The National Bureau of Statistics (NBS) this week released the macro economic indices for the second quarter of 2016 to the bemusement of Nigerians and even the NBS itself as all key economic indices pointed to an economy is decline in all sectors. The Capital inflow, employment/unemployment rates, Gross Domestic Product and Inflation all turned out terribly negative and in the words of NBS, worse than expected. The nations GDP at constant basic prices shrunk in the second quarter of 2016 by 2.06% after it contracted 0.36 per cent in the first quarter of 2016. While most analysts and economists had already classified the economy as in a recession before the release of these figures, very few of them and economists expected the economy to contract to this disturbing low level.

The fall of crude oil prices has reduced drastically the government’s ability to spend and affected adversely the value of the Naira causing a severe shortage in foreign exchange required to keep the economy healthy. Revenues from crude oil sales still account for over 70% of governments revenue and the attacks by Niger Delta militants on oil installations has compounded an already bad situation for the nation’s economy. The government in the 2016 budget expected to generate revenue from the sale of 2.2 million barrels of crude oil daily, but the attacks on Oil installations have reduced daily output by over 700,000 barrels to 1.56 million barrels daily. The NBS yesterday said the inflation rate has risen to a 10 year high of 17.1% in July from 16.5% in June. Inflation on food items also rose to 15.8% in July from June figures of 15.3%. Nigeria’s Sovereign dollar bonds also experienced a downward spiral to its lowest value in weeks after the second quarter economic data was released by the NBS.

Though Jumia is not mentioned in the short press release. We are certain it is one of the biggest puzzle components while Rocket Internet is fading.

Special items, in particular due to impairments at Global Fashion Group S.A. (“GFG”), weighed on the results of Rocket Internet SE (“Rocket Internet” or the “Company”) in the first half of 2016. As a result of the last funding round for GFG, which was announced in April 2016 and which closed in July 2016, GFG wrote-off goodwill and intangible assets. GFG contributed negative EUR 383 million to the Rocket Internet’s first half year results. The result was further impacted by special items such as impairments, fair value adjustments and – to a lesser extent – positive special items. Overall, the consolidated loss for the first half of 2016 was EUR 617 million.

As a result of deconsolidation effects, group revenues in the first half of 2016 decreased to EUR 29 million compared to EUR 71 million in first half of 2015.

“Despite these special items, we remain committed to our goals”, says Oliver Samwer, CEO Rocket Internet. “We still expect at least three of our selected portfolio companies to turn profitable by the end of 2017, and that the aggregate EBITDA losses of the selected portfolio companies will have peaked in 2015. “

Rocket Internet will report detailed results for the first half of 2016 on September 22, 2016

This is a big casualty of first mismanagement and secondly dollar policy of President Buhari. It does not make sense to run an airline in Nigeria right now.

After over five years of been in murky waters due to the diversion of funds and inflation of aircraft price by its the management, Aero Contractors has finally announced its plans to suspended flight operations from tomorrow, Thursday, September 1, 2016.

The airline, which was taken over by the Asset Management Company of Nigeria (AMCON) Saharareporters gathered took the decisive decision when its current management led by Capt. Fola Akinkuotu as the Chief Executive Officer (CEO), could not rescue the airline from going further down.

A source close to the airline confided in our correspondent today that AMCON debt in the troubled airline has grown to N20 billion from the initial N11 billion in 2011 when AMCOM took it over.
The source said that with the initial N14 billion, AMCON had 60 per cent shares in the airline and with the current N20billion, the source said AMCON had completely taken over the running of the airline and decided to liquidate it.

In a statement, the management of the airline announced the suspension of its “schedule services” from September 1, 2016.

The statement said the depreciation of naira within the last six months has made it impossible for the airline to achieve its operational targets.

The airline said, “The impact of the external environment has been very harsh on our operational performance, hence management decision to suspend scheduled services operations indefinitely effective September 1, 2016, pending when the external opportunities and a robust sustainable and viable plan is in place for Aero Contractors to recommence its scheduled services.

“The implication of the suspension of scheduled services operations extends to all staffs directly and indirectly involved in providing services as they are effectively to proceed on indefinite leave of absence during the period of non-services.

“We are aware of the impact this will have on our staff and our highly esteemed customers, hence we have initiated moves to ensure that we are able to return back to operations within the shortest possible time, offering reliable, safe and secure operations, which the airline is known for.”

We are all familiar with the stereotype of the young entrepreneur; technology whizz kids with all the latest mobile devices and the ability to multitask as they type hundreds of words a minute. Sage – which examines the key characteristics, attitudes and behaviours of young entrepreneurs around the world – confirms that there is plenty of truth in this picture of how young people work and interact with technology.

What’s more, our research in Nigeria and 15 other countries shows that we are just at the beginning of a major shift in how businesses are run as the young entrepreneurs make their presence felt. Mobile technology has already made us all much more productive and helped companies of all sizes to reduce costs and become more efficient, but most young entrepreneurs see plenty of opportunities to do even much more with the tools and apps available at their disposal.

Some of the most interesting local findings on Nigerian young entrepreneurs include:

• 96% say that they still feel the same excitement about their business as they did when they first started it
• 44% say they will start over 5 businesses in their lifetime
• 42% say they would have still been able to run their business with the technology available 20 years ago
• 38% say they socialise with their team once a month
• 29% say that work comes before life
• 16% say that they get out of bed in the morning because they want to make a difference in the world and do some social good

Mobile devices are the platform of choice for today’s entrepreneur and, as you might expect from a generation that has been mobile literate from an extremely young age, a large proportion place huge emphasis on technology and are keen to be at the forefront of new trends. Young Nigerians are mobile-first people, so that’s no surprise at all.

More than a third of young entrepreneurs (38% in Nigeria) say the technology they use is the most important element when it comes to the smooth running of their business; they couldn’t prosper without it. 42% say they could probably not have run their business with the technology available 20 years ago. That’s an incredible stat: far from destroying jobs through automation, technology is inspiring young people to create businesses that could not have existed in the past.

-Sage