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Nigeria Senate Passes Startup Bill

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The Nigerian senate recently passed the Nigeria startup bill (NSB). The bill’s passage followed the adoption of a report of the senate committee on ICT and cybersecurity at the plenary.

Mr. Oseni Yakubu, chairman of the committee that presented the report, disclosed that the bill sought to establish the national council for Digital Innovation and Entrepreneurship. He further revealed that the council will create and develop an enabling environment for technology-enabled startups in Nigeria.

The bill which has been made available to the public, seeks to request an act to provide for the ease of doing business in the country, to ensure transparency, efficiency, and productivity, and for other related matters which passed the second reading.

After consideration, the bill was referred by Senate President Ahmed Lawan to the committee on Trade and Investment for further legislative input. The committee was then given two weeks to report back to the chamber in plenary.

Recall that earlier this year, in March 2022, Nigeria’s startup bill was sent to the national assembly and received by the Nigerian senate. The bill was accompanied by a letter from the presidency which stated that the startup bill seeks to position the country’s startup ecosystem and to establish a national council for digital innovation and entrepreneurship.

The letter reads; “The Nigeria startup bill 2021, aims to position Nigeria’s startup ecosystem as the leading digital technology center in Africa, having excellent innovators with cutting edge skills and exportable capacity.

“In order to do this, the Bill seeks to establish a national council for digital innovation and entrepreneurship. While hoping this submission will receive the usual expeditious consideration of the senate. Please accept, distinguished senate president, the assurances of my best regards”.

The bill which was signed by the President is aimed at providing a structured regulatory framework for startups in the country. The truth is this, without an enabling environment, quality infrastructure, loans, etc, regardless of how innovative startups want to be, it will stifle their growth.

An enabling environment will enable them to thrive, which can also improve the confidence of investors in the Nigerian startup ecosystem. The bill also seeks to promote local content and as well propel Nigerian startups to the global stage, which makes room for them to compete and increase their customer base, which will increase their revenue.

Aside from the increase in revenue for these startups, considering the intrinsic value they add to an economy, they will be helpful to the Nigerian struggling economy by also bringing in local and foreign investors. Therefore, it is imperative that the bill is approved to enable these startups to operate with ease.

With the bill one step closer to the Presidential assent, if approved, this will see that the Nigerian start-up ecosystem will thrive due to the enabling environment. These startups are also seeking loans, tax breaks, incentives, and credit guarantees. Hopefully, all of these will be fully implemented by the government to enable them to thrive effortlessly.

The bill which is stipulated to pass through 3 readings with the house of reps as the next and final phase, hopefully, it will be passed as a law.

Ndubuisi Ekekwe – A Board Member of Africa Fintech Network

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We have advanced fintech in Africa. I am truly honoured to have been in the Board of Africa Fintech Network, working with Ade Ayeyemi, Group Chief Executive Officer of Ecobank, Prof Bitange Ndemo, Dr Segun Aina, and other eminent global leaders, for two years now. Our work is shaping this industry for good. We stay at the top, making sure African fintech innovators and project champions have fertile grounds to operate. This work is just starting. #service

The Love of a Nation Through Constructive Criticism of Public Office Holders

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When I write about national issues, do not think I am attacking governments or our leaders. I can tell you boldly that they do not see the articles that way. In short, many call me and ask for my opinions on many national issues. Early this year, I received an unsolicited “offer” to become a  Director General in a federal government agency. I thanked them but made it clear that it was not the right role for me!

The APC, PDP, LP, etc reach out, seeking my small insights. I admire those working and serving in governments – but we still have to hold them accountable. Ndubuisi Ekekwe has one policy: I belong to ALL parties but I choose none. What that means is this:  I do not go partisan and I try to be objective and balanced, just as what you expect from an academic person.

I have many invitations to the National Assembly from our senators and House members. The last time I went, some took selfies with me. So, do not be confused thinking I am writing against APC.  I want you to understand that APC runs the nation and it has to own the good and the bad. We need to make that point because unlike other parties, it is the one running the show. If PDP or LP or Accord wins, they take the heat.

I write this to help those fixated on “attacks”. Nothing like that. The government invited me last time to attend the Diaspora event in the main ballroom of Aso Rock. I attended and we all chatted with the Vice President, Senate President, etc. This is Nigeria and it belongs to ALL of us, not APC, PDP or LP.  We want a working nation and constructive criticism is appreciated even by the government.

(photo, the last time in the National Assembly. I met many of our leaders and shared how to move the nation forward)

Buhari Weighs Nationwide Ban on Okada Over Insecurity

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Okada driver

For years now, the Nigerian security architecture has been overwhelmed by the raging insecurity in the country. With terrorism, banditry and kidnapping flourishing unabated, the government appears to have exhausted every plan to quell the unrest – now it is thinking of adopting the most common solution to challenges in Nigeria.

On Thursday, the Attorney-General of the Federation, Abubakar Malami, said President Muhammadu Buhari is weighing the possibility of imposing a nationwide ban on the sale and use of okada (motorcycles) by Nigerians.

Per Peoples Gazette, Malami said the administration is considering the wholesale ban due to insecurity that has refused to be contained even though the security agents are giving it their best.

“The government would look into that possibility with particular regard to restriction on use and distribution of motorcycles which is the most conventional logistical means being deployed by terrorists,” Mr Malami said at the State House shortly after a meeting of the National Security Council.

Malami acknowledged that the move will exacerbate Nigeria’s poor economic situation, but said the decision wasn’t easily taken by the administration.

He said federal authorities have been able to find a connection between motorcycles, mining operations and insecurity across the country. But he didn’t explain why the decision will affect nationwide operation of okada when the affected places are mainly the northeast and the northwest.

As the PG noted, Boko Haram insurgents have operated predominantly in the country’s northeastern flank since 2009, while bandits terrorize northwest communities. Among the measures taken by the affected states in the regions is okada ban and cutting off telephone networks. The measures have however, failed to yield favorable results as both banditry and terrorism have continued to flourish in those regions.

In Southern Nigeria, particularly the southwest and southeast, separatist agitation reigns, though it bears lesser weight of insecurity compared to the north.

Malami said the decision was informed by an intelligence report that the administration could not disregard even though it will bring about harsh economic realities. He did not say when the ban will be announced.

The implication

Apart from the mobility crisis that will result from the decision to ban okada, the economic implication will likely outweigh the gain. Millions of Nigerians rely on okada for last mile mobility while hundreds earn a living selling motorcycles and its spare parts.

Revenue in the Motorcycles market is projected to reach $0.92bn in 2022, showing an annual growth rate (CAGR 2022-2026) of 8.68%, resulting in a projected market volume of US$1.29bn by 2026, according to market data firm Statista.

The market’s largest segment is On-road Motorcycles with a projected market volume of $0.55bn in 2022. Motorcycles market unit sales are expected to reach 680.65K motorcycles in 2026, the firm said.

This means that a ban on commercial motorcycles will cut over $100 billion off Nigeria’s economy in the near term, putting thousands of people out of business particularly in states like Anambra and Lagos where the business is predominant.

Security experts have said that the poor economic situation of the country is contributing largely to its insecurity, warning that lack of job has the tendency to push people into violent crimes.