General News
Why Only Truly Indigenous E-Commerce Companies Are Champions
By Dr. Ajit Sigh, international trade lawyer spoke in Lagos on a short visit to Nigeria
By midday on Tuesday September 4th 2018, a remarkable development,whose reverberations are still felt today, shook the e-commerce world and the whole of Wall Street.
Amazon, an American e-commerce giant, had followed Apple Inc. to become the second U.S. company to reach $1 trillion in market value after the company’s shares climbed 1.9%, briefly topping the $2,050.27 needed to push the company’s value above $1 trillion.
To put this in sheer perspective, it is fitting to bear in mind that Nigeria’s current external reserves is pegged at $42.3billion (as at October 25th), a figure which amounts to less than five per cent of Amazon’s worth.
Available data shows that it took Amazon only about 165 trading days to grow its market value from $600 billion in January 2018 to its valuation of $1 trillion in September 2018 – an astronomical rise that saw it put daylight between it and the likes of Microsoft and Google’s parent company, Alphabet. Conversely, Apple needed about 183 trading days to hit the $1 trillion mark after it reached $900 billion in November 2017.
Amazon’s rise can be put down to its unalloyed status as a disruptive force of commerce, with analysts and other Wall Street watchers predicting the company’s imminent overtaking of Apple as the biggest and most valuable company in the United States.
Indeed, the identity of the first five companies on the list of the world’s most valuable companies – Apple, Amazon, Alphabet Inc., Microsoft Corp. and Facebook Inc. – further goes to demonstrate the pre-eminence of tech companies and the undeniable role of technology in the emerging world order of digital wealth where oil, previously the most valuable resource, has been relegated to the back-burner.
Despite its disruptive business model and series of high-profile acquisitions which have undoubtedly boosted its revenues, Amazon remains an e-commerce company – a sector that is fiercely indigenous.
With the backdrop of all the arguments against some of its unfair business practices, Amazon remains a hit with a large segment of the American populace who are traditionally at home with online shopping. According to research, an estimated 79 percent of Americans shop online, a figure that amounts to abouteight in 10 Americans.
While Amazon can be reckoned with as a global e-commerce behemoth, there is no denying the fact that, it will struggle to replicate the brilliant success it has enjoyed in other climes.
As part of its expansionary plans, Amazon has spread its operations to over a dozen countries including the United Kingdom, India, China and Singapore. While sales outside the United States amounts to about a third of its total earnings, the company has also come to learn that selling abroad is not easy. In addition, it has also come to the realization that, e-commerce is best left to the indigenous players who understand the terrain and idiosyncrasies in each country.
Though it has enjoyed a fair measure of success in India where it has attempted to take on FlipKart – the country’s predominant indigenous player – with lower prices, Amazon has been almost an abysmal failure in China – the world’s fastest growing e-commerce market. Alibaba, Pinduodo, Taobao and others are deeply entrenched in the country owing mainly to their understanding of the complex vortex of persuasions influencing the shopping habits at play in that country. Today, Amazon struggles to retain a foothold in China, whereas Alibaba enjoys over 50% of the market share.
Considering the immense financial resources and spending power at its disposal, one will expect that Amazon will conquer every market it berths in. However, the incontrovertible fact remains that, to succeed in any market requires more than just financial power, but a large dose of street-smartness, an understanding of the people and a business model that is realistic and suited to their local circumstances.
Here in Nigeria, the reality is not much different.
Ingrained in the cultural complexities of a society or people are certain peculiarities or predilections, all of which contribute to shaping their every tradition, including their shopping habits.
Despite the growing popularity of online shopping, the average Nigerian, try as hard as you can, will never shake off the practice of preferring to see, touch and/or experience a product before parting with hard-earned money, thereby justifying the increasing relevance of brick-and-mortar stores in Nigerian e-commerce.
Trust also remains a major issue.
In spite of the large strides recorded in the e-commerce sector, many Nigerians are still understandably reluctant to drop their credit card details online due to the real and ever-present potential of cyber-fraud. Others, who have managed to embrace the e-commerce revolution, are still keen to put their trust in the confidence-inducing personal touch that the patronage of a physical retail store inspires. What about the millions of unreached or under-served Nigerians in the hinterlands, devoid of a reliable internet connection and the basic requirements to embrace e-commerce?
It must be stated here that the e-commerce industry also has the capability to unmask mere hype from substance.
Since Nigerians got bitten by the e-commerce bug, the country has seen several foreign players, many of them backed by angel investors and venture capitalists. These fancy new shoesemerge on the scene by painting a larger-than-life picture of overwhelming boom only to fade away after a while and exit the country quietly.
The scenario is a simple but vicious one: the investors are buoyed by projections of Nigeria as Africa’s biggest market, blessed with a youthful, aspirational population on the verge of cracking the e-commerce conundrum and exploding into a money-spinning investor’s dream.
But what happens?
These foreign investors, for all their good intentions, remain what they are famous for: profit-seeking, short-term oriented business impresarios. Once they get tired of seeing their investments fail to yield the promised returns, the patience wears thin. Once this happens, it is only a matter of time before Nigeria counts the many-faceted costs of another failed venture.
History and statistics have revealed worldwide that, only a truly indigenous e-commerce company backed by its own people has the staying power to stick and stand the test of time, irrespective of the regulatory, operational and industry-specific challenges that may arise. Indeed, only a locally-backed e-commerce company with a realistic business model that is not short-term in outlook, can invest significantly in infrastructure and care sufficiently not to embark on random job cuts, all in a bid to satisfy the cravings of impatient venture capitalists.
Nigeria boasts perhaps only one of such powerhouses in Konga – which recently combined its operations with Yudala, another bold player with a futuristic but realistic e-commerce model which has been widely aped by other global e-commerce companies, Amazon inclusive.
Where an e-commerce company proves itself adept at adapting to local circumstances; when it has the boldness to accommodate or fuse online shopping with cost-intensive offline stores nationwide which cater to the needs of the unreached, thereby bringing the convenience of e-commerce home to them; when a business invests considerably in massive regional warehouse facilities; refrains from retrenchments or down-sizing even in the most harsh business cycles and quietly goes about empowering more Nigerians with employment opportunities through its expansionary and ambitious projects, then you are closer to building an e-commerce giant that can rival the Amazons and Alibabas of this world.
Konga owes it to every Nigerian to remain in business forever…
IHS Nigeria has partnered with the Osun State Government on Osun Teacher-Shift 2025, a programme aimed at transforming technical and vocational school teachers into digital-ready educators capable of driving innovation in classrooms.
The IHS Nigeria sponsored initiative, implemented by Focus Teens Foundation in collaboration with the Osun State Board of Technical and Vocational Education, targets about 200 teachers across the State’s nine technical colleges. The training will run in batches over a two-day period, with participants expected to acquire modern skills, and innovative teaching techniques.
Speaking at the opening ceremony which held in Osogbo yesterday, Titilope Oguntuga, Director of Sustainability at IHS Nigeria, explained that the project was developed to prepare teachers for the opportunities and challenges of a fast-evolving world.
She said, “Today is not just the launch of a programme — it is the beginning of a movement. This is more than training, it is a mindset shift. It is about rethinking how we prepare teachers, students, and our communities for the opportunities and challenges of a fast-evolving world.”
Oguntuga emphasised that teachers remain at the centre of national development but face increasing demands to inspire creativity, nurture innovation, and equip young people with practical and technology-driven skills.
She noted that the initiative also reflects IHS Nigeria’s four sustainability pillars — ethics and governance, environment and climate change, people and communities, and education and economic growth.
The IHS official said, “education remains the strongest catalyst for national development. But we cannot achieve this without empowering the people who will empower the next generation. With this programme, teachers and beneficiaries from the nine technical colleges will begin to think more innovatively and incorporate new systems that support STEM for the advancement of our nation.”
Oguntuga added that each school would be given routers with one year subscription.
Adedapo Ademola-Adesina, Special Adviser to the Governor on Technical and Vocational Education, noted that the State Government believes in private sector collaboration to achieve its goals for technical and vocational education, leading to the partnership with IHS Nigeria.
“We must begin by changing the mindset of our teachers. They are the ones who shape future leaders. That is why we tagged the program “Osun Teacher-Shift 2025” — shifting from the old ways to new digital teaching”, he said.
Also speaking, Sunday Eluwole, the Osun State Commissioner for Education, acknowledged that the training was both timely and necessary, saying; “this is the 21st century, and Nigeria cannot be left behind. Our schools, teachers, and classrooms must be digitalised. Teachers must first be trained in digital methods before they can pass the knowledge on to students.”
Eluwole added that Osun State, which has the highest number of technical colleges in the Country, is committed to making its schools models of digital and vocational learning.
Earlier, Muritala Jimoh, Permanent Secretary, Ministry of Education, said that Osun State teachers are ready to shift. Jimoh noted that Governor Ademola Adeleke is prioritising teachers’ welfare in the state, hence their readiness to embrace the shift.
He called on teachers to reciprocate government’s efforts by making their minds flexible to change.
Nigeria Civil Aviation Authority (NCAA) has directed all airlines operating in the country to ensure that passengers completely switch off their mobile phones during aircraft take-off and landing.
Michael Achimugu, director of Public Affairs and Consumer Protection, NCCA, disclosed the directive in a post on X on Tuesday.
He said the measure was part of a harmonisation of existing rules on the use of electronic devices onboard.
“Henceforth, the regulation per phones and other electronic devices in Nigeria has been unified: ALL PHONES MUST BE SWITCHED OFF DURING THE CRITICAL ASPECTS OF TAKE-OFF AND LANDING,” Achimugu wrote.
“All airlines must amend their security programmes to reflect this if different in their current programmes. No more airplane mode until regulations are reviewed to reflect evolving technological situations.”
The directive means that all airlines will have to adjust their operational manuals and cabin crew instructions to enforce the policy.
Reactions to the announcement have been mixed on social media, with some Nigerians questioning the relevance of the rule in light of advances in aircraft technology and onboard connectivity.
Sonny Echono, executive secretary, Tertiary Education Trust Fund (TETFund), has called on Nigerian tertiary institutions to urgently embrace technology in teaching, research, and administration, warning that billions of naira already invested in ICT infrastructure risk being wasted due to underutilization.
Echono made the call in Abuja, Nigeria while delivering remarks at a 2-Day Workshop on Blackboard/TERAS Adoption and Usage in Beneficiary Institutions, organized by TETFund for Registrars, Bursars, Directors of Academic Planning and ICT and Thesis Project Repository Managers of beneficiary institutions.
He lamented that despite TETFund’s early investment in digital learning platforms such as the Tertiary Education, Research, Applications and Services, TERAS, many universities, polytechnics, and colleges of education were still lagging behind in ICT adoption.
According to him, Nigeria’s rapidly growing population and limited availability of classrooms make technology the only viable pathway to expanding access to quality education.
“We are no longer confined to the four walls of classrooms. With just an android phone or a device, students should be able to access content, participate in learning, and acquire skills. There is no alternative to technology if we must prepare our youths for the opportunities ahead,” Echono said.
He decried the slow pace of transition to digital platforms in many institutions, some of which still send hardcopy requests to TETFund despite clear directives for e-submissions.
The TETFund boss stressed that robust and regularly updated institutional websites should be a minimum requirement in the digital age, describing many schools’ online presence as “embarrassingly outdated.”
Echono also cited the successes recorded during the COVID-19 lockdown when TETFund partnered states, the Nigeria Television Authority, NTA, and radio stations to broadcast WAEC syllabus-based lessons.
According to him, that year produced one of Nigeria’s best WAEC results, indicating the potential of technology to revolutionise learning.
He expressed concern that Nigeria now ranks 189th globally and 25th in Africa in education competitiveness, behind smaller countries like Rwanda and Mauritius that have leveraged ICT to transform their systems.
“Government has done its part by providing the infrastructure. But when equipment is procured and platforms created and they are not being used, that is the very definition of waste,” he warned.
The TETFund boss urged heads of institutions to champion the use of digital platforms like TERAS by lecturers and students, stressing that over time, more than half of TETFund’s education investments would have to go into ICT rather than physical infrastructure.
Echono also linked Nigeria’s underdevelopment to its failure to leverage technology in sectors such as oil, agriculture, and manufacturing, contrasting the country’s struggles with China’s rapid transformation through deliberate investment in knowledge and innovation.
“We can do the same if we decide to do the right thing. The right thing starts with our education system. The building block of every nation is knowledge,” he said.
He appealed to tertiary institutions to seize the opportunity, populate their websites with relevant data, and ensure students and staff are fully onboarded onto TERAS platform.
Earlier, Mr. Joseph Odo, director of ICT, TETFund, said interactive sessions at the workshop were designed to deepen understanding of the Fund’s digital platforms and improve collaboration among beneficiary institutions.
“This is part of our engagements with key stakeholders, registrars, librarians, ICT directors, repository managers, and academic planners, to ensure that everyone understands the interventions we are providing. The world is moving fast technology-wise, and we cannot afford to be left behind,” Odo said.
He explained that the sessions, which will hold across all six geopolitical zones, are focused on strengthening the use of TETFund-funded learning platforms, which aggregate data for planning and improve teaching, research, and learning outcomes.
Odo added that TERAS is evolving into “an educational lifestyle” that caters to students, lecturers, administrators, and even government planners.
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