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Structuring Companies and Going Global, Out of Africa

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Join me tomorrow at Africa’s largest business school for entrepreneurial capitalism as we discuss “Structuring Companies and Going Global, Out of Africa”. At Tekedia Capital, this is what we do weekly as we prepare our portfolio companies to evolve out of Africa, and be positioned for global finance and opportunities. Zoom link in the Board school.tekedia.com.

Tekedia Mini-MBA >> a business school for innovators and makers.

Tekedia Institute offers Tekedia Mini-MBA, an innovation management 12-week program, optimized for business execution and growth, with digital operational overlay. It runs 100% online. The theme is Innovation, Growth & Digital Execution – Techniques for Building Category-King Companies. All contents are self-paced, recorded and archived which means participants do not have to be at any scheduled time to consume contents. Besides, programs are designed for ALL sectors, from fintech to construction, healthcare to manufacturing, agriculture to real estate, etc.

 

How Over-Reliance On A Social Media Platform Can Cause Start-Ups To Fail

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We often hear this proverb, “don’t put all your eggs in one basket” which implies that you shouldn’t concentrate all your prospects or resources on one thing or place, or you could lose everything. It is quite surprising that a lot of people still do not heed to this advice, as they often fall victim to certain consequences, merely by concentrating all their resources on a single thing. This article talks about the need for start-ups to desist from depending their business on social media platforms.

While going through my Twitter feeds, I stumbled upon a thread that spurred me to write extensively on this. According to a young man who composed the thread, he is a start-up founder who owned a media company. He talked about how his over-reliance on Facebook cost him his start-up business. In 2018, his female feel-good entertainment company was pushing at $75m+ a year in revenue, having 110 amazing creative employees and a fledgling OTT streaming channel. According to him, he built the business on the backs of Facebook, drinking from their firehose of eyeballs. The business growth became so outstanding and the traffic and video views skyrocketed beyond Buzzfeed, ABC, CNN, and Fox news.

His media company became masters at harnessing Facebook’s newsfeed with feel-good articles, videos, and stories. At their peak, they had 20MM social media followers, 40MM Comscore monthly uniques, 15MM live programming views per month, and 90M video views per month. Their live shows included 4+ hours a day of original unique programming. These remarkable achievements earned the start-up company the admiration of Facebook where they were constantly hosted at its headquarters with Facebook profiling little things about them at their conferences on how to build a media company.

With the uncertainty of life, the unusual happened. In his words, “In February 2018 the algorithm had a major shift. Now, we have been through tons of algorithm changes before, so this didn’t worry us at first, but something was different. Our high-level contacts at Facebook said Zuckerberg didn’t like the fluffy content we were producing and he wanted to be taken more seriously. He wanted the country to respect Facebook and get their actual news there ( previously it was family/friends update, feel-good viral content)”. 

This move by Facebook spelled doom for this start-up company as they watched helplessly as 90% of their organic traffic from Facebook dried up. Tragic! Totally displeased with the recent hiccup, the company reached out to Facebook and the feedback they got was that Facebook’s new focus wanted hard-hitting news and opinion pieces, meaning if they wanted more traffic, they would have to pay for it through sponsored ads. This is a start-up that was already spending close to $4m a month on Ads, so Facebook assumed they would spend more to achieve their desired results considering the algorithm change. The start-up began to accrue more losses than profit which eventually led to it folding up.

One costly mistake this start-up made which the owner disclosed was their failure to diversify on other alternative platforms big enough to balance out the insanely large amount of views they had on Facebook. They got so addicted to Facebook’s volume of traffic and had no other platform that could move the needle. This story above-mentioned should be a cautionary tale to every start-up to diversify their options. Knowing fully well that they are not the owners of various platforms they use, they should have it at the back of their minds that a simple algorithm can debilitate their years of hard work. It’s more like building on rented land because it can be taken at any time by the owners without minding whose ox is gored.

The ideal thing for start-ups to do is to scale one channel then diversify. This doesn’t mean that a start-up can not build on existing infrastructure, rather they should not give room for over-reliance and have a good exit/diversification strategy without dilly-dallying. This implies that they could create their websites to redirect traffic to their sites. We have often heard of cases where Facebook and Instagram accounts had to be either taken down or restricted forcing most start-ups to start afresh. The painful truth is that these platforms are actually in control of the audience and activities that go on there.

Unforeseen changes to API bans can ruin a start-up business overnight. Outside of just diversifying, companies need to develop their communities such as websites, discord, email list, etc. We can remember vividly when IG, Whatsapp, and Facebook experienced a total blackout for some hours which happened a year ago. That was indeed a wake-up call to all those solely relying on using these social media platforms to run their business, that by a push of a button, their business can be jeopardized. Start-ups need to know that when these platforms seem unfavorable, they should blame not the platform but themselves for failing to understand the risk involved.

There are rules even in war times; Laws against war crimes

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Russia invaded Ukraine and Ukraine with  their allies; NATO and USA could probably retaliate by invading Russia and when this happens, it will definitely lead to the break out of another war. 

It should be noted that during war times “everything or anything doesn’t go”. Even while countries are at war, they are mandated to conduct such war in line with the rules and principles of the International Humanitarian Law (IHL) and if they do not, they will be tried and sanctioned for committing war crimes. The IHL rules apply to international armed conflicts alone.

The International humanitarian law (IHL) which is also referred to as the laws of armed conflict, is the law that regulates the conduct of war (jus in bello). It stands as a branch of international law to limit the effects and the aftermath of armed conflict by protecting persons who are not participating or who are not parties in the  hostilities i.e. the civilians (hors de combat; outside of combat) and by also restricting and regulating the means and methods of warfare available to combatants.

The IHL does not care about who started the war or the reasons for the war or the justifications for the war, what the IHL cares about is the regulation of the war and that rules must be followed during the war time and anything done  outside the rules of the IHL will be regarded as a war crime. These rules are to protect both the civilians and the combatants and to reduce collateral damages to its barest minimum.

There are 6 basic  rules of the IHL that apply to international armed conflict; these include the four 1949 Geneva Conventions,  the 1977 Additional Protocol I and the rule of customary international humanitarian law.

These six basic  rules of the IHL to be obeyed in war times include:

Attacks should be made solely against military objectives. This means that soldiers/combatants are only permitted to attack military objectives and not permitted to attack civilian objectives. Therefore, it amounts to war crime when civilian objectives are targeted and attacked during war. A place marked out for civilian dwelling and residences like civilian concentration camps, estates, refugee camps, places of worship, schools etc are prohibited to be attacked. People who do not or can no longer take part in the hostilities are entitled to respect for their lives and should be allowed to live.

It is forbidden and constitutes a war crime to kill or wound an adversary (a combatant or a soldier) who surrenders or who can no longer take part in the fighting due to sickness or ill health. When a soldier surrenders or  he is wounded to the extent that he cannot no longer partake in the war, he is to be treated like a civilian. It constitutes a war crime when a soldier shoots or orders another soldier who has surrendered or who is not armed to be shot. A wounded soldier is not to be maltreated or taken as hostage, he is to be given all necessary care for the time being. 

There are weapons that are highly forbidden to be used by soldiers during war times. You are not allowed to use a weapon that kills slowly or causes a painful death. Neither the parties to the conflict nor members of their armed forces have an unlimited right to choose methods and means of warfare. It is forbidden to use weapons or methods of warfare that are likely to cause unnecessary losses or excessive sufferings to combatants. 

When a country is invaded, the wounded and the sick should be collected and treated by the country that invaded them. When the sick and wounded are left to die or untreated, it constitutes a war crime. Medical personnels and medical establishments, transports and equipment must be spared during war times to care for the sick and the wounded. 

The red cross or red crescent on a white background is the distinctive sign indicating that such persons and objects must be respected. It is a war crime to target or attack a Red Cross member or their facilities or other relating  medical personnels during war times because they are the ones that collect and care for the wounded and the sick; both wounded combatants and civilians. 

Captured combatants and civilians must be protected against all acts of violence. Those who find themselves under the authority of the adverse party are entitled to respect for their lives, their dignity, their personal rights and their political, religious and other convictions. They must enjoy basic judicial guarantees

Although there are rules, basics rules of international armed conflicts but the applicability and the enforceability of these rules has always been the problem and this will definitely be the story for another day but the take home for today is that there are rules that regulate war times and warring parties are to conduct the their activities in accordance with the IHL rules if not they will be said to have committed war crimes.

Buhari’s Speech After Signing Landmark Electoral Bill Into Law (full text)

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ADDRESS BY HIS EXCELLENCY, PRESIDENT MUHAMMADU BUHARI, PRESIDENT FEDERAL REPUBLIC OF NIGERIA AT THE SIGNING OF ELECTORAL BILL 2022 INTO LAW

STATE HOUSE, ABUJA

FRIDAY 24TH FEBRUARY, 2022

The Electoral Act (Amendment) Bill 2022, passed by the National Assembly forwarded for Presidential Assent, via a letter dated 31st January, 2022. In line with established tradition, I received inputs from relevant ministries, departments and agencies of government after careful and thorough reviews of the Bill and its implications to democratic processes in our country.

  1. It is gratifying to note that the current Bill comes with a great deal of improvement from the previous Electoral Bill 2021. There are salient and praiseworthy provisions that could positively revolutionize elections in Nigeria through the introduction of new technological innovations. These innovations would guarantee the constitutional rights of citizens to vote and to do so effectively.

  2. The Bill would also improve and engender clarity, effectiveness and transparency of the election process, as well as reduce to the barest minimum incidences of acrimony arising from dissatisfied candidates and political parties.

  3. These commendable efforts are in line with our policy to bequeath posterity and landmark legal framework that paves the way for credible and sound electoral process that we would all be proud of.

  4. Distinguished Senators and Honourable Members of the National Assembly, from the review it is my perspective that the substance of the Bill is both reformative and progressive. I am making this bold declaration because I foresee the great potentials of the Bill. Worthy of note include the democratic efficacy of the Bill with particular reference to sections 3, 9(2), 34, 41, 47, 84(9), (10) and (11) among others.

  5. This however, cannot be said about one provision as contained in the proposed Bill, which provision constitutes fundamental defect, as it is in conflict with extant constitutional provisions.

  6. Section 84 (12) constitutes a disenfranchisement of serving political office holders from voting or being voted for at Conventions or Congresses of any political party, for the purpose of the nomination of candidates for any election in cases where it holds earlier than 30 days to the National Election. The section provides as follows:-
    “No political appointee at any level shall be voting delegate or be voted for at the Convention or Congress of any political party for the purpose of the nomination of candidates for any election”.

  7. This provision has introduced qualification and disqualification criteria that ultra vires the Constitution by way of importing blanket restriction and disqualification to serving political office holders of which they are constitutionally accorded protection.

  8. The practical application of section 84(12) of the Electoral Bill, 2022 will, if assented to, by operation of law, subject serving political office holders to inhibitions and restrictions referred to under section 40 and 42 of the 1999 Constitution (as amended).

  9. It is imperative to note that the only constitutional expectation placed on serving political office holders that qualify, by extension as public officers within the context of the constitution is resignation, withdrawal or retirement at least 30 days before the date of the election.

  10. Hence, it will be stretching things beyond the constitutional limit to import extraneous restriction into the constitution on account of practical application of section 84(12) of the bill where political parties’ conventions and congresses were to hold earlier than 30 days to the election.

  11. Arising from the foregoing, with particular regards to the benefits of the Bill, industry, time, resources and energy committed in its passage, I hereby assent to the Bill and request the Nationally Assembly to consider immediate amendments that will bring the Bill in tune with constitutionality by way of deleting section 84(12) accordingly.

Thank you may God bless our country.

Tackling National Economy Via Technological Strategy

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At the moment, Nigeria doesn’t need a soothsayer to tender that she’s seriously in need of a rethink towards revamping the current pathetic physiognomy of her economy.

The present Nigeria’s economic value is arguably dwindling, thus requires a serious and candid strategy if the concerned authorities are genuinely prepared to deploy the needed political will towards salvaging it.

However, it’s pertinent to acknowledge that the recommended measure cannot be successfully applied if we fail to employ a tech-driven approach. This implies that technology remains inevitable towards salvaging the country’s economic posture that currently bears a pathetic look.

Development at any phase is always linked to technology and the latter takes place when there’s advancement in science. In other words, science, technology and development are all proportional to each other.

It’s imperative to acknowledge that development is required in every individual as well as nation, in all aspects. And for such effect to occur, science and technology must go hand-in-hand. Science is known as the study of knowledge, which is made into a system, and depends on analyzing and comprehending facts. Technology is the application of this scientific knowledge.

For any successful economy, particularly in present times, science and technology are the rudimentary requisites. If any nation fails to utilize these, then the chances of getting itself developed becomes minimal.

Technology is associated in all means with modernity, and it’s an essential tool for rapid development. Hence, any country that’s not able to prosper in this regard would never be able to sustain the lives within its jurisdiction and may have to solely depend on other countries for survival.

It was estimated by the World Bank that seven of the ten largest economies of the world by 2020 would be in Asia, including Japan, China, India, Indonesia, South-Korea, Thailand, and Taiwan. The economic prophecy eventually came to pass. This is because the countries in question were able to leverage the impact of technology on societal growth.

Just a few decades ago, most of these countries were known to have poor policies, low discipline and no advancement. But with an effective introduction of technology, they have succeeded in making waves all over the world.

Nigeria obviously needs to emulate them. Rather than begging them to come over and help us develop the country, let’s ascertain how they made it to the top, so we can apply the same techniques without seeking their assistance since we have all it takes to perform independently.

The truth is that the required manpower and resources abound in Nigeria. What the government needs to do is to recognize the needed labour-force and the available endowments, then consequently endeavour to do the needful.

They must be prepared to devote reasonable commitment, which is a product of time. This is where political will comes in. You must be willing to sacrifice your time and energy to a cause you believe in, if you really want it to become an absolute success.

Nigeria is ostensibly being taken aback by her leaders. If not, this country would have gone several steps ahead of where it is today. If the government must do the right thing as expected, it has to revive all moribund technical colleges across the country, resuscitate the ongoing Students Industrial Work Experience Scheme (SIWES), and adequately equip all the science-oriented departments in institutions of higher learning.

Furthermore, teachers’ wages must invariably be taken very seriously. These are the fundamental ways the country’s education sector can be strengthened. Similarly, the health sector, which is awash with outdated facilities, must equally be liberated by providing befitting structures and equipment that can stand the test of time. The country is already blessed with countless health experts, but they lack the needed environment to showcase their expertise.

Moreover, Nigeria lacks an industry where science and technology can thrive, thus she needs to create one by setting up an enabling environment that can accommodate every professional irrespective of their field or area of specialization.

Owing to the lack of such an anticipated environment, the country loses hundreds of talents and patents on a daily basis via brain drain. The government must be willing to assist anyone who has an idea, and not to abandon him or her to rot. A reliable agency that can listen to people’s ideas and channel them to apt quarters ought to be set up by the governments at all levels.

For urgency’s sake, we must embrace the agric sector through implementation of mechanized farming instead of the ongoing crude pattern. As regards the mining sector, the concerned authority must extend the hand of fellowship to the cognoscenti whom must be indigenous, towards acquiring efficient output.

The power sector cannot be addressed if we fail to supplement the existing hydro pattern with other such available generation sources as solar, wind, biomass, and coal. The Tourism industry can equally be made more viable by inculcating tech measures in the system.

Security, on its part, cannot be left out while discussing technology. If the needed resources – both human and material – are eventually made available but aren’t well safeguarded, it would be an effort in futility in the long run.

Among all, tax evasion can only be properly tackled if we employ adequate forensic techniques. It’s not anymore news that countless establishments domiciled within the shores of the country have unabated dodged payment of taxes, yet nothing is being done about it, perhaps because the required mechanism to tackle the menace isn’t made available.

Even corruption, which remains the bane of the country’s democratic system, can’t be duly fought if tech strategic approach is jettisoned or relegated to the background.

There’s absolutely no way Nigeria’s various economic diseases can be aptly treated without engaging tech strategy.