Telecom
Startups Can Opt for Leveraging to Scale – Mazi Sam Ohuabunwa
The much awaited 18th Edition of CFA’s Startups Hangout took place on Wednesday, February 27, 2019, at the premises of Godo hub, 53, Oladipo Bateye Street, GRA, Ikeja, with Mazi Sam Ohuabunwa, OFR, Managing Partner of StartTeam Consult and current President of the Pharmaceutical Society of Nigeria, PSN, sharing a lot of insights into how to scale a business from Startup with the attendee Startups that trooped in to grace the occasion.
The other speaker, Aramide Abe, was stuck in the ubiquitous Lagos traffic on her way to the event and was not able to be a part of the discussion.
Ohuabunwa, in addressing the theme of the 18th Edition of CFA’s Startups Hangout, “From Startups to Scale Up: The Whole 9 Yards”, expressed delight at being able to stand before youths striving to make something good out of their Startups and to share his experiences, with being involved in starting about 30 businesses, with about half of that already dead and what worked for the other half that are still standing strong today, due to the application of strong corporate management, organizational leadership and entrepreneurship.
He stated that everyone knows that, one of the major challenges that Startups have is how to have access to funding for their businesses.
He also noted that there are two ways of raising funds for your business to scale and these are Equity funding, which involves pooling your resources and applying in the business and then, funding through Leverage.
“If you learn to leverage, the work is shared, individual risks are minimized”, he stated, drawing examples from his experience with starting up companies, such as Seegal Pharmacy, Red Star Express and the buyout of Pfizer, which later became Niemeth.
Leverage, Ohuabunwa stressed, comes in two forms; loans from banks and other financial institutions and crowd funding of like-minded people, bringing in their little individual funds together to make a bigger pool of fund or investing to scale.
“This is usually done with offering shareholding to each member that contributes. He advised Startups that are struggling individually, to explore the possibilities of partnering with one another and those who believe in their cause, by pooling resources to scale, since it is very difficult to access bank loans.
“The best way to raise funds, is to leverage, by partnering with others and if you learn to leverage, the risk is shared”, he explained.
He, however, stated that, before leveraging through crowd funding, the Startup must have a need that it wants to fill, or a problem that it wants to solve or a value it wants to create, which people are willing to pay for.
Other qualities that the Startup must look up to, to scale, include having a clear vision of what you want to do and what you want to achieve and a vision for your life. “A vision for your life is a great propellant for you to do what you need to do to scale”, he stated.
He explained that other things that Startups can do to scale include, proper planning of what you want to do, writing them down and following through. “Preparation precedes success. Where preparation meets opportunity, you have success”, he observed.
He also advised Startups to have more than one plan, hence, they should have plans A, B, C, D, E, etc., so that, when one plan fails, you pick on another and run with it.
“The soul of business is customer creation. Build your customer base and your business will grow”, he stressed.
He advised Startups to build their brand and market, by exposing and talking about their brands at any for a where they find themselves.
To startups, Ohuabunwa also harped on the use of technology to benefit their businesses, as it brings convenience.
He also gave the attendee Startups advice on a number of issues, ranging from Franchise, delayed gratification to warehousing loans, etc. Questions and answers were taken after Mazi Sam Ohuabunwa’s presentation.
Other nuggets that Mazi Ohuabunwa gave the attendee startups include, having a mentor in a symbiotic relationship, rather than a parasitic one. Such mentors will be too eager to show you the way to go in scaling when the benefits are mutual, he advised.
CFA’s Startups Hangout is a forum where Startups gather from time to time, to learn from seasoned, successful entrepreneurs and corporate executives, with a view to learning how to grow their businesses, as well as networking and synergising with one another, in order to deepen the sustenance of their ventures, while adding value to the economy in general. Chukwemeka Fred Agbata Jnr, CFA, is the convener of CFA’s Startups Hangout.
VoguePay and Upperlink, two of the sponsors of the 18th Edition of CFA’s Startups Hangout, had the opportunities to make presentations to the attendee Startups on how they can benefit from their products.
This edition is made possible with the kind support of forward-looking brands, such as Remita, Zinox, VoguePay, Swift Networks, Upperlink, .ng (NiRA), AskAnExpert and GoDo.ng.
The 19th Edition of CFA’s Startups Hangout will be announced soon. Watch this space for the announcement.
Dimension Data has said that the proceeds from its Series 1 corporate bond, will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
This followed the successful subscription of the corporate bond.
Recall that Dimension Data Limited said that it has completed the signing ceremony for the issuance of N4.05 billion (approximately US$2.9 million).
This sum marks the first tranche of a N20 billion (US$14.7 million) bond programme announced earlier this year.
The bond programme was raised under Dimension Data SPV Funding Plc, following approval from the Securities and Exchange Commission (SEC) of Nigeria.
The company says the proceeds will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
Speaking at the ceremony, Olugbenga Olabiyi, managing director of Dimension Data Limited, said the investment reflects the company’s long-term commitment to strengthening Nigeria’s digital economy.
The planned investments will fund the continued expansion of Dimension Data’s fibre network, supporting increasing demand from financial institutions, fintechs, enterprise customers and other technology-driven sectors.
Founded in 1983 and headquartered in Johannesburg, the company has grown its footprint across the Middle East and Africa.
Today Dimension Data is a member of the NTT Ltd Group, one of the world’s leading technology companies.
As cloud adoption, digital financial services and data-intensive applications continue to grow, the company believes resilient fibre infrastructure will remain a critical enabler of Nigeria’s digital economy.
The Federal Government has announced that work will commence within weeks on a 90,000-kilometre fibre optic network expected to connect every state, local government area and ward in Nigeria, marking what officials describe as one of the country’s most ambitious digital infrastructure projects.
Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, disclosed this on Tuesday after briefing President Bola Tinubu at the State House, Abuja, on the progress of three flagship digital transformation initiatives being implemented by his ministry.
According to the minister, all resource mobilisation and contractual processes for the nationwide fibre project have been completed, paving the way for physical deployment.
“We’re now at the point where, in a few weeks’ time, we should start to lay those fibre, so people will start seeing us around the country deploying the fibre. This is going to transform Nigeria for good,” Tijani said.
He explained that the project would deliver fibre optic infrastructure to every geopolitical zone, state, local government area and ward, significantly expanding broadband access and improving the quality of internet connectivity across the country.
“This is a project where every state, every geopolitical zone, every local government and every ward in this country will be covered with fibre optic cables, which will transform the quality of connectivity,” he added.
Bosun Tijani attributed the progress in the digital economy to a series of reforms approved by President Tinubu, including the designation of digital infrastructure as Critical National Infrastructure, tariff adjustments and tax harmonisation measures sought by industry operators.
“I think our sector has been extremely fortunate. Mr. President has given us quite a number of things that the sector has been demanding for a long time. Whether it’s the Critical National Infrastructure designation for all digital infrastructure, the slight adjustment in tariff, or the tax harmonisation, these are reforms the industry has long requested.
“I think it’s probably the sector that is most appreciative of this government because when we came in, the sector was contributing between 16 and 18 per cent to our GDP, but today it is tracking close to 21 per cent. That represents significant growth,” he said.
The minister noted that the reforms had also improved the financial performance of major operators in the telecommunications sector.
On efforts to bridge the digital divide, Tijani disclosed that the government would begin deploying about 3,700 telecommunications towers from October to provide network coverage for more than 20 million Nigerians currently living in underserved communities without access to telecom services.
He said the President had approved the project after months of capital mobilisation and planning.
“Today we’re at a point where, before the end of the year, we’ll also start to deploy close to 3,700 towers. It’s taken a lot to put this project together and raise the required capital, but we are now ready to begin deployment around October,” he said.
The minister also announced that Nigeria would officially launch an alphanumeric postcode system on October 1, a move he said would place the country among a select group of nations operating an advanced digital addressing system.
“Nigeria will be amongst maybe 10 or 15 countries in the world with an alphanumeric postcode. It’s the latest design in postcode systems, where we can identify every property in this country. We’re hoping to launch that on the 1st of October,” he said.
Tijani explained that the new system would assign a unique address to every property nationwide, enhancing logistics, accelerating e-commerce, improving emergency response and strengthening public service delivery.
“Inability to locate places comes at a cost. You can imagine what this will do for e-commerce. It means goods can now be delivered in record time,” he said.
He added that integrating the postcode system with existing government identity databases would improve security and make public services more efficient.
“Our alphanumeric postcode is unique because it allows us to assign a unique address to every property. In many countries, such as the UK, postcodes cover clusters of buildings. What we are introducing will uniquely identify every building, and that will be a game changer for Nigeria in terms of security, commerce and public service delivery,” the minister stated.
In a bold move to strengthen Nigeria’s digital sovereignty and the digital economy, the National Information Technology Development Agency (NITDA) has formally unveiled the National Sovereignty Cloud Initiative (NSCI) Regulatory Instruments, thereby setting a new benchmark for the country’s digital future.
NITDA
The NSCI is a strategic programme of the federal government coordinated by NITDA. It is designed to bolster Nigeria’s digital sovereignty and accelerate the country’s adoption of reliable cloud infrastructure. The initiative consists of the National Computing Guideline, the National Cloud Technical Guideline, the National Digital Infrastructure Assurance Framework, and the National Cloud Investment Strategy.
Speaking during the ceremony in Abuja, the Director General, Kashifu Inuwa Abdullahi CCIE, described the NSCI as a strategic move to safeguard Nigeria’s digital future. He noted that the instruments will stimulate innovation, encourage investment in local cloud services, and enhance digital resilience.
“These instruments provide the regulatory certainty, technical standards, and assurance framework required to build a trusted cloud ecosystem that safeguards Nigeria’s digital sovereignty while creating new opportunities for investment, innovation, and sustainable economic growth.
“We should position ourselves not to serve Nigeria alone, but to serve West and Central Africa. Nigeria is already the digital gateway to West Africa and can extend to every part of Africa. But we can only realise that goal when we build our infrastructure. So, today’s event is the first step in that direction,” he stated.
Abdullahi appreciated the support of relevant stakeholders and the efforts of the NSCI Technical Working Group, which culminated in the successful development of the regulatory instruments. He emphasised that collective action of regulatory agencies is necessary for a seamless implementation of the initiative.
Speaking earlier, the Permanent Secretary of the Ministry of Communications, Innovation, and Digital Economy, Engr. Nadungu Gagare, declared that the launch of the NSCI underscores the federal government’s commitment to safeguarding Nigeria’s data borders and digital economy.
“By ensuring that government data remains strictly within national jurisdiction and under local operational control, we are guaranteeing data sovereignty and regulatory compliance. It will catalyse local cloud capacity, foster local job creation, and empower indigenous investors and innovators to build solutions on a secure, locally hosted foundation,” Gagare said.
The Permanent Secretary commended the management team of NITDA, the NSCI Technical Working Group, and other stakeholders for their collaborative spirit in driving the initiative. He promised that the Ministry would ensure that the strategic objectives of the NSCI are fully realised across all ministries, departments, and agencies.
In a message, the Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, congratulated NITDA for promoting a collaborative approach, adding that modern digital regulation succeeds through coordinated regulatory actions for common national objectives.
Cardoso, who was represented by Dr. Rakiya Opemi Yusuf, the Director of the Payment System Supervision Department, acknowledged that the launch testifies to the robust collaboration existing between the apex bank and other government institutions.
“CBN regulates the financial ecosystem. NITDA provides the national framework for digital infrastructure, cloud governance and assurance. These responsibilities are complementary, not competing. Together, they create a coherent national architecture.
“Together with NITDA, and with the continued cooperation of industry, we will continue to build an ecosystem that protects Nigeria’s financial system today and positions our nation as Africa’s trusted hub for digital finance and cloud innovation.
One of the most encouraging aspects of today’s event is the strong institutional collaboration between NITDA, the CBN, and other relevant government institutions. This collaboration demonstrates an important principle.”
Cardoso reiterated that as a responsive regulator, the CBN remains committed to providing clear expectations, firm principles, proportionate implementation, and constructive engagement with all stakeholders to position Nigeria as Africa’s trusted hub for digital finance and cloud innovation.
Also, the Managing Director/CEO of Galaxy Backbone Limited, Prof. Ibrahim Adeyanju, noted that the NSCI couldn’t have come at a better time than now, especially considering CBN’s recent directive mandating banks and financial institutions to localise their data.
Adeyanju expressed confidence that the initiative would push the ecosystem to greater heights by encouraging investment, developing indigenous talent, and creating employment opportunities akin to the gains brought by the deregulation of the telecoms sector.
NITDA will constitute the Sovereign Cloud Governance Committee (SovGov) within the next two weeks to oversee the implementation of the NSCI. The committee would comprise representatives from relevant Government institutions, sector regulators, industry, and the private sector, with NITDA serving as the Secretariat
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