The Nigerian government plans to close the 3rd Mainland Bridge for necessary repairs. The plan is to complete the work within six months!. Yes, 6 months. Channels TV reports that the shut down will begin on July 24. Call it a Traffic-geddon in Lagos. Lagosians, this 2020 na wa ohh!

The Federal Government is set to shut the Third Mainland Bridge for six months starting from Friday, July 24.

This was confirmed by the Federal Controller of Works in Lagos, Olukayode Popoola.

According to him, consultations are ongoing for another phase of repair works to begin on the 11.8km bridge.

Popoola explained that the work will commence on the outward mainland section of the bridge, and the ministry is working with relevant agencies to perfect traffic during the period.

The bridge has gone through a series of repair works and was last shut in August 2018 for a three-day investigative maintenance check.

There have also been reports of some worn-out expansion joints on the structure, raising concerns over the state of the bridge.

This development will force motorists in Lagos who ply the bridge to begin making arrangements for alternative routes.

He is a Certified Advanced Financial Modeler (AFM), a 6-time Microsoft awarded Most Valuable Professional (MVP),a MCSA BI Reporting expert, and a Microsoft Certified Trainer (MCT).  He is a Financial Modelling and Valuation expert at California-based TopTal whose client base includes many fortune 500 companies. Michael Olafusi is the Lead Consultant at UrBizEdge and a Financial Analyst Fellow at Brightmore Capital where he analyses financial statements of prospective investments, reviews business plans, does financial modelling of projections and growth plans, and models valuation of potential investments (asset value, comparables, DCF, etc.), etc.

Financial modeling is a friction we have noticed that exists for some members of our Tekedia Mini-MBA. That explains why the Week 1 Challenge Assignments was stressful for some. To fix that, we have added a new session in Tekedia Mini-MBA: Building Your Business Financial Models (templates included). Michael will lead that session and provide templates to help our members on financial modeling. Michael graduated from FUT Akure and holds an MBA from University of Nicosia.

Join Michael in the class; REGISTER today.

*Tekedia edition 2 class will get this session; we need to find a way to add it later.

https://www.tekedia.com/mini-mba-3/

MultiChoice, the brand owner of DStv, has a problem in Nigeria. Looking at the comments on Tekedia, it is evident that Nigerians do not admire this brand. If MultiChoice wants to thrive, it needs to fix that image dislocation. Yes, you cannot be the messenger of entertainment which most do not like. In various combinations of words, the citizens are clear: go home DStv; we do not like monopoly. All efforts to make market sense to the members did not work. On pure market analysis, this company relies on a raw material (TV rights), and the price of this product has been increasing even when the Nigerian naira has been losing value, and consequently would need to raise rates to stay in business. But many do not care!

Without any doubt, the commenters made it clear: MultiChoice, we do not believe you. Yes, we do not think you are operating at a loss. The certainty of that conclusion could not be mistaken when some write, “Let them go!” Of course, MultiChoice is not leaving Nigeria because the future of MultiChoice is tethered in Nigeria. Its recent deal with Netflix and Amazon Prime must have been built on Africa’s largest economy and the most populous one.

Sample of comments

Almost everything in Nigeria works in opposite direction, so while governments are traditionally there to protect the poor and vulnerable groups, Nigerian government is more concerned with making sure that the rich are very comfortable. How many people subscribe to DSTv and its constituents in Nigeria? Less than six million, such a luxury! Yet, it’s the sort of things our government is even concerned about.

Well, since we live in strange land, the same way the government borrowed five hundred million dollars to make NTA digital, amidst depleted revenue, it can as well bankroll NTA to purchase the sports rights! You cannot beat Nigeria when it comes to doing things that are absurd.

The same way DISCOs cannot increase energy bill, even when naira has tanked, to serve Nigerians, you must be a magician; no wonder nothing works.

We want all the best things life can offer, yet no one sits down to calculate the cost, just keep the price the same, irrespective of input costs.

Our education is faulty, it failed to liberate minds here.

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I guess you are one of the rich Nigerians enjoying and subscribing to the dstv repeated and outdated contents, it’s not wrong if the government tries to regulate their activity, do you remember how many indigenous pay tv that has come and died bcoss of the so called company by acquiring exclusive right to contents which we pay hard to watch, do you remember some year back the amount of dollars they repatriated from Nigeria to their country of birth some years back?, Now talk of discos how many dollars has been spent in Nigeria on electricity since the days of PDP in Nigeria to date, common 18 hrs light we don’t have, but you want price to always increase when we don’t have value for the money hard earned and paid to these discos for services we hardly enjoy, guy I think you have a rethink and let’s support what the government has done in this regards.

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At the time DSTV was making huge profit in Nigeria did they complain?
That monopoly they have been enjoying has to stop. We can’t continue this way, is this how they pay in South Africa?
Let them go!

That takes me to potential MultiChoice challengers in Nigeria. First, there is none. IROKOtv has stalled for such a combat. TStv experienced an effervescence and disappeared. Largely, the only challenger is online streaming from foreign solution providers. Unfortunately, streaming online is not that cheap. It has two cost elements – the subscription to the player and the broadband cost. The latter is a bigger cost element since not many people in Nigeria can afford to watch hours of videos online. The cost of that broadband in Nigeria for ten games can pay for whatever DStv charges for a month!

Yet, for everything happening, there is one major problem DStv has to overcome: MTN Nigeria. Many members on Tekedia and LinkedIn connected to that. It has to do with MTN Nigeria per-minute billing at the early phase of its product in Nigeria. Then, MTN claimed that per-second billing was impossible, meaning that MTN  charged Nigerians the same for a 59 second call as for a second one. But with the arrival of Gloworld and its per-second billing, MTN quickly released the same feature it said was not possible. That pendulum is why many do not believe DStv since MultiChoice is South African, like MTN. Sounds familiar with DStv’s lack of pay per view in Nigeria? Simply, DStv is lying like MTN, they reason!

Another South African company, MTN claimed it is not possible to implement bill by the seconds, akin to pay per view. They made threats of network crash, dollars needed for equipment upgrade and good excuses. Recall that their exclusivity expired. GLO launched their service with billing by second. MTN almost immediately implemented the same billing model, to remain relevant. DSTV are free to leave Nigerian if the cannot follow Nigeria’s business model (Tekedia comment)

The MultiChoice (DStv, GOtv) BIGGEST Survival Game in Nigeria

Many LinkedIn comments on the OPay piece. I spoke to a group of founders a few days ago, and the first question was the OPay article. Let me make it clear: OPay across its businesses have run validated business models.  No one is saying that the OPay business model is largely wrong. If you have read me, I have praised its aggregation and double play strategies. The core of my piece has remained that OPay has no patience. Yes, I have a problem with its intended rate of growth. In New York, London or Beijing, hyper-growth (or blitzscaling) delivers two options: win the trophy, or crash. In Nigeria, almost all the time, the only outcome is a crash because Nigeria does not have the conditions precedent to do any blitzscaling in the nation.

What is blitzscaling? Hoffman: Blitzscaling is what you do when you need to grow really, really quickly. It’s the science and art of rapidly building out a company to serve a large and usually global market, with the goal of becoming the first mover at scale. This is high-impact entrepreneurship

The point is that OPay put so much money into unlocking growth or better hacking growth. That does not work in Nigeria if done very aggressively. People will take the freebies and when they are gone, they move on. But in New York, people take the freebies and some will hang around. OPay had no patience and that is the issue; I contrasted with the “slow…stay the course” line in the piece.

See it this way: if you validate a product in New York, it is safe to write that you can raise money (as much as possible) and scale it across the United States. The U.S. is largely homogeneous which means the customer demographics are similar across most regions.

But in Nigeria, that is not the case. If you validate a product in Lagos and you think you can scale it across Nigeria, you would be surprised. There is no relationship between Zamfara market and Lagos market except that both use naira as a currency. So, a playbook that worked in Lagos will not work in Zamfara. 

So, the deal is this: if you look at that 200 million population, and think you can raise tons of money to scale a business that has worked in Lagos, across Nigeria, you will struggle because the other parts of Nigeria will disappoint you. Our communities and cities are heterogeneous with no apparent homogeneity making scaling any playbook harder. The implication is this: you need multiple playbooks in Nigeria across regions. And because of that requirement, you cannot blitzscale as you need effort and time to understand what each micro-market needs!

For most technology-based products, you have about 30 million people to work with as potential customers. Pumping insane amounts of money will not change that overnight. In short, your first $10 million investment could  show promise. But if you dump $100 million, you may be surprised, as that fund may not deliver efficiency as you utilize it because even the market you are pursuing has reached its absorption capacity. In other words, the Nigerian market is not that big to absorb all that big money. Yes, there is a diminishing returns on the amount of money you can invest in some sectors in Nigeria! That is because Nigeria is a relatively poor country when benchmarked with its population.

What people do is to diversify, putting that money in other areas, and then growing parallel businesses because a solo-focused business cannot absorb all the resources due to the sector carry-capacity. FarmCrowdy has diversified instead of putting so much resources in a sector that it may not grow further without losses. Why produce so much in farms only for them to waste? To deal with that, the company began buying processing factories knowing that if that expands, it will open opportunities in the stream of agro-processing. But blindly farming without thinking of the whole chain would ruin its business.

Back to OPay, it ran a good business model. But it had no patience with all those FREE this, free that. This is what I wrote when I predicted that OPay impatience was a problem. This is the heart of my OPay piece: if you serve Aba and you need people to be earning $4 per day to be profitable. But they are earning $2, and you give them freebies to join you. When you remove the freebie, you will likely lose most. How much freebies you give will not change that $2 core problem. A better strategy could have been adjusting the product to find a path in that $2!

Let me say it here: if OPay’s playbook is to “tax” Nigerians this way, it has no future. It has been proven that Nigerians like FREE things. If you try to ask them to pay, they move in exodus. Yes, provided it is free, you are the best service provider. Any playbook that depends on attracting users with freebies and expecting a paid conversion without a new level of product evolution will fail in Nigeria. So, OPay, you can burn your $50 million war chest, and the day that money runs out, all the users will look for the next deal in town. There is nothing like lock-in in Nigeria because the hardest thing is to get a Nigerian to spend money!

More so, because of the infancy of Nigerian market, we do not have depth. If you blitzscale in New York and lose a key customer, there are others you can rely on. But in Nigeria, you would be in trouble as there are very few of those customers to serve as backups. When such happens – losing a key customer- the blitzscaling will become muted, as you will start quenching fire to survive and all growth investments will stall. Lack of diversity in revenue base is a major element why Nigerian startups should be careful as they attempt to blitzscale..

OPay Other Businesses Fail