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Empowering Youths with Digital Skills, Innovation and Enterprise: Lessons to Learn from Opolo-ODA Digital Revolution Partnership

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Indigenous communities and organizations are formed principally to protect and promote socio-cultural, economic, political and physical development of the communities which the members hail from. In Nigeria, it is hard to find a town or community without such an organization. This ranges from large ethnic organisations such as Afenifere (Yoruba); Norther Elders’ Forum Hausa/Fulani) or Ohaneze Ndigbo (Igbo). Others may be town based while some of them are diaspora organizations who get together not only to protect their interest but also to assist each other in times of need. What is apparent is that there are as many of these organisations as there are towns and cities in Nigeria. In today’s globally linked world, such associations push programmes such as scholarships; health outreaches and fund raising for the collective progress of their towns or cities.

One of such initiatives that is possible is Osun Development Association’s partnership with Opolo Global Innovation to train 5,000 Osun youths in various digital skills such as product design and management, artificial intelligence, machine learning, digital media management, cyber security and blockchain as well as data science and analytics. For clearer context, the Osun Development Association (ODA) is a non-governmental independent association established for the promotion of non-governmental development initiatives dedicated towards improving the quality of life of the people of Osun State and the development of Osun in general.  The association, formed about 28 years ago, comprises sons and daughters of the state who have excelled in their different callings. By the collaboration with Opolo Global, a social enterprise, whose focus cuts across ideation, incubation, acceleration and development of viable solutions to both local and global issues, is an innovation company that is interested in digital skills, innovation and enterprise. So, with its presence spread across universities in Nigeria, and especially on the campuses of both the Osun State University, Osogbo and Obafemi Awolowo University, Ile Ife, Opolo Global was a perfect partner for the Innovation and Technology Group under the ODA to realise the organisation’s objectives of training 5,000 Osun youths in high demand digital skills.

How did the Partnership Work?

The ODA keyed into the digital training template of Opolo Global on digital skilling of 65,000 youths in Nigeria. Tagged the Skilling Revolutionary Innovators to Build Entrprise (SkRIBE), the training programme is designed to enable opportunities, provide access and supports for talents to get skilled, innovate, thrive and promote digital inclusion. It has a special focus on female and persons in underserved communities. It also has the intention to increase youth earning potentials. So, it was a partnership built on business-community relationship. Therefore, when the ODA’s intention of training 5000 youths from Osun met with Opolo’s proposal to skill up 65,000 youths across fused, a bond was created to chart a future of digital enterprise for the young participants.

In this era of digital transformation, empowering youth with essential digital skills is crucial for their personal development, economic growth, and social progress. However, the opportunity has a caveat- participants must part with the 30% of the training fees. This was to ensure that participants stay committed throughout the three months.

What are then are the valuable lessons that can be applied to empower youths in other communities, fostering their digital literacy, innovation, and entrepreneurial capabilities?

Leveraging on strategic partnership and collaboration

The ODA and Opolo Global model shows the high potential of partnership and collaboration in fostering innovation and entrepreneurship in towns and communities across Nigeria. Encouraging this kind of collaboration would lead to more impact with a high possibility of reducing crime and criminal tendencies among the youths of such communities and areas. It requires values to values for wonders to happen. This demonstrates that with communities and indigenous associations willing to work together with businesses, youths could be empowered and jobs could be created.

Deploying collective resources for social impact  

Being a group of highly successful people who are willing to give back, the ODA working with Opolo has shown how to effectively deploy collective resources, expertise, and networks to provide comprehensive support and opportunities for the participating  youth. As it was emphasized at the opening ceremony of the programme, Mrs Lola Ekugo-Aworanti averred that those who excel on the training would have internship opportunities with companies across the country especially in Lagos. It is a good way to expend scarce resources for the good of the society. By acquiring these skills, the youth are better equipped to adapt to the changing world and contribute to the progress of their society.

Building digital skills of the youths of  underserved communities  

In pursuing the general good of the entire Osun people, the ODA-Opolo partnership is bringing the playbook of digital skilling of the youths to play. When the inclusive nature of the training is considered, it is easier to conclude that the collaboration is a worthy venture. Recognizing the significance of digital skills in today’s rapidly evolving world, the association has formed a strategic partnership with the Opolo community to empower its youth population. This partnership has been instrumental in equipping Osun youths with essential digital skills. Through a structured training programme, and mentorship initiative, young individuals are provided with comprehensive instruction in digital skills. This is coupled with the hands-on learning and practical applications. This ensures that the youth gain both theoretical knowledge and practical competence, enabling them to navigate the digital landscape with confidence.

Creative funding for social good

The Opolo ODA partnership also made use of creative funding model between itself, the participants and other groups concerned. While ODA carries the larger part (70%) of the funding for the programme, the participants are required to commit (30%) of the funding themselves. The Ife Summit Group, another group of ODA members who are from Ife further parted with a 50% subsidy for the 30% paid by the participants from Ile Ife for the 3-month long training. This kind of creative collective funding indicates the possibilities of what could happen with collaboration and partnership.  It ensures that all stay committed and focused for the duration of the training programme.

Building  culture of giving back

Executing the youth-focused training is basically passing across the message of sustainability in giving back to the society. If it is believed that the youths of today would become the leaders of tomorrow, then the ODA-Opolo partnership has the high potential of ingraining the culture of philanthropy in the minds of the young beneficiaries. This model of youth empowerment is building a sense of ownership, support, and collective responsibility, ensuring long-term sustainability and local impact.

In concluding this piece, communities are enjoined to learn from this business-to-community model of empowering the youths. By embracing the lessons learned from this partnership, other communities can develop effective models for empowering their youth, equipping them with the digital skills, innovation mindset, and entrepreneurial capabilities necessary to thrive in the digital era. As we work towards a more inclusive and digitally empowered future, let us draw inspiration from the ODA-Opolo partnership and invest in our youth as catalysts for positive change and sustainable development.

Nigerian Stocks Continue Hot Streak in July

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The Nigerian stock market has been on a roll in the past month, posting impressive gains across various sectors and indices. The All-Share Index (ASI), which measures the performance of all listed equities, rose by 6.7% in July, reaching its highest level since February 2020. The market capitalization also increased by 6.8%, adding N1.38 trillion to close at N21.76 trillion.

What are the factors behind this bullish trend? Analysts point to several reasons, such as the improved macroeconomic outlook, the easing of covid-19 restrictions, the positive corporate earnings, and the increased foreign portfolio inflows. Let’s take a closer look at each of these factors and how they have impacted the market.

Improved macroeconomic outlook: The Nigerian economy has shown signs of recovery from the recession caused by the pandemic and the oil price crash. The GDP grew by 0.51% year-on-year in the first quarter of 2023, following two consecutive quarters of contraction. The inflation rate also moderated to 17.75% in June, down from 18.12% in May, as food prices eased slightly. The exchange rate has also stabilized, as the Central Bank of Nigeria (CBN) adopted a more flexible and unified regime, eliminating the multiple exchange rates that had plagued the market for years.

Easing of covid-19 restrictions: The Nigerian government has gradually lifted some of the lockdown measures that were imposed to contain the spread of the coronavirus, allowing more economic activities to resume. The vaccination program has also gained momentum, with over 4 million doses administered so far, covering about 2% of the population. The easing of restrictions has boosted consumer confidence and spending, as well as business optimism and investment.

Positive corporate earnings: Many listed companies have reported strong financial results for the first half of 2023, reflecting their resilience and adaptation to the challenging operating environment. Some of the sectors that have recorded impressive growth include banking, telecommunications, consumer goods, and oil and gas. For instance, Zenith Bank, one of the largest banks in Nigeria, posted a 5% increase in gross earnings and a 9% increase in profit after tax in the first half of 2023. MTN Nigeria, the leading telecommunications operator, reported a 24% increase in revenue and a 49% increase in profit after tax in the same period.

Increased foreign portfolio inflows: The Nigerian stock market has also attracted more foreign investors in recent months, as they seek higher returns and diversification opportunities in emerging markets. According to the Nigerian Stock Exchange (NSE), foreign portfolio transactions increased by 61% from N40 billion in June to N64 billion in July, accounting for 22% of total transactions. The increased foreign inflows have also supported the liquidity and stability of the market.

What are the prospects for the Nigerian stock market going forward? While there are still some risks and uncertainties, such as the third wave of covid-19 infections, security challenges, and policy inconsistencies, analysts are generally optimistic about the outlook for the market. They expect that the positive momentum will be sustained by the improving economic fundamentals, the robust corporate earnings, and the favorable investor sentiment. They also advise investors to be selective and focus on quality stocks with strong fundamentals and growth potential.

Nigerian Banks Are Having Great Moments Right Now

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Nigerian banks are having a moment. Indeed, it is really an amazing time. Look at the market caps; GTBank* hit N1 trillion, joining Zenith Bank. Yet, the annual reporting season will come, and markets will begin to examine the intrinsic creditworthiness of these entities in the near term.

Our banks booked easy gains with the floating of Naira, picking more than 35% on their foreign currency assets. But that is not the only story. One will wait to see the long-term issuer default rating to ascertain their relative vulnerability to default due to foreign denominated loans.

Which bank has too much foreign currency denominated loan? Would there be conversations on capital adequacy ratio? But no confusion: any bank which has kept its foreign currency denominated loans low could experience one of the finest 6 months in Nigerian banking in terms of PROFIT. You will see record numbers – I mean records.

Even the bank CEOs are buying shares like Ezioma bread and akara (the combos) offered every Sunday morning in Ovim [those good days when every kid had his/her loaf of bread, with peak milk, Lipton and akara to go]

Before you plan to relocate to Ovim, make sure you ask your bank to add more spaces in your bank account for the dividends which banks will pay. Yes, tons of money and investors are circling for those dividends because PROFITs will hit records. Yet, some of these banks are already under severe stress and downgrade is clearly possible; avoid those.

This Area of Tech Is Growing Well in Nigeria

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Security lock concept

The business of digital identity verification, digital data compliance, and digital system security assurance are growing really well right now in Nigeria. Those laws are beginning to work and companies are adjusting for compliance. Also, with many of the law enforcement agencies requiring documented SOPs (standard operating procedures), especially for legal issues, people in this space are having a great rainy season in Nigeria.  This is a huge growth area.

So many innovations are emerging. One of our startups in Tekedia Capital, OneID Global Technologies Inc (oneidtech.com) has invented a way to use your electricity meter number to verify your address, expanding the whole nexus of KYC, by connecting that “address” to an additional physical layer.

Banks, insurers, etc, please explore with the team, and see how their APIs can improve your KYC systems.

Central bank digital currencies (CBDCs) are not yet a Viable Replacement for Cash

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Central bank digital currencies (CBDCs) have been gaining momentum in recent years, as more and more countries explore the possibility of issuing their own digital money. However, according to Dr. James Smith, the head of research at Copper, a leading digital asset infrastructure provider, CBDcs are not yet ready to replace cash as the main medium of exchange in the global economy.

However, according to Dr. Alice Smith, head of research at copper, a leading provider of digital asset custody and trading solutions, CBDcs are not yet ready to replace cash as the main medium of exchange in the global economy. In a recent interview, Dr. Smith shared her insights on the challenges and opportunities of CBDcs, as well as the role of private sector innovation in the digital currency space.

Dr. Smith explained that CBDcs have several potential benefits, such as enhancing financial inclusion, reducing transaction costs, improving monetary policy transmission, and fostering cross-border payments. However, she also pointed out some major drawbacks that need to be addressed before CBDcs can become widely adopted.

One of the main challenges is the trade-off between privacy and security. Dr. Smith argued that CBDcs need to balance the need for user anonymity and data protection with the need for anti-money laundering and counter-terrorism financing regulations. CBDcs require a robust and secure infrastructure that can handle large volumes of transactions, ensure interoperability with other payment systems, and protect users’ privacy and data.

However, developing such an infrastructure is not easy, and may pose significant risks of cyberattacks, system failures, or data breaches. She said that different countries may have different preferences and approaches to this issue, which could lead to fragmentation and interoperability problems.

Another challenge is the impact of CBDcs on the banking system and the financial stability. Dr. Smith said that CBDcs could pose a threat to the profitability and liquidity of commercial banks, as they could reduce the demand for bank deposits and intermediation services.

CBDcs may have implications for the stability and efficiency of the financial system, such as affecting the demand for bank deposits, the transmission of monetary policy, the allocation of credit, and the management of liquidity. However, these implications are not well understood, and may vary depending on the design and implementation of CBDcs. She also warned that CBDcs could increase the risk of bank runs and systemic crises, especially in times of stress or uncertainty.

Dr. Smith also highlighted the importance of innovation and competition in the digital currency space. She said that CBDcs should not stifle or crowd out private sector initiatives, such as cryptocurrencies and stablecoins, but rather coexist and complement them. She said that private sector solutions can offer more diversity, flexibility, and efficiency than CBDcs, and that they can also spur central banks to improve their own offerings.

Regulatory issues: CBDcs need to comply with various legal and regulatory frameworks that govern money and payments, such as anti-money laundering (AML), counter-terrorism financing (CTF), consumer protection, and monetary policy. However, these frameworks may differ across jurisdictions, creating complexity and uncertainty for CBDc issuers and users.

Dr. Smith concluded that CBDcs are not yet a viable replacement for cash, but rather a potential complement or alternative. She said that CBDcs still face many technical, regulatory, and social challenges that need to be overcome before they can achieve mass adoption and acceptance. She also said that CBDcs should not be seen as a panacea or a silver bullet for the problems of the current monetary system, but rather as one of the many possible tools and options for improving it.

CBDcs are still in their infancy, and need more research and experimentation before they can become a viable alternative to cash. He says that Copper is closely monitoring the developments and innovations in the CBDc space and is ready to support its clients with its cutting-edge digital asset infrastructure solutions.