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“This Century is Africa’s Century … for good or ill” – Prof Yemi Osinbajo

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The Vice President of Nigeria, made this comment during a Google event in Nigeria. He noted that Africa’s fortunes will shape the world, and democratization of technology will be a quantum leap for Africa’s development. Google has launched an initiative to provide free internet access in Nigeria.

“This Century is Africa’s Century. Why? Because Africa will, for good or ill, play the defining role in global development.  Africa’s fortunes will matter across all the trends shaping the world. I say for good or for ill because either scenario is possible. If Africa fails on these important development issues, because of our sheer size, the global impact will be catastrophic and if it succeeds the global impact will be incredible.”

“Technology has put great power into our hands, as individuals, but more importantly as co-creators and collaborators, to positively and dramatically change the course of human existence. With it, we can solve many of the problems that confront us.” – Prof Yemi Osinbajo, Vice President of Nigeria.

Just yesterday I revisited my model that by 2022 Nigeria would have immersive mobile connectivity that would enable new categories of web-based businesses at scale. I noted efforts which would catalyze that future. Today, Google launched Google Station in Nigeria to roll out public Wi-Fi  in 200 locations.

The VP also presented a keynote which is shared below.


Keynote Address by his Excellency, Prof. Yemi Osinbajo, San, Gcon, Vice President, The Federal Republic of Nigeria, at The Google for Nigeria Event in Lagos, on Thursday, July 26, 2018

LAGOS, Nigeria, July 27, 2018/ — Keynote Address by his Excellency, Prof. Yemi Osinbajo, San, Gcon, Vice President, The Federal Republic of Nigeria, at The Google for Nigeria Event in Lagos, on Thursday, July 26, 2018:

PROTOCOLS

I am delighted to be to be here with you today at this year’s Google for Nigeria event. Just couple weeks back, it was a special pleasure to be welcomed to the Googleplex by Google CEO, Sundar Pichai and his great management team. We all have very warm memories of that visit, and I am truly grateful for your kindness and warm hospitality.

About three months ago, I spoke at an event at the Warwick University on the subject “The African Century.” The substance of that speech was that this Century is Africa’s Century. Why? Because Africa will, for good or ill, play the defining role in global development. Africa’s fortunes will matter across all the trends shaping the world. I say for good or for ill because either scenario is possible. If Africa fails on these important development issues, because of our sheer size, the global impact will be catastrophic and if it succeeds the global impact will be incredible.

In at least four important respects, Africa will hold the balance of world development. First is in world population (demography). Second is environment and climate change. Third is productivity. Fourth is social exclusion (or inclusion as the case may be) and its implications for global security.

Let’s take population, by 2035, Africa will have 1.2billion people. Nigeria is Africa most populous country; she will become the 4th most populous nation in the world. Over 50% of that number will be young persons under the age of 25. Today 60 percent of the unemployed in Africa are young people. If we do not change the trajectory of socio-economic development, we would have millions of jobless young people in the prime of their lives, and as we will see, largely illiterate and /or poorly trained. The workforce will be ill-equipped to man any industrial revolution or take advantage on scale of technology. The anger, disillusionment, and hopelessness of these young people will drive social unrest, compel more desperate migration northwards and present a fertile recruiting ground for extremist groups. If social conditions remain tenuous, even the well-educated will be tempted into migration and contribute further to the brain drain.

How about the environment and climate change? So, it is generally agreed that although Africa has contributed least to global warming, it is and will suffer most from its consequences. Indeed, we are already seeing extreme weather events such as flash floods, drought, and desertification.

So to cut a long story short, Africa is confronted with existential challenges, and there is simply no time to waste in resolving these problems. The answer that providence has given us is technology. The great purveyors of technology such as our hosts today Google, and their collaborators – 21st Century Technologies Limited and Backbone Connectivity Network (BCN), are not mere corporations in search of profit and some social good, they literarily hold the future of generations of humanity in their hands.

In Nigeria, we cannot train our nearly 200million young people by 2045, in classrooms alone. It is impossible! We must use the internet and even mobile telephony. We must connect our young people to knowledge and innovation all over the world. Co-creation efforts of innovators and inventors require broadband to be consummated.

So without connectivity, the development trajectory of our nation and continent is truncated. Today, it is also becoming increasingly clear that the availability of food and healthcare for the huge numbers of our people will depend on how democratized the technology becomes. We simply cannot provide enough food, drugs or vaccines in Africa without the availability of innovation in agriculture, and technology in farming and the production of drugs and vaccines. So democratizing Artificial Intelligence as we heard Marvin Chow, Google’s VP Product Marketing, describe in agriculture and the medical sciences, will change the human development story.

Indeed every step that is taken to democratize technology is a quantum leap in the African development story and a major contribution to Global stability and growth. This is why the launch of Google Station here in Nigeria, is an enormously significant event.

First, it means that Google and 21st Century, will be providing free WiFi access in several public spaces in Nigeria, more exciting is that several of our markets will benefit from this free internet access.

This partnership is particularly important to us, because we have in the past one year, in our energizing markets project, been providing solar power to markets and economic clusters across the country. We have done extensive work in Ariaria market in Aba, Sabongari in Kano, Gbagi market in Ibadan, Sura here in Lagos, and we are starting out in Iponri, and Balogun markets.

But the most profound implication is that internet access is becoming available to some of the poorest in society. What access to information, tools of education, business or commerce means is that gaps of inequality and exclusion are bridged. Jobs are created and in many important respects, there is a real chance of better quality of life for large numbers of our people.

Millions of Nigerians have personal stories of how the Internet has transformed their lives, their hustle, as today’s theme alludes to, in positive ways. And Juliet Ehimuan, Google’s Country Director Nigeria, has showed us, with stories of real people like Adaobi, how Google has featured prominently in many of these stories.

In 2016, working with the Office of the Senior Special Assistant to the President on SDGs, I launched the Google Digital Skills Training Programme with the target to train 400,000 Nigerians on basic Digital Skills, working with Google and local Nigerian Tech Training companies.

We have since surpassed those numbers and trained over a million Nigerians in basic digital skills in the last 24 months.

To scale up our support to private sector players in the technology space, I recently inaugurated the Technology and Creative Advisory Group, a subset of our National Industrial Policy and Competitiveness Advisory Council.

This group brings together, young private sector players in the technology and creative sectors and relevant government agencies, working jointly to formulate policies, programmes and projects for the Technology and Creative sectors of our economy.

Some private sector members of the Advisory Group and relevant government agencies like NITDA, NEPC and the Bank of Industry, went with me on the trip to Silicon Valley. Also on that trip, I met with the creative sector in Los Angeles and showcased Nigeria’s readiness and preparedness for investment, and the work we are doing with our Ease of Doing Business Secretariat, to provide an enabling environment for business in Nigeria, and which helped Nigeria rise 24 places on the World Bank’s Ease of Doing Business Index in 2017.

Through the GEM Project of the World Bank, the Federal Government has given out over $2million to 79 startups across the country. Apart from this, our National Social Investments Programme is working with the National Information Technology Development Agency (NITDA) to support the private sector to establish technology and innovation centers across the country.

We have established and launched these Innovation Hub projects across the nation. From the Ventures Platform in Abuja (Ventures Park), to the Marydel Hubs and the Edo State Government’s Edo Innovate project in Benin, Edo State, and the Humanitarian Innovation Center in collaboration with the North East Innovation Hub and the International Committee of the Red Cross (ICRC) in Yola, Adamawa State, we are committed to building an ecosystem to drive innovation.

The Federal Government is now investing in training 5,000 developers as part of our N-Power Tech program, just as we are catalyzing a whole new sector of animation production by training 3,000 young people with scriptwriting, storyboarding, voice acting, animation and post-production skills. Not only will we develop their skills, we are providing an initial support of the hardware and software tools that will help them function economically after they are trained. We also believe that starting earlier with our students helps to solve tomorrow’s challenges, today. The Federal Government is lending support to initiatives such as the Civic Lab’s Student Innovation Challenge, and the Campus Innovation Challenge by Union and CC Hub, Nigeria’s pioneer Tech Hub in Yaba, Lagos State, to discover and support student entrepreneurs in our tertiary institutions.

Next week, I will launch a Climate Innovation Center in partnership with the Enterprise Development Center at the Lagos Business School. This forms part of our ICT roadmap, in which the private sector is an important stakeholder.

The challenge remains connectivity, extending broadband reach, making data cheaper – National Broadband Policy. As a first[1] step, the Federal Government, through the Nigeria Communications Commission (NCC), has since licensed a number of Infrastructure Companies (Infracos), who will invest in rolling out broadband infrastructure across Nigeria.

I believe we can extend broadband reach significantly in a year or two. We will partner in whatever way we can with Google and Nigerian broadband providers like 21st Century Technologies Limited and Backbone Connectivity Network, to quickly achieve extensive broadband coverage.

Our goal is to create a data-driven digital economy; one that will lead the way not just in Africa, but globally as well. And I believe strongly that Nigeria is on the right path. We have the people, the talent, we have a government that sees the potential very clearly, and is showing the determination to unlock that potential.

Technology has put great power into our hands, as individuals, but more importantly as co-creators and collaborators, to positively and dramatically change the course of human existence. With it, we can solve many of the problems that confront us.

In addition, we can connect people, grow businesses, influence good governance, and create better lives, and a better country for ourselves and for the future.

Thank you

Nigerians’ Most Searched Google Words Are Depressing

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In a Google Nigeria event, Google VP Global Marketing, Marvin Chow, gave us a window into the hearts and minds of Nigerians. This is what the nation is searching. In other words, these are the most searched items by Nigerians on Google.

  • Wizkid soco
  • World Cup fixtures
  • Npower
  • Prepare banga soup
  • Who is richest musician in Nigeria
  • How to dance shaku shaku
  • Black panther
  • BBNaija
  • How to tie gele*

Someone posted this on Facebook where it was sent to me with this caption.

At the on going Google For Nigeria conference holding here in Lagos, this is what Marvin Chow, the vice president of Google revealed to a startled audience as the most searched subjects in Nigeria this year. 

NOTHING INNOVATIVE OR MIND STIMULATING. 

I’m embarrassed for us as a nation. I’m more embarrassed for my generation.

Nigeria needs to be fixed. If not, the nights may be VERY long! Yes, if these are issues that occupy the minds of our young people (the netizens), Nigeria is technically sick.

Facebook’s $119 Billion User Privacy Payment

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Facebook user privacy

Facebook lost about $119 billion of its market cap today. Technically, it made history: it recorded the largest loss in a single day in stock market history. But Facebook is lucky: it did not lose because of competition; it lost because of correcting its past. Yes, User Privacy won even as Facebook temporarily lost.

Facebook just had the biggest wipeout in stock market history.
Shares plunged 19% on Thursday after executives warned that revenue growth would slow as the company focuses on user privacy.

The sell-off vaporized about $119 billion in market value — the biggest single-day loss for any public company in history, according to Thomson Reuters.

The fact that Facebook is undergoing this redesign which will be painful is a testament that it has no serious competitor. They must have modeled all the scenarios, thinking they could lose $150 billion by the time the whole transformation is completed. Had the social media giant had a real competitor, the drastic change may be muted or rethought. Largely, Facebook is temporarily disarming and investors are rattled. Most investors cannot stand leaving money on the table. But here, Facebook is doing the right thing.

Facebook, Inc.  reported second-quarter earnings after the bell on Wednesday, beating on earnings but narrowly missing on revenue and user counts. FB stock fell more than 7 percent in after-hours trading.

Facebook earnings by the numbers. The social media giant reported earnings per share of $1.74, beating Wall Street consensus estimates for $1.72. Revenue came in at $13.23 billion in the second quarter, barely missing the $13.36 billion analysts expected.

But perhaps the numbers most FB shareholders were watching involved monthly active users (MAUs) and daily active users (DAUs).

All Together

I have noted that no one can effectively regulate a category-king business in the web sector because if you break any entity into pieces, one will grow to dominate under the winner-takes-all. The brilliance for Facebook is that it is dealing with its evil today knowing that it is only Facebook that will fill the void tomorrow. You can pity it for “paying” $119 billion to deal with user privacy issues, the hard fact remains that it is only Facebook that will benefit from this IOU since there is no other entity in the world that can take its position in any place that is not China. Largely, Facebook is smart: it is creating a future it wants so that it can predict the outcome of its planet.

And even if U.S. regulates Facebook by breaking it, the best surviving part will grow to dominate over time because of network effect where the best gets better and bigger. We just have to agree that Facebook is an ICT utilities and I was very happy when my editors in Harvard allowed me to use that against the company. You negotiate with your utilities [ electricity, water] because you have no alternatives. That is where we are with Facebook.

Nigerian Low Cost Mortgage Lender Receives Boost

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The Nigerian government is planning to inject 500 billion naira into its own low-cost mortgage lender over the next five years, in an effort to address the 17-million unit housing deficit. According to Bloomberg, “Nigeria is seeking to improve access to home loans in an economy that vies with South Africa as the continent’s biggest.” Currently, they note, there are only 50,000 registered mortgages, a figure which can be attributed to poverty, high interest rates and a lack of land deeds. Five years ago, Reuters had already expressed the problems caused by a lack of housing. “In many ways Nigeria represents the perfect storm for real estate investment; huge population, rapid urbanization and a growing middle-class,” said Michael Chu’di Ejekam, Director of Nigerian Real Estate at a London-based private equity firm.” Real estate professionals are reporting larger-than-ever demands for homes from the burgeoning middle class, which makes up around 23% of the population.

Why are Low Cost Mortgages so Vital in Nigeria?

Investing in the real estate sector is necessary not only because of the demand for homes but also because, as noted by housing expert, Festus Adebayo, doing so can help reduce Nigeria’s unemployment rate by 50%. At a conference held recently in Abuja, Adebayo noted: “housing is the new way to gear up Nigeria’s economy,” since real estate employs workers from a vast number of sectors, including architects, engineers, land surveyors, artisans, transport specialists and even food suppliers for these workers. The rising costs of rent in the nation’s capital are another reason. As noted recently by journalist Cornelius Essen, rising rental prices are causing many Abuja residents to seek accommodation in the outskirts: “The biggest drops in rental affordability over the past five years are in areas like Asokoro, Maitama, Wuse I and II, Wuye, Jabi, and Garki, where two bedroom flat goes for between N1.8 million and N2 million per annum… Areas traditionally seen as some of Abuja’s most affordable – also recorded a significant decline compared to the rest of Federal Capital Territory.”

Real Estate an Important Source of Economic Stability

A third reason for boosting low cost mortgages is the stability afforded to homeowners, especially as they age. Older homeowners can use home equity to free up cash through refinancing options that nevertheless do not demand that they leave the homes. As noted in a study by V Animasahun et al, one of the primary factors affecting the psychosocial health statues of elderly Nigerians, is economic stress. Since lifespans are increasing and the number of elderly Nigerians is growing, it is vital that this segment of the population have investments they can rely upon in tough economic times.

 A Surge in Mortgages Planned over the Next Two Years

Nigeria’s low cost mortgage lender plans to increase its capital from 5 billion naira at a rate of 100 billion naira per year, reports Bloomberg, which means that the number of yearly mortgages it grants could potentially increase from 2,500 to 100,000 over the next couple of years. This extra cash is expected to attract interest from other investors. The Federal Mortgage Bank of Nigeria (FMBN) will also launch around 1,500 ‘rent to own’ homes that will hopefully result in a significant number of new mortgages and purchases.

Investing in real estate in Nigeria makes sense considering rising demand, rising rental prices, and the need to be competitive against countries like South Africa. By providing more low-cost mortgages and attracting further investment in real estate, the FMBN will encourage employment across a plethora of sectors. It will also ensure that future senior populations are more secure, with many Nigerians being able to free up equity from their property if required.

Scaling Startups Across Africa

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In the African heterogeneous markets where Benin Republic is totally different from Nigerian market even though they share boundaries, the fundamental principle of scalability of companies will hit road blocks. As I have noted in the construct of Scalable Advantage, there are many elemental components in our markets which will make it nearly impossible to experience what Chinese and American entrepreneurs enjoy at scale.

Any startup needs to model its scalable advantage (SA) to ascertain its capacity to scale and win in the market place. There are many factors which determine a company’s scalable advantage. Some are external like regulation, industry of operation and size of the market. Others are internal and they include marginal cost, supply pipeline, among others. In this video, I explain how to model that advantage by looking at the core transaction frictions between selling and buying. The more the business eliminates the friction, the more scalable it becomes.

As I explained yesterday on WeChat, we need to learn how to pick markets in Africa and work to win therein. But any hope of hyper-scaling anything may not work.  Nigeria offers a great promise as it has decent scale to allow startups to thrive.

Nigeria is the China of Africa – one can build a real business in Nigeria. It does make sense to win Nigeria first before entering into small African countries just to say you are in many countries. Lagos State is the 5th or 6th largest African economy; River State is not far behind. We have a huge home market to find success before those expensive expansions outside home.

Simply, there is no immediate reason why you should open a shop say in Benin Republic when you do not have presence in the 6 geopolitical zones in Nigeria. You need to see these zones as being just as big as most small African countries.