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How African eCommerce Firms Can Scale Clothing Business

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Most people want to try clothes before paying for them. Most times, we want to feel the texture and the fabric. Those elements of feel are yet to be solved by advancements in technology. For all the progress we have seen in haptics technology, the sense of touch has not been effectively digitized at scale to support ecommerce business.

So, you like the shirt, but you are not sure if that shirt will look good on you. On your smartphone, it is a piece of creativity. But you need to ratify it before you hit that BUY button.

Today, the return policy in the African ecommerce sector continues to evolve. In short, in Africa, we do not have a customer-friendly return policy, unlike developed markets like U.S. and U.K. where you can return clothes with ease. So the risk is that once you have paid for that item and the ecommerce company ships it, the likelihood that it is yours is there. Returning it will cost you money and that is never a good feeling, to waste money mindlessly. The only defense is to buy clothes you are sure that you will keep.

Fixing The Challenge

So what can the African ecommerce companies do to scale the fashion category of their businesses? I suggest the following to help them sell more clothes, shoes etc:

  • Open physical “stores” in big cities where shoppers can come and try clothes, shoes, etc but they cannot buy those specific items. Once they have tried and like the item, they can move to a section of the shop, using laptops there, and order the item. Of course, they can also order from their smartphones or go home and do same. The goal is to make it possible for people to overcome that inertia associated with buying clothing online without first trying it. You want to experience the physical quality despite the amazing digital virtualization you are seeing online, before you buy.
  • The ecommerce companies can focus on highly exclusive fashion products. Because you will not want to be a showroom where people try items, only to shop from your competitor’s site, you must find a way to have exclusivity on the items for this to make sense. That differentiation is strategic and that will help you seed a relationship with customers. They like the brands, they can try the products and they can only buy from you in that locality.
  • Work via coopetition if possible. There is nothing that says the local ecommerce companies cannot partner and have an independent firm, funded through a consortium, to drive the showroom strategy. This showroom model will go beyond clothing to kitchenware where people still like to feel, see or touch the items before they buy online. For the big ecommerce firms like Jumia and Konga, they can execute this model without any help. But for the smaller Nigerian ecommerce companies, they may need to come together and work on business models like this one.

All Together

Ecommerce is the future platform for commerce. But it will take long for people to feel very comfortable buying some major items online, in Africa, without first feeling, seeing or trying them. Opening showrooms for customers to try or see some items, even though they cannot buy the specific items they tried or seen, will be catalytic for the ecommerce industry.

The ecommerce companies will not carry much inventory and will be operated as lean businesses with very small stores since they are not selling anything in the physical stores. This can also help the ecommerce companies to figure out and understand what customers want, by tracking the items they are trying more. Possibly, the insights gathered can be used to improve the digital strategy which will be retooled to effectively align with market trajectory, driven by customer tastes, as captured in the physical store.

Nigerian Presidency Wants The Military To Partner With Local Companies on R&D

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In a very elegant speech, Prof Yemi Osinbajo, Nigeria’s Vice President, challenges the military to focus on its R&D partnerships with local companies. Truth be told, military-business partnerships around the world remain one of the key anchors of any economic progress. The defense takes huge portions of the national budget. So, when it releases that money locally, good things happen.

Nigeria has not been lucky in that area. Our military continues to outsource mundane things local companies can be challenged to do. But with the Presidency’s new challenge, things could change. Imagine if the military can fund Nigerian startups to find ways to track and stop terrorists before they cause mayhem in our communities and cities. The startups may fail, but Nigeria will learn something. Over time, we will evolve and be better. 

In U.S., the DARPA fund keeps many universities and companies running. The military wants new ideas to confront security challenges. They run to U.S. schools and companies.  Those partners always deliver.

Nigeria has its moments and I do hope the military will follow through on this Call form the VP. We need to unleash our creativity in security domains, cyberspace and meatspace,  and the military has the funds to help Nigerian companies emerge and become global technology titans. That partnership is overdue; it needs to start immediately. Thank you Mr. VP for challenging the warriors to do the needful.

Ndubuisi Ekekwe


Address by His Excellency Vice President Yemi Osinbajo, SAN, GCON, at the combined passing out parade for cadets of 64 Regular Course (Army, Navy, Airforce) 65 Regular Course (Navy and Air Force) and Short Service Course 44 (Army) where he represented His Excellency, President Muhammadu Buhari, GCFR on 16 September, 2017:

[Protocol]

I am delighted to be here today to represent the President and Commander-in-Chief of the Armed Forces, on this occasion of the passing out parade of the cadets of the 64 Regular Course of the Army, Navy and Air Force, the 65 Regular Course of the Navy and Air Force, and the Short Service Course 44 of the Army.

A year ago, the President himself was here for this purpose, and it is a great honor for me to be here today, on his behalf, to commemorate this important occasion with our Armed Forces.

Today’s graduation parade marks another important milestone in the history of the Nigerian Defence Academy, as it carries out its mandate of producing competent, committed and patriotic officers who will take pride of place in various Services and formations of the Armed Forces.

The graduation is even more remarkable in the sense that it is a combined graduation for the 64 Regular Course and 65 Regular Course of the Navy and Air Force, and the Short Service Course 44 of the Army respectively.

I am told that present among the cadets passing out today are 4 nationals of Togo and one from the Republic of Benin. This is a longstanding tradition; the NDA has over the years, in the spirit of African brotherhood and cooperation, trained cadets from various African countries: Liberia, Togo, Sierra Leone, Niger, Central African Republic, Zimbabwe, Uganda, Burkina Faso and Chad.

Let me specially commend you for the spectacular parade this morning. The order, the synchronization, the precision, the creativity and the discipline exhibited were simply outstanding.

The world has changed a great deal in the time since today’s graduating classes enrolled into the NDA. The threats that confront us as a nation and as a planet have evolved and continue to evolve. Forty years ago, a speech like this would have been situated firmly within the context of the Cold War, with its well-defined ideologies, and distinct warring parties.

Today, we speak of non-state actors and of asymmetric warfare, and are confronted by enemies whose identities are as nebulous as their motivations.

It feels like yesterday when the earliest high-profile Boko Haram suicide bombings happened in Nigeria. It was a surreal moment, something that no one associated with Nigeria. It was not uncommon, at that time, to hear people argue that the perpetrators had to have been of foreign origin, as it was not in the nature or personality of Nigerians to be suicide bombers.

This was only about six years ago. In the time since then we have grown accustomed to suicide bombings and by Nigerians no less. The targets evolved rapidly, from symbols of authority like the Police Headquarters and the United Nations Building in Abuja, to encompass soft targets – bus stations, religious houses and markets. And again very quickly we started to see a trend of female suicide bombers.

It is worthy of note that until about 2013, the phenomenon of female suicide bombers was virtually unknown in the Boko Haram insurgency. A short four years later, it is one of the defining elements of the insurgency – young girls, some not even teenagers yet, laden with explosives and sent off as harbingers of death and destruction.

This swift evolution in suicide bombings is a perfect illustration of the nature of the threats that nations face today – unpredictable, asymmetric, constantly adapting to changing conditions, driven by a compulsive need to inflict maximum damage with minimal effort.

This is therefore the question we ought to be asking ourselves: Are our Armed Forces evolving with a similar speed and urgency, are they adapting with a similar nimbleness? How do we evolve rules of engagement in asymmetric warfare situations? Should we be redefining the borders of the Geneva Convention in the light of military engagements with armed militant combatants? Can we observe the same human rights rules where suicide bombers and persons determined to die and take with them as many innocent lives as possible are the enemy we must confront? What are the borders of the right to privacy and freedom of expression on the internet? What is the responsibility of Nations of the world in policing the internet which has become a virtual training ground for much good and as much evil?

Some of the early analyses of yesterday’s bombing in a London tube suggest that tutorials for making the explosive devices used are available on the internet. How can the military get ahead of the curve on communications in the age of the fast, cheap and available communication for all? We must also answer the question of how to defeat the ideologies that promote mindless killings and anarchy.

But just as important as these issues around conflict are the issues around how the military can in the process of innovating or thinking through use science and technology to add real value to the society and nation it has sworn to defend.

Let me speak briefly about the relationship between the military and scientific innovation, and how both have historically shaped and influenced each other.

Centuries ago, inventions like the wheel, and gunpowder, forever changed the nature of war. National armies wasted little time taking advantage of these innovations in the endless battle to gain an edge over existing and emerging enemies.

In a similar manner, the military has also spearheaded technology and practices that civilians have latched on to, to alter human civilization as we know it. The one that comes to mind most readily is the Internet, originating from the 1960s Advanced Research Projects Agency Network (ARPANET) Project of the United States Department of Defense.

Five decades on, the Internet has turned out to be perhaps the most definitive invention in the history of mankind, creating unprecedented social, economic and political opportunity. The American military has also been credited with the invention of GPS- Global Positioning System (GPS) now so common that every smartphone and cars use it to ascertain location.

But this network of satellites was originally set up by the U.S. Department of Defense in the 1970s. President Ronald Reagan ordered GPS to be made available to civilians once it was completed, while President Bill Clinton later declared that the highest quality GPS signal should be available as well.

How about RADAR? (an acronym for Radio Detection and Ranging,) this system uses radio waves to find speed, altitude, range, and direction of moving objects such as planes, ground vehicles, missiles, etc. Radar was developed before World War II for military purposes.

Today, it’s used for a variety of purposes, both military and civilian, including air traffic control and weather forecasting. Inadvertently, it was discovered that microwaves transmitted from radar equipment during WWII could also cook food, which led to the post-war creation of the microwave oven.

The use of Unmanned Aerial devices or drones today for surveillance, photography (and in Rwanda), the delivery of blood to rural medical facilities originated from the development of the devices by the military in the early 20th Century.

The world I have just described is the one that today’s cadets are graduating into. Placed side-by-side with this contemporary context, the Cold War Era into which your predecessors – today’s Generals and Commanding Officers – graduated, almost feels like a model of orderliness and predictability.

At this point let me say that I am pleased to note that the NDA has been positioning itself as a hub for innovation. I am already aware of inventions such as an Automated Pop-Up Target System, a Multi-Purpose Combat Mobile Robot, and a Perimeter Surveillance Robot, which the NDA has showcased at various science and technology exhibitions in the recent past. This is laudable and I urge you to sustain the culture.

I would also like to urge you to collaborate more extensively with the private sector, for research and innovation. All around the country technology hubs are springing up that are attracting our Nigeria’s brightest talent, and breaking new technological ground. I am convinced that the military should make its presence felt in this area.

Let me of course also commend the management of the NDA for your efforts so far in adapting your curriculum and programmes to contemporary realities. I have been told of the recent paradigm shift in the Academy’s training calendar, such that Naval and Air Force cadets now spend only four years in the Academy and then move to their respective bases, in place of the old system that saw them spend all five years in the Academy. Allowing them to spend their final year within their respective bases is a clear indication of the commitment to producing better-trained and better-prepared Naval and Air Force graduates.

To the graduating students of today, I have this charge: You belong to a special breed of young Nigerians. You model the highest form of patriotism and love of country because as armed forces personnel you have sworn to defend this nation with your lives. Besides you have come from every state, every ethnic group and you belong to different faiths yet by living together, rigorous training, drills and studying together you have formed bonds which make you brothers and sisters, ready to confront any situation even life-threatening situations shoulder to shoulder. This is the type of nation that we want to build.

In turn the nation has offered you its best in training and will continue to do so. You have an obligation to commit yourself to the never-ending task of nation-building, especially at a time like this when our country is urgently in need of peace, unity and cohesion.

As you join your senior colleagues in the field, you will be obligated to contribute your own quota to the defense of your fatherland. With the world-class training you have received in the Academy, I am convinced that you will discharge your duties professionally and responsibly, and that, in your hands, the future holds great promise for our national defense and security.

I commend once again our men and women in the Armed Forces who have kept faith with the current democratic dispensation for the past eighteen years. The subordination of the military to civil authority has been a cherished age-long practice that has promoted military professionalism in all parts of the world. It is a tradition that must be sustained and strengthened in our country.

To achieve this, all our men and women in uniform must continually re-dedicate themselves to the oath they have sworn, to subject themselves to democratic and constituted authority. I enjoin you to continue to shun politics and politicking. You must stay focused, and remain loyal to your Commander-in-Chief and to his government at all times.

As I close, let me congratulate the Commandant and the entire community of the Academy for the incredible job you are doing here. I commend your ability to innovatively combine military training with conventional academic studies for the cadets here, as well as offer postgraduate studies for military officers and civilians, in line with the practice in the best military academies across the globe.

I would like to thank the parents and guardians of these young men and women for permitting them the opportunity to enroll in the military, and for the support they’ve given over the years. I pray that God will reward the sacrifices you have made for your children and wards. And I wish you all journey mercies as you return to your various homes.

I thank you all for listening. Long live the Federal Republic of Nigeria.

Startups Must Have Awareness To Evolving Regulatory Killers

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California, a state in U.S., is largely outlawing the delivery of weed by drones or autonomous vehicles. The state is banning shipments by watercraft, aircraft, railroads, and human-powered vehicles.

But one area being left out is the autonomous sector. Sure, a drone can already deliver you a pizza in California. Yet the California Bureau of Cannabis Control is forbidding the delivery of marijuana by an autonomous vehicle—whether from the sky or the ground….

Deliveries may be made only in person by enclosed motor vehicle. Cannabis goods may not be visible to the public during deliveries. Cannabis goods may not be left in an unattended motor vehicle unless the vehicle has an active alarm system. Vehicles used for delivery must have a dedicated, active GPS device that enables the dispensary to identify the geographic location of the vehicle during delivery.

That is not news that should concern us in Africa. But I am drawing a lesson to the mistakes of raising money and operating at edges where drastic regulations can bring the end of a startup. We saw it in Nigeria when the government for all practical purposes banned the use of civilian drones. (Government might not have technically banned drones, but the burden to comply with the regulation has killed the sub-sector. The press release is at the end.)

Nigerian drone enthusiasts, like others across the world, have spent the last couple of months experimenting and exploring innovative ways to use drone technology. Mostly adopted by filmmakers, start-ups and enthusiastic hobbyists, there was also hope on the part of e-commerce companies that drones could be the answer to dealing with delivery challenges in the country, including frequent traffic congestion and a haphazard home address system.

That hope is fast fading, with an announcement by the Nigerian government yesterday (May 8) of an immediate ban on launching Remotely Piloted Aircraft (RUA) or Unmanned Aerial Vehicles (UAV) in its airspace without a permit from the Nigerian Civil Aviation Authority (NCAA) as well as the Office of the National Security Adviser (ONSA)

Government has a right to do most things it needs to do on the basis of security. But for many entrepreneurs, a promising area was cut-off, nevertheless. The blame is not to government, it felt it needed to curtail the spread of drones, owing to many security issues in the country. That is not a bad policy. The startup is responsible for any blame because part of business is mastering risks through a well-structured SWOT (strength, weakness, opportunity and threat) analysis. Any firm that has awareness of Nigeria would not have gone into drone business in Nigeria. It was evident that government would ban it. In my design center in Nigeria, I told my team never to bring drone to our facility even before the ban, to avoid the military ransacking the office on the pretense of their imaginations.

As you do business in Africa, you must have a good pulse of the regulatory possibilities. The risk of being out of step with government could be devastating: they can burn your office and nothing will happen. So, you must have a big separation on what you can and cannot do. That means even before the regulatory ban, you must anticipate what makes sense even before government takes action.

Here are two areas you must never attempt to participate unless you have the right approvals:

  • Penetration testing on websites you do not have clear approvals to test. It is illegal to hack even when you  think you are testing, without the authority and permission of the site owner
  • Never get close to anything ammunition or defense unless the project is within the government premises. In short, the fact that the contract came from one government agency to you is not an excuse. The other agency may not even know about it and just like that, they can burn down your building. Do not make that mistake: run away from such projects. They do not turn well as most African government agencies do not know how to share data. So, you may think you have clearance from the Army and the Police will give you a surprise.

The regulatory elements do not end in technology; it goes into every field of human endeavor. Anyone doing Bitcoin today in Nigeria should expect the Police to raid the office. It is irrelevant it may be legal in other parts of the world. Any entrepreneur raising money via Initial Coin Offering should expect the SEC (Securities and Exchange Commission) Nigeria to send the Police to lock up the office. While other parts of the world may give a warning, Nigeria will come physically. That is why awareness on what to do and avoid entirely is one way to survive as a startup in Nigeria.  Pushing the envelope does not apply here. It may be better to move to Kenya where they have better tolerance on new things with a far more  advanced regulatory regime.

 

*Photo is Chief Justice of Nigeria, Mr. Onnoghen

 

NIGERIAN CIVIL AVIATION AUTHORITY

PRESS RELEASE

NCAA ISSUES SAFETY GUIDELINES FOR DRONE OPERATORS

The Nigerian Civil Aviation Authority (NCAA) has taken cognisance of the growing requests for the use of Remotely Piloted Aircraft (RPA) leading to its proliferation in Nigeria and has therefore issued safety guidelines accordingly.

In recent times, RPA/UAV (Unmanned Aerial Vehicles) are being deployed for commercial and recreational purposes in the country without adequate security clearance. Therefore with the preponderance of these operations particularly in a non – segregated airspace, there has to be proactive safety guidelines.

The development of the use of RPA nationwide has emerged with somewhat predictable safety concerns and security threats. The International Civil Aviation Organisation (ICAO) is yet to publish Standards and Recommended Practices (SARPs), as far as certification and operation of civil use of RPA is concerned.

NCAA has therefore put in place Regulations/Advisory Circular to guide the certification and operations of civil RPA in the Nigerian airspace. This is contained in the Nigerian Civil Aviation Regulations (Nig.CARs 2015 Part 8.8.1.33) and Implementing Standards (Nig.CARs 2015 Part IS.8.8.1.33).

Therefore no government agency, organisation or an individual will launch an RPA/UAV in the Nigerian airspace for any purpose whatsoever without obtaining requisite approvals/permit from the Nigerian Civil Aviation Authority (NCAA) and Office of National Security Adviser (NSA).

The Nigerian Civil Aviation Authority (NCAA) wishes to reiterate that all applicants and holders of permits to operate RPA/Drones must strictly be guided by safety guidelines.

In addition, operators must ensure strict compliance with the conditions stipulated in their permits and the requirements of the Nig.CARs. Violators shall be sanctioned according to the dictates of the Nigerian Civil Aviation Regulations (Nig.CARs).

 

 

SAM ADUROGBOYE,

GM, PUBLIC RELATIONS,

NIGERIAN CIVIL AVIATION AUTHORITY

The Winning Business Model for Solar Business in Nigeria, Africa

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We have many solar entrepreneurs right now across Africa. They are innovating and indeed making progress. The future of electricity generation and supply, for Africa, is solar. But for us to make that happen, our business model must evolve on how we help families electrify their homes. We need to find ways to deliver our solutions in ways that our customers can afford them.

What We Do Today

  • Sell solar product to customers: Here, the customers buy the products, and own them. This scares some customers because despite not having to find money to buy the solutions, they have to handle the maintenance element which includes seasonal change of batteries, solar panels etc. Owing to that decision inertia, many have not become solar believers. In this model, the customer is investing in the equipment. Two cost elements are noticeable
    • Initial equipment cost
    • Maintenance cost throughout product life
  • Hire purchase: In this model, customers receive the solar equipment with options to make payments via installment plan. At the end of the installment plan, the customer owns the solution. The entrepreneur may increase the product cost to cover the extended payment plan. One challenge with this model is that the customer is investing in the equipment and not just focusing on getting the electricity. Two cost elements are noticeable
    • Installment payment for equipment
    • Product maintenance cost post-payment (usually the maintenance happens after the payment plan has been completed)
  • Lease 1: Here, customers are never given the option to ever own the equipment. The solution is leased to them and the cost of the electricity consumed is also charged to them.
    • The customer pays for the equipment but with no intention of ever using it (this is similar to a U.S. home broadband company renting the modem which the customer pays monthly. But the day the service is cancelled, the customer must return the equipment to avoid being billed the product full price)
    • The cost of electricity consumed is charged to the customer.
  • Lease 2: Here, customers are never given the option to ever own the equipment. The solution is leased to them but no cost of the electricity consumed is charged to them. The cost of electricity is included in the equipment lease amount
    • The customer pays for the equipment but with no intention of ever using it (this is similar to a U.S. home broadband company renting the modem which the customer pays monthly. But the day the service is cancelled, the customer must return the equipment to avoid being billed the product full price)

In these four models, one problem is that customers are putting money in the solar equipment. That deviates from what they already do from the national grid where they pay for electricity consumed with no acquisition of electricity assets.

The experiences of early adopters of solar which went really bad owing to poor solutions from China, many years ago, have poisoned the minds of many customers to invest and own solar products. They know that the initial payment is just a down payment as more money will be needed to support the solutions.  There is a likelihood that the battery may not last long before another big investment is required. That creates a major problem.

A Winning Business Model

A potential winning model that can scale massively could be delivering electricity to customers, with no requirements for them to buy equipment. They pay for what they have consumed and the company owns all its equipment. You may need to get a contract where the customer must commit to use the solution under defined Key Performance Indicators. Once the customer signs, you take your equipment and install in the customer residence, at no cost to the customer. You make money by billing for electricity consumed.  With this, the customer does not have to invest in any equipment. Also, risks move to the entrepreneur who is now incentivized to make sure the equipment works, as without it working, there will not be any electricity to bill the customer. Yes, all maintenance costs are not concerns of the customers.

I expect customers to respond and sign-up under this model. However, for the entrepreneur, it requires a deep pocket to execute since you are looking at multi-year period for break-even. For example, it may take 5 years to break-even with a customer with all the risks pilled against the entrepreneur.

This is a potential scalable model, especially in the major cities where risks of riots may be limited. A big estate will be the most optimal ecosystem to execute this model. It provides security to the equipment.

All Together

Finding the right business model in Africa will unlock more value in the solar electricity business. One option is to find a way to bill customers for the electricity consumed without them having to invest in the equipment. They are used to a model where they pay for electricity consumed, not owing pricey equipment tools. The solar entrepreneurs must respect that, and find a way to allow customers pay for electricity consumed.  That is a model that will scale immensely and unleash true solar business innovation in Africa’s economy.

Nigeria’s 10-Year Tax Incentive To Dangote Group, How You Can Get Yours

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It is called Conglomerate Tax. It is a game played in all parts of the world. Conglomerates use their powers and scales to bully governments to do things the very way they want things. If governments refuse, they do not invest and nothing changes. Because they know the governments are financially incapable or strategically deficient, they hit them at the pain points: I cannot solve this problem if you do not accept my terms.

You may not like it, but there is nothing you can do about it. It is legal. From GE to Carlos Slim Grupo Carso, citizens subsidize most things conglomerates do as most times they do not have to pay tax. They get great deals you wish you can. And you can if you follow the game plan (I will explain later).

The news is that the Dangote Group will not pay tax in the next ten years for it to help Nigerian government fix roads.

The Nigerian government has granted a 10-year tax incentive to Dangote group for the construction and rehabilitation of roads, Minister of Power, Works and Housing, Babatunde Fashola, has said.

Mr. Fashola made this known while speaking at the Businessday Road Construction Summit, held in Victoria Island, Lagos, on Friday.

Mr. Fashola, who disclosed that construction of the Apapa to Oworonshoki end of the Lagos-Ibadan expressway has been handed over to the company, said the government had approved a review of the five-year limit on tax order enjoyed by the company to 10 years.

“We inherited a tax incentive policy for individuals to benefit from tax remission, to recover investment made in public infrastructure like roads, which other members of the public can utilise,” Mr. Fashola said.

He noted that pending applications from Dangote Group were not approved by the previous administration, which the present administration has now approved and work has commenced on the 42.9 km Obajana – Kabba road in Kogi State

Dangote Group deserves its deals. I congratulate the firm. I just hope government will extend same to other businesses who may like such deals. If they refuse to extend such deals to other companies with capabilities, it becomes corruption from government against the Nigerian people

But as it stands, there is no issue, in my opinion, if anyone can get that same deal for other roads. Dangote Group needs those roads to do business and government cannot keep them in good conditions. Dangote Group has been paying taxes and yet nothing has been done on the roads. So, Dangote Group wants to keep the taxes and fix the roads. Magical. But what happens if Dangote Group tax burden is 4x the cost of the roads? Government will not go there.

I do think if they extend the deals to the banks, telecoms and oil companies, Nigeria will collapse. Sure, most of the roads will be built, but Federal Inland Revenue Service may just close as there will not be a need to be collecting taxes. Just pick a road and fix it and taxes will be forgone for ten years.

But yet, besides the above points, this is the heart of what even made it possible for Dangote Group to begin that conversation. It is called the accumulation of capability. Once you have it and attain that position, governments will do senseless deals with you. They know you have the power and can help them, and without you, there is nothing else they can do.

After the publication of this piece where I noted how entrepreneurs can use the accumulation of capability to improve their abilities to create wealth, as Dangote Group does, most people noted that Dangote Group has been receiving government support. The assertion is that Dangote Group gets perks from Nigerian government and that has driven its success. In this piece, I explain how you can also get the same level of government support that Dangote gets. It is called Conglomerate Tax and it is done all over the world. The more a firm operates at the upstream, asset heavy, high risk, and long-term view level, the more it needs goodies from governments.

And for governments that want help to put infrastructure at high pain levels, they always listen. U.S government could give Carnegie free land for rail-roads but may not give any to a man that wants to build a toothpick factory. Similarly, Nigerian government can give goodies to Dangote Refinery and may struggle to offer same to a businessman that wants to import toothbrush

You may feel bad, but there is a clear path to enjoying conglomerate tax: just accumulate capability and you can control governments. It is a universal syndrome, unfortunately.