Update: Innoson Motors is disputing this but Vanguard Newspapers which broke the news is yet to remove it from its website (see below). We have updated our articles accordingly. This is largely expected as I wrote in my original piece: “This is not going to be the end of this story – I expect the Central Bank of Nigeria to be concerned.” Certainly, Innoson Motors would not like to score an own-goal here. Yet, why it took it more than 100 hours to respond is another story.

As always, we see our platform as an education arena – and that does not mean endorsement. Tekedia is a school and teaching something does not mean endorsing it. We will continue to share emerging technologies even if we do not endorse them.  Shine your eyes.

Holders of Zugacoin, a cryptocurrency created by Nigerian Archbishop Sam Zuga, can now use it to buy Innoson Motors vehicles.  In short, Zugacoin can be used to buy anything Innoson Group sells and those items include bikes, plastics, etc. The founder of Innoson Group, Innocent Chukwuma, has signed an agreement with the archbishop. The deal happened today – Saturday, March 13, 2021.

Archbishop SamZuga and Chief Dr Innocent Chukwuma of Innoson vehicle manufacturing company have sealed a business partnership deal today, Saturday, March 13, 2021. With this new feat, Samzuga’s Zugacoin can now be comfortably used to purchase any type of vehicle, motorcycles, plastics and all the products under INNOSON companies anywhere in the world.

The archbishop had unveiled his Cryptocurrency platform called Zugacoin on 1st of December  2020, which he said is intended to be used to alleviate poverty and unemployment in Africa. On Wednesday, March 3, 2021 Zugacoin recorded the ground breaking history. “Let it be on record all over the world that ZUGACOIN was first Cashed out/ withdrawn/ changed into Fiat currency on 3rd March 2021 by 13 minutes after 11 Antemeridiam (a.m) Nigerian time against all odds. When God says YES nobody can say no.

And like Tesla which already accepts Bitcoin as a means of payment, Innoson Motors is accepting a cryptocurrency.

Expect this to add  a new dimension in Nigeria if people start paying tithes and offerings with Zugacoin, and the archbishop seats on the crown with the implication that one of Nigeria’s largest manufacturers is forging an alternative currency, outside of Naira. If this happens and thrives, expect a new Nigeria. Simply, people can forget Naira and build their global currency processes on something. 

Who wants to use Naira? Link Zugacoin to USD and Innoson Motors disintermediates the Naira forex paralysis. Yes, it cuts out Naira entirely!

This is not going to be the end of this story – I expect the Central Bank of Nigeria to be concerned because it is coming from an archbishop who ideally prays over thousands, if not millions, of people. In other words, the adoption could be rapid and accelerated! This is not a startup looking for users; this is a temple with members ready for an economic baptism.

Peace unto you – till He comes like we say in the Scripture Union! We will make Zugacoin available for Tekedia Mini-MBA payments once we get the API. This is the Whitepaper and the volume is huge.

Innoson Vehicle Motors – Brand Photos with Prices

Did you notice that the archbishop has created a market cap of $75 million in less than 3 months?

Please anything I write here is purely for academic purposes. I am not recommending anything. Please shine your eyes. But it is newsworthy that one of Africa’s largest manufacturers adopted the coin. Writing on it does not mean one has endorsed it. Be careful please!

Update: This is from Innoson Motors

Press Release

"We did not sign any Partnership with any organization on the use of any form of cryptocurrency for the purchase of any product from Innoson Group."

READ FULL STATEMENT ? pic.twitter.com/MXB4xTODL8

— Innoson Vehicles (@innosonvehicles) March 15, 2021

The total equity market value of all companies traded on the Nigerian Stock Exchange is about $50 billion (about N20 trillion naira). There are 168 of those firms but four companies account for two-thirds of the value, Nairametrics new data shows. Those firms command 65% of the total cap. Those firms are Dangote Cement, MTN Nigeria, Airtel Africa and BUA Cement. Recently, these four firms have been doing spectacularly well in the exchange, creating the illusion that NSE is rocking it. But in reality, nothing much is happening in most of the other entities.

Now, the big question: in the old great Nigeria, we got Unilever, Coca Cola, Nestle, etc to list on our exchange, is there any possibility that Nigeria can get the Unilevers, Nestles, etc of this era to list? Those new era companies are Google, Microsoft, etc which do business in Nigeria.

It sounds crazy and if it does, it shows how our world has changed  by technology. Indeed, no one expects it to happen, but that does not mean that it is not the right thing to do. The presence of MTNN and Airtel Africa have improved the local bourse – and we need to keep pushing to expand the options by getting these great tech firms to list in Lagos.

Kenya is pushing a legislation that would require global digital and web companies to offer a good percentage of their local subsidiaries to nationals or Kenyan-native companies if they want to operate in Kenya. For example, 30% of Facebook Kenya would have to be owned by Kenyans or Kenyan companies. This makes sense if you believe that the wealth of the future will go through digital and web. My only addition is this: do not make 30% of Facebook Kenya available to the few connected in Kenya, push it to trade in the Kenyan bourse! That way everyone will benefit.

This is the biggest deal in the evolution of the African tech systems since Bill Gates pioneered, through Windows and Intel/IBM chips, personal computing in ways anyone could participate.  Yes, foreign companies planning to do business in the Kenyan ICT sector must be required to surrender 30% shareholding to Kenyans, corporates or individuals. This new ordinance is captured in the National Information Communications and Technology Policy Guidelines 2020, which was published last week, spelling out new regulatory mandates for players in the ICT sector: “It is the policy that only companies with at least 30 per cent substantive Kenyan ownership, either corporate or individual, will be licensed to provide ICT services.”

Here is the deal:  Google Nigeria, Facebook Nigeria, and Microsoft Nigeria must emulate Nestle, Unilever, etc and list in Nigeria. They are the industrial (yes, knowledge) powers of the 21st century and Nigeria needs them available for all. Just as we got the old players to do the needful, Nigeria should  get these companies’ subsidiaries to list locally across key African exchanges. People, it is time!

“Therefore it is expected that for this service someone should pay. No service is free. The investment in infrastructure that is driving the USSD service is a huge investment that the telcos made.

 “It is expected that they (telcos) will recoup their investments in order to continue and to expand the service. About N42bn that is owed the telcos has not been paid by the banks for the provision of this service.

“The telecommunications companies cannot unilaterally withdraw this service because it will be seen as a subversive act, undermining the digital inclusion strategy of the present government.

“And no government will sit back and watch while services that empower citizens are being tampered with or withdrawn. No government will standby and watch this to happen.

“So in the next couple of days, we are poised to engage the banks and ensure we reach an amicable resolution where the first item on the agenda that will feature is the payment of this N42bn accumulated debts to the telecommunications companies.”

 “They (rural residents) need phones that are affordable and therefore we must direct our resource in a manner that will bring affordable handsets to the rural population.

This is going to be a big fight since any money recouped from this will likely move to the national treasury, not just the telcos.  You may be surprised to see this as a line item in the funding of the 2022 national budget.

That noted, the loser here is the telecommunication industry. They commoditized a very important revenue line. Even in the United States, USSD services are never free: someone pays for them. Yet, no bank covers that cost here. So, at the end of the day, it is a decision for the customer to make: use the web and pay the data metering cost, use USSD and pay the fee, or take a taxi to the bank halls! That a group of smart people allowed banks to build on top of them, free, is simply unbelievable.

Just as Elon Musk is educating Ford, Toyota and other car companies on how to sell cars, using a software model, the telcos need to open a new playbook. Yes, if someone buys your Tesla, some software licenses do not transfer automatically as the new owner is expected to pay for them. Also, even as an owner, you need to be paying for subscription to receive upgrades on your car software. That business model is Tesla’s best innovation!

I see Tesla as the only current “automobile” company in the world that has a clear playbook to make, possibly, more money on software and services than actually on sales of metals packaged as cars

Who wins this fight? I vote for Nigeria, not telcos.

Comment on LinkedIn Feed

Comment: Having understood our business and environment, sometimes I don’t take Musk to seriously.

My Response: You better take Musk seriously because he is pioneering new business model. His one oasis is the car but he captures value via multiple plays like emission credits, software licenses, etc. Musk does not need to sell a lot of cars if the few has has sold can be sending him monthly income. In other words, Toyota can sell 2m one-off forever. But Musk can sell 100k and those 100k will bring revenue forever. He has a better business – and that is why markets are rewarding him.

New Comment: You haven’t explained how the telcos will lose out here? If they are not getting any revenue from the USSD service support to banks and decide to switch it off, its still the same thing…”No Revenue”, they will simply be standing at the same spot. But the banks will lose access to that channel of service delivery as well as the revenue that comes from there, which by the way is quite a lot. GTB for instance charges N20 per service use of 737 to transact, why can’t they share revenue with the operators that facilitates the platform? If the plug is pulled, who loses? GTB that is already making N20 daily times the thousands of transactions everyday or the telco who is providing the service and is not getting any revenue from it? On this one sir, the banks will lose….not the telcos…..Except the operators are forced not to pull the service as part of the regulatory support for a digital economy…..then they won’t have much bargaining power than to find a middle ground….

My Response: “You haven’t explained how the telcos will lose out here? ” – I did actually in the full piece just that space is not enough to explain here. I did note that any money NCC recovers from this may be used to fund Nigeria’s budget since telcos have not put BIG efforts on this. The banks will never lose as they are better on pricing.

This is what banks will do: if telcos begin to change, banks will ask you to sign a document before USSD banking can be activated. That paper gives them the rights to deduct their fees once you use USSD. Banks will NEVER lose provided the service is operational. Telcos will not cut it out; the best it can do is to ask people to pay. That changes nothing for banks.

Union Bank Plc has updated me after the piece on a rumoured deal between Access Bank and Atlas Mara, Union Bank’s majority shareholder. The bank has clearly noted that it was all rumour and nothing there. I have posted the full feedback. Please take note accordingly. Yet, I will not delete the piece since the source is still there, and most importantly, I noted that it was all rumour, but quickly moved to the perspectives I wanted to share. I do not break news, I only analyze broken ones!

 I have been riding the horse since my first paycheck when after receiving my first salary in Diamond Bank at Adeola Hopewell Street, Victoria Island Lagos, I ran across the street to open a savings account with Union Bank. Till today,, the bank continues to keep its words. So, the horse lives!

From Union Bank

Thank you for your keen and thoughtful analysis of various topical issues pertaining to the financial sector, and the fresh perspective you bring to these discussions. We have come to regard you as a well-respected voice in our industry and beyond.

Your objective, unbiased stance is the reason we are reaching out to provide some clarity concerning your recent article titled ,‘Besides the Rumours of Access Bank Acquiring Union Bank Nigeria’.

We are aware of recent rumours resulting from an article by a blogger who regurgitated an old, misleading news article which has since been debunked.

Please read our statement to the Nigerian Stock Exchange debunking the rumour ( http://www.nse.com.ng/Financial_NewsDocs/32241_UNION_BANK_OF_NIGERIA_PLC%20RESPONSE_TO_ONLINE_PUBLICATI.pdf ) , and Atlas Mara’s statement addressing this issue here ( https://otp.tools.investis.com/clients/uk/atlas_mara1/rns/regulatory-story.aspx?cid=744&newsid=1446833 )

We are sure you will agree that editorial articles/analyses should be based on facts, not rumours and speculations, and as such we hope that you consider updating your article, based on the factual statements referenced above.

Please do not hesitate to contact me should you have questions or require further clarification.

Thank you very much for your time and attention.

Kind regards,

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