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Grooming Startups to Survive in the Nigerian Ecosystem

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(L-r): Deepankar Rustagi, MD, Vconnect; Olamide Amosu- Head communication, Infinix Mobility; Kusha Dutta-  MD, Jumia Travel at the Lagos Startup Week 2016 held at Oriental Hotel, Lagos, recently.
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Starting a business in Nigeria, like many other countries, usually comes with many road bumps. It is not just enough to have a brilliant idea that can be built into a mega business; more is required than just a good thought process.

More often than not, entrepreneurs would always believe that raising enough capital to run a business is the most important factor. After all, we all at a time attended that Economics class where we were taught that money is the most important element to drive a business to success.

At Jumia Travel, we believe there are other elements that are as important as capital for a business to grow. Some of these will include, but not limited to, creating a comfortable environment for startup owners and investors to relate, providing essential support to ensure that the business survives and caters to the socio-economic environment by creating jobs, providing substantial dose of mentorship, business advisory supports, peer learning network and enriching the development process for these startups.

There are a number of platforms created by individuals and some by a group of individuals who are committed to helping others grow their businesses.

These platforms have been created to provide necessary expert support in different areas that are affected by the businesses i.e. marketing, innovation, customer service, branding etc.

To mention but a few, Lagos Startup, Startup Friday, IC-Cube Startup Conference & Exhibition, Nigeria Small Business Summit and Startup Lagos Conference are some of the platforms that have provided startups with the needed intellectual infrastructure supports.

Just last week, the second edition of the Lagos Startup Week was held at Oriental Hotel Lagos. It was a weeklong of activities – from paper presentation to panel discussions and Q&A sessions. As a supporter of SMEs, Jumia Travel was among the many sponsors of the event.

As a form of recognition of its leadership position in the ecommerce industry, the company’s Managing Director in Nigeria Kushal Dutta was invited as a panelist to speak on the “The Future of Ecommerce, Retail and Payments in Nigeria”.  During the panel discussion, Kushal made some interesting revelations about digital penetration. For instance, he made a distinction between internet penetration and e-commerce penetration. According to Kushal, these two are often misconstrued to be same. The success of e-commerce largely depends on internet penetration because if people don’t have access to the internet, it becomes impossible for them to transact on any ecommerce platform.

He stressed that because of the high penetration of the internet, it’s profitable to spend money on online promotions as it has the potential to impact ROI measurably through online sales.

A comparative look at the internet users in Nigeria between 2015 and 2016 clearly shows that the country is ripe for ecommerce businesses to thrive, if we were to judge by access to the internet. As at July 1, 2016, there were about 86,219,965 internet users in Nigeria which is about 46.1% of the entire population.

The percentage is expected to grow by 2.63% by 2017 whereas there were only about 82,094,998 internet users in 2015 which represented 45.1% of the population. A lot of aspiring entrepreneurs should look at venturing into ecommerce business as it’s evident that internet penetration in the country is growing astronomically.

Kushal also advised the participants against looking for investors when the business idea has not been properly thought through and no scalable model is already in place with a well-defined market.

This, he said, might prevent investors from investing their capital in the business. He made reference to MTN’s involvement in Jumia’s business as a result of the scalable business plan that the organization has put in place. MTN was able to key into the vision after it saw its profitability circle as a business.

Even though the current climate of the Nigerian economy has been quite unconducive due to a number of reasons but top on the list the recession, aspiring entrepreneurs should be encouraged and groomed into becoming successful business owners.

True, there are platforms cropping up every day to cater to these needs. Yet, more and more collaboration still needs to be done. At least, that’s what we believe at Jumia Travel.
 


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E-Business

NITDA Takes Over National Digital Architecture System

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Nigeria has taken a major step toward strengthening its digital governance framework as the National Information Technology Development Agency (NITDA) officially assumes control of the Nigeria Government Enterprise Architecture (NGEA) infrastructure.

NITDA Takes Over National Digital Architecture System

The handover ceremony held in Abuja, marks the culmination of a high-level partnership with the Korea International Cooperation Agency (KOICA).

This transition signals a shift from fragmented IT projects to a unified, disciplined approach to national digital investment.

The NGEA initiative forms a core part of the e-Government Masterplan 2.0 (Ne-GMP 2.0), aimed at establishing a unified and structured approach to managing government IT investments and digital resources.

The framework is designed to ensure that technology deployment across public institutions aligns with national priorities while improving efficiency and accountability.

With the system now operational, government agencies are expected to adopt more integrated digital processes, allowing seamless data sharing and interoperability.

This is anticipated to reduce duplication, strengthen risk management, and translate policy objectives into measurable digital outcomes.

Over the past two and a half years, Nigerian technical experts worked closely with their Korean counterparts to develop the architecture framework, create reference models, and execute pilot programmes in key institutions.

These include the National Identity Management Commission, Nigeria Customs Service, Nigeria Immigration Service, and NITDA.

Officials say the NGEA represents a shift from fragmented digital efforts to a more coordinated, citizen-focused system.

The infrastructure is hosted by Galaxy Backbone Limited, providing a secure and reliable platform for nationwide deployment.

Looking ahead, NITDA is expected to work with government stakeholders to expand and sustain the system, while the Federal Ministry of Communications, Innovation and Digital Economy will provide policy guidance to ensure its adoption across the country.

 

 


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FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  – Minister

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Bosun Tijani, minister of Communications, Innovation and Digital Economy, has said the government is shifting focus from expanding access to ensuring “meaningful connectivity” that drives economic growth and inclusion.

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  - Minister

Bosun Tijani, minister of Communications, Innovation and Digital Economy

The minister made the statement on Friday while addressing stakeholders at the inauguration of board members of the Universal Service Provision Fund (USPF) in Abuja.

He said that although Nigeria had made significant progress since the introduction of GSM services, millions of people, particularly in rural and underserved communities, remain either unconnected or unable to fully benefit from digital services.

Dr Tijani highlighted ongoing investments in digital infrastructure, including plans to deploy 90,000 kilometres of fibre optic network and nearly 4,000 telecom towers nationwide.

He said initiatives under the USPF had improved access through projects such as rural connectivity and digital facilities in schools but stressed that the next phase must prioritise effective usage.

“It is not enough to connect a community. We must ensure that schools can teach with digital tools and that small businesses can access market opportunities,” he said, citing a pilot project in the Kura community where connectivity has enhanced access to communication, education and healthcare.

Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC) also called for a shift towards meaningful connectivity, noting that while data usage had grown significantly, it remained concentrated in urban areas.

According to him, recent data shows that telecom usage has increased by about 160% over the past two years, largely driven by urban demand.

“When we drill down, we see that a lot of that growth is actually in urban centres. So, the gap between those who are not connected or not meaningfully connected is growing,” he said.

Dr Maida added that the trend underscored the need for the USPF board to intensify efforts to bridge both access and usage gaps across the country.

Both officials emphasised the importance of collaboration, sustainable investment models and improved digital literacy to ensure that connectivity translates into real economic benefits for Nigerians.

 

 


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Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

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A jury in Los Angeles has found technology companies, Meta and Google liable for contributing to a young woman’s social media addiction, in a case being described as a landmark ruling.

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

The 20-year-old woman, identified only as Kaley, argued that she became addicted to Google’s YouTube and Meta’s Instagram from an early age due to their attention-driven design features.

According to her testimony, she began using YouTube at the age of six after downloading the app on her iPod Touch to watch videos about lip gloss and online games.

Kaley told the court that she joined Instagram at nine, bypassing parental restrictions put in place by her mother, and spent extended periods on social media.

The trial, which lasted about a month, with arguments and evidence from both sides.

Jurors also heard testimony from Mark Zuckerberg, chief executive, Meta and Adam Mosseri, Instagram head.

However, Neal Mohan, YouTube chief executive, did not testify.

The jury found that the companies were negligent in the design of their platforms and failed to adequately warn users about potential harms. Meta and Google were ordered to pay the woman $3 million in damages.

Jurors also recommended additional punitive damages, including $900,000 against YouTube and $2.1 million against Meta, according to company spokespersons.

The jury apportioned 70 per cent of the responsibility to Meta and 30 per cent to YouTube.

Kaley was present in the courtroom when the verdict was delivered, alongside parents of other teenagers who say they were harmed by social media use. Both companies said they plan to appeal the decision.

“We respectfully disagree with the verdict and will appeal. Teen mental health is profoundly complex and cannot be linked to a single app. We will continue to defend ourselves vigorously as every case is different, and we remain confident in our record of protecting teens online”, a Meta spokesperson said.

José Castañeda, Google spokesperson, said the case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.


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