General News
A call for Better Compliance to News Media Ethics: The Case of the Rumoured Acquisition of Jumia by Zinox
By Adeola Olanloko
Last week, Nigeria’s business media was awash with the speculation that Leo-Stan Ekeh, the chairman of Zinox Technologies and owner of the Konga e-commerce platform is on his way to acquiring Jumia Technologies, Africa’s leading e-commerce platform.
According to Nairametrics, an online business journal, Ekeh “has been scooping Jumia shares indirectly suggesting a possible acquisition could be in play if the opportunity arises.”
In the same report, Nairametrics quoted the Head of Corporate Communications for Zinox Group, Gideon Ayogu, who refused to confirm or deny the takeover move, as saying that “nothing positive is impossible.”
In a statement signed by Jumia Nigeria, the company said that they do not comment on speculations, noting that such a bid must comply with the rules and conventions as stipulated by the New York Stock Exchange (NYSE) laws.
“As per US Securities Law, shareholders must disclose any shareholding above a 5% threshold and so far we are yet to see any such disclosure. We are focused on executing on our strategy to scale the business towards profitability.
And as you can see from the Q1.22 results released on Tuesday, we made very good progress on this front. The fundamentals of the business are very strong, we posted the fastest GMV, Order and Revenue growth rates of the past 9 quarters,” the statement read.
How does one acquire a publicly listed company?
Who takes over companies on the pages of the newspaper? A look at how the stock market works shows that there are laid down procedures for the acquisition of a quoted company . A quoted company refers to any company whose shares are listed on a Stock Exchange – local or international. Jumia Technologies is listed on the New York Stock Exchange (NYSE)
One of the ways to achieve such a takeover/acquisition is by Management buyout. It is called a Management buyout in the instance that the Management owns a significant stake in the company such that acquiring the shares owned by Management takes the acquirer close to a controlling stake (50% plus one share of the company).
Typically the acquiring company/individual enters into an agreement with the owners of the company to buy controlling shares of the company at a given price. The Board/Management of the company targeted for acquisition will facilitate the negotiations between the company’s shareholders and the proposed buyer.
This process is what Standard Bank, owners of the Stanbic Bank brand, used to acquire IBTC in September 2011 and is what is being played out between Elon Musk and Twitter. Jumia’s statement indicates no such discussions were held with Zinox.
Another route is for an entity to scoop up shares from the floor of the exchange where the stocks are listed. These stocks are called over-the-counter (OTC) stocks because you can buy and sell them through most major online brokers. This was the route Heirs Holdings used to acquire a significant stake in Transcorp Plc in April 2011.
At Jumia’s current market capitalization, excluding any premium existing shareholders may demand, we estimate that to scoop up 51% of the company shares will require a minimum investment of over $350 million or N203 billion.
Possibly the price will be higher if an average of the stock price in the past 12 months is used as a benchmark. If such an over the counter transaction in a single stock were to take place on the New York Stock Exchange, market watchers would have noticed the activity in the stock and would not rely on Nairametrics to bring it to their attention. Here the reporter overreached himself.
Typically before launching such an acquisition bid, the acquirer already owns significant shares in the company. Elon Musk for example owned 9.2% of Twitter stock before his acquisition bid and his aggregate stock holding was duly declared as required by the rules of the US Securities and Exchange Commission (SEC)
The SEC law stipulates that anyone who hits an aggregate five percent shareholding threshold must declare it to the Exchange. It is what applies in most international Exchanges, including the Nigerian Stock Exchange.
Failure to comply with this law is considered a violation of Securities law. Going by the statement from Jumia, there has been no such disclosure yet. We doubt that a very savvy investor like the Chairman of Zinox would have acquired shareholding in Jumia Technologies above this 5% threshold without disclosing it, given the implications of non-disclosure.
Is this a case of careless reporting and lack of due diligence?
Media analysts are thus suspecting that given Jumia and Zinox are well known brands in the Nigerian market, the story may have been spun purely for its sensational value to drive clicks without thought on how it might affect stakeholders in the two companies, investing public and other critical stakeholders.
Jumia released its Quarter 2 financials on May 10th to Analysts and the Media. All listed companies are required to release their quarterly results to Analysts and the Media and Jumia publicly announced this date on its website in advance.
The company reported posting the fastest GMV, order and revenue growth rates of the past nine quarters and this is possibly what drove the uptick in the stock price following its Earnings release not the rumour!
Notwithstanding any future activity on Jumia Technologies stock, this particular story appears not to have been well researched and subjected to proper due diligence before it was published and this verges on carelessness and lack of respect for the reading public.
Sensational titles always drive clicks for digital media but spending credibility just for a few more clicks is a bad trade and harms all digital newspapers. It is time for professional media practitioners to encourage compliance with ethics and tighten the rules either through private digital media group initiatives. Otherwise, we will give room to the government to intervene.
Adeola Olanloko, a business analyst writes from Lagos.
Nigerian Postal Services (NIPOST) has urged courier or logistics service providers to register with the service or face the wrath of the law.
Dr Chris Ashiedu, state postal manager, Enugu State, made the call while speaking on Tuesday at the ongoing 36th Enugu International Trade Fair.
The 10-day Fair, which kicked off on April 4, is themed: “Developing Nigeria Industrial Sector/SMEs for Economic Advancement and Global Recognition”.
Ashiedu said that any company or venture who failed to register as well as their workers would also be liable to legal sanction of fines, imprisonment or both.
He said that NIPOST had so far registered 29 courier/logistic service providing companies or ventures in Enugu State, while hunting for others operating under hiding.
According to him, we are succeeding in pushing to get them notwithstanding that they are dodging NIPOST officials but we are determined to get every courier/logistic service provider in Enugu State under our regulatory control and guidance.
Ashiedu said that the Agency was already developing a technological App to track those operating in the secret and get their locations.
He said: “NIPOST is a Federal Government agency constitutionally charged with the regulation and licensing of all courier and logistics services in Nigeria.
“We clamped down on all unregistered courier and logistics service companies or providers last month in Enugu, and we will keep on chasing them until they do what the law demands.
“We will also compel them to do their annual re-registration.
“It is made easier for them since NIPOST has categorised courier/logistics services into international, national, regional and state and bulk of the couriers/logistics fall into state category to pay very less for registration and annual re-registration.”
The manager explained that any movement of item, be it food or even fruit on a motorised equipment (vehicle or motorcycle) from one location to another in terms of delivering is doing courier service.
General News
Sofia Zab, PalmPay CMO Highlights Strategies for Driving Digital Payment Adoption in Africa
At the recent Tech Unite Africa 2025 conference in Lagos, PalmPay’s Chief Marketing Officer, Sofia Zab, shared valuable insights on accelerating the shift from cash to digital payments in Africa, as the company introduced its latest innovation: the PalmPay Debit Card.
During a panel discussion, Zab addressed the critical barriers hindering digital payment adoption encountered by PalmPay when the company launched in Nigeria: reliability and cost. She noted that in 2019, many Nigerian consumers and merchants avoided digital payments due to frequent transaction failures and high fees.
To overcome these challenges, PalmPay developed a robust infrastructure ensuring a 99.95% transaction success rate and pioneered a user-friendly model with zero rated bank transfers, fee-free bill payments and cashback rewards.
“Once users experience the benefits, they don’t want to return to cash,” Zab stated. “The key to shifting consumer behaviour is making digital payments more convenient, more rewarding, and less stressful than using cash.” As consumers adopted cashless payments, they began seeking out merchants that would accept payment with transfer, driving digitisation in retail payments organically.
Zab also highlighted PalmPay’s inclusive approach to building a cashless ecosystem, especially in areas with unreliable internet access. Beyond its smartphone app, Nigerians can transact through PalmPay’s nationwide network of mobile money agents, who are equipped with multiple devices and SIM cards from various providers and can transact on behalf of users if a particular network is experiencing an outage.
In 2024, PalmPay went a step further by introducing a USSD code (*861#) for users without data access, and with the new PalmPay Debit Card, its customers now have another access point and can withdraw cash from ATMs or point-of-sale terminals when digital transactions are not feasible. “For us, the key is about meeting people where they are, rather than waiting for the perfect infrastructure to arrive”, Zab emphasized.
In alignment with its mission to drive financial access, PalmPay unveiled the PalmPay Debit Card at the conference. Developed in partnership with Verve, Africa’s largest domestic card scheme, the card offers zero maintenance fees, easy in-app application with nationwide delivery, and integration into PalmPay’s full suite of financial services – including cashback, merchant rewards, and high-yield savings. This initiative marks a significant milestone in PalmPay’s evolution into a comprehensive digital banking platform.
With over 35 million users on its smartphone app and a MSME network of 1.1 million agents and merchants across Nigeria, PalmPay continues to build one of the continent’s most dynamic fintech ecosystems, dedicated to redefining digital banking to be more personalised, comprehensive, and accessible to everyone.
In line with the 2025 World Health Day theme, “Healthy Beginnings, Hopeful Futures,” QNET has reiterated its dedication to enhancing maternal and neonatal health, particularly in emerging markets.
The global direct-selling company has spotlighted its wellness and nutritional products, which it says are designed to address key health challenges in underserved regions.
Statistics from the World Health Organization show that 287,000 women died due to pregnancy and childbirth-related complications in 2020, with 95 percent of these deaths occurring in developing countries.
UNICEF reports further underline the severity of neonatal mortality, with 2.3 million newborns dying within the first 28 days of life in 2022, accounting for nearly half of child deaths under five globally.
Many of these fatalities are linked to preventable causes such as infections, poor nutrition, and complications from unsafe drinking water.
Biram Fall, Regional General Manager for QNET Sub-Saharan Africa, underscored the significance of maternal and neonatal health as a foundation for societal well-being. “The foundation of a healthy society starts with the well-being of mothers and their newborns,” he said.
Among the company’s health-focused products are EDG3 Plus, a glutathione precursor blend aimed at enhancing cellular repair and immune function, and HomePure Nova, a seven-stage water filtration system that addresses the issue of unsafe drinking water—a major contributor to maternal and infant morbidity.
Local stakeholders have also lauded QNET’s efforts, highlighting the potential impact in Nigeria, where maternal mortality rates stand at 512 deaths per 100,000 live births, according to World Bank data.
As public-private partnerships gain traction in addressing health gaps in sub-Saharan Africa, QNET’s initiatives have been positioned as a complementary solution to overstretched health systems, aligning with the global goal of “Good Health and Well-Being” under the Sustainable Development Goals.
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