Ah, you warned me and I didn’t listen. I thought I would cash out before they abscond!
That was the lamentation of Confidence, my good friend after losing a huge sum of money recently in a ponzi scheme called FoxBet. You may find it hard to believe that a financial expert with years of experience could be easily defrauded by a group of rogues having less of his experience but smarter. As it’s said in Africa, a dog that’s destined to stray will not heed the hunter’s whistle. However, I must admit that no matter how smart and careful we are, we sometimes fall victims.
It all started four days back when I received an urgent call from Confidence asking me to lend him some money. The amount was considerable that I had to query the purpose and when I should get back my money. He narrated how one of his colleagues invested the sum of N100k and cashed out N140k within two days. Incredulous! I exclaimed. What’s the name of the organization and what are they into? I asked.
They’re into football betting. This is a sure bet! They know people who know some players. They agree with them to commit fouls and get yellow carded during matches. The odds are certain, he explained excitedly. I counseled him that this sounds too good to be true. I cannot gamble my money away. He was desperate that he even offered me 50% of the gain if it comes out fine, if not, he will only return my capital. It was then I reminded him of Murphy’s Law which says, “Anything that can go wrong will go wrong.” I also went further to quote the 4th and 5th Laws of Gold according to the Richest Man in Babylon.
The Fourth Law of Gold
Guard thy treasure from loss: Every owner of gold is tempted by opportunities where it would seem that he could make large sums by his investment in most plausible projects. Often friends and relations are eagerly entering such investment and urge him to follow.
The Fifth Law of Gold
Gold flees the man who will trust it to impossible earnings or who follow the alluring advice of tricksters and schemers, or trust it to his own inexperience and romantic desires in investment.
Using these financial principles, I deduced the Wealth Creation Curve, WCC. With the aid of the following graphs we will see how the odds were against my friend.
Definition of Terms
R = Returns, profit, commission, interest, etc.
T = Time
a = Risk factor
& (flattened) = Infinity
Normal Case
Consider Figure 1, as an investor you must start from the downstream at point a to earn r1 after doing time t1. To earn r2 upstream at point b, you must do time t2.
Abnormal Case
From Figure2, you create a Backward Bending Wealth Creation Curve when you try to earn r2 at t1, that is, point c. As you force the WCC backwards, you increase your risk to the point where a = R. This is the point you risk losing all your investment.
“The game is so arranged that it will always favor the keeper. It’s his business at which he plans take a liberal profit for himself from the coins bet by the players. Few players realize how certain are the game keepers profit and how uncertain are their own chances.
Conclusion
Despite the obvious red flag of FoxBet not using the formal financial channel of transaction preferring to deal in cash, Confidence was only true to the meaning of his name, albeit for the wrong reason. I will drop my pen with the last quote from the book.
“Wealth that comes quickly goeth the same way. Wealth that stayeth to give enjoyment and satisfaction to its owner comes gradually, because it’s a child born of knowledge and persistent purpose.”
I started Tekedia Mini-MBA in the Abuja airport lounge as we flew back from Nigeria after Christmas with family. By the time we landed in the U.S, there were many surprises. Thanks. As we move into the next phase, we are hiring in Owerri (Nigeria) and the US to improve our products. Also, we are building an app (web and mobile) which will be like a Facebook page and Whatsapp to deepen collaboration and innovation processes in our ecosystem.
One of the areas we will invest is to find how to use local cases to help our members. The investment brief/concept note we created for Lab 1 (of edition 2) has helped many to unlock opportunities. Members have rated the report Excellent. Our job is to use such documents to co-learn and co-educate.
But the first move is to update our certificate; we are retiring the old one for this. Please we will replace your old certificate if you ask, and new members, this is what you would get. Paul Adeneka designed this.
We are onboarding a university for the students to participate in two series we have created for schools – The Innovation of Firms, and The Wealth in Nations. For more on Tekedia Programs, go here.
As always, I want to thank our members for this call to serve in this capacity.
For a number of years, the University of Ibadan, the University of Nigeria, the University of Lagos, the University of Benin, the University of Calabar, the Ahmadu Bello University, Obafemi Awolowo and University of Maiduguri have been in existence. From various sources, these universities have placed and still placing Nigeria on the global academic community in terms of producing quality graduates and researches.
Like other universities in the world, these universities have experienced and still passing through a lot of difficulties in their quest of realising mission and vision of 21 century universities, expected to have dynamic resources and ensure equal opportunity for everyone irrespective of socioeconomic and gender status. In spite of this, information indicates that appointment of vice chancellors for these universities and the newly established universities has been in favour of male academics more than female academics. Apart from the gender imbalance, available information also shows that vice chancellors have been appointed mostly from the state and region where the Universities are located.
On different fora, leaders of some of the Universities established after the 9 oldest Universities have debunked allegation of total disregard for the Federal Character Commission Principles in the appointment and promotion of staff. To some Public Affairs Analysts, Nigerian universities will remain local as long as regionalization and gender imbalance continue to characterised appointment of vice chancellors and employment.
“In the past things were different. For instance, the first vice-chancellor of UNILAG was Prof. Eni Njoku (1962-65). He was non-Yoruba. There was also Prof. B. Kwaku Adadevoh (1978-80), non-Yoruba. There was Prof. Dike, an Igbo, who was UI’s VC. Then, the first indigenous ABU administrator, Prof. Audu, was a northern Christian. Prof. Akinkugbe, from Ondo State, was ABU’s VC (1978-1979).”
Our Data and Measures
To put the discourse into a new perspective, our analyst examined demographics of the past and current [excluding those in acting capacity] vice chancellors of the oldest University in Nigeria. Emphasis was on their gender and state of origins. Out of the 9 Universities, comprehensive data were only found for 6 Universities. Efforts to get the details of the past Vice Chancellors ta the University of Maiduguri, the University of Benin and the University of Calabar were not successful throughout our two months of mining the needed data.
These Universities do not have the list of the past VCs like other Universities. Attempt to get data for the state of origins of Professors Oleka K. Udeala, Chimere Ikoku and Herbert C. Kodlilinye, past VCs of the University of Nigeria, on the Internet was equally not successful because their profiles do not include the data. Out 6 past Vice Chancellors found for the University of Maiduguri, Professor Ibrahim Abubakar Njodi, Professor J. D Amin and Professor Mohammad Nur Alkali hail from Gombe, Adamawa and Yobe respectively. We did not find data that establish state of origin of Professors Aliyu Shugaba, Mala Daura and Abubakar Mustapha. Professor Zana Akpagu hails from Cross River State and found as one of the past Vice Chancellors of the University of Calabar. We did not discover data that indicate state of origin of Professor James Epoke, another past Vice Chancellor of the University.
For the 9 Universities, our analyst found that 85 professors have led the University [some are still leading the Universities]. Looking at the number from a gender perspective, all the professors were/are male [see Exhibit 1]. Professors Grace Alele-Williams and Lilian Salami as past and current Vice Chancellor of the University of Benin are only substantiative female VCs.
Emerging Insights
Available data reveal that the University of Ibadan, the University of Lagos and the Ahmadu Bello University have had 12 substantive Vice Chancellors. With 11, 10, 9 and 8 Vice Chancellors, the Obafemi Awolowo University, the University of Ilorin, the University of Nigeria and the University of Benin respectively, followed the University of Ibadan, the University of Lagos and the Ahmadu Bello University. Available data also establish that the University of Maiduguri and the University of Calabar have had 6 and 2 Vice Chancellors respectively.
Over the years of appointing Vice Chancellors of the University of Ibadan, Professors from Osun state have been appointed more than others in the South-West region, where the University is located. Professors from Ogun state are trailing those from the state. This insight is not quite different in Obafemi Awolowo University. Professors from Oyo and Osun states tied in terms of occupying the position in the last few years. At Ahmadu Bello University, Professors from Kaduna state have held the position more than others in the North-West region. Professors from the South-West region, especially Ogun and Ekiti states, have been appointed more as Vice Chancellors of the University of Lagos than those from other states in the region. In a twist of regionalization of the appointment of the Vice Chancellors, Professors for the position at the University of Ilorin have largely been from Kwara state, a state in the North-Central region and Ogun state, a state from the South-West region. Anambra and Enugu states born Professors have been Vice Chancellors of the University of Nigeria than other Professors from South-East region, where the institution is situated. The University of Benin has been led by Professors from Edo and Delta states more than other states in the South-South region.
In our earlier analysis, it has been noted that the wording of vacancy advertisement for the Vice Chancellor position is giving male professors edge over female professors. This needs to be addressed in subsequent advertisements. Masculine-words should be downplayed while calling for submission of applications. Appointment of the new Vice Chancellors mostly from the ranks of formers deputy vice chancellors and deans is also putting female professors at disadvantage because only a minority of female professors occupy the positions [DVCs and Deans]. From the present insights, it is difficult to accept that Nigeria is fostering national unity, cohesion and promote a sense of belonging among all Nigerians working in the Universities.
The increase of petroleum pump price to N151.56 has resulted in uproar. There was wide condemnation of the increase by Nigerians following the announcement by the Pipelines and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Commission (NNPC), on Wednesday.
The PPMC’s, D.O Abalaka announced the increment through a statement which reads: “Please be informed that a new product price adjustment has been effected on our payment platform.
“To this end, the price of Premium Motor Spirit (PMS) is now one hundred and fifty one naira, fifty-six kobo (N151.56k) per liter. This takes effect from September 2, 2020.”
Upon the news, Nigerians took to social media to register their displeasure over the development.
“Misroad & mishap of a government we have, not minding the rippling effect on the citizenry, we can’t call this insensitivity again, this is just pure Evil!” Engr. Segun Akande wrote on Twitter. “How do you expect citizens to live with these erroneous eroding steps, when government is deliberately inflicting excruciating pain on its people? We need God’s intervention, this government is callous.”
“Oh God, have mercy on us, the masses, the government continues to increase prices of essentials; petrol, power, taxes, salary remain static for those that are working, majority are jobless, no income for many, oh God have mercy on us,” Modupe Lawal said.
They were among the many voices that called out the federal government for the fuel price hike. Others shared video clips of the 2012 national protest, instigated by former President Goodluck Jonathan’s attempt to remove the petrol subsidy then. They said that the most glaring message in the video clips is that many of the protesters are in government today.
Though some members of the Nigerian House of Representatives have waded into the matter, ordering PPMC to halt the implementation of the new pump price, the reversal seems unlikely.
In a statement on Wednesday, the Minority Leader of the House Ndudi said the pump price increment is unacceptable as it would result in further hardship for Nigerians.
“The increase is unacceptable as it will result in an increase in the already high cost of consumer goods and services, and worsen the current economic hardship being suffered by Nigerians,” he said, adding that “the minority caucus in the House of Representatives rejects the announced increase in the pump price of fuel.”
Consequently, the Minority Caucus ordered PPMC to immediately rescind its announcement and revert to the former price.
In solidarity with Nigerians, the Nigerian Labour Congress (NLC), who led the protest back in 2012, rejected the price hike. The president, Comrade Ayuba Wabba said the Federal Government is taking Nigerians for granted by inflicting more hardship on them in the face of a global health crisis.
“It is like Nigerians are being taken for a ride, the increase in price of petroleum is like adding insult to injury. The increase in price of petroleum has happened now more than three times in three months, only yesterday (September 1) they hiked the tariff of electricity. And to compound it they also reduced the interest rate of savings which affects mostly the poor and the vulnerable,” he said.
While the reactions of both the House’s Minority Caucus and the NLC are being applauded by many, it shows that most Nigerians are yet to understand the implication of fuel subsidy removal.
In March, the NNPC GMD, Mele Kyari announced that fuel subsidy has been totally removed and there is no going back to it.
“There is no fuel subsidy anymore in Nigeria. It is zero subsidy forever,” he said. “There would be no resort to either fuel subsidy or under-recovery of any nature. NNPC will play in the petroleum marketplace, just like another marketer in the space.”
The removal of the fuel subsidy means that the Federal Government will no longer pay for Nigerians to buy PMS at a cheaper rate, they will now have to buy according to global oil prices. It’s a reality many failed to grasp immediately due to the downturn in the oil market.
Back in March, there was a massive decline in oil prices due to COVID-19 pandemic, so that the government had to reduce fuel price from N143 to N125, and subsequently reduced it to N123.50 in April. Therefore, the impact of the subsidy removal wasn’t immediately felt. However, as economies began to open, oil demands increased accordingly, forcing Nigerian petroleum marketers to increase the pump price.
Today, the Brent Crude is $44.56, which is a significant growth from the past decline and a big trouble for Nigerians. Alas, many are oblivious of the bitter reality of rising crude prices, which means that they will continue to buy fuel at higher cost as long Nigerian refineries are not working and the government is not paying to subsidize the cost.
According to Facebook, “Facebook Shops is a mobile-first shopping experience where businesses can easily create an online store on Facebook and Instagram for free. Shops let you choose which of your items you want to feature, merchandise with product collections and tell your brand story with customizable fonts and colors. In Facebook Shops, you’ll be able to connect with customers through WhatsApp, Messenger or Instagram Direct to answer questions, offer support and more”.
If you look carefully, that is what Jumia does. Simply, Jumia has a big Facebook Inc (Messenger, Instagram, and Facebook) problem just as movie theaters have YouTube problems in Africa. Provided these dominant ICT utilities are expanding, companies like Jumia will be left to do the hard jobs as women wigs, clothes and other easy things thrive on Facebook. Facebook has the demand and could run a quasi-marketplace better than any company in the world right now.
In this videocast, I discuss the future of e-commerce in Africa and why the sector is still anyone’s game to win despite the presence of key competitors. The loss-making sector demands someone with capital to boost logistics and accelerate scale to make money. Today’s leaders are not doing that yet, and can be easily disrupted and displaced. But there are challenges in competing in this sector because the environment and the fundamentals are toxic with largely no infrastructure to key in. The business competitive factor is not the internet or website but logistics. Winning this sector to become a category-king will be settled by a company that can invest, at scale, in logistics to serve more cities and countries.
