of doing business in Nigeria is not genuine.

“We therefore, humbly pray for telecommunication companies to be exempted from this head of tax,” ALTON said.

On the power of the Agency to seal premises and impose administrative sanctions contained in Section 6(7), he said the Agency has the jurisdiction to enter premises, inspect, seize, seal, detain and impose administrative sanctions on erring persons and entities who contravene any provision of the Bill. “While our members as law abiding entities are not averse to being regulated, nor do they have the intention to disobey any law, rule or laws of our country, we feel that Section 6(7) is too broad and could give room for abuse of power by the Agency.

“Our fears are founded on the fact that the Bill does not provide for prior warning/notice to be issued to the defaulting person or entity before the Agency exercises the power to enter premises, inspect, seize, seal, detain and impose administrative sanctions on erring persons and entities. Although the Section states that such actions by the Agency are subject to orders of a court of competent jurisdiction, the Bill fails to stipulate whether the Agency is to first seek and obtain orders of court before exercise its powers to sanction defaulting persons or entities or such orders could be obtained after the Agency exercise its powers under the Bill.

“Where the order of court is to be first sought and obtained before the Agency undertakes any of the actions mentioned in Section 6(7), the Section is silent as to whether the orders are to be obtained ex-parte or on notice to the person or entity against whom the orders are sought to be obtained. While the above steps, intended to ameliorate any excesses are proposed, we will prefer the total exclusion of telecom companies from the ambit of the Agency’s operations as there are no provisions for its liaising with the NCC in promulgating any regulations. The fears that its regulations may conflict with existing NCC regulations or duplicate and further complicate them are not unfounded since there is no requirement by the Bill for synchronization between the Agency and NCC,” ALTON noted.

Another provision of the bill identified by ALTON has to do with Classes of Licences and Authorisations as contained in Section 21 of the Bill. It empowered the Agency to classify its licenses and authorizations under any of Product License; Service Provider License; and Platform Provider License.

“Besides mentioning the various categories of licenses, the Bill does not define what these classes of licenses mean, neither is the Bill explicit on the types of activities which are covered by each class of license. The danger in the Bill not defining these licenses and category of activities which they cover is that, the Agency may inadvertently appropriate more powers to itself than intended to be delegated to it by the legislature or, the Agency, may by error, seek to regulate activities already under the regulation of other regulatory agencies.

The ideal circumstances is for these classes of licenses to be fully defined, while the conditions for the grant of the same, may be left for the regulations to be issued by the Agency.

“We believe that the role of NITDA as an agency is for the development of the ICT sector and the focus should be of how to empower the agency on this development and not another regulator for the industry thereby causing unnecessary confusion and disestablishing the gains the sector has made so far to the Nigeria economy,” ALTON said.