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Investors ‘raking in billions’ as coronavirus infections surge in Nigeria

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Today, Nigeria’s equity market extended its gaining streak to nine consecutive trading days as the All-Share Index (ASI) appreciated by 0.87% to close at 24,354.25 points as against 24,143.37 points recorded at the close of trading on Wednesday, this brings the year-to-date loss of the Market to 9.27%.

Today’s gain makes it the longest winning streak Investors have had all year. Investors have now raked in over N980 billion in the last nine days alone. Over the same period, Nigeria’s Covid-19 infections have surged by over 220%. Clearly, risk seekers are in deviant of the economic threats posed by increasing Covid-19 infections and they are getting rewarded for it.

Despite the profit-taking in the shares of Banks today, Investors renewed their interest in other companies as the Bulls and Bears equal their positions on the performance table, 20 losers and 20 gainers. Also, since FG eased its lockdown order, we have noticed a sustained increase in volume and value of shares traded.

The Market Capitalization of listed equities also appreciated by 0.87% to close at N12.69 trillion as against N12.58 trillion recorded at the close of trading on Wednesday. With the year-start capitalisation of N12.95 trillion, Investors are now 2% shy of recovering all they have lost this year.

If you are not an ‘unrepentant risk seeker’, please don’t go near the equities market. Leave your investments in the money market where you are sure of capital preservation with some decent returns.

Fx Market Update:

The official interbank market rate of the Naira remained unchanged today at $/N361.00. However, the sustained FX liquidity squeeze at the I & E Fx window worsened sentiments today as the Naira closed weaker by 0.49% (N1.88) with a price of $/N386.38.

Investment Insights: By the way, one of the major factors responsible for the sustained gains recorded in the stock market is because of the Fx liquidity squeeze in the Investors’ & Exporters’ (I & E) Fx window. The I & E Fx window is one of the platforms established by CBN, through which Foreign Portfolio Investors can buy dollars to repatriate the gains they have made trading equities in Naira.

Since the lockdown, CBN has muted supply of dollars to that window, as a result, these Investors are trapped in Nigeria and left with no reason to sell their shares since there are no Fx to repatriate their funds. No sales from foreign investors mean minimal sell pressure on the equities market, as far as equities are concerned, the lesser the selling pressure the higher the possibility that the market will gain consistently and this is what we have seen play out in the equities market since the early days of the lockdown.

In this Covid-19 era, equities are too risky as an investment option except if you are the type that loves risk, over a period of two years you surely will be better for it but if you are averse to risk, please stay clear of the Market.

If you seek risk for higher returns, click on the link https://bit.ly/2XrvIf9 to open a stockbroking/share purchase account and trade within 24 hours.

If you don’t like risk but you want to enjoy a decent return that will keep you in the fight against inflation, click to subscribe to our money market fund https://lnkd.in/eJCNsxR

Stay home and stay safe, let your money do the work.

Covid-19 Pauses Stakeholder Capitalism

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It is looking really like the old: companies, especially public traded companies, are using workers to balance their books and offset their struggles. Over the last few years, we have read of new lexicons like Stakeholder Capitalism (not the typical Shareholder Capitalism), which came into the business world with a huge flash. Stakeholder capitalism posits that companies must make decisions to balance their fiduciary responsibilities with workers’ welfare, environmental protection, community sustenance, etc. Simply, “Stakeholder capitalism is a system in which corporations are oriented to serve the interests of all their stakeholders. Among the key stakeholders are customers, suppliers, employees, shareholders and local communities”. But it seems that it is all talk.

As the coronavirus pandemic squeezes global industry, companies are increasingly debating whether they pay shareholder dividends or staff salaries. Often, The Washington Post writes, workers are “the first to lose, even as shareholders continue to collect.” With profit margins shrinking, those at the helm must decide who sacrifices the most. Layoffs, executives argue, support a company’s “long-term health.” But critics say that sending millions of dollars to shareholders while axing staff belies the mantra from executives regarding “their concern for employees’ welfare during the coronavirus crisis.”

How do you fire hundreds of workers, and yet in the same earnings call promise to pay dividends?: “Similarly, Levi Strauss announced April 7 that the company would stop paying store workers, and about 4,000 are now on furlough. On the same day, the company announced that it was returning $32 million to shareholders.”

Yet, the same firm was a vanguard of  this new movement. My point is simple: do not pretend, just be real, and do not sign papers you do not believe in. But making your workers feel like they are special, only to kick them out when small heat comes, may not help your long-term mission and reputation. Follow the barons and be frank: no one is special here, it is old century capitalism, and if you expect any special treatment, just go, because in this company, there is no work-life balance, and what matters is how shareholders feel! That way, they would not be expecting vapor promises.

COVID-19 App and the Danger in Kogi State

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The sudden rise of COVID-19 confirmed positive cases in Kano is still on our minds. We blamed the government for their neglect and the citizens for not obeying the social distancing order. But the truth remains that people died as a result of that neglect, or should I say “purposeful neglect”. The problem here is that it looks like Kogi State is towing the line of Kano State.

Some weeks ago, it was revealed that the Kogi State government battled COVID-19 with the aid of an app – a self-assessment app. This app uses the NCDC checklist for suspected and high-risked cases to test people. According to the recent interview of the State’s commissioner for information, Mr. Fanwo, the app is developed by the state government and is already subscribed by about 200,000 Kogites. How they collect data is that the subscribers fill the questionnaire on the app and from the information provided, the health workers will then decide if the subscriber is at risk of contracting the infection or not. If the subscriber is a suspected case, the health workers will then trace his house for further interrogation.

Well, this app of a thing sounds good, in one part, and dangerous in the other.

But before looking at the dangerous part of using this app, let us remember that Kogi State is yet to record any COVID-19 positive cases. The government would have been applauded for safe-guarding their citizens if not for a lot of things happening around the country presently.

If you would recall, the NCDC chairman, Chikwe Ihekweazu, raised an alarm some weeks ago that it is impossible to say that COVID-19 is not in every state of the federation. He called out on the state governments, whose duties it was to collect samples from suspected cases, to buckle up. He noted that the states without records are obviously neglecting their duties.

Recently, Ihekweazu accused states without records of COVID-19 positive cases, Kogi and Cross Rivers precisely, of sending an unsatisfactory number of samples. This accusation seems to spark off the anger of Kogi State governor, Yahaya Bello, who claims that the state is being put under pressure to declare positive cases that are non-existent. He further alleged that there is an ongoing plan to “import” COVID-19 patients into the state. This allegation may sound hilarious, but if you look deep into it you will see reasons presented by the governor that will exonerate him when Kano repeats itself in Kogi.

However, attention is drawn to Kogi State by two other groups – the doctors and the journalists.

The NMA, Kogi State chapter, has expressed their concern and dismay over the Kogi State government’s refusal to collect samples from COVID-19 suspected cases for the test. This information came some hours after the governor claims that his state is about to be sabotaged. This then makes it obvious that there are several unconfirmed cases of COVID-19 in Kogi and that the government decided to look the other way for reasons best known to them.

The journalists, as mentioned earlier, also drew the attention of Nigerians to the happenings in Kogi State. An investigative journalist, Fisayo Soyombo, claims that he has reliable sources that told him that several suspected cases of COVID-19 have been reported in FMC, Lokoja, and that some of them have died. He claims that efforts to get the state ministry of health to collect samples of these patients proved abortive and as a result, the dead ones were buried while their contacts roamed the streets, spreading the virus, even to health workers.

One may then wonder why the Kogi State government neglects the citizens and puts the health of the whole nation at risk. Your guess is as good as mine. However, Soyombo claims that the state is broke and could not even provide an isolation centre.

Coming back to the app, the commissioner for information claims that all the cases tracked with the help of the app proved negative. He also claims that nobody died from the disease in the state. He wasn’t specific on how they found out that those suspected cases and deaths were negative. But what Kogi State government should remember is this:

  1. There are people with the virus that are asymptomatic. These people will still sound negative in the app’s questionnaire.
  2. A lot of positive cases, that know they are positive, avoid health workers until it is too late. We hear about those that ran away before their test results were released, and those that ran out of isolation centres. If these people are not tracked down and tested by force, well, no one will know about them.
  3. There are many people in Nigeria that do not know how to make use of electronic questionnaires. I am not talking about the uneducated and those in the rural areas this time, but the literate ones in the city. This may be the reason why only 200,000 people have subscribed to the app.
  4. It is possible that this questionnaire is not well monitored. I mean, who checks and assesses the data input in the questionnaire? If it is an automated one that marks green for negative and red for positive or suspected cases, well, it won’t work. Some things need personal human touches.

The truth is that the thought of Kogi and their ways of handling COVID-19 is scary. The state is close to the FCT and it witnesses a lot of traffic from the FCT. It is almost impossible to believe that Nasarawa, Niger and Kaduna states that also bordered the FCT have confirmed positive cases, while Kogi does not. Like I said, it is “almost impossible”.

However, what is happening in Kano today will not be part of Kogi tomorrow.

Embrace Technology, But Not At The Expense Of User Experience

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I don’t know how to drive a manual car, or better still, I’ve never tried to drive a manual car, do I drive automatic? Yes, but manual I don’t, it’s not like I don’t want to learn (I really don’t want to learn), it’s just that most car manufacturers these days don’t build their cars with manual gear transmissions. What that means is that in 80–90 percent of cases, if you see a manual transmission car, it’s probably an old car model that the manufacturer has probably stopped producing, and in some cases is already giving the owner performance issues. I don’t think I want to drive that kind of car.

When the purpose of a thing is not known, abuse is inevitable, and I mean this literally, If you really don’t know why you should do something, you’re likely going to misuse it, and that’s the thing about technology.

Technology makes life easier. When my parents were dating, they sent themselves letters, and the post office may deliver in a day or two, today you can send, “Letters” today, get it read today, and get feedback today, oh and did I forget to add that all that could happen in an hour, thirty minutes if you can type fast. Technology changes everything, technology makes life easier.

Technology makes life easier, but from a business point of view, the real question isn’t whether technology makes life easier, because we all agree with that (if you don’t, then you should have waited for this article to get to the newspapers rather than reading it here on the internet), the real question is who does technology make life easier for? The customer or the business?. Now I know it’s easy to say both, and I’m guessing that’s what a good majority of people reading this would say, but let’s take a step back and actually analyze that. So back to the manual and automatic car example, the shift from manual to automatic gear transmissions was made possible by technology (to which I remain forever grateful), and that technology elevated the user experience. Yes I know that some people enjoyed and still do enjoy the experience of driving a manual car, but automatic gear transmissions have made life easier, less stressful and have largely lowered the barrier to entry for drivers. That’s an example of technology that made life easier for both people, and probably automakers too.

Another example; Our Telco operators in Nigeria are lovely, they got so tired of listening to Nigerians complain about everything from bad network to running out of airtime too quickly, to other unnecessary complaints that in some cases didn’t make sense, that they introduced self-service options on their customer care lines. The idea was simple; instead of addressing our customer care representatives, you can now address our Voice enabled Chatbot operators on our customer care lines, who can help you solve your problems with minimal human contact required. That’s the problem; minimal human contact, we all want human contact, I don’t want to talk to a preprogrammed chatbot when I call customer care, I want to talk to a real person, a real person like me.

So I devised a strategy, I literally have the exact numbers I press when I call my network providers customer care lines to get me to speak to a real person on the other side of the phone. That to me, is an example of technology serving the business alone, and not the customer. There was a time one of my network providers had two customer care lines; one only interacted with a preprogrammed voice enabled chatbot, while the other allowed you to talk to a real person. The problem was, the second one, the one you’d probably go straight to if you needed to call customer care, would cost you #30 per call, they were literally charging you to get help. Whoever thought that was a good business strategy must have been deluded. Thank God they’ve stopped that now.

When you embrace technology, you must seriously consider your user experience. If a technological advancement doesn’t promote your user experience, then it’s really of no use to you. Ignore all the buzzwords and whatnot, if it doesn’t make things easier for your customers in a way that’s affordable to you, then you don’t need it, or at least not yet.

So if Transsion holdings (Parent company of Tecno, Infinix and Itel), were to decide today to make all their phones capable of performing some high level blockchain processes by introducing some high performance processors in their devices, we would say they were embracing technology, but when the introduction of that technology boosts the MRP (Manufacturers Recommended Price) for that product and 80-90% of your target market finds no value in that feature, do we still call that Innovation? Definitely not, Innovation isn’t embracing technology, it’s embracing technology that solves a human problem, and makes life easier.

Embrace technology, but not at the expense of your User Experience.

Here’s how;

Embrace Design

Design is actually the language of Innovation, all innovative companies embrace the power of design, whether its Nike, Apple, Airbnb, you name it, at the heart of their process is design and a designers approach to solving problems and tackling issues. Why? Because design is a people oriented process. Design doesn’t elevate the technology above the user, in fact it does the exact opposite, it elevates the user above the technology, why? Because your user experience is really your competitive advantage. That’s why someone would drive kilometers away from home just to patronize a hair salon that will probably charge him more than those around where he lives, he isn’t dull, it’s the experience at that salon that keeps him coming back. Most people that buy an iPhone usually don’t go back to using Android phones later on, why? It’s the experience. If you have ever driven a good BMW, you would pray to God you don’t have to drive another Toyota, why? The experience (not that Toyota doesn’t make some nice cars, but you get the point).

Your User Experience is really your competitive advantage. This is how Design helps you create Innovation.

Empathy

At the root of design is true empathy, understanding your user, understanding their context of use, not assuming they would like a product or find it fascinating, but really going out to talk to them to find out if they would. If you’re a business leader reading this, you’re fully well aware that you cannot just “Assume” your way to the success of your business, you need data, you need to really understand how your users think, what would work for them, what they would find appalling, what would ring a bell, and what would definitely turn them off. You can’t assume any of these things, it’s like running into the jungle blindfolded, the question isn’t whether you will get eaten or not, the question is when you will get eaten.

Empathy is about asking questions, but not just asking questions, but asking the right questions. You don’t ask your user if a product is good, you find out how they FEEL about the product, and how it addresses the specific pain point they’re EMPLOYING it to solve.

The only Nigerian Fintech app I use is Barter by Flutterwave, there are so many other Fintech apps out there, but the truth is I don’t need an app to help me transfer money, pay bills or buy Airtime, my bank does that pretty well, the major reason I use Barter is because i have access to Dollar cards that i can use to pay for services from companies like Facebook, Netflix, Amazon. That’s the real selling point to me, that’s the JOB I employ the app for. If they removed that service from their app, I wouldn’t have a need for it anymore, I would probably end up FIRING the App, by removing it from my phone (you get the point).

Problem Definition.

When you begin to empathize and seek to understand your users, you are likely going to begin to observe patterns. These patterns would begin to inform your decisions and help you to see the problem for what it really is. It helps you simplify the problem and define it in more clear and straightforward terms.

Ideation

The best, or one of my favorite parts of the design process is the ideation part. The true beauty of Design is that everyone has a sit on the table. In most corporate decision-making processes, Executives or Senior leadership just makes decisions based on the data available to them, and Even though this isn’t always wrong, companies that do so are actually missing out on the valuable insights and ideas that are available to them by letting employees take central stage here, employees who are in the trenches, interacting with the users, and/or building the solution itself.

The design ideation process employs a multidisciplinary approach, people from various teams, and diverse backgrounds are allowed to brainstorm solutions, and all give valuable insights based on their area of specialization to come up with a feasible solution. So we have the people from engineering who are actually going to build the solution telling you what is and isn’t possible, customer care operators telling you what they’ve observed users complain about, Marketing, Design, and even senior leadership making sure everything aligns with the company’s goals and objectives.

The ideation process draws upon the insights, and experiences of a diverse range of stakeholders to generate the most preferred solutions.

Prototyping/Testing.

The Design process is an iterative process. After the solutions in the ideation stage are documented and properly outlined, the next thing to do is to build prototypes of your intended solutions, and test it with real users to get real time feedback on what they think of the solution. The design process doesn’t rush to scale solutions, but makes sure they align with user goals before scaling them. If they don’t, the process returns back to the step deemed to be the source of the misalignment, whether it is the empathy, problem definition, ideation, or even prototyping step.

The solution goes through the pipe again, and is tested with users to get feedback. It is however important to test solutions with users that fit your ideal customer profile, and not just random users.

Conclusion

At the heart of any successful business is the prioritization of their User experience. The real value of technology to the business is elevating user experience. One of the ways to elevate your user experience is to become more design driven and design oriented as a business.

And at the heart of any company that is innovative is a design culture.

Remember, Innovation isn’t embracing technology, it’s embracing technology that solves a human problem, and makes life easier.

 

 

Senate Suspends 5G Deployment in Nigeria, Orders Investigation

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5G network, adaptable business model

The Nigerian Senate has asked the Federal Government to suspend 5G roll out in Nigeria until further notice.

Senator Uche Ekwunife had moved the motion to check the status of the 5G network in the country. Upon deliberation on Tuesday, the upper legislative chamber made the decision to halt every 5G related business in Nigeria until its safety status is ascertained.

She said the motion has become needful as fear about 5G is growing and Nigerians need to be sure that it is safe before it could be deployed. So there should be thorough investigation to determine if it should be approved or not.

Other members of the senate who supported the motion said there is a need for the government to act in the interest of the people by checking the status of 5G.

Deputy Majority Leader, Senator Ajayi Boroffice, said the deployment of the 5G network has been a controversial issue that experts need to be allowed to interrogate the merits and demerits of its deployment.

Another senator, Opeyemi Bamidele said it would not be responsible for the government to subscribe to a technology that would bring harm to the people, adding that no Federal Government agency has done any scientific research on the 5G to ascertain its safety status. He noted that European countries are already conducting investigations on the implications of the fifth generation technology and Nigeria shouldn’t be left out.

At the end of the deliberation, the senate asked its committee on Communication, Science, Technology and ICT, and that of Health to commence a thorough investigation into the status of 5G in the country. The upper chamber also asked the Ministry of Communication and Digital Economy to suspend the 5G roll out until its health and environmental status is determined. The Senate Committee is to submit their report in four weeks.

The controversy surrounding 5G roll out in Nigeria has been instigated by the conspiracy theory that it births coronavirus. In the past two months, it was a huge debate around the world that in the UK, 5G masts were attacked and destroyed. Nigeria caught the wind and pushed the rumor to the streets.

Former Senator Dino Melaye was among those at the forefront of it, posting videos and tweets condemning the technology. He said the Nigerian government should not allow it because it’s evil.

“Whether it is true or not that they are already laying cables of 5G in Nigeria. Government must not allow it in Nigeria and should take a proactive step in that regard,” Melaye said.

Among others, the head pastor and founder of Christ Embassy Church, Chris Oyakhilome took the side of those who opposed the deployment of 5G. He said that the technology is responsible for coronavirus, urging governments around the world to stop the roll out. Though he later made a turn around, claiming it only has health implications, his message has been caught across the board by many.

“Why is this 5G installation guy wearing a protective suit against radiation if 5G is supposed to just give us fast internet access”? Someone asked on Twitter. “4G=2.4GHz 5G= 60GHz. Why don’t they put normal cell towers near old people’s homes? Pastor Chris has a point.”

The divided opinion created by the conspiracy theory has affected how some governments see the technology. While some are only concerned about the political and security risks if Huawei is allowed to lead the deployment, others are halting the whole idea due to fear that it bears health consequences.

While experts in China, the UK and the US have repeatedly discredited the theory, it appears that it could only stop people from destroying the masts. Though many countries have continued to deploy the 5G, others like Nigeria said that its negative health implications cannot be ignored based on scientific conclusions of other countries.

The Nigerian Senate was instigated to adopt the motion to suspend the 5G deployment by mongers of the “5G = coronaviru” conspiracy theory. A development many have found difficult to fathom knowing that 5G is electromagnetic radiation without the capability to produce microorganism – it automatically discredits the theory and many think Nigeria deserves better than the senate who spend time deliberating on that.

“How on earth do we want to command respect from others when intellectual malnutrition prevails in top levels of governance like this”? Osidipe Adekunle asked on Twitter. “This is too low.”

Many others share the same opinion that the Senate’s decision to suspend the 5G rollout is an act of ignorance that shouldn’t be displayed in the 21st century. Former senator Shehu Sani said there is no scientific basis to back up claims that it may pose health threats and the Senate needs not to stop its deployment.

“The 5G stoppage order by the Senate is needless. The nation’s political elites are simply drawn into global political chess game by giant tech companies backed by their governments. Linking 5G to health concerns is political & economics but lacks any scientific basis,” he said.