TikTok plots entering the US e-commerce market: “TikTok is pursuing a new revenue stream and reportedly entering the U.S. e-commerce market with a platform for made-in-China goods”.  There is no reason not to do that since TikTok has become a very huge market. When you have access to the goods (it has a Chinese origin) and you have American buyers in your ecosystem, a smart way to drive growth is to offer that Shop button since most of the items are already discovered within your videos. So like Temu, an AI-powered ecommerce company, another Chinese company goes after Amazon.

Why is that possible? The US has a great logistical system with an affordable postal service. With that, the world becomes a market (yes, “uwa bu ahia” the Igbo Nation says), and players can buy and sell at scale. But positioning the US to become this important e-commerce market has one secret:  the US postal service which makes the online market to keep flourishing has not made a SINGLE PROFIT in the last 20 years.

Yes, the US post office declares losses and losses. But do not be deceived, they can make profits if they want, and they don’t really care. They want to build platforms upon which markets run, and logistics with postal services is one of the most important platforms in the ecommerce universe. At the end, they tax that market, and recover the losses via postal services.

It is called Symphonic Public Policy (SPP) – a policy system that is not domain-specific, but is anchored on a unified and harmonious approach in policy making to accelerate productivity gains and cushion competitiveness in economies. With SPP, you do not unveil policies on ecommerce, only to be tripped by lack of supply chain systems; you launch the ecommerce plan with a mindset that these areas are like extended musical compositions which must be carefully organized to make the orchestra an unforgettable experience. (I coined that SPP in case you want to borrow it.)

Nigeria needs to have its moment  and if we get it right, great things will happen in our communities.

TikTok is pursuing a new revenue stream and reportedly entering the U.S. e-commerce market with a platform for made-in-China goods. The TikTok Shop, which the company hopes will have similar success as China’s Shein and Temu, is expected to launch in the U.S. in early August, reports The Wall Street Journal, citing people familiar with the plan. Its operations will resemble Amazon’s third-party program, which stores, sells, markets and ships products and handles customer service for outside sellers. Per the Journal, plans are to eventually expand to goods from countries other than China.

Combined, Shein and Temu have about one fifth of TikTok’s billion monthly active users. This week, TikTok debuted Instagram-like text posts in the U.S. and expanded its music streaming service from Indonesia and Brazil to Australia, Mexico and Singapore.

Postal Service Net Income/Loss By Year

• 2021 – $9.7 billion loss (projected)
• 2020 – $9.2 billion loss
• 2019 – $8.8 billion loss
• 2018 – $3.9 billion loss
• 2017 – $2.7 billion loss
• 2016 – $5.6 billion loss
• 2015 – $5.1 billion loss
• 2014 – $5.5 billion loss
• 2013 – $5 billion loss
• 2012 – $15.9 billion loss
• 2011 – $5.1 billion loss
• 2010 – $8.5 billion loss
• 2009 – $3.8 billion loss
• 2008 – $2.8 billion loss
• 2007 – $5.1 billion loss
• 2006 – $900 million surplus
• 2005 – $1.4 billion surplus
• 2004 – $3.1 billion surplus
• 2003 – $3.9 billion surplus
• 2002 – $676 million loss
• 2001 – $1.7 billion loss

You wrote about this regarding the struggles of ecommerce businesses in Nigeria, using Jumia as a case study.

I referenced it in one of my books.

Logistical gap filled by the government will make e-commerce thrive successfully in any country.

— Kingsley Ndimele: Your Reliable Consultant (@KingsNdimele) July 26, 2023

The Nigeria Labour Congress (NLC) has once again given a seven-day ultimatum to President Bola Tinubu administration, demanding it reverses all recent policies that have exacerbated the suffering of Nigerians or face indefinite industrial action.

Following the conclusion of its Central Working Committee (CWC) meeting on Tuesday, the labor union issued a communiqué, warning that if the Federal Government fails to address the “anti-poor” policies – among them; fuel subsidy removal and floating of the naira that have resulted in high cost of living, it will embark on strike starting from Wednesday, August 2, 2023.

The communiqué, co-signed by the NLC President, Joe Ajaero, and the union’s General Secretary, Emmanuel Ugboaja, expressed the NLC’s concern over the Federal Government’s apparent disdain and contempt for the Nigerian people. The union perceives the government’s actions as a deliberate attempt to undermine Nigerian workers and the general populace, hence declaring it a “war of attrition” against them.

The NLC had last month moved to embark on total industrial action due to the same reasons, but was stopped by the federal government, which secured a court injunction mandating the labor union to abort the proposed strike until the matter is determined by court.

The government set up a committee to address the NLC’s concerns by working out a plan to mitigate the effects of the policies. But the labor union said it has been sidelined by the committee, which is supposed to carry it and the Trade Union Congress along.

“Since the committee was set up to work out the palliatives for workers and Nigerians, the committee hasn’t met. The government only set up the committee to give the impression that it was serious about doing something to ameliorate the pain of Nigerians.

“The government hasn’t convened the meeting of the committee, Labour hasn’t been carried along,” Chris Onyeka, one of the spokespersons of the NLC, told BusinessDay on Wednesday.

After the CWC meeting on Tuesday, the labor union expressed its concern about the impact of the President’s statement on May 29, 2023, declaring that the subsidy on fuel is permanently removed. According to the union, since that speech, “the peace of mind of Nigerians has gone”.

The NLC further said the “government has continued to treat Nigerians as slaves and a conquered people which it treats with impunity without any concern on the consequences”. The union felt that the government’s approach has been insensitive and lacking in consideration for the well-being and welfare of the people.

“That the Federal Government has continued in an unholy mission of robbing the poor to pay the rich in Nigeria as typified by its continued frustration of the activation of the agreed alternatives to Premium Motor Spirit (PMS) and new hike in prices of PMS to N617 per liter,” the communiqué partly read.

“That the NNPCL (Nigerian National Petroleum Company Limited) has turned itself into the forces of demand and supply and fixes the price of Petroleum products while mouthing deregulation.

“That Government’s conduct suggests it does not intend to commit itself to the MoU it signed with NLC and TUC (Trade Union Congress).”

The NLC thereafter released a list of demands it wants the government to meet in order to suspend the proposed strike. Among the demands are: “the immediate reversal of all anti-poor policies of the federal government including the recent hike in PMS price, increase in public school fees, the release of the eight months withheld Salary of university lecturers and workers”. It also added “the immediate inauguration of the Presidential Steering Committee.”

The removal of fuel subsidy and the deregulation of the forex market have resulted in a significant spike in petrol prices. This in turn has stoked the cost of goods and services, making life unaffordable for most Nigerians.

The federal government has been dragging its feet in providing palliatives that will ameliorate the impact of the policies. Its plan to disburse N8,000 each to 12 million households, covering about 60 million Nigerians, was met with severe criticism.

However, experts believe that an indefinite strike will further hurt the nation’s crippled economy.

Financial services company Mastercard has partnered with Nigeria’s E-commerce platform Alerzo, to offer digital payment solutions, to address the challenges faced by SMEs in Nigeria’s Fast Moving Consumer Goods (FMCG) sector.

This partnership aims to promote the use of financial solutions over the next five years and provide practical financial training and knowledge to one million Nigerian SMEs.

Alerzo’s background expertise in leveraging technology to empower retailers in the informal sector, so they are equipped to run profitable & sustainable businesses, and Mastercard’s extensive global infrastructure and network will make it simpler for companies of all sizes to access digital payments.

Speaking on this strategic partnership, CEO of Alerzo Limited, Adewale Opaleye, said, “We’re excited to partner with Mastercard to support the growth and success of SMEs in Nigeria. With our combined expertise and resources, we look forward to continuing to provide training, financial support, and innovative payment solutions to businesses in Nigeria. These solutions could be a game-changer, especially for our informal retailers, who often get overlooked.”

Also commenting, Country Manager and Area Business Head, West Africa at Mastercard, Ebehijie Momoh said:

“Nigerian small businesses have proved their resiliency in recent years, but still face many pressures to remain profitable. Through our partnership with Alerzo, we are excited to combine our expertise and resources to drive digital transformation and financial inclusion, providing training and solutions that enable Nigerian businesses to thrive. This collaboration will play a crucial role in digitizing payments and supporting the growth and success of Nigerian businesses.”

Following reports that only 15% of Nigerian SMEs have access to formal credit, Alerzo’s partnership with Mastercard will provide these businesses with access to micro-lending options which is crucial for business growth.

The impact of this partnership extends beyond individual businesses. By empowering SMEs and informal retailers, millions of people who rely on their small businesses to support themselves and their families will experience positive changes.

Also, SMEs and informal retailers will benefit from the low-cost acceptance solutions provided by the partnership, such as Tap on Phone, QR, Pay-By-Link and Payment Gateway service.

Through this partnership, a range of innovative solutions will be offered, including VeedezPay, a digital payment solution designed for informal and small businesses, VeedezPro, a comprehensive business management tool tailored for SMEs and ERP solutions for more established businesses.

Additionally, micro-lending services will be made available to businesses using the VeedezPay and VeedezPro solutions. Alerzo is an all-in-one technology platform designed to equip micro-businesses with the digital products and services necessary to run profitable and sustainable businesses.

The startup has continued to provide customers with access to a one-of-a-kind platform that enables its customers to easily grow their businesses through the use of technology.

In an announcement on Wednesday, Google revealed that Nigerians can now make payments on its Play Store using their local currency, the naira.

This development comes as a result of a partnership with Verve, the largest domestic card scheme in Africa, aiming to enhance the accessibility and ease of digital transactions on the Google Play Store for Nigerian users.

Effective immediately, Nigerians can utilize their Verve cards to make purchases on the Google Play Store, bolstering the digital ecosystem in the country. This is particularly advantageous during a time when local banks are facing challenges in meeting forex demands for international payments, as the new option provides relief to Nigerians who frequently buy apps from the Google Store.

Under this collaboration, Google will process Verve transactions exclusively within Nigeria. These transactions will be conducted in Nigerian Naira (NG) and will be treated as local transactions by the country’s banking institutions.

“We are thrilled to collaborate with Verve, expanding Google Play access for more Nigerians. The introduction of local payments with Verve cards is a significant milestone, enabling more Nigerians to participate in the app economy and access the apps they need,” Anthea Crawford, Head of Retail and Payment Partnerships at Google Play, said.

Based on this collaboration, any Nigerian with an Android device and a Verve card now has a streamlined method for making purchases on the Google Play Store.

Vincent Ogbunude, the Managing Director of Verve International, said that the integration with Google Play marks a major step forward in Verve’s vision to promote financial inclusion.

“We are excited to bring digital content and services closer to Verve cardholders, hence bridging the digital divide. As a foremost payment card scheme in Nigeria, Verve’s expanding acceptance promotes inclusion by extending the reach of digital services to a larger segment of the Nigerian population. Maximizing this exciting possibility, users can now add their Verve Cards to their Google Play Account and pay in Naira, without stress,” he said.

Additionally, he noted that the new partnership streamlines the payment process for Google Play Store apps and services, making it much more convenient, and plays a significant role in fostering a more inclusive digital landscape for Nigerians.

Nigerians have struggled to keep up with international transactions due to the country’s forex crisis that has forced banks to suspend international POS services. This follows monetary policies by the central bank aimed at tightening FX-based services, before the recent deregulation of the FX market.

Allowing naira debit cards means that Nigerian consumers on Google Play Store do not have to worry about future policies aimed at regulating the outflow of foreign currencies.