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Nigerian Corporates -Dangote, Konga, Others Can Defend Future of Nigeria

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By Umar H.Farouk, a corporate guru based in Dubai.

A popular philanthropist and business icon was once quoted as saying that when entrepreneurs from Nigeria die, they will be ushered into heaven by God because they cannot suffer twice.

The statement above, although capable of drawing some mirth, is a reflection of the challenging business climate that Nigeria represents. Doing business in Nigeria is tough.  There is no hiding from this fact. Although the Nigerian economy is blessed with a number of indices which make it a prime investment destination, the reality on ground is that of a peculiar environment where only the most resourceful, tenacious and firm believers in Nigeria and the Nigerian project can survive and thrive.

If you are in any illusions as to how tough it is to cut it and make a success of entrepreneurship in Nigeria, the latest World Bank report on the global Ease of Doing Business can provide some valid insights.

Nigeria is presently ranked a lowly 131 in the report which captures about 190 countries. However, that does not tell the full story. The country is ranked lower than many of its contemporaries in Africa, among which are Togo, Kenya, Rwanda, Mauritius, South Africa, Zambia, Botswana, Uganda, Ghana, Namibia, Senegal and Seychelles, among others. In addition, the report throws some light on other data which show that successful entrepreneurs in Nigeria do indeed deserve a special place in heaven.

One of these is the rating of 36 for access to electricity by business owners in Nigeria which remains one of the lowest in the world. Others are registering a property – 48; trading across borders – 40; resolving insolvency –  41 and the country’s eye-watering taxation policies which is pegged at 29.

The summary is, successful Nigerian entrepreneurs or businesses are doing something special.

There is a sense, with doing business in Nigeria, that you do not only require a large dose of outstanding common-sense, street-smartness and determination to achieve, but that one of the essential qualities is also an incurable optimism in Nigeria. The foregoing appears to be one of the unerring factors that has distinguished the majority of businesses that have made a success of their entrepreneurial pursuits in Nigeria. The list of venture capitalists, angel investors or fly-by-night entrepreneurs that have flocked to Nigeria in search of quick gains and easy exits cannot be numbered in their thousands, with the majority of these often drawn by the promise which Nigeria’s attractive population dynamics represents.

Indeed, research shows that the Nigerian demographics mix is an investor’s dream. While other major economies are battling with an ageing population, Nigeria is swelling with a predominantly youthful population, many of whom are exposed, aspirational, tech-savvy and whose buying power is on the rise. Little wonder a recent survey by a renowned medical journal, The Lancet, predicts that Nigeria may soon become a global power, owing to its favourable population indices. This is based on the premise that Nigeria will become the world’s ninth-largest economy with a life expectancy higher than 80 years by 2100.

“By the end of the century, the world will be multipolar, with India, Nigeria, China, and the U.S. the dominant powers. This will truly be a new world, one we should be preparing for today,” Dr. Richard Horton, editor-in-chief of The Lancet was quoted as saying in the study.

The foregoing has seen many investors flock to Nigeria. But only a few can confidently navigate the thorny path to success in Africa’s biggest economy or stay the course when their portfolio investment is not yielding the much-envisaged quick returns.

This is why the Nigerian government must recognise and appreciate the efforts of some Nigerian success stories; businesses owned by Nigerians, creating tons of employment opportunities for Nigerians and making a big impression on the global stage. While space will not permit an exhaustive look at these shining stars, a few of them are worth mentioning in this intervention.

Dangote Industries Ltd. is a great example of a business that has defied the odds in making a success out of doing business in Nigeria. From being hampered by the poor transport network in Nigeria, the company has diversified to building concrete roads for Nigeria. With Africa’s richest man, Aliko Dangote at the helm of affairs, the group has made a brilliant success of its many portfolios ranging from sugar and salt refining, cement manufacturing and fertilizer production to building what is potentially Africa’s biggest refinery. His is a story of an unflinching belief in Nigeria, with Dangote widely known to have consistently supported successive Nigerian governments.

Globacom, led by billionaire magnate, Mike Adenuga, is another worth mentioning. In a sector dominated by foreign players, Glo, as it is fondly called, remains a proud indigenous standard-bearer. In addition to pioneering the per-second billing option that lifted the telecoms industry to new heights, the company has also consistently delivered more options that have helped deepen the spirit of competition, keeping other players on their toes and offering Nigerians more options. At a time when the world has become more open to subterfuge and the influence of external influences felt even keener in national affairs, the benefits of having a local player in such a sensitive sector cannot be over-emphasised.

Competing in the same vertical as Dangote is not a task for the lily-livered. But that is exactly what Abdul Samad Rabiu and BUA Group have done and made a success out of, in the same geographical space. Rabiu, whose BUA Group, has also invested in cement manufacturing, as well as sugar, oil mills, ports & terminals and real estate, is the only other Nigerian, apart from Dangote and Adenuga, on Forbes rich list. The BUA Group is one of Nigeria’s entrepreneurial success stories, having being in business for over 30 years and navigating the multi-faceted pitfalls and challenges of doing business in Nigeria.

Zenith Bank Plc., the brainchild of Jim Ovia, one of Nigeria’s more recognizable entrepreneurs, also deserves some plaudits. The story of Zenith Bank’s entry in 1990 and remarkable rise to the zenith of the Nigerian banking industry has been well-chronicled. Nevertheless, what many fail to realize is that the bank, like a few others, has survived several storms and upheavals, among which are recapitalisation exercises and mergers/acquisitions that have swallowed many in the industry. Today, Zenith Bank is one of the most profitable financial institutions in Nigeria. Not only that, the bank ranks as one of the largest and most profitable in Africa.

Access Bank Plc. is another outstanding player in the banking industry; one that may disrupt the banking industry in Africa. Access certainly deserves a mention. Under the leadership of the always impeccably-dressed Herbert Wigwe, Access Bank has grown into one of the most formidable lenders in Nigeria, with major in-roads into other African markets. Among the list of banks that Access Bank has acquired on the continent within a space of one year is South Africa’s 74-year-old Grobank, Kenya’s Transnational Bank and Zambia-based Cavmont Bank. This is not to forget its successful merger with Diamond Bank in 2019 which ultimately transformed it into one of the biggest entities in the Nigerian banking sector.

In the e-Commerce sector, the exploits of Konga, another fully Nigerian-owned business cannot be swept under the carpet. Konga has shown that Nigerian youths are technically ready and imbued with common sense to confront and compete favourably in the digitaleconomic war of the future.Prior to the acquisition of the brand by its current owners – the Zinox Group from former wealthy owners – Naspers and AB Kinnevik – Konga was looking like it would go the same way as many of the foreign-owned businesses that run out of steam and quietly exit the country after its investors get tired of the waiting game for quick profits. However, Konga, which analysts confidently say will exceed a unicorn valuation when it goes public, has thrived under its new owners, so much that it is being courted by global stock exchanges, including the NYSE, among others. Konga appears to have leveraged the experience of Africa’s leading digital disruptor, Leo Stan Ekeh, Chairman of the Zinox Group, who holds the record of pioneering e-Commerce in Africa with his BuyRight Africa.com which he floated many years ago and which predated the advent of e-payment channels. Today, Konga has successfully resolved the thorny challenge of logistics which has snuffed the life out of many players in Nigeria’s e-Commerce market, built up its own world-class technology, warehousing and payment infrastructure and launched a number of thriving subsidiaries against all odds. It is a brilliant futuristic group that would undoubtedly provide jobs for over a million Nigerians in the nearestfuture.

Can one make a case for some of the most successful Nigerian-owned brands without a mention of UBA and its current Chairman, Tony Elumelu? For a bank that has recorded over 70 years of uninterrupted operations in Nigeria, UBA has gone about its business fairly quietly and without the recognition it deserves. With UBA, one of Africa’s foremost financial institutions which boasts of subsidiaries in 20 African countries and offices in London, Paris and New York;Elumelu, an uncommon entrepreneur, who is touching many lives through his personal foundation, has proved many naysayers wrong, upholding the long-standing tradition of this powerful brand and leading it to new heights. Lest we forget, UBA was the first financial institution to list its shares on the floor of the Nigerian Stock Exchange in an IPO. Today, it is still holding its head high in the challenging Nigerian market under the astute leadership of Elumelu, disrupting the industry with its recently launched Artificial Intelligence bot, Leo and giving many hope in the future of Nigeria.

Flutterwave, Nigeria’s latest unicorn is another flag-bearer in the technology sector that has put the country on the map. Founded in 2016 by Iyinoluwa Aboyeji and Olugbenga Agboola, Flutterwave is making in-roads into many countries across the globe, deploying its cutting-edge payment solutions and infrastructure to solve problems for users in various markets. The recent feat of Flutterwave – a $170 million Series C funding round earlier this year – represented the largest amount ever secured by an African tech start-up at the time, giving it a valuation of over $1 billion. But we must not forget that this is a start-up out of Nigeria which has faced huge encumbrances, the most recent during the #EndSARS protests in late 2020 which put it in the crosshairs of the authorities.

As stated earlier, this list is definitely not exhaustive. There is a host of other successful corporates and entrepreneurs doing great things, battling the policy, infrastructural and socio-economic encumbrances as well as the considerable country risk posed by Nigeria, yet putting food on the table for millions of Nigerians and painting the country in gold.

Advanced economies the world over are built on the spirit of local enterprise. Governments in these climes see entrepreneurs as useful partners in progress, not as cash-cows to be milked dry or orphans to be cast away in times of instability. This is how countries like the United States, China, India, Hong Kong, France and Germany, among others, have succeeded in minting new billionaires on nearly a daily basis.

Nigerian entrepreneurs, including the few highlighted above, are among some of the most creative, hardworking, tenacious and loyal ambassadors of the country who can support the future of our economy and defend her unity.

It is high time the government accorded them the much-needed recognition and forged stronger ties with them.

 

 

 

 

 

 

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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UK Minister for Africa Visits Nigeria to Deepen Strategic Partnership

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L-r: UK Government’s Minister for Africa, Lord Collins of Highbury MP, Nigeria’s Minister of Foreign Affairs, Hon. Yusuf Tuggar and UK Trade Envoy to Nigeria, Florence Eshalomi MP, at the Ministry of Foreign Affairs in Abuja, yesterday
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The United Kingdom’s Minister for Africa, Lord Collins of Highbury, has concluded a three-day visit to Nigeria, aimed at reinforcing the UK-Nigeria Strategic Partnership.

He reaffirmed the UK Government’s strong commitment to deepening trade and investment ties between the United Kingdom and Nigeria.

During his visit, Lord Collins met with senior Nigerian government officials, business leaders, civil society representatives and United Nations agencies.

These engagements underlined the UK’s long-term drive to support Nigeria’s prosperity and stability while deepening bilateral cooperation for transformative growth across our shared priorities.

A key highlight of the visit was Lord Collin’s bilateral meeting with Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, in which both parties reaffirmed their unwavering commitment to strengthening economic ties and promoting regional security. The Minister was joined by the UK’s Trade Envoy to Nigeria, Florence Eshalomi MP.

Lord Collins also met with Deputy Speaker of the House of Representatives, Hon. Benjamin Kalu, and discussions focused on opportunities to strengthen engagement between UK’s parliament and Nigeria’s National Assembly and the importance of furthering women’s participation in politics.

Speaking on his visit, the UK Government’s Minister for Africa, Lord Collins said: “Nigeria and the UK share a rich, ambitious relationship: one that is deeply rooted in respect.

“Our Strategic Partnership is at the forefront of this, and my visit has focused on how our countries can continue deepening our cooperation on key issues such as trade and investment to drive economic growth and deliver prosperity for us all.”

The Minister held discussions with United Nations representatives on the ongoing reform of the UN system, its implications for Nigeria and how the reform can effectively support those most in need, particularly in Northeast Nigeria, whilst also contributing to global humanitarian efforts.

Lord Collins also met with civil society leaders to discuss electoral integrity and governance reforms, reinforcing the UK’s commitment to democratic values and community empowerment.

He later visited Nigeria’s Anti-Kidnap Fusion Cell: a key security initiative supported by UK expertise through the National Crime Agency and the Integrated Security Fund, which plays a vital role in enhancing local safety and combating serious crime.

Also commenting on the visit, the British High Commissioner to Nigeria, Dr Richard Montgomery, said:  “Driving growth is central to the UK’s foreign and development policy. Lord Collins’ visit to Nigeria underscores the UK’s unwavering commitment to deepening our shared prosperity through expanded trade and investment. We are proud to stand alongside Nigeria as it forges a resilient and dynamic economy.”

This visit underscores the UK’s enduring partnership with Nigeria – built on mutual respect, shared goals, and a vision for a prosperous future for both nations.

 


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PalmPay Launches CSR Initiatives to Empower Women, Foster Financial Literacy in Northern Nigeria

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Femi Hanson, Head of Marketing & Communications at PalmPay (center), with beneficiaries of the CSR initiative in Kano State.
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In a strategic move to expand financial inclusion in Nigeria, leading mobile banking platform, PalmPay has launched a series of CSR programs across Kano and Kaduna. The CSR initiative named “Passing the Baton” represents the brand’s commitment to passing on knowledge and providing the resources individuals and businesses need to achieve financial independence and drive economic empowerment.

This initiative is a bold move by PalmPay to bridge the opportunity gap in the North by providing financial literacy training and micro-business branding support to 5,000 women-owned businesses in Kano and Kaduna. This strategic initiative reaffirms PalmPay’s commitment to inclusive development and economic empowerment, particularly in underserved regions.

“At PalmPay, we believe that real financial inclusion must be far reaching and cover the grassroots,” said Chika Nwosu, Managing Director of PalmPay. “Our new CSR program is focused on supporting gender equity by equipping women with the knowledge, tools, and visibility they need to thrive as entrepreneurs in their communities.”

Through this initiative, beneficiaries will receive free health insurance, hands-on training workshops, enhanced store branding to boost visibility, and branded merchandise to strengthen their business presence.

The initiative is part of PalmPay’s broader strategy to extend its innovative solutions, expand its footprint in Northern Nigeria, while building sustainable partnerships with local stakeholders for long-term impact.

In a show of support, His Royal Highness, the Emir of Kano, Dr. Muhammadu Sanusi II, has endorsed the initiative, calling on other stakeholders to join forces with PalmPay in ensuring the North benefits fully from the growing digital economy.  PalmPay has received commendation from community stakeholders, as the initiative aims to serve as a model for similar projects across other northern states.

As PalmPay continues to scale across Nigeria, the company remains committed to bridging the financial inclusion gap and empowering underserved groups, particularly women and youth, through its innovative solutions and impact initiatives.

 


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EFCC Witness Admits Writing Off Arik Air’s $2.3M Debt Amid N76Bn Fraud Trial

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A former Group Executive Director of Union Bank PLC, Mr. Austine Obigwe, on Wednesday testified before the Lagos State Special Offences Court sitting in Ikeja, detailing how he wrote off a $2.3 million debt owed by Arik Air to his private company, Staal. Obigwe is one of the witnesses of the Economic and Financial Crimes Commission (EFCC) on the matter.
Recall that when he was first interrogated before the matter was adjourned, the same Obigwe claimed that Arik was a healthy company that had no financial challenges up to the time he left the service of Union Bank in 2009. But pressed further today, he accepted that Arik was an irresponsible, badly run, immoral company, which also owed him a whopping 2.3 million dollars, which he had to write off because of his business relationship with the promoter of Arik Air Limited.
Obigwe appeared as a prosecution witness in the ongoing trial of the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, and four others, who are standing trial over alleged financial misappropriation amounting to alleged N76 billion and $31.5m., etc.
The EFCC arraigned the defendants on a six-count charge bordering on conspiracy, stealing, and abuse of office. The defendants include Kuru, the former Receiver Manager of Arik Air Limited, Mr. Kamilu Omokide; Arik Air’s Chief Executive Officer, Captain Roy Ilegbodu; Union Bank of Nigeria PLC; and Super Bravo Limited.
They all pleaded not guilty to the charges, and Justice Mojisola Dada subsequently granted them bail in the sum of N20million each, with one surety in like sum.
Under cross examination, Mr. Obigwe informed the court that, in 2011, two years after he exited Union Bank, Arik Air was indebted to his private company, Staal, in the sum of $2.3 million. He stated that the amount was never repaid but that he had written it off due to the operational difficulties faced by the airline at the time.
“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” Obigwe told the court. The witness also confirmed that following his exit from Union Bank, he formally became a consultant to Arik Air and other companies.
When asked whether the founder of Arik Air, Sir Johnson Arumemi-Ikhide, was a personal acquaintance, he responded in the affirmative, noting that although he currently has no formal relationship with the airline, he maintains a relationship with Arumemi-Ikhide, who is also his church member.
During cross-examination by defence counsel, including Olasupo Shasore, SAN (for the second defendant); Olalekan Ojo, SAN (for the fourth defendant); and Tayo Oyedepo, SAN (for the fifth defendant), Mr. Obigwe stated that in 2009, he participated in an inspection of 26 aircraft belonging to Arik Air.
According to him, the aircraft were found to be airworthy and in good condition, based on assessments provided by Lufthansa. “I had no reason to doubt Lufthansa’s evaluation,” he said, adding that the purpose of the inspection was to ensure that the airline’s fleet had not been depleted.
When asked about the airline’s compliance with its loan obligations, Obigwe testified that during his tenure at Union Bank, there were no complaints from other financial institutions suggesting that Arik Air was defaulting on its loan obligations. He also confirmed that, to the best of his knowledge, Arik Air was servicing its loan with Union Bank during his tenure.
Responding to a letter dated April 23, 2009, allegedly written by AMCON to Union Bank concerning a N46.11 billion debt owed by Arik Air, the witness denied knowledge of the letter, even though he was still in the service of Union Bank at the time, and was the Group Executive Director whose directorate supervised the Arik transaction.
On the character and management of Arik Air, the witness said: “I can only speak for the period I was there. When I was at Union Bank, Arik Air was one of the best companies.”
When questioned on the options available to lenders when a loan becomes non-performing, Obigwe responded that the lender may choose to transfer the loan to another bank, reassign it, or enforce the security tied to the loan. He also acknowledged that a lender is legally empowered to dispose of the security in the event of default by the borrower in other wards justifying the decision of AMCON to have intervened in Arik to recover the Arik Air debt, which Union Bank sold to AMCON on the directive of Union Bank when AMCON was established by the Federal Government to mop-up all non-performing loans in the banks.
The matter was adjourned till June 4, 2025, for the continuation of the trial. On the last adjourned date, Obigwe, who is the second prosecution witness, and was led in evidence by Dr Wahab Shittu (SAN), told the court that he was a Group Executive Director in Corporate and International Banking at Union Bank.
The court was also able to establish that the witness, while in the service of Union Bank as Group Executive Director, Corporate and International Banking, Union Bank had a business relationship with the promoter of Arik, which was regularised and formalised into a full-fledged consultancy arrangement shortly after he exited Union Bank, which implied that even as ED, Union Bank, he may not have operated in the overall interest of the bank due to his relationship with the Arik owner.

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