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The BBNaija and Why Showmax is a Promise for Multichoice (DStv, GOtV)

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I am doing very poorly on Twitter. I have struggled on how to write in stanzas with short codes over having space to develop my thought processes. So, that thing is not working. Yet, when I mentioned that BBNaija winner would get a free pass on Tekedia Mini-MBA, the Twitter nation took up that tweet and made it the most popular I had ever written there. Then, I started looking at what was happening. Ladies and gentlemen, BBNaija is a potent brand in Nigeria.

With BBNaija, Showmax has a future online and that means MultiChoice has a potential moat to hold on to some customers from Netflix. BBNaija is the most popular show in Africa right now and if you have it on your online streaming platform, you have something of value. If they clean it up a little (yet to watch BBNaija though; many have noted that it could be crazy for families), they could win more markets, beyond Africa to the Caribbean and North America.

Source: Techcabal

So, if European football holds the world of DStv and BBNaija keeps the online video streaming going for Showmax, MultiChoice may not be as imperiled by Netflix as most are predicting. Bundle the two – DStv’s Football and Showmax’s BBNaija – and you have a new basis of competition in the market.

Like The Bachelor and The Bachelorette which ABC runs in the US, Big Brother Naija (BBNaija) may soon get  Big Sister Naija (SisNaija). And say in three years, open BBNaija and SisNaija supermarkets in selected major Nigerian cities, under a partnership to milk the brand equity. The possibilities are huge.

Source: Techcabal

That Netflix, MultiChoice (DStv, GOtv) Partnership in Africa

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After five years, in Africa, Netflix has 1.4 million users. MultiChoice has about 20 million customers and certainly has deeper roots in the continent. To grow that business, Netflix has moved into licensing local movies and commissioning new ones. Yet, the double whammy where people who do not have a lot of disposable income must first pay for Netflix subscriptions, and then find money to pay for the internet broadband services to binge, makes everything complicated. For MultiChoice, through its satellite TV services, all you need is to pay for the subscription and that does it. So, right at the beginning, Netflix has a new layer on its pricing which has to be managed in Africa. Unfortunately, that layer – the mobile internet – is not within its control.

Netflix is testing if viewers will buy the mobile-only service at N1 200 (about R45) a month, well below the N2 900 it’s been charging for its most basic account. With over 100 million Nigerians living on less than R32/day, it could still be a stretch. …

The offer is still costlier than the equivalent of N250/month charged by Iroko, a streaming platform that has the largest online catalogue of Nigerian “Nollywood” content, including long-running hit comedy Jenifa’s Diary.

For the same broadband cost, the iROKOtv pricing did not work well in Africa. The company had noted that Africa would not be part of its immediate future.

It should not come as a surprise to anyone: selling video streaming products in Africa is a hard business. It is a double whammy for most potential customers: pay subscription fees and then cover the broadband costs. So, it was not entirely unexpected when iROTOtv announced that it was refocusing out of Africa: “Over the next week, IROKO will be defocusing our Africa growth efforts and we will revert to focusing on higher ARPU customers in North America and Western Europe. Even after pushing incredibly hard in Africa for the last 5 years, our international business represents 80% of our revenue today…” This is really a smart move as now the company can focus where it can earn U.S. dollars; I made that case a few days ago when I explained how Nollywood producers are focusing on international markets.

But interestingly, DSTv, owned by MultiChoice, is a distributor for Netflix in Africa which means if you check carefully, this battle is muted. I have called it the unification as MultiChoice closes the flanks, taxing its competitors because it has the pipe to the pockets of Africans. But Netflix is happy with it because it is selling a digital product which has a fairly low marginal cost. Provided there is something coming in as revenue from that DStv deal, it would be fine. And over time, the users will get used to its products and could then go straight to the web and subscribe, disintermediating DStv. 

In June 2020, I wrote, “The weakest link in MultiChoice’s DStv business is defending itself from Netflix. Netflix was picking some of its best customers in South Africa. Also, because Netflix was not under the high voltage searchlight DStv was subjected as a local operating company, by regulators, the cost was not optimized to compete against  the global juggernaut which does not need to open many African locations to do business in the continent. No matter how you look at it, DStv was going to struggle for years to manage the problems from Netflix.” Then, magically, there was a truce and Netflix chose DStv as a distributor. That was wisdom as Disney+ and Amazon Prime were coming after it; the distraction in Africa was not evidently necessary.

Everyone could actually win right now but what happens as mobile internet becomes cheaper would be different. I see DStv waking up one day, in 2022, to decide to part ways with Netflix. Yes, that will come after a clear realization that it has simply used its channels to promote the services of its major future competitor. The future of Netflix in Africa is the web. Whatever it is doing with DStv now is to take care of the marketing budget towards driving higher penetration of the brand in the continent! This is a typical fish bait acquisition construct.

The Fish Bait Acquisition Construct

The Place of Faith-Based Organizations in the Attainment of the SDGs in Nigeria

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September 25th, 2020 marks the 5th anniversary of the introduction of the Sustainable Development Goals by world leaders. The change in nomenclature of the goals which transmuted from the Millennium Development Goals after it was observed that the attainment of the goals for the millennium targets did not materialize. With 5 years already spent, countries of the world, especially those in the developing world, have a decade more to achieve the goals. However, records, observations and perceptions in Nigeria showed that there is more to do if some of the global goals are to be attained by the set target year. What then are the obstacles to be fixed if the global goals are to be attained in the country by 2030?

Experts have identified different issues that the country needs to address before the targets of the goals could be met in the next one decade. In an interview granted by an SDG advocate, Nurah Jimoh, one of the major reasons why the country may not achieve the goals is the country’s leadership’s non-commitment to the achievement of the goals. In other words, the leadership has not been able to walk the talk as far as the goals are concerned. This is coupled with selective attention paid to some of the goals at the expense of the others. This implies that achieving all goals might not be possible.

In addition to the issues of selective attention, another review reveals, is lack of planning and coordination between businesses, academic settings and other concerned stakeholders. If this is considered alongside lack of concrete and specific plans, it could be said that the odds are high against the attainment of the goals by the deadline set for the goals’ achievement. This is aided by low research on the progress of the achievement of the goals from the ivory towers.

Awareness among the populace about the Sustainable Development Goals is low. For instance, a study conducted in Osogbo, southwest Nigeria indicated that the people for whom the goals are meant are not even aware about any of the goals. Of the 404 respondents sampled, a larger percentage of the respondents stated that they were not aware of the global goals (See Exhibit below).

 Level of Awareness of the SDGs among Residents of Osogbo, Osun State, Nigeria (Source: Adebiyi, 2019)

In all of these, what roles are faith-based organizations expected to play in fast tracking the attainment of the SDGs within the stipulated time? As organizations that are closer to the people, the faith based organizations have critical roles to play in achieving the global goals. Owning the global goals at the community level is critical.  The religious organizations could assist in opening the eyes of the community to the importance of the global goals by opening up conversations, raising awareness and mobilizing the adherents of the faith towards the actualization of the goals.

One major faith based organisation that illustrates the idea espoused above is Nasrullahi-l-Fathi Society Worldwide, a Muslim organization with members located across the world. The youth wing of the society had its first edition of a summit dedicated to the Sustainable Development Goals. With the theme “Factivism”, drawn from the United Nations’ theme for 2020, the programme paraded a number of speakers and panellists who are advocates of the SDGs across religious lines.

The keynote given by the Minister of Communication and Digital Economy, Dr. Ali Isa Pantami, laid the foundation for the programme. Focusing on Young People’s Role in Driving Digital Trends to Achieving SDGs, the minister, represented by Dr. Dahiru Abubakar, Head of Operations, National Information Technology Development Agency (NITDA), emphasized the need to involve the youths in the attainment of the global goals. He identified the Nigerian youths’ digital nativity, boundless energies and innovative traits as key features that make them indispensable in the country’s quest to achieve the goals. He then identified different Federal Government’s efforts aimed at ensuring the youths are empowered to contribute meaningfully to the development of the country on a sustainable basis. He charged the youths to invest more in skills acquisition, digital innovation and entrepreneurship. He advised the youths to also embrace mentorship and extensive reading as ways of improving themselves in the task of driving the attainment of the SDGs.

Before the keynote, a session with the title Unleashing the Full Potentials of Youth -Going Extra Mile to Achieve SDG during and Post COVID 19 crisis was facilitated by Mrs Aderinsola Adio-Adepoju, Founder, I-Train Africa. She preached personality development as one of the major ways for youths to unleash their potentials. She encouraged the teeming audience to adopt SWOT analysis of their personalities so that they could fit it in to push the goals.

In the first panellist session titled Examining and Localising the Sustainable Development Goals; Inception, Opportunities, Experiences and Future Challenges, the two panellists, Rasheed Adebiyi of the Department of Mass Communication and Hammed Kayode Alabi, Executive Director, Kayode Alabi Leadership and Career Initiative agreed that though there are areas the country has done well in the movement towards the achievements of the goals, there are still more to be done in some other areas. For instance, the panellists stated that Nigeria has been able to capture its efforts in infant mortality reduction, increase in literacy rate and access to clean water. Yet, they identified shortcomings such as the need to actively involve the young people in the drive towards more success in attaining the goals. This, according to the panellists could be achieved through creating general studies courses on Sustainable Development Goals in the Nigerian tertiary education curriculum. This would go a long way in creating awareness and providing information about how the youths could tap the opportunities presented by the global goals. Adebiyi advocated for a national strategy to coordinate the attainment of the SDGs.

The first panellist session was followed by a technical workshop session on volunteerism. The session was handled by Mrs Sarah Anlade Dantosho, the Executive Director of Sarahtrishpany Limited, Abuja. She highlighted the different types of volunteerism, its purpose and the qualities of a volunteer.  She harps on the need for participants to start their volunteerism from the local in order to grow experience, learn the dynamics and system needed for future international commitments. She concluded by emphasizing that volunteerism is an integral part of attaining the SDGs.

The summit was out to a close with the second and final panel session. The session which focused on Accelerating the Achievement of the SDGs: Critical Entry Points for Muslim Youth had Ismail Sogbade, co-founder Strategy Innovations Hub  and Aderinsola Adio-Adepoju, Founder I Train Africa on board. Both panellists advocated for personal development first before venturing into community development. While Aderinsola Adio-Adepoju stated that environmental scanning, identifying problems and opportunities are important to addressing global problems. Sogbade advised self development and acquisition of both hard and soft skills to be able to push for the global goals.

Faith based organizations have important roles to play if the global goals have to be attained in the next ten years. The roles are far beyond the talks such as the one we had reported. It must extend to increasing awareness and partnership with other organisations to advocate for a sustainable world.

Nigeria’s Oil Workers’ Union Threatens to Shut Down Chevron

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The National Union of Petroleum and Natural Gas (NUPENG), and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), have directed members of their labor union in Chevron to embark on a strike action.

The labor union said in a statement that its members will commence a total shutdown of operations in Chevron to protest the oil company’s decision to lay off 600 Nigerian employees, and its other anti-labor practices.

NUPENG’s President, Williams Akporeha, and the president of PENGASSAN, Festus Osifo, in the statement, also urged the federal government to intervene as the development runs contrary to Nigerian labor laws.

“We have directed our members in Chevron to withdraw their services. We also call on the Federal Government to call Chevron Management to order, otherwise we can no longer guarantee industrial peace in the oil and gas sector.

“Here is our fatherland and we have a labour law that regulates the activities of organizations in Nigeria; this law cannot be breached; we must follow the process. This development runs contrary to Nigeria’s laws regulating the Oil and Gas Industry as it does not protect our national interest.

“This is an imperialist agenda that must not be allowed to stay; most especially as we have just finished celebrating our 60th independence as a sovereign country,” the statement said.

The news broke that Chevron had informed about 2,000 of its employees on Independence Day that their services are no longer needed. The aggrieved employees said the company plans to replace them with expatriates. And according to the union leaders, Chevron management is asking the affected employees who wish to remain with the company to apply afresh.

However, the proposed shutdown will unlikely force Chevron to reinstate the sacked workers as it appears the layoff was compelled by COVID-19 realities.

Responding to the development earlier, Chevron’s General Manager, Policy, Government and Public Affairs, Esimaje Brikinn said the company places priority on the welfare and safety of its workforce, but the step is necessary to keep the company in business.

“Making changes to the organization is never easy for anyone that will be impacted, but it is to improve our ability to remain competitive in Nigeria. Reducing the cost of our operations is critical to generating more revenues for the Federal Government of Nigeria,” he said.

Other oil companies did the same.

The oil industry is among the hardest hit by COVID-19 pandemic, forcing companies in the sector to take drastic survival measures that include laying off staff.

Chevron’s rival Shell, cut its 2020 expenditure plans by $5 billion to $20 billion as the strains of the pandemic hit the oil market. The Dutch company has since explored other ways to save costs, including job cuts.

Shell Chief Executive Ben van Beurden said the company has launched a program of “redesign” that is aimed at cutting operational cost to the barest minimum. He said in July that Shell was working to deliver $3 billion to $4 billion in cost savings by the end of March 2021, and the measures include job cuts and suspending bonuses.

British Petroleum announced plans in June to cut 10,000 jobs following the decline in oil demand. The company’s Chief Executive Bernard Looney said oil price plunged well below the level the oil giant needs to turn a profit. “We are spending much, much more than we make – I am talking millions of dollars, every day,” he said.

With the global economic turmoil wreaking havoc on the oil industry, Chevron is clearly following the steps of other oil companies to stay afloat. Oil prices are still wobbling around $40 per barrel, and many sectors of the global economy yet to fully reopen, the survival of oil companies appears to depend solely on reducing operational cost, including cutting jobs.

Innoson Motors is Building Southeast Nigeria Industrial Base

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He is today the most important businessman in Southeast Nigeria.  Yes, Innocent Chukwuma, the founder of Innoson Motors, continues to advance his nation through entrepreneurial capitalism. Plentywaka joins the expanding ecosystem. Who needs to drive from Lagos, etc to the village if there are buses and cars which can help you get around locally while in Southeast?

As part of the plans to expand into the South-eastern part of Nigeria, Plentywaka, the first bus-hailing app in Nigeria, would be collaborating with Innoson Vehicle Manufacturing (IVM), Nigeria’s first indigenous automotive manufacturer to bolster Plentywaka’s fleet with a host of new vehicles as they continually work at upgrading bus travel in Nigeria.

This is a first-of-its-kind collaboration for both companies coming together to foster the growth of safer, convenient, and more comfortable means of travel for Nigerians. It is perfectly coming at a time where Plentywaka just clocked one year of full operations, raised $300,000 investment, with 200,000 completed trips and 40,000+ downloads on its mobile app while concluding plans to break into the South-eastern states in the last quarter of 2020, starting with Delta State.

This partnership is set to ease the burden of commuters in the region still facing the age-old problems of a lack of safety, comfort, and convenience which has plagued Nigeria’s bus network for decades. Plentywaka is set to make a major bid to replicate the success of its tech-driven service in Lagos and Abuja to upgrade the state of bus travel in both states.

Innoson is carving out a new niche with partnership with transport companies. The Nigeria’s indigenous carmaker, earlier announced partnership with Uber and Bolt to provide ride-hailing services in the Southeast, through a hire-purchase scheme designed to empower drivers.

Well done Mazi – we salute your vision and tenacity.