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Hype about NigComSat-1 is Unnecessary- Onyekwere

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Chima Onyekwere, is founder/chief executive officer of Linkserve Limited, Nigeria’s first Internet Service established since 1996. Calm, calculated and razor-sharp, Onyekwere is a name and his vision to provide internet connectivity to Nigeria has been widely applauded. A geologist, the Nigerian IT egghead is is also the founder of SAAP-TECH (Nigeria) Limited and Dealers Warehouse Limited. He spoke to hilary okeke

Disappearance of NigComSat
Well, it is unfortunate that it happened. But just like accidents do occur, there is nothing unusual about that. There are some other big operators in the Satellite communication business worldwide, who have also lost one Satellite or the other. Early last year, New Sky lost a Satellite at launch point and that Satellite was supposed to provide service to Africa. The hype that is being created in the NigComSat case is rather unfortunate. The Satellite was launched, it had customers and was functional – it was a success story in itself. Why are we then projecting this unfortunate incident that has occurred? This is a very young company in its budding stage. Let me tell you about CNN – for several years, Ted Turner that founded CNN struggled and met with difficulties and was almost bankrupt. But he eventually succeeded and today, CNN is a success story. We should be very careful the way we bring people down in Nigeria. Someone decides to try something new and we just want to bring him down for our personal glory. I am a Satellite user and one of the largest providers in this market, and I know the challenges involved in doing business in Nigeria. The challenges of doing business in Nigeria are enormous because government has not really taken care of its responsibilities, and we should not quickly dismiss an innovation that had required a lot of boldness. The managing director has done a fantastic job in my own estimation. I think this is time for us to reflect on how to get the Satellite back up, and not discourage the NigComSat crew. New Sky lost a Satellite last year, which was far more expensive than our own and today, they are still in business. Many other operators have lost Satellites in orbit or at take-off point and the cries have not been as loud as it has been here. Capacity of course, is shrinking but opportunities are coming up as well for additional Satellites top be launched and it is only a question of time for those who are persistent – they will definitely succeed.
Dependents of NigComSat
NigComSat will work with third-party providers to see how they can assign their premium customers particularly, first and all the others. They have to move them to alternative Satellites as long as service is provided in a professional and respectable manner, and I am positive they are doing that already.
Possibilities of Replacement of the Satellite
The thing about Satellite communication is that you as an operator, have been allocated space at a particular degree and you can always build another one and put it in the exact place. If they have enough resources and capability, they can actually buy a Satellite and move it to that location, just to provide service centrally. I am sure they are evaluating so many other options.
Telecom Operators, ISPs and Provision of Internet Services
The fact is that there are different kind of solutions and applications in the market and each is serving a particular niche. The EV-DO or 3G alternative is available purely for consumer usage. Sometimes, it is very fast, sometimes slow and sometimes, it is totally unavailable. So, it has its own problems. Considering the capacity to back-haul from one cell site to another; and the capacity to move from one cell site area to another, you find out that the moment increases or reduces, as the case may be. What we at Linkserve deliver however, is a premium brand in broadband, whereby the service delivery is unique, specific; targeted to a user and designed for the user. We are not a mass-oriented business; we have carved a niche in the market. The alternative technologies introduced by telecom operators are no threat to ISPs because if it were, Nigcomsat would not have been in business, likewise SkySat, IntelSat, among others. There are certain areas in this market that EV-DO would not be able to serve. Even as we speak, it is serving only major cities: Lagos, Abuja, Port-Harcourt, and Kano. We have 36 States in the country and about four only, are being served. That is certainly not enough. Even the GSM service has not penetrated everywhere; new players that just launched into the market are getting 2 million subscribers in this same market and that is to tell you the capacity of this market. Some of these subscribers switch from one network to another, as a matter of choice – that is the spirit of competition. We can deliver service at any point in this country, irrespective of the terrain, availability of electricity, telephone lines or cell sites – it does not matter. We can deliver service there, and that is the uniqueness about our solution.
Linkserve and Business Environment
Well, I would say the business environment here is friendly, save for Government (Federal and State) policies, which are often stringent and suitable for business. Most of the major cities in Nigeria are over-populated because they are the only places where you find job opportunities; and everyone is migrating to that area. They eventually become congested and chaotic. Beyond that, in our market today the friendly environment for competitors actually provides an opportunity for emerging operators. Now, NigComSat is down and people who want to build fibre can speed up and build fibre. When launching the next Satellite, they now know to ensure that the fate of the last one would not repeat itself. That is how we learn; that is how we get a lot better. So, there is competition in the market and it has its advantages. You also find that in very competitive markets, the risks are high, and the stakes are equally high.
Linkserve’s Solution
Our solution is very unique and resilient. We have proven it over and over. We launched the Satellite in 2002 and we are growing annually at a geometric rate. The solution is designed in such a manner that irrespective of your location, you can enjoy clean, uninterrupted broadband service. We do not have too many bottlenecks or congestions. The signals travel from wherever you are located straight into the United States and back home. That is why it is very fast and reliable – absolutely no interruption. That is the beauty of what we provide. We can serve where GSM or EV-DO operators have not deployed. It means we can reach the market faster than any other person. Well, it may not be affordable to everybody. It is not a basic service but one for serious users. If you want to get information in real good time, that is what you need. It is not ideal for a small user who just wants to send e-mails and do a little browsing. It is for aggressive, serious users who have need for information, research or for managing their transactions. Remember it is not just about the Internet, it is also a data network; which means our users can connect their operations cum branches to a central location using our network. However, you do not have a need for telephone.
Driving Down Cost of Bandwidth
Well, in the last 28 months, two Satellites have collapsed in our region – maybe a lot of people have forgotten about that. Every now and then, we hear that the Sat-3 gets cut and nobody considers the cost of fixing it. These costs are enormous because you have to bring in a ship and it has to trace where the damage had taken place, and then fix it. We have lost two Satellites – New Sky and NigComSat. This situation will bring a lot of demand on whatever available bandwidth resources in this market today. I wish we did not lose those Satellites, but we lost them and that implies that costs may be driven up. In the absence of these losses, nothing can really be done to reduce the cost of bandwidth; unless our Government intervenes and gives support to local companies, to continue to thrive. Government cannot stand aloof and pretend that this does not affect the common people. We cannot pretend that in a capitalist set-up, Government does not have a role to play in supporting organizations that operate in their territory. America has done it a couple of times recently and it is an eye opener for other countries. But, the dream of affordable broadband for all is realizable here. The reason why capacity is cheaper abroad is that all the fibre has been laid years ago and during the boom, up to 2003, the organizations that laid those cables have sold capacity, and made a lot of money from it. Most fibres you find in the U.S are depreciated and so, it becomes easier for the operator to reduce price, knowing that he is not depending on profit. However, most of the ones we have in Nigeria are brand new and it would take some time for prices to go down, considering that the investors need to recoup their investment. Broadband would eventually become cheaper than it is today.


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Dufil Takes Donation of Indomie Noodles Cartons to Vulnerable Communities in Abuja and Environ

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In line with its commitment to provide critical support to indigent members of communities around the country in the face of the ongoing economic challenges, Dufil Prima Foods Limited, makers of Indomie Instant Noodles, in partnership with Golan Helps Abuja Food Bank Initiative (GHAFBI) and Meluibe Foundation on Wednesday, April 17 distributed Indomie noodles cartons to vulnerable communities in Kuje and Kubwa Local Government Areas in Abuja.

With the goal of alleviating hunger and supporting communities across Nigeria, Indomie Instant Noodles has committed to donating a substantial quantity of noodle packs to various NGOs working tirelessly to address food insecurity.

These organizations play a crucial role in reaching remote and underserved areas, ensuring that nutritious meals reach those who need them most.

“We are deeply committed to making a positive impact in the communities where we operate,” said Olusola Olayinka Idowu OON, former Permanent Secretary, Budget and National Planning, and the CEO/Founder of GHAFBI.

“At GHAFBI, we believe that everyone deserves access to wholesome and nourishing food. Our partnership with Dufil Prima Foods to donate Indomie Noodles packs is a big step towards addressing food insecurity and supporting vulnerable communities in Abuja”, said Idowu who was also the former National Conveyor, UN Food System Dialogues in Nigeria.

Speaking in the same vein, Obialunanma Nnaobi-Ayodele, Executive Director, The Meluibe Empowerment Foundation, expressed her gratitude to Indomie Noodles for the partnership. “Our vision as an NGO is to change the world one step at a time, by providing relief and support to vulnerable communities.

This is achieved through collaborations and partnerships, one of which is what we have done with Indomie Noodles. We remain grateful for their support through this food relief initiative”, she said.

By partnering with NGOs, Indomie Instant Noodles works closely with local leaders and community heads in directly engaging with rural communities to distribute noodle packs and provide immediate relief to families facing hunger and ensuring that food assistance reaches those who are most in need, especially in hard-to-reach areas.

“We are grateful for the opportunity to collaborate with NGOs and community leaders to make a meaningful difference in the lives of people facing food insecurity”, said Temitope Ashiwaju, Group Corporate Communications and Events Manager, Dufil Prima Foods Limited. “Together, we bring hope, love and relief for all”.

The community leaders and some of the beneficiaries also expressed their immense gratitude to Indomie for the support, stressing the impact the products donated will have in alleviating hunger in their communities.

Speaking at the outreach centre, His Royal Highness, Muhammed D. Jibril, Community Leader of Gbazango Community in Kubwa Local Government Area said: “I am very grateful to Indomie Noodles for coming to our aid in these challenging times. I pray for more expansion and growth for the business and may God bless Indomie Noodles”.

Other communities who benefited from the product donations include Wunmi, Tondo, Godoji and Shazhi communities in Kuje Area Council of Abuja.

Dufil Prima Food’s donation of Indomie Noodle packs underscores its commitment to corporate social responsibility and its dedication to supporting communities in need. By providing essential food relief, Dufil Prima Foods is contributing to the well-being and resilience of vulnerable populations in Nigeria.

Indomie Instant Noodles remains dedicated to bringing joy to mealtimes and making a positive impact in communities around the world.


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Empowering Nigerian Retail: The Promise of Pay on Delivery

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E-commerce in Nigeria has evolved exponentially in recent years, transforming the retail landscape and reshaping consumer habits. From the early days of skepticism and distrust to today’s thriving online marketplaces, the journey has been marked by innovation, adaptation, and perhaps most importantly, the establishment of trust and security between buyers and sellers. At the core of this transformation, Pay on Delivery (PoD) has emerged as the unsung hero of e-commerce.

The premise is straightforward: customers could place orders online and pay for their purchases only upon receipt. This innovative approach not only addressed concerns about security but also provided tangible reassurance to hesitant buyers. In countries like India, Nigeria, and Indonesia, where a significant portion of the population remains unbanked or underbanked and where distrust in online transactions and fraudulent activities were once rampant, Pay on Delivery has emerged as a lifeline for both consumers and businesses. Many consumers were understandably hesitant to part with their hard-earned money before receiving their desired goods. Pay on delivery bridges this trust gap, offering reassurance to buyers and empowering them to transact with confidence.

In Nigeria, despite the adoption of a wide range of electronic payments, cash is still king. The results of a survey conducted in 2021 show that cash remains the dominant payment method, reflecting the ongoing preference for tangible transactions over digital ones. In addition, a recent report by ongoing preference for tangible transactions over digital ones. In addition, a recent report by Oxford Business Group found that 70% of Nigerians prefer to pay with cash on delivery, while 28% use credit or debit cards, and only 12% use mobile money platforms. This has challenged e-retailers, and some companies like Jumia, to adapt by prioritizing cash-on-delivery options to cater to this consumer preference.

The Promise of Pay on Delivery in Nigeria

With consumers in mind, Jumia, the leading e-commerce platform in Nigeria, has made Pay on Delivery a cornerstone of its business model. Understanding the local market dynamics and the importance of trust and convenience, the company has invested heavily in ensuring a seamless Pay on Delivery experience for its customers.

One of the key benefits of Jumia’s Pay on Delivery service is its flexibility. Customers have the option to inspect their purchases before making payment, ensuring satisfaction and reducing the risk of fraudulent transactions. This added layer of security not only enhances the overall shopping experience but also builds long-term trust and loyalty among customers.

Moreover, Jumia has implemented rigorous quality control measures to ensure that products meet customer expectations upon delivery. This includes partnering with reputable brands and implementing stringent verification processes to prevent counterfeit goods from entering the marketplace. By prioritizing customer satisfaction and product quality, Jumia has solidified its reputation as a trusted online retailer in Nigeria.

Beyond enhancing trust and security, Pay on Delivery has also played a crucial role in driving financial inclusion in Nigeria. By providing an alternative payment method for those without access to traditional banking services, Jumia has expanded the reach of e-commerce to a broader segment of the population. This not only benefits consumers by providing greater access to goods and services but also stimulates economic growth by fostering entrepreneurship and driving demand for products and services.

In all, the future of e-commerce in Nigeria looks promising, with Pay on Delivery poised to remain a key enabler of growth and expansion. As technology continues to advance and consumer preferences evolve, innovative solutions like Pay on Delivery will continue to drive the transformation of the retail landscape, empowering Nigerian consumers and businesses alike.

 


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Verra Certifies d.light’s Clean Cookstove Projects in Sub-Saharan Africa

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A series of pioneering projects by d.light, the global provider of transformational household products and affordable finance for low-income households, to distribute 600,000 energy-efficient clean cookstoves in Kenya, Nigeria, and Uganda have been officially certified by global verification body Verra.

This certification confirms the d.light projects as trusted, verified sources of high-quality carbon credits in the voluntary carbon markets (VCMs).

The d.light projects aim to simultaneously reduce carbon emissions, tackle indoor air pollution, and reduce deforestation through the sale of highly efficient biomass cookstoves subsidized by the revenues from the sale of carbon credits.

Since their launch in late 2022, the projects have positively impacted more than one million lives and are projected to transform more than three million lives by 2025.

Commenting on the news, Karl Skare, d.light’s Chief Product and Strategy Officer, emphasized the projects’ positive impact, “With these projects, we’re not just addressing environmental concerns but also enhancing quality of life for millions.

“Each project underscores d.light’s commitment to practical, innovative solutions that address both environmental and social challenges, as part of our mission to transform the lives of one billion people by 2030.”

Each year, domestic cooking emissions contribute more than two percent of total global GHG emissions and up to 25 percent of anthropogenic black carbon emissions.

Highly energy-efficient cookstoves solve this problem by reducing biomass use by up to 70 percent compared to traditional cooking methods, cutting emissions of both carbon dioxide and black carbon.

The d.light projects are expected to reduce emissions by up to 12 million tons, contributing to climate change mitigation. These emissions reductions will be registered as carbon credits in the voluntary carbon market.

As well as reducing emissions, clean cookstoves are also a benefit to public health. According to the World Health Organisation, exposure to smoke from cooking fires causes an estimated 3.2 million premature deaths worldwide each year and is still one of the predominant causes of pollution-related illness and death in Africa.

In Uganda, for example, less than one percent of the population has access to clean cooking, household air pollution is the one of the largest risk factors for death and disability.

In addition, switching from traditional three-stone open fires to cleaner, energy-efficient cookstoves significantly reduces deforestation and reduces threats to wildlife and biodiversity caused by habitat loss.

Skare explained, “By subsidizing energy-efficient cookstove costs through carbon financing, d.light makes clean cooking accessible to more households, which in turn leads to healthier living conditions and conserves natural resources as well.

“Our projects in Kenya, Nigeria and Uganda are models of how sustainable investments can yield multiple co-benefits, aligning with global efforts to combat climate change and also promoting socio-economic development.

Skare added, “d.light now has projects certified by both Gold Standard and Verra, the world’s two leading certifiers of carbon credits. Organizations looking for ways to offset their own emissions can be confident that when they purchase carbon credits in d.light’s clean cooking projects in sub-Saharan Africa, they are investing in transformative initiatives that reduce harmful emissions, improve people’s health and quality of life, and help conserve the environment as well.”

 


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