You need $400 to buy a share of that company in the US stock exchange. One company came out and said you can also buy a portion if you have just $1, $2 , etc. Magically, Robinhood invented an amazing business model in America.  They call it fractionalization, splitting of shares, tokenization and many more names.

Forget the name, all we know is that it did one thing: it offered ordinary people ways to own portions of companies irrespective of their financial capacities. In the past, you must have at least $400 to buy a unit share of that company. Today,  you can own a portion for $5 or whatever you can afford.  Through that simple ingenious new business model, Robinhood became a multibillion dollar company.

Innovation should not be a rocket science; those problems we  face daily are opportunities waiting to be solved. Look at the Nigerian stock exchange, what innovation can we deploy? Look at the Nigerian housing market, what can you do? Look at our education, agriculture, etc – what simple ideas could make a great difference?

Keep it simple even though the hardest thing to execute is the simplest idea! Because everyone wants to be seen solving complex problems. #simple

Comment on Feed

Comment 1: Interesting! Sir I’ve been doing some research and reading ? about Fractional real estate investing through equity crowdfunding in Nigeria. The thing is that I’m not a tech person. And I don’t have any experience in real estate investing and finance. However, I’ve been following you closely and reading almost every of your posts on LinkedIn and Facebook, which I find very interesting and educating. If we can really give Nigerians a legit, authentic and ubiquitous equity based crowdfunded investment Platform such as Robinhood, Crowdcube etc where Nigerians will channel their resources and get returns on their invested capital. It would have been much better than all these betting platforms that are turning our citizens into gambling addicts.

Comment 2: In Nigeria, where buying power is limited, embracing fractionalization holds the key to inclusive prosperity. By revolutionizing access to investments, housing, education, and agriculture through fractional ownership, we can empower Nigerians to participate in the nation’s growth via great business model. #innovation through #Simplicity

Comment 3: Thanks Prof! I like the phrase you have used here, ” keep it simple because the hardest thing to execute is the simplest idea”. This is so correct especially if you consider the extent to which some entrepreneurs go just to publicise what they do. The simpler the platform the easier it is to get others to mount your boat…

Comment 4: Tokenization has been integrated into almost all industries where all can access opportunities at their levels.

The business of the future is not just grand innovations but basically value addition and simplifying existing models.

Thank you prof for sharing Ndubuisi Ekekwe

Comment 5: Love this already. I still wonder why our pace of Innovation is really slow. Problems are out there waiting for a very simple solution. With the removal of the fuel subsidy and the unified exchange rate which is now available through I&E window alone, I can picture simple business Ideas from each of these policy.

Our dependency on fussil fuel engines due to subsidy really slowed our development, and now with the high price of fuel alternative energy industries can thrive, providing better and more affordable options for the masses.

Comment 6: Prof don’t we have tokenisation embedded already, how low could we go. We have sachet (pure) water, sachet washing powder, sachet kaikai, sachet noodles, etc. Na mini miniature go b d next level. In Nigeria, wider Africa , infact most of the less developed countries, people have mimimalised most things for the sake of survival. This references we have to western standards has impoverished many globally. New business models and references are now required. Our western education has served, but like everything else, it comes in cycles. Funny the same west is no longer shouting out loud about globalisation, whatever happened to that economics. Did they get it wrong. Have they agreed that they got it wrong. Should the rest of the world wait till they come up with their next ‘blue sky’ thinking, or devise alternative solutions that address local issues. There are too many theories out there, that do not seem practicable

My Response: The message here is Keep Things Simple. It is possible I will use Cowbell and Peak Milk next month on the same message. I decided to use Robinhood today. Nothing is new in this world. What is hard is understanding that greatness can come via simple solutions. I like Tesla but I have only $5, can I also invest in it when it sells for hundreds of dollars? We just have to keep pushing as a people.

This is the stable state according to JP Morgan: high N600s per USD. Yes, the bank thinks the value of Naira to US dollars will shoot up and then settle around high 600s per $. What do you think of this call?

My perspective: I think JP Morgan may need to review. Whether you float, swim or fly Naira, Naira can only survive if the economy is productive with capacity to produce things (digital, physical, service, etc) to reposition the nation’s balance of payment and trade. So, unless I see the industrialization playbook from the apex bank which will be stimulated through its policy, it is all financial engineering which rarely delivers sustained results. We have been doing financial engineering since 1985 and Naira keeps fading.

If CBN says tomorrow, we will support within six months to have six cities in six geopolitical zones in Nigeria with 24/7 electricity, I will vote that the Naira will appreciate to N400/$. Otherwise, N800 is possible.

Pick Aba, Ibadan, Kano, Jos, Maiduguri and Uyo, and promise that CBN will guarantee that these cities will have 24/7 electricity in 6 months, forget everything because Naira will have help. At least you know where to open an office or factory to produce at a better cost model.

A statement by the institution said: “While it will take a few days for USD/NGN spot to settle, we fully expect an initial overshoot towards the parallel market rate of -750 or higher, after which, we expect USD/NGN to settle in the high 600s over [the] coming months.

“We remain long USD/NGN via non-deliverable forwards (NDFs) as well as OW emerging markets bond index global diversified (EMBIGD) index as we expect further positive catalysts to materialize in the near-term.

“We believe there is room for incremental positive surprises with respect to reform depth and execution speed. We had high expectations for the new administration’s reform agenda, however, the speed of execution has proven to be a positive surprise.”

While the government’s decision to float the naira has been widely applauded as the right step to boost foreign and portfolio direct investments, concerns have been raised about the inevitable rise in petrol prices the decision will force.

Comment on Feed

Comment 1: Only a reduced appetite for the Dollar can lift the Naira. And the appetite for dollars is fueled fundamentally by imports, foreign education, and medical tourism.

So government’s solution should include policies that directly address these issues.

As you have rightly mentioned, stable electricity will significantly improve local manufacturing.

I might also add, raising the budget on education, working with the federal universities to establish robust alumni participation, and providing tax breaks and national recognitions to private sector organizations that invest in government schools, and hospitals.

Comment 2: I was having this conversation with someone yesterday. As much as this idea may be perceived as a step in the right direction, nevertheless, it doesn’t decide the stability of the Naira in the market.

The floating rate is usually determined by the open market through supply and demand. Therefore, if the demand for the currency is high, the value will increase. If demand is low, this will drive that currency price lower. We all know how this playbook augurs with respect to the Naira!

Manufacturing needs to be revisited. More needs to be done in terms of local productions and exports. Hopefully, there would be “Naira-currency” inclusion when Dangote Refinery comes to play.

To reiterate your idea on the importance of making Electricity production and availability paramount, The new dispensation needs to understand this: An economy deficient in power supply cannot make any headway.I commend the recent decentralisation allowing states to venture into generation, distribution and transmission. However, FG needs to show more commitments. Whatever happened to the Siemens Contract? Again, that has to be revisited. Nigeria’s energy per capita is in a sorry state. When we get that right, I believe most other sectors could “fall in place.”

Comment 3: Prof you have just nailed it. Power for Production should be No1 priority, I would think the Energy Act signed by the President should have a roadmap not just a Pen on Paper policy that has bottlenecks.

The Act 2023 replaces the Electricity and Power sector reform act 2005. The act provides for states to issue licenses to private investors who can operate mini-grids and power plants within the state, however, it precludes interstate and transnational electricity distribution.

For me many Individuals and Companies already operate this model of power Generation, transmission and distribution. A typical example is “I Pass my Neighbour Gen” does that mean for me to own build and transmit power as social impact I would need a license from the LG or States.

At what cost and why must I pay when Govt can’t provide this Basic Need. It automatically means soon we might pay for Air we breathe IN.

Instead of License I would have thought such companies will be offered intensives e.g Tax waiver.

It should only be at commercial model when such individual and company needs to charge customers. Meaning Real Estate Developer will have to get license to build and operate Power stations

In the wake of the Nigerian government’s decision to float the naira, causing it to record a massive fall in the FX market against the dollar, JP Morgan on Thursday, projected that the currency will appreciate in the coming months, trading around N600 to a dollar.

The naira fell as much as N755 to a dollar on Wednesday following the announcement by the Central Bank of Nigeria (CBN) that all FX market control has been removed and all forex segments have been unified. But the American multinational financial services firm said that the naira, which later appreciated on Thursday, trading at N664.04 per dollar in the Investor and Export window, will settle at N600s in the coming months.

A statement by the institution said: “While it will take a few days for USD/NGN spot to settle, we fully expect an initial overshoot towards the parallel market rate of -750 or higher, after which, we expect USD/NGN to settle in the high 600s over [the] coming months.

“We remain long USD/NGN via non-deliverable forwards (NDFs) as well as OW emerging markets bond index global diversified (EMBIGD) index as we expect further positive catalysts to materialize in the near-term.

“We believe there is room for incremental positive surprises with respect to reform depth and execution speed. We had high expectations for the new administration’s reform agenda, however, the speed of execution has proven to be a positive surprise.”

While the government’s decision to float the naira has been widely applauded as the right step to boost foreign and portfolio direct investments, concerns have been raised about the inevitable rise in petrol prices the decision will force.

The Nigerian National Petroleum Company Limited (NNPCL), which previously had the monopoly of fuel import, said petrol price was pegged at N461 per dollar. Fuel is currently selling at N557 per liter following the removal of fuel subsidy by President Bola Tinubu last month. With the naira now trading at over N660 per dollar, petrol cost is expected to rise between N650 and N750 per liter.

JP Morgan said this reality could result in a further spike in Nigeria’s inflation rate. The Nigerian Bureau of Statistics announced Thursday that headline inflation climbed to 22.41 in May. JPMorgan said the rate could rise as much as 25 percent next month – remaining above 20 percent for the rest of the year.

“The near tripling of fuel prices could see headline inflation jump closer to the 25 percent mark in June and remain firmly above 20% for the rest of the year.

“However, fuel subsidies accounted for 1.7 percent of GDP in 2022 and a complete removal will be positive for the fiscal accounts, although we expect that some portion of the savings will be targeted towards social spending.

“Of course, a weaker exchange rate means the government would receive higher naira revenues from oil and gas exports.

“We believe the devaluing of the naira yesterday could have a more limited impact on headline inflation given a substantial part of the informal economy accessed dollars at the much higher parallel market rate,” the bank said, adding that there is room for more near-term reform execution surprises.

The near-term reforms are expected to focus on taming the inflationary impact of the new FX and fuel subsidy policies.

The National Executive Council (NEC) said Thursday after its inaugural meeting that it is seeking ways to provide palliatives for workers to mitigate the impact of the subsidy removal.

After the Council’s meeting, which was headed by Vice President Kashim Shettima, Governor Bala Mohammed of Bauchi State mentioned that they explored the potential of securing funds from the World Bank and partners in London to implement a Compressed Natural Gas (CNG) program for vehicles in the country. This initiative is intended to alleviate the impact of fuel subsidy removal.

Governor Mohammed also highlighted that the Council considered other proposals, such as the organized labor’s suggestion for a consequential adjustment on allowances amounting to N702.9 billion. Additionally, they discussed a request for a monthly allocation of no less than N25 billion to mitigate the effects of subsidy removal.