E-Business
Falling Sales, Naira Devaluation Hobble Rocket Internet’s Growth

When German e-commerce investor Rocket Internet launched Jumia in 2012 as a would-be African Amazon, it was optimistic that a rapidly expanding middle class would quickly shift from street markets to shopping online.
Reuters however reported that four years on, falling sales for sites like Jumia and slower growth from Nigeria to Russia and Brazil is casting doubt on Rocket Internet’s ambition to become the world’s biggest Internet company outside the United States and China.
Jumia made a loss of 17 million euros ($18.8 million) in the first three months of 2016 on sales that fell more than a third.
The devaluation of Nigeria’s naira last week is a new blow for Jumia, which now operates in more than 20 countries in Africa.
Revenue growth has also slowed at most of Rocket Internet’s other 11 leading start-ups, ranging from furniture e-commerce and food delivery in Europe to online fashion in markets from India to Latin America and the Middle East.
That is the consequence of Rocket’s shift to rein in spending on marketing and logistics as it seeks to stem losses which it said peaked at 1 billion euros in 2015.
As a result, shareholders have cast doubt on the valuation Rocket has put on its portfolio and questioned the strategy of sending business school graduates to set up 150 start-ups in more than 110 countries in just a few years.
Exclusive interviews with shareholders reveal growing scepticism about Rocket’s sprawling empire as emerging markets sour and technology stocks cool. Its share price has fallen 39 percent this year.
“People have started to question whether the company portfolio is really as good as we first thought,” said a top 20 shareholder, who declined to be named as they expect to trade stock. “A lot of trust has been destroyed over the last 12 months.”
Founded in Berlin in 2007 by brothers Oliver, Alexander and Marc Samwer, Rocket Internet aims to replicate the business models of Amazon, China’s Alibaba and ride service Uber in new markets.
With few other tech companies listed in Europe, investors jumped at the opportunity to gain exposure to an array of fast-growing businesses when Rocket went public in 2014, pushing the stock up by more than 50 percent in the first few months.
However, the stock has been on a downward trajectory since peaking in February 2015 after it surprised investors with a new capital hike and shifted strategy to invest in the food delivery business in developed markets.
The latest share price tumble started in April when Sweden’s Kinnevik, Rocket’s second-biggest shareholder after the Samwer brothers, slashed the valuation for its emerging market fashion websites by two thirds.
That unsettled investors, especially after Kinnevik said its representatives were stepping down from the board, citing potential conflicts of interest over future investments.
Kinnevik, which has hedged its bets on Rocket in Africa by investing in Jumia’s main rival Konga, declined to comment for this article. It has said it will work closely with Rocket although it could review its stake in two or three years.
Martin Weber, a partner at venture capital firm Holtzbrinck, which has a 1.9 percent Rocket stake, says the company has struggled to provide enough information about its holdings.
“The stock market loves transparency. And that is not practically possible at Rocket,” Weber told Reuters. “Rocket needs to prove that it can get profitable companies on their feet.”
Samwer has admitted Rocket had initially done too little to communicate with investors after the firm went public, but he is not worried about the share price.
“We planted a lot of seeds and I believe in the next 24 months a lot of investors will see it the same way,” he told a Berlin tech conference this month.
He says the sale in April of Lazada – Rocket’s loss-making Amazon clone in Southeast Asia – for $1 billion to Alibaba underlines the logic of going into frontier markets before more established rivals.
Some investors are prepared to give him more time.
“We believe that the portfolio is worth a lot more,” said Ralph Dommermuth, chief executive of United Internet, Rocket’s third-biggest shareholder, even after he took a 157 million euro writedown on his firm’s Rocket stake in May.
“Among European investors in young Internet firms, Rocket Internet is the broadest and has the most experience in the sector.”
CEO’S PROMISE
Rocket now has a market capitalization of 3 billion euros, well below the 5.3 billion valuation it put on its portfolio at April 30, and only just above the 2.8 billion in cash held by Rocket and its operating companies as of March 31.
Most Internet start-ups burn cash in early years as they pour money into marketing, logistics and technology to pursue revenue growth above all else, hoping to move into the black once they reach scale.
That approach has worked for the likes of Amazon, Alibaba and European online fashion site Zalando.
Neil Campling, head of technology research at Northern Trust Capital Markets, who rates the stock a “sell”, doubts the Rocket businesses can replicate Amazon’s success because their markets are so underdeveloped and the cost of logistics so much higher.
“As soon as they reduce marketing, you see revenue growth decline substantially,” he said. “They haven’t got the scale.”
However, Samwer says Rocket has more than enough capital to fund its main start-ups until they turn profitable.
Samwer promised last September to make three start-ups profitable by the end of 2017, with Middle East fashion site Namshi, online home furnishings store Westwing and food takeout firm Delivery Hero seen as the most promising.
Jumia, which predicted in late 2013 it could turn a profit within 18 months, is far from that goal. It lost 111 million euros in 2015 on sales of 135 million.
But Jumia Nigeria CEO Juliet Anammah believes the company can make a profit within three to five years. “Africa is a long-term play,” she said.
Samwer has now changed tack for his Amazon clones, shifting from buying and shipping their own stock – more suited to countries with well-established logistics – to providing a commission-based marketplace for third-party retailers, like Alibaba.
“You are tapping into the supply capacity that exists in the country. So you are not dependant exclusively on your working capital to source and bring in retail products,” Anammah said.
Samwer remains optimistic for Jumia.
“The people are still there even if emerging markets are cold… They still have some money,” he said. “The offline to online shift continues.”
E-Business
Galaxy Backbone Tops FG’s Website Performance Ranking

Galaxy Backbone Limited (GBB) has been ranked first overall in the 2025 Federal Government Website Performance Scorecard.

This is a landmark achievement for Nigeria’s digital economy.
The ranking, conducted by the Bureau of Public Service Reforms (BPSR), is the definitive benchmark for digital excellence and transparency across all Ministries, Departments, and Agencies (MDAs).
Professor Ibrahim Adepoju Adeyanju, managing director and CEO of Galaxy Backbone, received the award during a ceremony in Abuja.
He described the feat as a validation of the agency’s“Nigeria First”data sovereignty strategy and its relentless pursuit of service excellence.
This recognition comes as the Federal Government intensifies its push to achieve a fully paperless civil service by December 31, 2025.
GBB has been the primary architect of this transition through its 1Gov Enterprise Content Management (ECM) platform, which now hosts the operations of almost all federal MDAs.
The award adds to a growing list of accolades for Galaxy Backbone in 2025, following its recent win of the “International Standard Excellence Award for Best IT Service Provider.”
As the central hub for government shared services, GBB’s performance serves as a blueprint for other agencies currently undergoing digital transformation.
With its expanded fiber-optic backbone now covering over 13 states and its secure cloud solutions, Galaxy Backbone remains the cornerstone of Nigeria’s vision to become a leading digital nation by the end of the decade.
E-Business
Nigeria Police Arrest Okitipi, Nigerian Allegedly Linked to Microsoft 365 Hack

Okitipi Samuel, a Nigerian man, has been taken into custody by the Nigeria Police Force for his alleged role in a global cyberattack on Microsoft 365 users.

Benjamin Hundeyin, Force public relations officer, disclosed this on Thursday in Abuja while briefing journalists on the outcome of investigations carried out by the National Cybercrime Centre of the Nigeria Police Force.
Hundeyin said the centre, under the leadership of Ifeanyi Uche, its director and Commissioner of Police, commenced investigations in collaboration with Microsoft, the Federal Bureau of Investigation, the United States Secret Service, and the United Kingdom’s National Crime Agency.
According to him, investigations revealed that a phishing toolkit known as “Raccoon 0365” was used to create fake Microsoft login portals to harvest user credentials and unlawfully access email accounts belonging to corporate organisations, financial institutions, and educational institutions in several countries.
“This investigation commenced following credible intelligence received from Microsoft USA through the FBI, indicating that a malicious phishing toolkit known as Raccoon0365 was being used to create fake Microsoft login portals, harvest user credentials, and unlawfully access the email accounts of corporate organisations, financial institutions, and educational establishments,” Hundeyin said.
He added that between January and September 2025, several reports of unauthorised access to Microsoft 365 accounts were traced to phishing emails designed to mimic legitimate Microsoft login pages, enabling business email compromise, internal phishing, data breaches, and other cyber-enabled fraud.
Hundeyin said digital forensic analysis and cryptocurrency tracing identified wallets connected to the illegal operation.
He noted that operatives were deployed to Lagos and Edo states, leading to the arrest of three suspects identified as Joshua, James, and Okitipi Samuel between September 20 and October 4, 2025.
“Following extensive digital forensic and technical intelligence analysis, the centre conducted cryptocurrency tracing that identified suspicious wallets connected to cash-out schemes.
“Acting on actionable intelligence, operational teams were deployed to Lagos and Edo states, resulting in the arrest of Joshua, James, and Okitipi Samuel. Searches at their residences led to the recovery of mobile devices, laptops, and other digital exhibits linked to the fraudulent scheme,” he said.
Hundeyin identified Okitipi Samuel, also known as “0365” and Moses Felix as the principal suspect and developer of the phishing infrastructure.
He added that investigations confirmed Samuel unlawfully used the email details of one of the arrested individuals without consent to register some of the accounts used in the operation.
The police spokesperson said further investigations revealed that the identities of Joshua and James were used without their consent.
“There was no evidence linking them to the creation or operation of the phishing scheme. They were victims of identity theft,” Hundeyin said.
He said a prima facie case had been established against Samuel for identity theft, unlawful access to computer systems, creation and distribution of malicious software, unauthorised interference with network data, and aiding and abetting fraud.
Hundeyin added that the suspect would be charged under relevant provisions of the Cybercrimes (Prohibition, Prevention, etc.) Act, 2024.
He said the suspect would be prosecuted in Nigeria, noting that the country has the capacity to enforce its cybercrime laws, although extradition could be considered if formally requested through due process.
Hundeyin assured Nigerians that the police, under the leadership of Kayode Egbetokun, inspector-general of Police, would continue to protect the country’s digital ecosystem and urged citizens to practise good cyber hygiene by being cautious when clicking links and sharing personal information online.
Speaking separately, Ifeanyi Uche, director of the National Cybercrime Centre, urged Nigerians to exercise caution online.
Uche advised members of the public to avoid clicking on links from unknown or unexpected sources, noting that such links often contain malware or phishing tools designed to compromise devices and personal data.
He warned that indiscriminate clicking of links or responding to unsolicited emails could lead to unauthorised access to personal and corporate accounts, urging citizens to “wash their cyber hands” by verifying sources before taking action online.
E-Business
Nigeria Takes the Lead in the Global WSIS+20 Digital Agenda

Nigeria has unveiled a comprehensive, multi-pronged strategy designed to localise WSIS+20 commitments. This roadmap accelerates national transformation by prioritising robust infrastructure, transparent internet governance, and advanced cybersecurity through deep stakeholder collaboration.

Unveiled in New York at the Nigerian high-level side event titled “Re-Imagining Digital Cooperation for Sustainable Development: From WSIS+20 Vision to Local Action,” the strategy cements Nigeria’s position as a primary architect of the world’s digital future.
Speaking at the event, the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE represented by Director, Corporate Planning and Strategy, Dr. Dimie Shively Wariowei said Nigeria’s approach is deliberately aligned with the four core activity areas identified under the ongoing WSIS+20 review process.
According to him, the focus areas provide a practical framework for translating global digital commitments into measurable national outcomes, ensuring that international resolutions drive inclusive growth and sustainable digital development at the country level.
Inuwa identified digital infrastructure as the foundation of effective localisation, noting persistent challenges in extending connectivity to underserved and remote communities. Beyond infrastructure gaps, he highlighted affordability constraints and digital literacy deficits, stressing that addressing these issues remains central to Nigeria’s digital inclusion drive.
He explained that government alone cannot shoulder the burden of nationwide digital infrastructure deployment, given Nigeria’s vast geographical spread, hence the adoption of collaborative Public-Private Partnership (PPP) models. He disclosed that Nigeria, in collaboration with the World Bank, is implementing a major fibre-optic project spanning about 90,000 kilometres nationwide to boost connectivity.
The NITDA DG also revealed that the current National Broadband Plan, which has guided broadband expansion in recent years, is nearing completion, with plans underway to renew and reposition it for the next five years. The renewed plan, he said, will strategically target increased broadband penetration as a catalyst for digital access and economic growth.
On internet governance, Inuwa referenced Nigeria’s active participation in the Internet Governance Forum (IGF), noting that the country successfully hosted its annual national IGF. He said the forum operates on a multi-stakeholder model that brings together government, the private sector, civil society and the technical community to foster cooperation and informed policy dialogue.
Cybersecurity, he added, remains a critical pillar of Nigeria’s localisation efforts. He cited the existing Cybersecurity Act and ongoing efforts to strengthen the legal framework through a reviewed version currently awaiting parliamentary approval. These measures, he said, are designed to mitigate risks associated with increased internet use and to protect users and critical digital infrastructure.
Inuwa further stressed Nigeria’s ambition to play a leadership role in advancing digital cooperation across Africa through inclusive, multi-stakeholder engagement. He underscored the importance of coordinated national data collection, noting that reliable, country-specific data is essential for tracking progress and presenting Africa’s digital development story on the global stage.
He concluded that sustained engagement and follow-up actions arising from the WSIS+20 review would strengthen digital cooperation among African countries and ensure that global digital commitments translate into tangible national and regional impact.
Stakeholders commended Nigeria’s efforts in the digital space, acknowledging the country’s growing role in shaping Africa’s digital future.
Earlier, Ms. Jennifer Chung, Co-Convener of the Informal Multi-Stakeholder Sounding Board (IMSB), praised Nigeria for convening a broad-based, multi-stakeholder delegation and for its commitment to the meaningful implementation of WSIS+20 outcomes.
Chung stressed the growing demand for localised WSIS follow-up mechanisms, noting that platforms such as the annual IGF, National and Regional IGF Initiatives (NRIs), and youth-led forums are vital for tracking progress towards the 2030 Agenda and Africa’s Agenda 2063.
She described the WSIS+20 review as a critical step toward effective monitoring, reliable data collection and evidence-based evaluation, particularly for developing countries in the Global South. According to her, these measures are essential to achieving WSIS targets and ensuring that no region is left behind.
Drawing parallels with the Asia-Pacific region, Chung noted that challenges around affordable and meaningful connectivity remain widespread across developing economies. She emphasised that expanding broadband penetration and reducing the cost of access are crucial to closing digital divides in Africa, Asia-Pacific and other parts of the Global South.
She also highlighted the need to enable active citizen participation in emerging technologies, including artificial intelligence and future innovations such as quantum technologies, stressing that inclusive digital access is key to maximising the benefits of digital transformation.
Reflecting on the WSIS+20 review process, Chung praised the innovative and inclusive approach adopted through the informal multi-stakeholder sounding board, describing it as one of the first of its kind in global digital governance. She called for sustained collaboration among governments, the private sector, civil society and the technical community to carry the WSIS vision from global commitments to local action.
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